Downturn Marketing Strategies

by Prahalad 2 replies
The advantages far outweigh the drawbacks during a downturn when viewed from an online marketing perspective.

Every dollar spent on marketing whether online or offline give you much more during a recession if you apply your resources in the right way, like your ability to get the maximum from you publisher with your negotiating skills. If you take it positively, this is a god-sent opportunity for a marketer to get more return on your investment on marketing and advertising of your products.

Actually, businesses benefit more during a downturn provided you continue investing in marketing and advertising. This can be confirmed from various studies conducted by highly-acclaimed researchers. If you compare the statistics, you will notice that those businesses that promoted aggressively their products always gained 4% to 5% in market share when compared with their competitors who did not hike their spending on marketing/advertising during a downturn.

The key factors that you should take into account when marketing and advertising during a downturn are:

Customers: You know very well that in any business, customer is the king. It is highly recommended to provide all benefits to your customers like discounts and gifts and extra facilities like free downloads and free tools to help the customers to get more value from their online experience. This will ensure your customers will come back again and again to your business and thereby generate more sales.

Flexibility: For you to be flexible, you should be alert and oriented of your customers search behavior pattern. In other words, monitor your customers for what actually they are searching for, and then change your marketing/advertising strategies accordingly. Any rigid approach on your marketing strategy will backfire on you.

Cost-Affective Targeting: Please note that not everybody will succeed in cost-affective targeting. For any business to succeed, you should have certain key elements like well-known brand name, multiple products, targeted advertising, after-sales service, and support. These key elements are vital for any business to succeed. Any missing elements will have an adverse effect on your cost-affective targeting.

If you have studied recession or downturn long enough, you will find that this phenomenon does not last longer than 11 months or a year. Take recession positively, study it well, and apply your marketing and advertising strategies accordingly without compromising or downgrading your marketing and advertising costs. The key elements like well-known brand name, multiple products, targeted advertising, after-sales service, and support are to be incorporated into your business if you want to succeed.

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  • Profile picture of the author dvduval
    I am not convinced this time will be less than 11 months. I think it will be longer. While it is true that marketing opportunities can increase, and publishers may offer a better value due to fewer advertisers, you have to consider the reason for this is people are not buying as much.

    I will offer that you to really study what is going on and look for quickly changing needs. People that needed a new car now need car repairs. People that wanted coffee at Starbucks are now looking for the best tasting brand that they can prepare at home.

    Understanding changing needs, and responding is what I feel in most important in a recession.
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    • Profile picture of the author Prahalad
      Dear dvduval,

      My opinion is that this time around the duration will be much less because of the following reasons.

      If you look at the great depression of the 1930's and then compare the facts and figures of today's recession, you will notice that currently because of globalization the impact of recession presently will be far more decreased than in the 1930's.

      This is primarily because, global trade at that time was negligible and all countries were isolated in economic activities. But, today because of globalization and the amount of trade between countries, irrespective of economic policies followed by each country, the duration of recession will be significantly less compared to the 1930.

      Yes, it is true that we may have to adjust a bit in our spending or expenditure during this period fearing much worse conditions. But, I have been following this particular phenomenon rather daily, and I have noticed that even if there are fluctuations, this time around it recovers rather quickly sending signals that this is just a passing phenomenon and all economies will bounce back aggressively within a short time.

      I can assure you that currently the economies are slowly gaining there lost ground and it is only a matter of time before they regain their glory. All economic indicators suggest a very fast recovery today when compared to the 1930s.

      Let us hope for the best.
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