30 Ideas in 40 Minutes for Marketing in the Recession


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30 Ideas in 40 Minutes. Presentation to the Triangle AMA chapter.

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30 Ideas in 40 Minutes for Marketing in the Recession

  1. 1. 30 Ideas in 40 Minutes to Reject the Recession & Profit in 2009! Triangle AMA – April 16, 2009
  2. 2. Recession Policy Dress Code 1. It is advised that you come to work dressed according to your salary. If we see you wearing Prada shoes and carrying a Gucci bag, we assume you are doing well financially and therefore do not need a pay rise. 2. If you dress poorly, you need to learn to manage your money better, so that you may buy nicer clothes and therefore you do not need a pay rise. Sick Days We will no longer accept a doctor's certificate as proof of sickness. If you are able to go to the doctor, you are able to come to work. Holiday Days Each employee will receive 104 personal days a year. They are called Saturdays and Sundays.
  3. 3. After-Event Slides & Resources The slides and e-book are available electronically  after the event: marketingsavant.com/triangleama
  5. 5. ...is about turning something which is seen as a negative... ...into a positive – more revenue / sales, greater share of voice and better consumer relationships
  6. 6. More than ever before, it‟s about working together! People working together in a structured and customer centric way to create customer value and achieve results.
  7. 7. Reject the Recession! Myrtle Beach, SC  printer partners with local TV station in a “Reject the Recession” campaign $$$ in free publicity,  250 businesses signup to support, TV station covers the “RTR” campaign weekly
  8. 8. Build Trust We are currently in a “Trust Recession” Following is a small list of what‟s been lost to the trust recession:   Banks no longer trust other banks‟ balance sheets, freezing interbank loans;  Investors distrust most financial asset classes outside of US short-term treasury notes, driving those rates down toward zero;  US voters don‟t trust their government to handle a bailout competently, openly and fairly;  Financial asset managers don‟t trust risk models--neither do investors;  The investing public doesn‟t trust accounting firms to identify shareholder risk (I know, it‟s arguably not their job…);  Financial asset ratings agencies‟ trustworthiness has been gravely wounded;  We no longer believe that lenders wouldn‟t lend to un-creditworthy consumers--because they did
  9. 9. Build Trust Through Honesty & Transparency Local bank puts CEO and president on the spot, in the  media and out in front to address today‟s challenges Do your customers see you as a point of clarity  amidst chaos, creating order out of the disordered?
  10. 10. Trust Starts With Your People Employee issues are critically important during  recessions and in preparation for recovery Constant communications has been proven to sustain  high morale and maintain company strength For Example: Black and Decker increases communications during times of recession in order to maintain morale and credibility among their employees. • The company alerts employees to changes in their respective departments • They communicate up front what the managers see as areas for potential reductions in employment or financial support • Black and Decker continues its investment in organizational development • The company philosophy is to promote employees from within, even during a recession.
  11. 11. Keep Team On Task & Upbeat Don't sing the Recession Blues around any staff what-so-ever.  If people feel like they have a reason to fail some of them just  might - don't give them the opportunity. It starts at the top. Don't ignore reality, be willing to speak  candidly about the changing circumstances that impact your business, but don't emotionally quot;throw in the towel.quot; With the exception of a handful of businesses...the market still  exists for what you sell. Somebody somewhere is buying what you're selling. The question is, are you positioned well enough to be the one  to sell it to em' and are you capitalizing on every opportunity?
  12. 12. Pricing decisions should be viewed not as Band-Aid solutions for bleeding income statements but as part of a long-term strategy for fiscal fitness. - Reed K. Holden, Harvard Business Review
  13. 13. Leverage Price Segmentation First class, business & economy = same  destination Accenture reports that a price Offer premiums for those willing to pay while  increase of just moving others „upmarket‟ 1% can improve operating profits Dynamic pricing based on (any factor you  by 11% if sales like!) time, location, quantity, derived benefits, volume remains constant. perceived value “The more you can slice and dice your prices and offerings without affecting your brand, the more you can sustain profitability.” - Eric Mitchell, Professional Pricing Society
  14. 14. Cost Cutting Can Backfire In 2002, Kimberly-Clark reduced  the number of diapers in each package of Huggies in order to improve margins. Procter & Gamble could have  followed suit, but instead they kept their pack size constant and added the word “Compare” to the label. At the same time, they increased  discount coupons and store displays for Pampers, effectively spoiling the pricing power of Huggies.
  15. 15. Make Products Accessible With Price During the Argentinean economic crisis of  2002, Unilever made it possible for people to buy the Skip laundry brand by making small packages available, which carried a low unit price. They also introduced large economy sizes that offered people a better deal. Even if your brand is relatively high  priced, that high price, per se, need not be a problem as long as people believe your brand provides value for money. Most people find security in buying an established and reputable brand. What you need to do is make your brand accessible.
  16. 16. Introduce New Products & Services Historically, some of the best innovations come from  recessions Less noise and clutter means more room for you  (increase SOV & SOM) Innovations are proven to keep customers buying in  times that are otherwise slow For Example: There are two examples of great interest: 1) Paychex, an payroll processor, launched Taxpay in 1990 as an additional service for it’s existing customers on Paychex. It brought in a burst of new revenues from existing customers while introduced new customers to both Taxpay and Paychex, setting itself up nicely for the recovery 2) Black & Decker introduced a highly successful line of 33 new power tools during the 1990 recession that set it up to capitalized on the DIY boom of the next decade.
  17. 17. Launch a New Product/Service/??? Leverage „recession-oriented The public is looking for  behavior‟ strength, stability and a  Nesting positive message.  Video game system sales & It‟s easier to cut through  DVD rentals are steady some of the clutter in  Competition- “Looking recessions with a positive Good is Feeling Good” message, as the MSM  Pricey acne treatment vs. are seeking out things dermatologist that aren‟t all „doom and  Survivors gloom‟  Escapism & Hope
  18. 18. 1975 Recession General Motors In 1975, during a deep recession in the automotive industry, GM introduced Mr. Goodwrench as the “smiling, balding mechanic (with clean hands)” to help sell their profitable services and parts.
  19. 19. 1980‟s Recession Softsoap out-innovated giant Colgate-Palmolive in 1980 with “revolutionary” liquid soap and was later bought by C-P in „87. Absolut vodka was brought to the US in 1981 and had #1 market share by 1985 Loyalty marketing was launched with the first-ever Carnation pioneered frequent flier program by premium cat food in 1980 American Airlines
  20. 20. Clio case study Renault launched Clio during a recession Results: They exceeded all expectations, stealing market share from their quieter / dormant competitors
  21. 21. Pop-up Retail Get into that killer space for cheap  Commercial property owners willing to negotiate  Generate awareness & traffic for your main location  Implement an aggressive CRM strategy to keep  those new customers informed Fits right into the  „experience economy‟
  22. 22. Throw A Party There's enough bad news circulating as it  is, don't add to it. Instead, create something fun where people can get together. Morgans Hotel Group is taking the recession head-on with anti-  recession themed parties at their hotels across the country. The parties are part of their larger campaign, quot;RecessIsOn,quot; which includes a micro site devoted to how people are not letting the recession talk keep them down. You can stand out from all the other brands complaining about how tough  things are going by throwing a party where your fans and customers can come together. Learn more: RecessIsOn The Lesson: Lift the spirits of your fans by finding a reason to celebrate.
  23. 23. Go Direct Branding and other forms of  push marketing drop in a slowdown, while direct marketing tends to rise. Increase measurable and  relationship-based strategies such as search marketing, email marketing, lead nurturing, and online communities. Target + List + Offer  = REVENUE
  24. 24. Bail Out Your Customers What if you could offer your customers a little taste of a  bailout? Laguna Grille in New York selects a random table at every  lunch and dinner to be quot;bailed out.quot; The bailout covers the winning party's tab (except alcoholic drinks) and comes with a quot;Laguna Grille Bailoutquot; certificate. You can bailout your customers by forgiving interest they owe,  extending their payment plans, or giving them a freebie. The Lesson: Your customers will appreciate a bailout, even if it's not in the billions.
  25. 25. Take Off The Stress Buying a car is stressful enough, so how do you sell one to someone who is  also concerned about losing their job? If you're Hyundai, you offer a year-long return policy where customers can  return their vehicles should they lose their job or suffer some other quot;life- altering circumstancequot; such as a transfer. Take a look at your return policies, payment plans  and guarantees. Do they relieve the stress of spending money on your stuff? Learn more: Hyundai Assurance The Lesson: Use your return policies and payment plans to reduce the stress of your customers.
  26. 26. Engage in RELEVANT Social Media Do you know where  your customers are hanging out online? Have you asked them? Social media helps us  build relationships with little financial outlay - we only need to invest our time. Ask, Listen,  Participate, Profit!
  27. 27. Social Media for Small Business Caminito Argentinean  Steakhouse is a single- location restaurant in Northampton, Mass Using a website, local  ads, blogging, video, Twitter, MySpace and other digital tools to drive business
  28. 28. Caminito‟s World…
  29. 29. The Social Homebuilder
  30. 30. Martell‟s Holistic Strategy The strategy that dictates  Martell‟s business plan is not focused on social media, it‟s holistic. Advertising, customer relations,  vendor relations, public relations, website execution, social media and more Martell went through the  strategic process of defining their audience, establishing their objectives, developing strategies to accomplish those objectives
  31. 31. Lasso Your Leads Ensure every lead opportunity is being handled and  accounted for properly. What many business don't realize they get good  leads, everyday, that quot;slip through the cracks“ If you can identify and quot;plug up the holesquot; in your  customer acquisition funnel - your lead generation and sales process will become more efficient. An efficient lead gen process will free up cash and  give you flexibility to put more resources into advertising and sales initiatives.
  32. 32. Partner Up! Leverage adjacent marketing and sales strategies.  Because everybody is quot;feeling the heatquot; or worried about the  changing economy develop relationships with other companies to pool resources and refer internally. Devise a strategy to offer your customers more service, special  offers or other incentives to do business with you because of your relationship with fellow business owners. For Example: If you sell auto parts, develop a relationship with a service station for discounts on gas (of course only available through your store). Develop a relationship with an oil change station, etc. Workout a mutually beneficial referral system that gives each business a better shot at a customer. I guess you could call this a Co-Op Win-Win.
  33. 33. Mine The Gold At Home Get more from what „ya got - focus on your existing client  base. According to the late Peter Drucker: Your business has a 1:14 chance of doing business with someone with  whom you have never done business, You have 1:4 chance of doing business with someone with whom you  have had a relationship but have stopped and, You have a 1:2 chance of doing business with an existing customer.  So, what does this mean? A great recession proof strategy is  to communicate more with your existing customers - focus marketing and sales resources inward. Build a loyal tribe of followers and use your client base to  drive referrals.
  34. 34. Recession Busting At Hobart Two Tactics Hobart Uses to Defy the Recession: 400 Customer Testimonials  and 0% Financing Hobart gathered 400+ usable customer testimonials and case histories  during the promotion, which they used to create a quot;great database which is a fabulous tool for selling for their distributors. This library includes testimonials from just about every industry segment we are in around the world.” The online library of testimonials is also highly popular with Hobart's site  visitors. Sometimes no amount of superior marketing can make up for all the sales lost to a shrinking economy. A Hobart spokesperson said, quot;We've had some difficult times this year in terms of top-line sales, but we're very positioned for recovery.quot; Which is smart thinking: Right now it is not just about surviving the downturn, it is about putting systems, relationships, and campaign tests in place so you can bounce into recovery faster the minute the economy allows you to.
  35. 35. Avoid The Middle My money is on strong brands with high net promoter scores  who are consistently delivering genuine and perceived value. This is a bad time to be Sears and a better time to be Best  Buy or Bergdorf‟s. Sears is stuck in the middle without competitive advantage on price, value or service. Best Buy offers both value and service (via Geek Squad)  and Bergdorf‟s regulars are unlikely to cut back drastically. Mass consumer brands with a wide range of products would  be smart to emphasize their high-end and entry-level models again with the goal of avoiding the middle.
  36. 36. Partner With A Nonprofit Non-profits will feel the  pinch as their supports cut back on donations. Mobilize your employees  and your customers behind the non-profits you truly believe in and you will be amazed at the good will and good business you will do as a result. It may seem counterintuitive to increase your CSR (corporate social  responsibility) now BUT that is exactly why it is worth considering. Your employees will undoubtedly respond with increased loyalty that  will also translate into higher productivity.
  37. 37. What Should Marketers DO? Build cross-marketing relationships with a variety of partners  Actively encourage customer referrals  Take advantage of no-cost media publicity  Behave, company-wide, according to highly ethical and Green  principles Use those principles to demonstrate points of difference that  cast the company favorably in the eyes of its customers, suppliers, employees, competitors, media, and general public Track, measure, and evaluate all paid advertising--looking  both at immediate results and at lifetime value
  38. 38. What Should Marketers DO? Devise a strategy for marketing when times are tough, so you  can revisit it again in future slow downs Evaluate where your marketing dollars are going and only  spend in the most effective places Create new, meaningful ways to reach out to prospective and  existing clients Focus on brand awareness  Increase your networking, including social networking 
  39. 39. What Should Marketers DO? Think like a winner.  Review their marketing expenditures and be prepared to shift  dollars around at short notice. As the recession carries on, review their competitors marketing  efforts and determine where they are leaving the field open. Shift marketing dollars to increase their presence slightly in  areas where their competition has backed off. Encourage their marketing and customer service staff to see  this as an opportunity to shine. Award them for their efforts and communicate with them, so they don't fear for their jobs.
  40. 40. Business Building Top 10 1) If you don‟t have a marketing plan, create one, even if it‟s really simple, to keep you focused on what‟s most important. Having a plan means having a budget, and that can actually help you reduce spending. 2) Avoid the knee-jerk reaction of eliminating marketing expenses just because your accountant says they‟re discretionary. 3) Take extra care of your current customers, because others will be pursuing them, and it costs less to take care of a current customer than finding a new one. Be creative about finding ways to show appreciation that also reinforce how good you are at what you do for them. 4) Examine your budget with a critical eye for how you‟ve allocated, looking at the expected payback of competing line items. If you must cut, do a forced ranking and delete whatever falls to the bottom of the list. 5) Sharpen your statements of competitive advantage (“Why buy from us?” answers), including hard facts and meaningful customer testimonials. Replace “We believe in quality” with “Our customers enjoy 30% less downtime.” Use that to modify your messaging for greater relevancy in the current economy.
  41. 41. Business Building Top 10 6) Revisit customer pain points that your business can address. Refresh your empathy for customers‟ current situations, and use that in dialogue with customers. 7) Consider incorporating more trigger marketing tactics in your arsenal, i.e. event, life-stage, or interaction-triggered promotions or offers that hit your customer when they‟re most inclined to respond (like promoting snow-blowers right after a blizzard) 8) Use social media tools to focus on topics and conversations about the role your business plays in a difficult economy. 9) If you‟re a paid advertiser, try to renegotiate more favorable terms and more added value components from media sellers facing a very soft market. 10) Don‟t forget to integrate public relations into the total mix, and don‟t let tight budgets allow you to lose PR momentum. PR will enhance the credibility of everything else you do. It‟s a tough world out there right now, with no safe places to hide. If ever there was a time when your decisions can make a critical difference on the vitality of your business, it‟s now. So what are you waiting for?
  42. 42. Prepare For Economic Recovery Typical recessions are 6mos – 2 years … Prepare  your plans for a 2 year horizon Look for bargain acquisitions, leases, employees,  whatever you need to be successful on the upswing Marketplace protection moves rapidly to  marketplace expansion You‟ll be flush with cash from the new customers  acquired in the downturn, ready to expand into the recovery
  43. 43. A.G. Lafley CEO, Procter & Gamble “We have a philosophy and a strategy. When times are tough, you build share.”
  44. 44. Tools, Tactics and Ideas for Marketing in the Recession Q&A Need help after the presentation? Email dana@marketingsavant.com