Marketing During an Economic Downturn

By Michelle Matura Hentzell, Insight Marketing Group

Many contemplate on how did we get here? Are we really in a recession? Regardless of the state of the economy, companies have to find a way to grow and/or sustain their business. Here are a few tips on ways to market in a down turn environment.

1. Rely on ROI
The key is to evaluate in advance what your potential return-on-investment (ROI) will be for any marketing or sales activity. With dollars being tight, you want to make sure that you are focusing on activities that will provide you with the greatest return. Here are a few questions you should answer when determining your best focus:
· What programs or products have the best margins?
· What programs or products have the highest demand? Lowest demand?
· What is the cost to acquire a customer?
· What is the cost to retain a customer?
Once you have this information, you can then determine what dollars will be available to you for your marketing efforts. The return will be greater than the expense of doing the marketing or sales initiative.

2. Segment and target markets
Sometimes businesses fall into the trap of trying to be all things to all people. To avoid this pitfall, segment your market and select the segments that are best to target for your business. You will have the ability to know in advance what is happening in your target markets and how they may be reacting to a recession. You will then be able to be proactive and possibly change a product or the direction of a program that you have to offer.

By doing this you will:
· Better identify unmet needs
· Match what your customers need so you can use your resources more effectively
· Be able to promote your strengths and exploit your competitors weaknesses
· Employ more sharply focused marketing and sales activities

3. Re-focus on your current customers
If you have established good customer loyalty, when times are uncertain and money is tight, they will turn to a trusted source where they already have a relationship. You should continue to market to them, so during these tough times, they think of you first.