SalesTalk discusses how maintaining or increasing marketing efforts during an economic downturn can help businesses thrive. It provides evidence from multiple studies showing companies that continued or raised their advertising expenditures during recessions experienced higher sales and profits compared to those that cut back on marketing. The document then offers 10 low-cost marketing strategies for small businesses to consider implementing during tough economic times, such as increasing marketing hours, rotating tactics, networking, newsletters, follow-ups, and personalized direct mail. The key message is that rather than retreating from marketing during a recession, businesses should stay consistent with their efforts and find creative new ways to promote themselves.

1. SalesTalk: Marketing Upin a DownEconomy
Kathy Muller, Director - Sales Training & Development, ICED
October 2010
In a tougheconomy,marketingtendstobe the first casualty of budgetcuts. Most businessowners
“hunkerdown”and retreatuntil the outlookimproves. Makessense,right? NO! Letme explain …
Didyou knowthe U.S. has experienced tenrecessionssince WorldWarII? That meanswe’ve livedin
recessionarytimes roughly one yearoutof everysix---you’dthinkwe’dbe usedtoitbynow. Countless
studieshave beenconductedtoprove businesses shouldmaintain marketingefforts duringarecession.
 In the 1920s, advertisingexecutive RolandS.Vailetracked200 companiesthroughthe recession
of 1923. He reportedinthe April 1927 issue of the Harvard BusinessReview that thebiggest
sales increasesthroughouttheperiod wereby companiesthatadvertised the most.
 AfterWorldWar II, BuchenAdvertisingInc.beganmeasuringthe annual advertising
expendituresof companies. Whentheycorrelatedthe figureswithsalesandprofittrends
before,duringandafterthe recessionsof 1949, 1954 and 1961, theyfoundthat,almostwithout
exception,salesandprofitsdroppedoff atcompaniesthatcutback on marketing.
 In 1979, Meldrum& Fewsmithconductedaseriesof studiesanalyzingthe waycompanies
marketedthemselvesduringthe twoyearrecessionfrom1974 to 1975. The studiesconcluded
that “companieswhichdid notcut advertisingexpendituresduringthe recessionyears
experiencedhighersalesandnetincome duringthose twoyears and thetwo yearsfollowing.”
 MarketingSense studied the recessionfrom1989 to 1991, surveying101 name brands. Kraft
saladdressingsandJiff peanutbutterbothraisedmarketingbudgetsduringthisrecessionand
increasedtheirsalesby70%and 57%, respectively. Withincreasedbudgets,PizzaHut improved
salesby61% and Taco Bell by40%.
Yes, we all know the bigbrandshave largerbudgetsandmore resourcesthanSOHOs(small office-home
office). Are there waystomarketyourbusinessthatwill notcostyoua fortune? Youbet! Here are just
a few strategiesyoucanuse to helpyouthrive intoughtimes:
1. Don’t cut your marketing/salestime,increase it. In the August2010 CEC, Deb Evans wrote that
mostZeesadmittedtoonly10 marketinghoursorlessperweek. Double yourmarketing/sales
time andletyour competitioncuttheirs. If yourcompetitorscutback, your message grows
evenstronger.
2. No single marketingeffortworks all the time for every business,so rotate several marketing
tactics and vary your approach. 5-5-5 isgood, now add somethingdifferent---ConstantContact
for e-communications,grassrootsorinbound (social media) marketing, andmaximize yournew
website asa marketingtool.
3. Network at events. Checkout yourlocal Chamberof Commerce,BNIandotherorganizational
meetings. BarbaraBurrell discovered ndnetweavers.com,anontraditionalNorthDallas leads
group. PamLloyd (Dover,DE) turneda theatergroup referral intofall home schoolers
programs.

2. 4. Attend publicmeetings. Identify areaeducation-basedeventsto attend. PamHarris (Kansas
City,KS) saysshe is gettingmore andbetterleadsthroughin-personnetworkingthantraditional
marketingalone.
5. Create a “useful” handout. ThinkbeyondTodaySheetstodevelop flyersore-communications
that recipientskeepbecause of the addedvalue. Make sure youinclude yourname,phone
number,email addressandwebsite information. Forstarters,checkoutthe InternetSafety
Presentation handouts(CEMS,DocCenter,ConceptDocs,Marketingfolder) orcreate yourown.
6. Try buddy marketingto promote your business. Findcolleaguesandbusinessassociates whose
servicescomplimentyoursand dojointpromotions. Thisgivesyouthe chance to reacha whole
newpool of potential customers. Forexample, LauraGraham-Leonard(Branchburg,NJ)
partnered withafriendlybusinessowner tooffersummerTechDaysatherstore.
7. Answeryour phone differently. Tryannouncingaspecial offerwhenyouanswerthe phone.
Change yourmessage toreflectseasonal programs. Darlene CalhouninParkvilleMOrefreshes
heransweringmessage regularly---call tohearherlatest!
8. Newsletters. Didyouknowitcosts as much as six timesmore tomake a sale to a new customer
than to an existingone? Use newsletterstofocusyourmarketing. DebMoorer(LumbertonNJ)
attendedafree local ConstantContactworkshopto betterutilizeall itscapabilities(seeher
LinkedInpostfordetails). Goodwayto contact inactive orformercustomers,too.
9. Senda secondofferto your customersimmediatelyafterthey’ve purchased. Have you
followedupwithall yoursummercampparticipantsregardingfall programs? Prepared holiday
camps or Giftof Learningannouncements tosendcurrentparentsanddecision-makers?
10. Stick it! Use stickers,stampsandhandwrittennotesonall of yourdirectmail effortsandday-
to-daybusinessmail. Whenyoupersonalize yourmessage,ithasthe impactof a miniature
billboard. Keepinmind the messageshouldbe shortandconcise,readable in10 secondsor
less.
Whatevermarketingtacticsyouchoose,youreffortsmustbe consistent. It’snottime to cut marketing,
it’stime to re-evaluate yourmarketingandanalyze what’sworkingandwhat’snot. Be creative! Explore
newoptionsto getthe resultsyouwant.