2 weeks. recession! How many times seen that lately? The answer: probably hundreds. Every newspaper and information programme seemingly posseses a non stop set of recession related testimonies; “the longest recession ever”, “the deepest recession since records began”, “the most severe recession on record”. 2008 recession
Batten down the hatches, save money! The approach taken by many organisations in a recessionary environment is to batten throughout the hatches, slice unnecessary spending, reduce non-essential investment, eliminate waste and give attention to the main element priorities of the business. Truth be told, these are good things! They will aid to develop leaner more responsive, more profitable businesses for when the good times return – call it natural selection for businesses if you like – the particular good survive.
However, for a lot of businesses, particularly Small and Method Sized Enterprises (SME’s) which have developed in mostly niche vertical markets, they consider their investment in marketing (product, services and brand) to be non-essential. As such, a whole lot of businesses are lowering their investment in marketing, focussing on selling and reducing costs.
Wrong, incorrect. Whilst for some businesses that will be your best option, for many others it is not, and may indeed be harming permanent for that business and its prospects. The recession, whilst generally being bad for the bulk of businesses and consumers, does offer the turned on business some great opportunities though.
Marketing can help deliver those opportunities, and the rest of this post is targeted on the three key reasons why both you and your business should carry on and make investments in marketing during the recession. Were not indicating that nothing should change, we are all pressurised to reduce costs and expenditure in times of reducing margins, however your give attention to marketing your business, if anything should increase. By all means market more effectively, make those pounds shillings and pence stretch more, but may lose give attention to marketing.
Purpose 1: Generate new business!
Generate new business? You must be mad! Will be certainly a recession on i remember know? How on ground could you generate new business in a recession???
Accurate, there is almost no “new” business around, in conditions of business that was not there before the recession. However, probably like your own business, many businesses and consumers away there are looking at reducing their costs, in conditions of can they continue doing something or purchasing something, at a lower cost or with increased functionality (which in turn would reduce overall costs to them).
Pertaining to the average consumer in the street this might mean doing the food market shopping at a discount retailer rather than at a premium supermarket, or for a business, critiquing their supplier list in conditions of looking at cheaper alternatives or lowering the expense of the product or services those suppliers are providing.
Consumer review – the ability exists In simple terms, the recession is triggering a lot of shoppers to review their existing commercial relationships. Get those relationships with a mass market retailer or a website design agency.
Nothing too insightful there you say. Until you consider how hard it is to get a consumer (either a business or a person in the street) to change their purchase habits normally. If a consumer is generally happy with a service, they are going to very rarely change (even whether it’s more expensive! ). However, the recession is creating consumers to do just that.