What should we do about marketing in this horrendous economy?  Should we spend as little money as possible?  Just hunker down in our proverbial storm cellar until the tornado passes?  And when we do spend marketing dollars, how should we spend them when everyone in the marketplace is hurting?  What are the purchasing drivers, if any, in this market? 

These questions are front and center in the minds of Hayden Group Partners, Ellen and Victoria, and in the minds of their clients.  So we recently surveyed some of our clients, partners and trusted colleagues.  Here are their strategic marketing ideas for a down market:    

1.  Practice laser beam marketing.  Current economic conditions require that marketers move away from broad-based marketing.  Instead of spending a smaller budget in support of every product and service, invest only in those marketing efforts likely to be the strongest revenue drivers for your company.   Make sure you spend enough money to do the job right.  If you only have money to successfully execute one marketing campaign, then choose that marketing effort that is most likely to help you realize your revenue goals.

2.  Market products with a “high value ratio.” The greater the value ratio is, the more likely your product is seen as a “real value.”  In a down economy, consumers want their dollars to have more buying power, and as a result are looking for demonstrable value. 

3.  Identify your die-hard customers.  A die-hard customer is one that is passionate about your product and would continue to buy your product even after cutting back on other expenditures.

4.  Focus on your most die-hard customers.  Build and market products to those customers that love your product and consider it a necessity, not a “nice to have.” 

5.  Support channels that cater to your most die-hard customers.  Do you see a theme here?  Be sure your products are marketed and sold in those places where your die-hard customers live.  

6.  Leapfrog your competition.   If you are number 2, 3, 4 or lower in your category, a down market is the absolute best time to have a snowball's chance in Hades of taking market share away from your competitors.  Your competition may be a bit complacent in this market.  In a down market you are more likely to be heard because the marketplace is quieter, and you definitely will get more value for your marketing dollars. Hayden Group Partners, Ellen and Victoria, just started working with a consumer products client who is using this down market to steal mindshare from her competitors.  Her business is not big.  She is not rich.  But she is very, very smart.  And, we hope, soon will be rich! 

7.  Partner more not less.  A down market is a great time to be developing strategic and tactical partners.  Because everyone is hurting, the playing field is more level.  Larger companies are more willing to listen and smaller companies may be more eager to work with you.  Assuming there are market and service synergies that create a win-win for both parties, you will find both large and small companies are more likely to consider partnering with you.   

8.  Plan for and practice patience.    Making a purchase decision during a down market almost always takes longer for buyers.    

9.  Reinvent yourself.    Necessity is the mother of invention (which we understand came from Plato).  Practice opening your mind to the most outrageous ideas, even if it hurts your head a little at first consideration.  You are no longer an antique dealer.  You are a sustainable home furnishings store.   

10. Seek and expect opportunity.  It abounds in a down market; although you may find it in unexpected places.  For sure you will not find opportunity if you are hunkered down in a storm cellar.   

Ellen and Victoria give thanks to all of our clients, partners and colleagues who contributed ideas. Special thanks to Cal Lai, CEO of Sitoa and Dawn DeBruyn of WeMeUs.  We received many more than 10 strategic marketing ideas for a down market.  We will be sharing more ideas in a follow-up article.

Also read “Increasing Sales in a Down Market”  on our website.

Want to put these and other ideas into action for your own company? Contact us today.