If you are strapped for cash and thinking of pulling your advertising, think again. According to a recent American Marketing Association (AMA) survey, 60 percent of AMA member marketers believe that halting or reducing spending on key marketing programs is the biggest mistake marketers or business Those surveyed feel their greatest internal challenge is demonstrating the value of marketing when sales are decreasing. Other top internal issues include realigning marketing strategies to match business objectives and focusing on longer-term brand strategies.

Small businesses can institute the following four strategies to enhance marketing plans in a downturn:

1. Shape the Message, Don’t Slash the Price
“Focus on the company’s value to the market”
Survey Fact
Only 3 percent of American Marketing Association marketers believe that it is important for marketing functions to adjust pricing strategy to help sustain and grow business during an economic downturn.
Implications for Marketers

Conduct research to understand your competitor’s positioning and your target audiences’ perception of the economic environment.
Hone and refine your messages.
Highlight the value of your product or service, rather than slashing the price.

2. Focus on Who NOT to Target
“Fish where [your] fish are”
Survey Fact
Sixty-seven percent of AMA marketers feel it is important to mitigate the impact of an economic downturn by refining target audiences.
Implications for Marketers

Assess which segments of potential customers you do NOT want to target.
Demarket to inappropriate market segments. Simply stated, some customers are more costly to serve than to lose.
Focus marketing strategies on customer segments that will produce the greatest ROI.

3. Stand Apart from the Crowd and Invest in Innovation
“Major opportunities when others are cutting back”
Survey Fact
A majority of AMA marketers, 66 percent, report that they would take the same amount or less risk with a new product and/or service innovation during a time of economic uncertainty.
Implications for Marketers

Differentiate through innovation with a product or service that performs in a faltering economy.
Invest in R&D now to ensure your company is in a position to compete when the economy rebounds.

4. Sustain the Brand
“Sometimes it is the reeducation of a product [that can help sustain or grow a brand]”

Survey Fact
Sixty-three percent of marketers believe that they can lessen the impact of a downturn by investing in brand building, as part of their marketing plan.

Branding4newbies helps small businesses with the creation and development of messaging, branding, marketing, websites, advertising and public relations. Contact us today for more information:

Shakira Brown - sbrown@branding4newbies.com
Cathlyn Driscoll - cdriscoll@branding4newbies.com

Filed under: Branding 4 Newbies, Marketing 4 Newbies, PR 4 Newbies