Marketing In a Recession: Value For Money
Never has it been more essential to get value for your money than in today’s recessionary market. Generally I’ve found businesses want to spend money on marketing and grow their business, whether that be to explore new markets, new products, create an advertising campaign, evaluate customer feedback or any other form of business growth which caries an element of risk.
The issue companies currently face is, “What if it doesn’t work?”. During a recession you might hear the expression, “We’ll see it out” or “let’s hold off and stick with what we have”. It’s a risky strategy. Competitors are advancing all of the time and there is no guarantee your current customer base will not decide to move to a new supplier.
Doing nothing is not an option
The truth behind marketing in a recession is that doing nothing is not an option. You should ask yourself, how can I spend my budget more effectively & how can I get a better return via my marketing plan. Often the answer lies in research and gaining a better understanding of the needs of your clients. This can open up additional revenue streams, or perhaps, like a lot of businesses a certain segment is more profitable than another, so you can focus your energies on this.
A client once asked, “Can I pay you on success?”. This was for a paid search campaign on Google. In this instance the client was happy to pay 25% above the quoted price on the basis we hit certain targets, should we fall short we would get a reduced monthly payment.
It’s an interesting idea. The company was keen to market and grow but scared by the potential of failure. As their marketing support it’s our duty to meet the changing market environment and take some of the risk. Being the confident and ‘up for a challenge’ type we duly accepted. After 6 months the client was pleased they took the risk as it paid off for both North Star and our client.
Getting a ‘bang for your buck’
Marketing in a recession isn’t about holding back to see what happens, nor is it about aimlessly spending money to become number 1. It’s important to accept that some trials will not always be successful, however continuing to monitor, tweak and improve campaigns will yield results in the long term.
“Too often, business leaders confuse high growth with high performance. They may take
unwise risks in their businesses to maximize short – or mid-term profitability…”
It’s important business growth is constant whilst remaining profitable. All companies need to adapt to the harsh business landscape carved out by the recession but in every threat comes an opportunity. Take the time, spend some money and look for the value during a recession.
North Star Marketing is a UK based marketing agency providing a wide range of business support.
14th May 2012
19th July 2011