If done correctly, building or starting a business in a down economy can be a great success. Advertising rates are down and many deals exist. It is also a time when the great become greater. If you are providing a quality product or service you can excel even in today’s state of the economy. Many new and small businesses are started during downturns, and many marketing and business innovations come along at this time.
Consider the Business Environment
Right now, newspaper and news organizations’ advertising sales are down; they are losing subscribers and/or going out of business. The government is bailing out larger companies. And organizations of all sizes are starting bankruptcy procedures to keep from closing altogether. But these are also the times when leaders and innovators can gain market share and grow their businesses. The businesses that “think out of the box” and plan appropriately for a down economy, by investing in marketing and advertising, have the greatest chance for success. In fact, economic research has shown that companies that continue to advertise during a slowdown recover sooner and gain market share from their less aggressive competitors. Here are some marketing strategies for how successful companies can move forward through this volatile economy.
A lot of business owners I meet as prospects, clients, or at networking events are cutting back on advertising and marketing until their cash flow improves. They are also scaling back on major purchases. Your competition is scaling back, so why not just think about where you stand? Why not look at this as an opportunity to invest in your business for the future, by doing some research on new, cutting edge marketing techniques?
1. Forward-Looking Marketing With Interactive Media
In addition to the Internet marketing approaches that have proven effective (such as podcasts, blogs, online social network sites, banner ads, and Google Ad Words), there is a host of new and exciting advertising media. This is a time when you can cost-effectively test and try different types of interactive media. These are media that interact with the prospect based on the individual’s profile (browsing history, saved searches, user account, email history, or purchasing history) and tasks them to take action in response to an ad, such as voting, sending a text message, or sending email, in order to direct the content of future ads and offers.
2. Out-of-home Media
Out-of-home media, where content is displayed dynamically on a screen or surface, is being accepted, even embraced, and here to stay. The current up-and-coming buying public have no issues in letting the world know where they are, who their friends are, and what they’re doing, via online social networks or Twittering. The public is providing more and more demographic information for their own convenience. Many people don’t find interactive, out of home media, to be intrusive. These new marketing programs can be created and served off of most existing web sites or you can partner with endpoint delivery systems (such as the person installing the TV or the owner of the screen at the bar, mall, or ball park).
3. Mobile Marketing: Reaching Your Customers Where They Are
In the past, branding and product placement was new and cutting edge, but not easily accepted by the public. This has changed dramatically. Why not set up a mini-branding tour where your goal is to target your audience, which in today’s economy can be located anywhere in the world.
There are many ways to do this by gaining the consumer’s permission. For example, if you sell earplugs, you must identify your target audience. Is it parents, musicians or construction workers? Let’s take parents as our example. You can place your advertising in or on taxicabs that go within 5 blocks of a noisy venue or an airport, telling the user to send a text message to a response address. The text automatically triggers a reply that sends ordering information about your product to the person’s Inbox (if they’ve supplied an email address) or to their phone as a text message. The reply might provide a list of nearby merchants where a product can be purchased, as well as websites that offer the product.
With these new marketing technologies and the customer’s permission, we now have the ability to deliver additional information to prospects right when they want a product and are most likely to act. What’s more, it costs almost nothing to send an automatic email or text message. Once we have a prospect’s contact information, we now have a way to contact the person again in the future.
4. Loyalty and Rewards Programs
Loyalty and Rewards Programs are a very active area right now. They are currently the most profitable part of the credit card business, to name just one industry that uses them extensively. Total expenditure on attracting customers through loyalty and sponsorship programs has grown exponentially worldwide. Over $4.4 billion was spent on loyalty programs in the US alone in 2005. In 2008, including North American spending, global outlays on sponsorship or advertising of loyalty programs was expected to reach $43.5 billion, a whopping 14.8 percent increase over the previous year.
Also, according to leading market research firm Nielsen Loyalty, customers do want more. They want retailers to use the purchase-level data and household information collected from loyalty marketing programs to provide more meaningful services, item selections, and relevant offers. This is a major shift in retail corporate culture, putting the focus on customers, rather than category or product. When using this information in marketing, all facets come together⎯data, segmentation, strategy, execution, measurement, and improved marketing results⎯to better serve consumers.
5. Gaining Marketing Leverage Through Partnerships
Partnering with other businesses to share data or expand your loyalty rewards programs is one way to market effectively in a down economy. You can also partner with other vendors that have a similar target audience and complementary products or services (for example, someone who makes earplugs partnering with a ticketing company) to sponsor an event that leverages the appropriate out of home selling media with calls to action.
Why not add the ability to serve specific ads to the person? For example, if we know an individual is buying children’s priced tickets, there is an ad about protecting children’s ears with directions to text or click a link for more information. When the person responds, they are presented with a product page with an Order Now button so it can now be connected to the ticket purchase. Or they can also find a list of nearby locations to buy, or receive an email or a text message with the same information.
6. Adding Events to Your Marketing Mix
Consider putting on an event as part of your marketing mix. Using the same example, you could extend your promotional program by putting on a hearing safety event right at the venue where people would use the earplugs. While you collect the demographic information, the venue would be able to showcase itself to individuals who might want to use or rent the space for different types of events. At the same time, you can partner with related sponsors as long as they are appropriate and a complement to your goals.
We can now bring in some great new applications to provide live interactivity at an event, using smart phones or a game controller. This adds even more value to the event by providing sponsors and hosts instant, live feedback from prospects.
Change Is on the Horizon
This is a new and exciting time in business. Change is on the horizon; consumers are more willing to give up their personal information for ease and convenience. They also like to interact with their screens or cell phones. Continuing your interaction with the consumer even after your customer leaves your store, event, or ad extends your marketing reach and strengthens the buying relationship. In other words, it builds your business and your brand. As marketing strategies continue to change, innovative business owners should be able to forge a positive path through a negative market.
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