Much of this space is dedicated to the notion that, if managed correctly, the massive changes afoot today in business and society can actually become a boon for most companies. It stands to reason then businesses must alter their approach to sales and marketing for 2009, and not look overly to the past as an indicator of how to successfully navigate the current downturn.
In past recessions, the Old Rules were simple:
1. Focus on your largest revenue segments and eliminate smaller ones
2. Rely on "long-proven" techniques such as traditional advertising and direct mail
3. Cut costs across the board in sales and marketing
However, this downturn has unique characteristics based on a very different sales and marketing landscape. Consider that this is the first recession during the age of:
1. Micro-targeting: Improved market research and intelligence (often to the zip code level), the Internet, media fragmentation and consumers' demand for personalization and engagement have changed the one-size-fits-all for product, sales and marketing.
2. Social Media: It works. We know it. And it's only just begun driving ROI.
3. Social Responsibility: A recent study shows overwhelmingly that people demand a higher calling from companies, products and marketing messages.
Therefore, the New Rules of Marketing in a Recession must include:
1. Market Optimization: Forget national or even regional views. Get much, much closer to your sales chain and identify opportunities throughout. One client recently saw a 5% jump in sales by focusing their corporate marketing messages on their OWN SALES FORCE. Seems with all the money they were spending conditioning the consumer, the sales guys were out selling old-school transactions. By getting these guys to pump up the retail buyers, managers and sellers by touting the brand story, they stole market share on the floor.
Another optimization technique includes pre-packaging marketing programs as a sell-in tool. For years, we've been successful in helping clients open doors by customizing regional sales support as part of a sell-in program, linked of course to minimum buys. These are highly customized to the market area and retail partner and went well beyond typical co-op ads (typically a disaster) and national efforts. By committing very clearly and specifically to pushing sell-through, we've been able to get shelf space where we otherwise would not.
2. Social Media - Drop Your Line Where the Fish Are Hungry: I'm all for big-name media. There's nothing like exposure on Oprah! or GMA to get your POs jumping. But during this recession, layer in the new tools of reaching your fractured audience: social media and online campaigning. True, without BPA statements and years of friendly comfort, your CFO will be nervous to increase your online marketing budget. But try this simple argument: what other medium can translate an impression to a sale in only a few clicks of a mouse? Though its relatively unproven, now is the time to heavy up online.
3. Stay Committed to Social Responsibility: One of the first things to come under fire from finance (and sales, in fact), are programs that have any sort of goodwill attachment. The Old Rules see these endeavors are peripheral, only things you do in good times...most likely as a tax write-off. The argument will be that people don't care about causes when their wallets are hurting.
Quite the contrary, Mr. Numbers Guy. Social Responsibility must be a cornerstone of your marketing in 2009. Without it, you remove an influential selling point when consumers are demanding more from their hard-earned dollar. A recent study shows that in tough times, the added benefit of social causes may be just the tipping point between choosing your product or a competitors.
The numbers show that three-quarters of consumers "like to buy brands that donate to a worthy cause". And that "during a recession, consumers still value brands commitment to social purpose". Consider:
- 80% of consumers feel that during a recession, it is still important for brands and companies to set aside money for social purpose.
- Nearly seven in 10 say that during a recession the would remain loyal to a brand if it supports a good cause
So the bottom line?: it's more important than ever to choose wisely when cutting costs. Instead of using the past as a guidepost, manage for the future and grow discreet opportunities between the lines. Those that combine prudence, foresight and a little guts now will be the ones who win big when the recession ends.
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