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Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
Marketing in a Down Economy or downturn
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Marketing in a Down Economy or downturn

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Marketing in a down economy, in a downturn, or in a recession. marketing communications and brand building communications are important...

Marketing in a down economy, in a downturn, or in a recession. marketing communications and brand building communications are important...

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    • 1. Marketing in the down economy Reinforce don’t reinvent By Barry Vucsko May 28, 2009 http://rblb.wordpress.com
    • 2. Marketing in the down economy Marketing’s Fate Intention & Expectation Reinforce don’t reinvent How we process messages Reinforce Don’t reinvent Social Media
    • 3. Marketing in the down economy.
    • 4. In an Epsilon study, 94% of CMOs and other marketing execs agreed with the statement: “A tough economic period is precisely the time when marketing plays a key role”
    • 5. Average tenure for a CMO: 18 months
    • 6. Marketing’s Fate <ul><li>As unique as this recession/depression is, </li></ul><ul><li>Its result on marketing is, unfortunately, nothing new. </li></ul>
    • 7. Marketing’s Fate
    • 8. Marketing’s Fate <ul><li>Cutting back on “non-core” functions--anything that doesn’t </li></ul><ul><li>design, build or distribute the widget </li></ul>
    • 9. Marketing’s Fate <ul><li>Cut backs on marketing communications (brand strategy, advertising, promotion,…) </li></ul>
    • 10. Marketing’s Fate <ul><li>Marketing Communications is a lifeline </li></ul><ul><ul><li>How a company announces new products </li></ul></ul><ul><ul><li>How they converse </li></ul></ul><ul><ul><li>How they educate about their products </li></ul></ul><ul><ul><li>How they build their brand </li></ul></ul><ul><ul><li>How they create loyalists </li></ul></ul><ul><ul><li>How they understand their customers </li></ul></ul>
    • 11. Marketing’s Fate <ul><ul><li>Marketing Communications is a conversation, cut it short and customers will forget what you were saying </li></ul></ul>
    • 12. Intention and Expectation <ul><li>Intention: Your customer’s desire or need to </li></ul><ul><li>buy your products. </li></ul><ul><li>Expectation: What they think about, or expect </li></ul><ul><li>from, your product. Expectation is BRAND. </li></ul>
    • 13. Intention is Waning <ul><li>This economy is killing or changing intent. </li></ul><ul><li>Customers are tuning off </li></ul><ul><li>They’re in saving mode </li></ul><ul><li>They’re looking for alternate (often cheaper) solutions </li></ul><ul><li>Putting things on hold (“wait and see” attitude) </li></ul>
    • 14. Four Types of Intent <ul><li>Status Quo Intent </li></ul><ul><li>Price Competitive Intent </li></ul><ul><li>Postponed Intent </li></ul><ul><li>No Intent </li></ul>
    • 15. Expectation is BRAND <ul><li>The more customers expect of a brand the more supported that brand becomes. </li></ul>
    • 16. Expectation is BRAND <ul><li>Customers expect things based on: </li></ul><ul><ul><li>Brand History </li></ul></ul><ul><ul><li>Brand Promise </li></ul></ul><ul><ul><li>Brand’s relation to its competition </li></ul></ul><ul><ul><li>Marketing Communications </li></ul></ul>
    • 17. Marketing Communications builds expectation <ul><li>Decreasing marketing communication </li></ul>Decreases expectation
    • 18. Intention/Expectation Equation <ul><li>Waning Intention </li></ul><ul><li>+ </li></ul><ul><li>Reduced Expectation </li></ul><ul><li>= </li></ul><ul><li>-(I)+-(E)= </li></ul>
    • 19. Intention/Expectation Equation -(I)+-(E) =
    • 20. Reinforce don’t reinvent
    • 21. How we process marketing messages <ul><li>Most psychologists and educators espouse that we learn new things by relating them to past things. </li></ul><ul><li>When brands reinforce their message, they are aligning past and present </li></ul><ul><li>This alignment strengthens the brand and creates reference points. </li></ul>
    • 22. How we process marketing messages Brand Messaging Short-term Memory Long-term Memory Store Product Evaluation Beverage Soft Drink Coke Pepsi, 7Up Stored as “networks” of associations ST activates LT store based on frequency, recency and elaboration *Sternthal & Lee, 2005 Northwestern University Expectation
    • 23. Our minds are like old buckets.
    • 24. Brand communications fill those buckets
    • 25. Customer expectation IS your brand. They increase expectation.
    • 26. If you don’t fill them they go dry The wood cracks They get kicked over People use them as a place to store mops, sponges and dirty rags Buckets leak.
    • 27. <ul><li>It takes a lot to fix and fill that bucket. </li></ul>
    • 28. <ul><li>Acquiring new customers can cost 5 times more than satisfying and retaining current ones. </li></ul>Murphy & Murphy, 2002, Leading on the Edge of Chaos
    • 29. <ul><li>A 2% increase in customer retention has the same effect on profits as cutting costs by 10%. </li></ul>Murphy & Murphy, 2002, Leading on the Edge of Chaos
    • 30. <ul><li>A 5% reduction in customer defection rate can increase profits by 25%-125%, depending on the industry. </li></ul>Murphy & Murphy, 2002, Leading on the Edge of Chaos
    • 31. <ul><li>The average company loses 10% of its customers each year. </li></ul>*Murphy & Murphy, 2002, Leading on the Edge of Chaos
    • 32. <ul><li>This is not a normal recession. </li></ul>
    • 33. <ul><li>REINFORCE </li></ul>
    • 34. Strategic Reinforcement <ul><li>Elaboration of recognizable </li></ul><ul><li>product characteristics and messaging. </li></ul>
    • 35. Strategic Reinforcement <ul><li>Reinforce where needed most </li></ul><ul><li>Reinforce often </li></ul><ul><li>Reinforce in the same ways </li></ul>
    • 36. Don’t Reinvent
    • 37. Don’t Reinvent Waning intent, diminished budgets AND new messaging will harm your brand
    • 38. NO Porsche Every Day Low Prices
    • 39. NO Nike Orthopedic Shoes
    • 40. NO Hershey’s Lager Beer
    • 41. Don’t Reinvent Reinvention only as a last resort and as a corporate, rather than marketing, strategy
    • 42. Don’t Reinvent…Unless Dying industries Dying brands Changing technology Changing generations
    • 43. Stay Connected Don’t stop listening. Know the marketplace Know your customer--research to learn who they are and who they are becoming Know their worth--perform Customer Lifetime Value analysis These will tell you if you need to reinvent.
    • 44. Tactical Reinforcement—Social Media <ul><li>Social Media </li></ul><ul><ul><li>Blogs </li></ul></ul><ul><ul><li>Networks (Facebook, Mixi, LinkedIn, Twitter etc) </li></ul></ul><ul><ul><li>Wikis </li></ul></ul><ul><ul><li>Forums on existing site </li></ul></ul>
    • 45. <ul><li>Knowledge Networks survey: </li></ul><ul><li>“ Less than 5% of social media users regularly turn to these sites for guidance on purchase decisions in any of nine product/service categories.” </li></ul>
    • 46. <ul><li>Knowledge networks survey: </li></ul><ul><li>“The largest percentage, 54%, said that </li></ul><ul><li>“staying connected” is what they like most about social networking sites.” </li></ul>
    • 47. <ul><li>Bebo.com Blackplanet.com Cafemom.com Classmates.com ClubPenguin.com Del.icio.us Digg.com Facebook.com Flickr.com </li></ul><ul><li>Friendster.com Hi5.com </li></ul><ul><li>Imeem.com Last.fm </li></ul>Live.com LinkedIn.com Livejournal.com Myspace.com Myyearbook.com Ning.com Picasa.com Plaxo.com Reddit.com Reunion.com Tagged.com Twitter.com YouTube.com
    • 48. How to use social media wisely
    • 49. <ul><li>Don’t throw tactics at your customer </li></ul>
    • 50. <ul><li>Social Media should NOT replace advertising. </li></ul><ul><li>It’s a PR tool </li></ul>
    • 51. <ul><li>Figure out your marketing goals </li></ul>
    • 52. <ul><li>Can Social Media help you meet these goals? </li></ul>
    • 53. <ul><li>Know your Social Media users </li></ul><ul><li>Creators </li></ul><ul><li>Critics </li></ul><ul><li>Collectors </li></ul><ul><li>Joiners </li></ul><ul><li>Spectators </li></ul><ul><li>Inactive </li></ul>Li & Bernoff, Groundswell 2008
    • 54. <ul><li>IF..social media is the right choice… </li></ul>
    • 55. <ul><li>1. Use it for cheap, easy PR. </li></ul><ul><li>2. Keep the conversation going </li></ul><ul><li>3. Stay on brand </li></ul>How to use social media to reinforce
    • 56. Right Brain/Left Brain Marketing http: //rblb . wordpress .com How to market in a downturn 2009, Quelch & Jocz for HBR Turning adversity into advantage: Does proactive marketing during a recession pay off? 2005, Srinivasan, Rangaswamy, Lilien Recapturing lost customers 2004, Thomas, Blattberg, Fox Further Reading

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