Tough Times Call For Aggressive Marketing

Sydney Morning Herald

Saturday October 11, 2008

Kylie Beaufoy. Kylie Beaufoy is the director of marketing at Hall Chadwick Marketing Communications.

Kylie Beaufoy looks beyond the doom and gloom.

Tumbling shares and global economic uncertainty: they need not be a problem. In fact, today's economic uncertainty could be a business opportunity. There's a simple process to follow. Take a good look at your business, reconnect with your customers, provide the very best products, services and prices - and market as hard as you can.

Too many businesses, sensing tough economic times ahead, retreat into their shells. They focus on the cost of everything and the value of nothing, cutting back on spending and making survival the sole priority.

Worse, they drop prices to maintain sales, even if it means losing money.

Customers and staff can almost smell the decay, the negativity, the lack of ideas, the lack of confidence, the bunker mentality.

As a customer, how much do you want to work with a business that is clearly preoccupied with the negative? Doesn't make you feel confident, does it?

In contrast, the smart and successful entrepreneurs see an opportunity in every situation.

The lessons we learnt in the early 1990s slowdown can be applied again. Reassess your marketing goals and promotional strategies

Marketing goals need to be specific, measurable, achievable, realistic and timely.

Changing economic circumstances call for goals to be re-evaluated to match the changing environment.

Brand building in times of growth is fine, but short-term sales objectives or share expansion may be more relevant.

The use of short-term promotional strategies such as direct marketing, sales promotion or e-marketing will increase as a proportion of your marketing budget.

Customer value for money isn't always measured in terms of the "sticker price"

Competing on price is not the only option during economic turmoil. Customers will always want value.

The concept needs to expand beyond economic value. Value can be created through quality, benefits, information, extra services, customer satisfaction and relationship management.

Now more than ever, companies need to assess how they can add value rather than merely competing on price.

Learn as much from those who did it badly as from those who succeeded

Anyone who doesn't learn from the past is destined to repeat the mistakes of history.

Many companies, especially market leaders, look to consolidate in declining markets, which can often lead to ignoring the needs of clients as they focus on internal functions and cutting costs.

This provides an opportunity for entrepreneurs to increase their customer base through superior relationship management.

It is generally accepted that 80 per cent of business is an extension of existing clientele, and the need for modern and cost-effective customer relationship management programs is highlighted in declining markets.

Zig when everybody else zags

An aggressive marketing strategy doesn't have to be costly, but it does need to be different, creative.

It comes from truly knowing the needs of clients more than the competition does to create a sustainable means of competitive advantage and an understanding of how to effectively and efficiently communicate with potential clients.

The example of Apple

Apple is a prime example of a company that refused to follow convention and thrived as the market was contracting in the early 2000s.

Most technology companies tightened their belts, lowered their prices and downsized to adapt to a slower-growing market. But Apple took the bold move of releasing its first portable MP3 player, the iPod, and opening the first Apple stores.

The Apple marketing communications program was hailed as a casebook example of a bold and imaginative campaign that transformed a potentially disastrous change in the market into a success story.

As a result, Apple's market capitalisation soared to $US162 billion. Sales went up 24 per cent, earnings 75 per cent and the stock price 146 per cent.

The company has enjoyed a great reputation for its innovative ideas and is still growing strongly in a demanding and competitive market, particularly with the recent launch of the iPhone.

This is exactly the approach small businesses should be taking: creating opportunities with a forceful yet capable marketing strategy and budget.

The message is clear. Tough economic times create an opportunity for imaginative entrepreneurs who look for innovative and integrated marketing strategies that generate higher sales by increasing the loyalty of existing customers and attracting new ones.

While many businesses are seduced by the need to cut costs when the chips are down, the visionary entrepreneurs are asking, What marketing strategies can I introduce to improve the customer experience?

© 2008 Sydney Morning Herald

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