Posts tagged social media

When you read the news about our current economy, it’s easy to become confused. Is the economy getting better? Standing still? Continuing to decline? I guess it depends on who you ask. And hey, the stock market is doing great! And lots of folks see that as a sign that our economy is on healthy footing. Today someone on CNBC today was even touting “Dow 12,000” by the end of this year. Can you imagine that?

After all we’ve been through that’s hard to believe – starting with the collapse of Lehman Brothers and Bear Stearns, the sub-prime mortgage crisis and credit crunch, and then government takeovers and massive bailouts. Then throw in record unemployment, a weakening dollar, huge government borrowing, and record bank closures. You get the idea. Yes, we were saved from the brink. But things still hardly qualify as “normal” these days. And we are now talking about Dow 12,000?

But what has become crystal clear that some of the challenges that we are currently facing WILL be here for a while. Unemployment is now over 10%, and if you count those that are under-employed or have given up looking entirely, the numbers are significantly higher. Most economists agree that there is a high likelihood these elevated unemployment numbers will be here for a while, at least the next couple of years, as we struggle to provide new industries, education and training to those that have lost their jobs in the last 18 months. Many are calling our current unemployment situation the “new normal.”

So beyond a gory retelling of our current economic woes, what does this all mean?

Well, for people that do what we do – assist companies to market their products and services – it can be a scary time. Sales numbers and revenues are down, and organizations are (rightly) looking for any inefficiencies or marginal initiatives or programs to cut. Marketing always seems to be on the top of the list. Now, I have always found this to be very counter-intuitive! “Well, sales and profits are down! What are we going to do? I know, let’s slash our marketing budget! One of the few things that can actually help INCREASE our potential sales!”

And we know why it happens too. Businesses simply can’t cut Accounting, because no matter how much (or little) they sell, they still need to transfer funds and pay taxes and payroll and suppliers, etc. And they can’t cut out their IT department, because without a running computer network or website or processing system they cannot function. And they can’t cut their service providers or line workers or whoever in the organization actually does the “real” work. And the list goes on.

But the marketing department? That can be cut, and it won’t be missed. Right??

Well, not for a little while at least. It is a department that isn’t completely essential for business, for TODAY at least. The doors won’t close, or the production line won’t grind to a halt, or the trucks won’t stop rolling if marketing shuts down. At least not right away. And that is why it is often on the chopping block first.

Now, I think with a little bit of forethought, it isn’t that difficult to see why this is a very poor long term strategy. But this doesn’t stop short-sighted companies from doing it. But as mentioned, there is a major problem with this strategy this time around. Because although the economy is surely improving right now, we still have a long way to go to “economic health” and substantial growth. The “new normal” will be with us for some time. Will we be healthy again in 2011? Or 2012? Later?

In other words, if this is your “strategy,” you may not be marketing or promoting your company for a LONG time! And it’s easy to see why this is a losing strategy. And there will certainly be big financial winners – and losers – this time around, as always. So the question is, “How can I be one of those big economic winners?” As you may guess, the answer is rarely “By slashing the marketing promotion of your brands, products and services.”

Actually, it is fascinating that many economists and entrepreneurs will say that a recession is the BEST time to start a business. Once again, the reasons  are clear when you consider that the companies that don’t make it through – that close their doors forever – just gave up X% of the market share within their industry or field.

Not only are all those potential customers or clients now up for grabs, but recessions cause many changes in buying behavior, regardless if other companies leave the marketplace. Tight economic times cause customers to re-evaluate the costs and the true value of the products and services they are currently buying. During tough financial times, there are usually more requests for price quotes – directed at a larger pool of suppliers or providers – as businesses seek out different alternatives and value.

Individual consumers do these same things. They consider brands, products and stores that they haven’t before. They shift  more dollars at a faster rate than they do even during “roaring” economic times. This presents tremendous opportunity, for those who are bold and innovative enough to see this perhaps once-in-a-lifetime chance to greatly expand their market share and build their brands.

Which is why slashing your marketing budget during these times is such a poor long-term decision. Now some companies have no choice. They either immediately cut major portions of their budget or face insolvency. For these companies, we certainly wish you luck. But for anyone else, now is the time to be aggressive in your pursuit of market share.

And the best part? You can promote your brand, your products and services FAR more efficiently now than ever before. Online marketing initiatives typically cost much less than the “traditional” methods many companies have used previously.

Email marketing and E-Newsletters are a very cost-effective way to stay in touch with your customers or  prospects. They are an easy way to stay “top of mind” with your target audience and continue to build your brand at a time when your competitors may have their “eyes off the prize” themselves.

Blogging about your company, your products or your services is another great way to inexpensively reach potentially huge numbers of potential customers, and introduce them to your business and what you do.

Enough has been written about social networks, such as Facebook and Twitter, in recent months that there is no need to repeat the stats again here. But suffice it to say that these initiatives can have a big influence on your brand equity and sales numbers for the same relatively inexpensive cost.

Which is something that most companies love to talk about during ANY economy, the all-important Return On Investment. And if there was ever a time to generate great ROI with your marketing dollars, it’s now. The bottom line is that even during these tough economic times, if you feel your business has a future, NOW is the time to discover the many ways you can still aggressively – and efficiently – market your services or products with the many E-marketing communication methods that have recently been established or are emerging.