Bear Markets, Budget Cutbacks, Marketing Malaise – Oh My!

Recession, sell-offs, layoffs, closings, bailouts – is it a reason for businesses to despair or an opportunity for a second chance? It is often said that Americans are by far one of the most optimistic cultures on the globe, although it would not necessarily seem that way if you polled a few friends these days. But even with the prolonged negative news, at some point we just have to say, “Okay, enough of this, let’s pick up the pieces and get things back on track!” It does not mean instant success or magical profitability or zero unemployment. It just means putting on a new attitude and a creating a reason to keep plugging along.

Most business owners have experienced painful operational trimming and tough decisions in the past year. I have heard clients and other business owners discuss their tactics to refocus, shift their processes and alter methods for business development to keep up with the new dynamics of doom and gloom. It is hard to keep the proverbial stiff upper lip when you are bombarded with messages about the seemingly endless consequences of financial failures. Marketing, like all service businesses, tends to be a line item that is initially vulnerable to being cut. However, strategic-thinking clients see it as a tool to help them achieve stability and loyalty even in challenging times.

So, what does this mean for marketing and business? Absolutely everything. It means that once we recover from the constant barrage of this new world of cutbacks and lagging economic indicators, businesses have an opportunity to emerge stronger, more attentive, and more focused than ever before. Maybe budgets are being trimmed, but being cost-efficient and strategic in spending marketing dollars is always a good idea. Maybe it is a little harder to figure out what customers want now, but it is beneficial to determine what customers really need from you to help align your business and investment of time and resources.

Focus, strategic planning, consistent messaging and dedication to customers– these are all cornerstones of successful marketing.

• Focus: Do you have a clear idea of who your customers are and what they think about you and your product or service? Do you have a deep understanding of what your core audiences’ perceptions are of your company or product? Have you evaluated what you really do well and what is relevant to your customer? Spend some time walking in your customer’s shoes and find out how your product or service works for them.
• Strategic Planning: Do the homework – have you invested your time and dollars to research what is now relevant to your key target audience? Don’t wait until after a marketing program is launched to see if it ‘sticks’; spend the energy up front even when your board of directors is screaming for results. Results from off-target marketing are more disastrous than a delay of a well-executed campaign. A former boss had a saying that has proved itself true time (unfortunately sometimes) and again in the professional realm:  “There’s never enough time to do it right, but there’s always time to do it over.” 
• Consistent Messaging: Are you clear on what it is you are REALLY selling, and how it is communicated to your audience? Remember, people do not just buy cars – they buy status, or dependable transportation for their families, or brand familiarity.  Take time to really consider what you sell and review it from the customer’s perspective. What you or I think about our company is meaningless if what we are saying does not matter to the customers we want to attract. If we are sending mixed messages, we are losing ground.
• Customer Dedication: Does your entire staff, from the senior level to the front line, carry out an exceptional customer service attitude? Do they know what your core message is as they interact with customers? When we conduct branding programs, we always include the aspect of internal marketing before the external marketing begins. You have to have buy-in and dedication to the mission from all staff, whether they have direct contact with customers or not. Everyone plays a role in telling your story. Make sure they are all reading from the same script and believe in taking care of your customers.

We have seen firsthand an upside to the recession – it has actually been a catalyst for positive changes and smarter marketing. Our successful clients are taking time to really consider who their best customers are and uncovering their needs (Focus).  Another aspect is the willingness of clients to conduct critical research to insure we have as much supporting data as possible BEFORE investing in a marketing program (Strategic Planning).  Then there is the desire to carefully consider what and how we promote the brand or the product promise (Consistent Messaging).  Marketing alone is not the sole solution – having strong leadership, sound customer service and a solid infrastructure all contribute to survival and ultimately success (Customer Dedication).

Spending time now to analyze what works and eliminate what doesn’t is a positive step. It makes us sharper, more in tune with our customers and even with our competition. Suddenly things just zoom into focus and priorities come to the forefront. It certainly is not a painless process, and yes, there are some difficult choices to make, but it ultimately creates a stronger and more defined company.  

Companies need to believe that the economic mess brings with it opportunities to refocus, realign, reinvent and recall what made them successful at the start. If the foundation of a company is strong, with a defined brand identity, it can survive a recession with a consistent marketing message, and rise to the top when the dust settles.