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Recession Marketing
by Adam Salacuse, Advisory Board Member to Dynamic Results, plus Founder and President of ALT TERRAIN
We’ve certainly been in it for a while. However, guidance on how to best steward a company during these difficult times is rare, especially when it comes to brand marketing and advertising.
One of the most difficult obstacles to overcome is explaining how a new multi-million dollar marketing initiative is the right thing to do when a company is reducing its workforce. Then, there is the challenge of clearing an advertising budget with the CEO when consumers are hunkering down.
So what is a company to do? Should one wait until there is an uptick in the economy? Should one wait to see what competitors are doing?
Well, if you are a “value brand” such as Wal-Mart, McDonald’s, Greyhound, Boost Mobile or Marshalls, the answer is clear cut. It is a once-in-a decade opportunity to interest new consumers in a brand they wouldn’t consider otherwise.
But for all those companies that are not in the “cost saving” or “value brand” category, here are a few solid marketing strategies to help brands thrive in this economic climate:
- Identify and Reassure – The last thing a company wants is to appear out-of-touch. And that can happen if you launch a large, splashy advertising campaign that doesn’t acknowledge the financial strains and pains that consumers are going through. In turn, it is smart to have your message identify with consumers and, if possible, devise a campaign that offsets their concerns.
Hyundai implemented a prime example of this with their ‘Layoff Protection’ program which allowed all new buyers to return their vehicles without any damage to their credit rating if they lose their jobs.
- More by Comparison – If your company sells big ticket products or services, it might seem hopeless to put forth a marketing effort, but take Microsoft’s lead. It is biting into Apple’s market share with a campaign that shows dollar-for-dollar with a fixed budget, consumers can buy a much better equipped PC (e.g. memory, RAM, features, etc.) than if those same dollars were spent on a Mac purchase.
- Saving Money – If a possible fit, another great tactic is stating how your brand can save a consumer money. Many food brands are taking this tack with a ‘cooking at home’ to save money, such as a Kraft Singles, campaign that touts how a delicious homemade grilled cheese sandwich can be created for less than a dollar.
- Charge Differently – A friend of mine who heads the business development division of a Fortune 500 technology company was griping that his CEO wants more sales, but doesn’t see that a change needs to be made in the way they bill for their services. Few clients are willing (and able) to pay a hefty +$500,000 upfront software fee even if the product will save them over a million dollars a year in operation streamlining. His solution was to ‘Netflix’ the company by replacing the upfront fee with a monthly software lease charge that would actually net the company 15% more annually. His recommendation fell on deaf ears, as the company is too set in their ways and addicted to the potential infusion of +$500,000 to its cash flow with each new client added to the roster.
Overall, my advice for marketers (or those responsible for allocating budgets) is to recognize that the current economic climate is ever evolving, and that change can equate to opportunities if one’s company is properly positioned to take advantage of them.
Adam Salacuse
CEO of ALT TERRAIN (www.altterrain.com)
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