News July 2008
No, not the latest in the series of bawdy comedy films set in a London agency, but words of advice to all businesses as the downturn bites.
According to the Chartered Institute of Marketing’s latest survey (Spring 2008) more than a third of marketers believe the UK will be in recession in 2008, and over 50% expect general economic conditions to worsen over the next 12 months. No news headlines, as this ties in with the views of most commentators who agree that.
But what was newsworthy in this survey is that marketers remain positive about their prospects and those of their own organisation’s performance - with 80% per cent of marketers confident that business for their organisation will improve or stay the same over the next 12 months.
David Thorp, Director of Research and Information at The Chartered Institute of Marketing added; “…This [optimism of marketers] may be because today’s professional marketers know that they can help their organisations exploit the opportunities an economic downturn brings. By focusing on changing customer needs more precisely, in these challenging times, they can help their organisations to not only survive but thrive.”
This sentiment is echoed by Technology Sales and Marketing Coach, Terry Forsey who believes that cutting back on marketing can be a false economy—especially in a recession.
“Studies of the last six recessions have demonstrated that companies that do not reduce advertising budgets achieve greater increases in profit than companies that do,” explained Terry. “So the message seems to be ‘maintain your marketing, but make sure you focus on the right areas’.”
Terry has identified three priority areas for marketing activity during a downturn.
1. Increase your activity with existing customers. Remember the 80/20 principle – that 80% of profits are generated from 20% of your customers - it is essential that you keep existing clients informed about what you can do for them and treat them well by rewarding loyalty with special offers.
1. Increase your activity with existing customers. Remember the 80/20 principle – that 80% of profits are generated from 20% of your customers - it is essential that you keep existing clients informed about what you can do for them and treat them well by rewarding loyalty with special offers.
2. Give and you will receive. We all like the idea of something for nothing, so use the law of reciprocity to your advantage. Give your customer something: a free report, a seminar, a tips booklet; and they will have the urge to give you something in return—hopefully their business.
3. Create your niche. Appealing to a wide market won't necessarily generate more sales—it may even have the opposite effect. Instead, develop a niche market and become the best in that particular sector. Tailor your website, brochures, flyers and presentations for each specific sector.
“So, cut marketing expenditure if you must, but don't cut marketing activity,” adds Terry. “Stay active in your markets and seek out more cost-effective ways to keep your name at the forefront of your customers' minds. If you market proactively, healthy growth is possible—even in an economic slowdown—when you can steal the market share from your competitors who may cut budgets without thinking. Developing markets in these tough times puts your business in a better position when the economy picks up again – think ahead!”
For more information call 01536 771440 or email, terry@terryforsey.com.
ENDS
