Here's a list of strategies marketers can employ to mine the golden opportunities economic downturns offer.
In a memorable moment in "Monty Python and the Holy Grail," a galloping minstrel sings of Brave Sir Robin and how "he ran away, he ran away" when faced with adversity. With a downturn (dare I say recession) looming, my advice is simple: Don't be Brave Sir Robin.
As the old saying goes, with each challenge comes opportunity and opportunities abound even in downturns. Here's a list of tips to help you mine those opportunities:
1. Don't kill your budget (yet)
The first thing we marketers must do is save the budget. I have no doubt your CFO is already calling for reductions in head count and spending. Now is the time to be brave.
Since all your competitors won't have the chutzpah to say no to their CFO, you must make the case that this is your chance to gain true competitive advantage with a share of voice you've been dreaming about all these years. Remind your CFO that top-of-mind awareness is an asset of the company that will devalue faster than he can say ROI. In truth, awareness can decline as fast as 50 percent a month when you go silent, and the cost of buying back that awareness will be horrendous.
2. Cut wisely
Given that my first point is probably a pipedream and that you will no more be able to avoid cuts than a deer can turn away from oncoming headlights, let's consider where to cut. Traditional advertising has always been the first to go, and depending on your media mix, that may make sense now.
The one advertising channel that will be harder to cut is online since a steady stream of metrics provides the ROI data that is so often missing in other areas. Promotional dollars are harder to cut because your channel partners may very well depend (like the addicts they are) on the sales boosts coupons and other discounts provide. Events and trade shows should be reviewed on a case-by-case basis, saving those that can demonstrate ROI and tossing the ones that have been of questionable worth all along.
3. Stay focused
Now that you have less money to work with, it is all the more important that you concentrate spending where it can have the greatest impact. This is not the time to consider new targets or new channels if that means losing focus on your core constituents.
But staying focused doesn't mean doing the same old, same old. Get out there and talk to your customers and find out how the downturn is affecting their lives and their product choices. Just the mere process of talking to your customers will make them feel special and cement the bond you'll really need to weather the economic storm.
4. New stuff for the old gang
What you hear from your current customers may really surprise you and push your product or service offerings in new directions. With austerity looming like a black cloud on the horizon, some consumers may turn to affordable luxuries even more than usual. While more "value packs" seems like an obvious direction, it is also possible consumers will turn to smaller sizes just to keep their monthly spend down.
On the other end, luxury customers may temporarily discard their "if you've got it, flaunt it" attitude, choosing to spend their dollars more discretely. For example, furriers might want to think about putting the fur on the inside of the coat, offering the same warmth without the showy statement (animal rights activists would encourage you to put fake fur on the inside!)
On the services side, tighter economic times could create all sorts of new opportunities. Those with two jobs might need more help at home, keeping things organized, walking the dogs and/or shopping for groceries (online services like Fresh Direct could indeed thrive in a downturn).