Donkeys, sharks, ostriches…
Posted on 09. Oct, 2009 by admin in Headlines and Opinions
Donkeys, sharks, ostriches… the recession has brought out the animal in all of us. The sharks, apex predators of note, engage in a feeding frenzy buying up floundering companies at rock bottom prices. Flamboyant, dizzy ostriches continue to spend spend spend and the donkeys? Well their unthinking kick hard responses may cause their own downfall.
Economic downturns affect changes in three areas: budget, consumer and the market. Often knee jerk reactions occur. Companies slash at their budgets and generally the first to go is the marketing line. Not smart.
History proves that companies that dramatically change their marketing spend, risk losing market share. It’s not brain surgery – out of sight, out of mind and the bottom line profit is affected – permanently. Research shows that after the recession passes, a number of those companies do not survive.
Surprisingly, marketers and the full range of media are optimistic and not doing too badly.
The CMO Council’s Marketing Outlook ‘09 study shows that global top marketers are reporting few changes to staff and budgets. However, they are being asked to do more for less and deliver measurable value against investment. Early results indicate a clear shift towards digital marketing with less spend on more expensive advertising in traditional media.
So no-one’s hiring, marketing budgets are fragile, what do you do?
When times are tough, the marketing budget, team and the agencies become the target. The consensus on how to stay ahead and prevent your head landing up on the chopping block is to drive the strategic issues. Leadership is key – forget the flashy and focus on reality. Are you providing sufficient hard ROI data to the boss people? Are you ensuring that marketing is an intrinsic part of the business strategy?
It’s time to be seen! You can only prove you can market a product or company by marketing yourself and your worth. A simple case of “do as I do and do as I say”!
Experts agree it’s time to innovate, add value, tweak what you have, explore digital options and really understand the brands you market: its strengths, weaknesses and most importantly – your beleaguered consumers!
For the cash strapped, focus on the existing market by adding value and incentives to consolidate customer loyalty. New markets are only viable if you have oodles of cash
Media income deflates and it’s likely that you will get the space at a better price. Canny companies take advantage of the fact that their competitors are not advertising and the cluttered space is suddenly wide open to stake a bigger claim.
So whether you are a marketer or a company, the recession can and does present myriad opportunities to prove that you’re the best at what you do.
