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MARKETING IN AN ECONOMIC DOWNTURN
A recent American Marketing Association (AMA) survey
sheds new light on the importance of marketing in an
economic downturn.
Reducing spending mistake
Some 60 percent of AMA member marketers say
halting or reducing spending on key marketing
programs is the biggest mistake marketers can make
in an economic downturn, according to a recent AMA
survey.
From May 6, 2008 through May 16, 2008, the
AMA conducted online interviews with 244 AMA
members in the continental United States. Focusing
on short-term tactics and sticking to the
status quo are additional missteps, marketers say.
Economy having impact
In all, 66 percent of survey respondents said the
current state of the economy is having an impact on
their marketing plans. Marketers most often say it's a
challenge in this economy to:
- Demonstrate the value of marketing when sales
are decreasing
- Realign marketing strategies to match
businesses' changing objectives
- Focus on longer-term brand strategies
Strategies for success
To enhance marketing plans in a downturn, the AMA
offered the following four strategies:
- Shape the message, don't slash the price.
- Focus on whom not to target.
- Stand apart from the crowd and invest in
innovation.
- Sustain the brand.
*Story continues in next column.
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Greetings - I hope you're enjoying the sunny, beautiful
days of summer. I am, but as always, the time is
passing by too quickly!
This month I focus on a recent study by the American
Marketing Association about marketing in an
economic downturn. Since I'm currently in the process
of developing marketing communications plans for
several of my clients, the study caught my eye.
Often when the economy sours, the "knee-jerk"
reaction is to reduce the marketing budget. But, as
this study shows, that isn't the best approach, and the
article offers a number of strategies for success.
As always, I hope you find the articles interesting,
useful, and most of all insightful!
Sincerely,
Barbara K. Mednick
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| STUDY RECOMMENDS STRATEGIES AND IMPLICATIONS FOR MARKETERS IN DOWNTURN |
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The American Marketing Association offered four
strategies to enhance marketing plans in an
economic downturn, according to a recent study
(continued from feature article).
1. Shape the message, don't slash the
price
Only three percent of AMA marketers say
it is important for marketing functions to adjust pricing
strategy to help sustain and grow business during an
economic downturn.
Implication 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 whom not to target
Some 67
percent of AMA marketers say it is important to
mitigate the impact of an economic downturn by
refining target audiences.
Implications for marketers:
Assess what segments of potential customers
you do not want to target.
Don't market to inappropriate market segments.
Focus marketing strategies on customer
segments that will produce the greatest return on
investment .
3. Stand apart from crowd and invest in
innovation
Sixty-six percent of respondents,
or the
majority of marketers, 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 research and development now to ensure
that your company is in a position to compete when
the economy rebounds.
4. Sustain the brand
Sixty-three percent
of
marketers say they can lessen the impact of a
downturn by investing in brand building as part of their
marketing plan.
Implications for marketers:
Establish access to executive officers to
understand ongoing shifts in business strategy.
Realign marketing strategies to match business
objectives quickly to demonstrate a commitment to the
bottom line.
Qualify and quantify results quarterly to establish
an ongoing dialouge with executive officers.
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| QUOTE OF THE MONTH |
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"In a progressive country change is
constant;...change...is inevitable.
-- Benjamin Disraeli
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