0
Making Money in a Recession
    Marketing in a Downturn
In a downturn,
marketing budgets
      often
get cut first ...
quick fix
It can often be a               in times of crisis ...
A Forrester Research
survey of social marketers
in 2008 for example
showed that display
ads, online video, game
marketing ...
Source: Forrester Research
Especially when you
   don‟t know how
long it‟s going to last.
Source: WSJ Market Data Group; National Bureau of
          Economic Research (recessions)
Yet there is clear and
incontrovertible evidence
       increased
proving that
marketing spend
can actually increase marke...
In a 1979 survey
ABP/Meldrum &
Fewsmith found that:
“Companies which did not
cut marketing
expenditures experienced
higher...
In 1981 – 1982
             McGraw-
Hill Research analysed
over 1,000 in 16 different
industries.




The findings showed ...
During the 1990 – 1991
recession,   Management
Review asked AMA member
firms about marketing spending.

“Fortune follows t...
that increase
“Brands
{marketing} during a recession
when competitors are cutting
back can improve market share
and return...
If bigger retailers cut
down on their marketing
and visibility during a
downturn, then smaller
competitors can actually
ga...
During the Great Depression
in the 1930s many successful
companies cut their marketing
and advertising budgets and
some dr...
As a result, customers
felt abandoned by these
companies and interpreted
the cuts as meaning that
the companies weren‟t
go...
Customers gave their custom
to more
      visible
competitors, those who
continued to market and
advertise aggressively.
The companies who thrived
were those who continued
to market themselves
consistently and even
increase their budgets.
These are just some of them
Even when there‟s a downturn
in the economy, there are
always opportunities
out there
There are two things to look at:

(1) opportunities for
business growth
(2) marketing activities
which give you ROI (Return
on Investment)
Examine every aspect
of your marketing
budget with a critical
eye


What marketing
activity leads to the
highest income ?
...
Source: http://blog.startwithalead.com
The ROI of every Campaign is Cost per Lead vs Cost per Sale


      Marketing Campaign      Marketing Campaign
      Cost ...
The Most Important Key Indicator is the
       End Financial Performance


Large
                           Small Number o...
Relative Value of Marketing Mediums (importance
     ratings & results vs budget allocations)

  E-mail marketing
 Search ...
Business Growth
Innovation                                    Private Funds
Competitive             Opportunities         ...
Innovation
        Competitive Advantage
        Marketing




- New Market Development
- New Product Development
- Custom...
Relationships with
customers will
strengthen during a
recession because
competitors will be hoping
to capture them.

Impro...
Revisit your customers‟
“pain points” – find out
what keeps them awake at
night and then work out how
you can help them
Sole traders and small
businesses can take
advantage of a
downturn and grow
because they can
charge less and
are more flex...
Many successful companies
started up or came about
during recessions ...
Microsoft,       the number one computer technology
company, was created by Bill Gates and Paul Allen in 1975,
just after ...
Fortune,          the world-famous global business
magazine, was founded by Time co-founder Henry
Booth Luce in February 1...
A recession is a good
time to acquire
competitors at reduced
rates ... or (put another
way) go into
partnership with
compe...
Twentieth Century Fox was founded in the
Great Depression of 1935, as the result of a merger of
Fox Film Corporation (foun...
Unilever was created in 1930 from the merger of
British soap maker Lever Brothers and the Dutch
margarine producer Margari...
Then think of new and imaginative ways to market
           yourself or your products and services.

 Have you fully consi...
Here are a few real life
examples ...
The monks in the Benedictine monastery , Worth
 Abbey in Sussex, needed to find a way to support
                   themse...
An advertising agency was on the verge of going out of
business in its first year, so the owner decided to spend
   his la...
Sir Cameron Mackintosh wanted to transfer his musical
  “Five Guys Named Moe” from a small fringe theatre to
the more form...
In 1928, Ward Cosgrove, who worked for the Minnesota
  Valley Canning Company, wanted to market a new and
 unusually large...
David Musselwhite, a 63 year old lawyer in
Dallas, Texas wanted to turn the business of law into a
“pleasurable experience...
In 1994 Unilever launched the Everyman Project
which sold very cheap soap powder to women doing
  their washing in the Gan...
Jim Kirchmeier, owner of the Classic Driving
School in Texas, wanted to attract more teenagers
         and students to hi...
An example of using product line extensions to evolve
 a brand was McDonald‟s healthy choices value menu
created in 2004. ...
Louis Cocozza, who worked for the Harty Press, wanted
  to find a way to reach five potential customers who
    would neve...
Thank you
Merci
Grazia
Danke
Gracias
Sara Paine
Verona PR & Marketing

T: + 44(0)1474 361008
E: sara@verona-pr.com
www.verona-pr.com
Upcoming SlideShare
Loading in...5
×

Making Money in a Recession

869

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
869
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
37
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "Making Money in a Recession"

  1. 1. Making Money in a Recession Marketing in a Downturn
  2. 2. In a downturn, marketing budgets often get cut first ...
  3. 3. quick fix It can often be a in times of crisis ...
  4. 4. A Forrester Research survey of social marketers in 2008 for example showed that display ads, online video, game marketing and widgets are the first to go in a downturn.
  5. 5. Source: Forrester Research
  6. 6. Especially when you don‟t know how long it‟s going to last.
  7. 7. Source: WSJ Market Data Group; National Bureau of Economic Research (recessions)
  8. 8. Yet there is clear and incontrovertible evidence increased proving that marketing spend can actually increase market share
  9. 9. In a 1979 survey ABP/Meldrum & Fewsmith found that: “Companies which did not cut marketing expenditures experienced higher sales and net income during those two years and in the two years following, than those companies which cut budgets in either or both recession years.”
  10. 10. In 1981 – 1982 McGraw- Hill Research analysed over 1,000 in 16 different industries. The findings showed that firms which increased or maintained their marketing spend averaged significantly higher sales growth, both during the recession and for the following 3-5 years.
  11. 11. During the 1990 – 1991 recession, Management Review asked AMA member firms about marketing spending. “Fortune follows the brave”, it announced, noting that the data showed that most firms that raised their marketing budgets enjoyed significant gains in market share.
  12. 12. that increase “Brands {marketing} during a recession when competitors are cutting back can improve market share and return on investment at lower cost than during good economic times.” 3 March 2008 Harvard Business Publishing
  13. 13. If bigger retailers cut down on their marketing and visibility during a downturn, then smaller competitors can actually gain market share because there is less competition.
  14. 14. During the Great Depression in the 1930s many successful companies cut their marketing and advertising budgets and some droppedoff the radar completely.
  15. 15. As a result, customers felt abandoned by these companies and interpreted the cuts as meaning that the companies weren‟t good enough to survive.
  16. 16. Customers gave their custom to more visible competitors, those who continued to market and advertise aggressively.
  17. 17. The companies who thrived were those who continued to market themselves consistently and even increase their budgets.
  18. 18. These are just some of them
  19. 19. Even when there‟s a downturn in the economy, there are always opportunities out there
  20. 20. There are two things to look at: (1) opportunities for business growth
  21. 21. (2) marketing activities which give you ROI (Return on Investment)
  22. 22. Examine every aspect of your marketing budget with a critical eye What marketing activity leads to the highest income ? What high ROI activities do you need to increase ? What does each qualified lead cost?
  23. 23. Source: http://blog.startwithalead.com
  24. 24. The ROI of every Campaign is Cost per Lead vs Cost per Sale Marketing Campaign Marketing Campaign Cost Cost divided by divided by (Number of Leads) (Number of Sales) Cost Per Lead Cost Per Sale (Low Figure vs High Figure)
  25. 25. The Most Important Key Indicator is the End Financial Performance Large Small Number of Number of Sales Leads Small Amount of Large Revenue Number of Sales Large Amount Small Number of Sales of Revenue
  26. 26. Relative Value of Marketing Mediums (importance ratings & results vs budget allocations) E-mail marketing Search keyword advertising Direct Mail Online non-search advertising Tradeshow Telemarketing Radio Source: PoliteMail Survey of marketing and sales Print executives TV
  27. 27. Business Growth Innovation Private Funds Competitive Opportunities Profits Advantage Marketing Cash Flow Business Takeovers Loans Mergers Growth Venture Capital Buyouts Leasing EU Grants Management Structure Ownership Control Economies of Scale Local to National & Flotation Changing Roles National to International
  28. 28. Innovation Competitive Advantage Marketing - New Market Development - New Product Development - Customer Share Expansion -Acquisitive or Joint Venture Growth - New Skills Development or Acquisition
  29. 29. Relationships with customers will strengthen during a recession because competitors will be hoping to capture them. Improve your USP.
  30. 30. Revisit your customers‟ “pain points” – find out what keeps them awake at night and then work out how you can help them
  31. 31. Sole traders and small businesses can take advantage of a downturn and grow because they can charge less and are more flexible than multinationals
  32. 32. Many successful companies started up or came about during recessions ...
  33. 33. Microsoft, the number one computer technology company, was created by Bill Gates and Paul Allen in 1975, just after the oil crisis in the Middle East hit global markets. Various strategies enabled Microsoft to achieve remarkable growth in the competition-laden computer industry including product innovation, brand extension, heavy advertising, competitive toughness, and product expansion.
  34. 34. Fortune, the world-famous global business magazine, was founded by Time co-founder Henry Booth Luce in February 1930, just four months after the Wall Street Crash of 1929 that marked the start of the Great Depression. It initially targetted wealthy tycoons, but later was marketed as an intellectual vehicle for visionary leaders in the business world.
  35. 35. A recession is a good time to acquire competitors at reduced rates ... or (put another way) go into partnership with competitors
  36. 36. Twentieth Century Fox was founded in the Great Depression of 1935, as the result of a merger of Fox Film Corporation (founded by William Fox in 1915), and Twentieth Century Pictures (founded in 1933 by Darryl F Zanuck, Joseph Schenk, Raymond Griffith and William Goetz) when Fox was about to be into receivership.
  37. 37. Unilever was created in 1930 from the merger of British soap maker Lever Brothers and the Dutch margarine producer Margarine Unie - a logical merger as palm oil was a major raw material for both margarines and soaps and could be imported in bulk more cheaply.
  38. 38. Then think of new and imaginative ways to market yourself or your products and services. Have you fully considered Is there a way you can help what your potential your potential customers to Is there a social trend customers want? visualise the impact of your which suggests a new service? direction for your business? Is there an unusual way of If you were to be more packaging your communications aggressive about seeking or proposal in a way that might opportunities, who could you make it stand out? approach? Is there a market niche you Are there any aspects of your are overlooking because business that represent value you felt it was dominated that could offer to bring in by bigger competitors? additional value?
  39. 39. Here are a few real life examples ...
  40. 40. The monks in the Benedictine monastery , Worth Abbey in Sussex, needed to find a way to support themselves. Abbot Christopher Jamison and Roger Steare, a London-based business consultant founded The Soul Gym which offers a series of business ethics courses aimed at industry leaders.
  41. 41. An advertising agency was on the verge of going out of business in its first year, so the owner decided to spend his last few thousand dollars on a party for clients, potential clients and journalists to say “goodbye” in style. The party had an unexpected effect. Wanting to be part of such an obviously successful new venture, several new clients signed up immediately and for the first time the firm started making a profit.
  42. 42. Sir Cameron Mackintosh wanted to transfer his musical “Five Guys Named Moe” from a small fringe theatre to the more formal West End of London without it losing the fun atmosphere that made it such a success. He hired a “meeter and greeter” at the new theatre to joke with the audience as they came in and the cast led a conga to the bar at the interval. The show had excellent word-of-mouth success, and ran for four years.
  43. 43. In 1928, Ward Cosgrove, who worked for the Minnesota Valley Canning Company, wanted to market a new and unusually large variety of pea called the quot;Green Giantquot; which he had found in Europe. His agency thought up the “Jolly Green Giant” character and by the 1950s, it had become so popular that the company had changed its name to the “Green Giant Company”.
  44. 44. David Musselwhite, a 63 year old lawyer in Dallas, Texas wanted to turn the business of law into a “pleasurable experience” which wouldn‟t scare away any potential clients. So he set up the “Legal Grounds Cafe” as part of his office space so that he could help solve people's legal problems in a non-threatening environment.
  45. 45. In 1994 Unilever launched the Everyman Project which sold very cheap soap powder to women doing their washing in the Ganges. It then started to promote low cost powder and shampoo in Brazil. The project gave Unilever a presence in areas usually ignored by other multinational companies and it has become a trusted name in those areas with huge potential growth in the future.
  46. 46. Jim Kirchmeier, owner of the Classic Driving School in Texas, wanted to attract more teenagers and students to his driving school. He bought a fleet of Porsches to make his company stand out from the competition. It had the desired effect. Within a year he had doubled his income.
  47. 47. An example of using product line extensions to evolve a brand was McDonald‟s healthy choices value menu created in 2004. McDonalds reported a 14% growth in profit worldwide when some businesses were struggling to preserve their market share.
  48. 48. Louis Cocozza, who worked for the Harty Press, wanted to find a way to reach five potential customers who would never return his „phone calls. He bought a “message in a bottle” kit and wrote each one a note saying: “I‟ve been trying to reach you for such a long time, this is my very last hope”. The next time he rang, four out of the five customers took his call. Three agreed to see him and later became good customers.
  49. 49. Thank you Merci Grazia Danke Gracias
  50. 50. Sara Paine Verona PR & Marketing T: + 44(0)1474 361008 E: sara@verona-pr.com www.verona-pr.com
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×