12 Martie 2010

6 marketing tips to survive the second year of recession

If in the first year of crisis, the marketing industry’s recession motto was “those who scream now, will get their voices heard”, meaning that if you communicate now more than ever when others cut back on it, you'll improve both market share and ROI. Now, in the second year of recession, marketing heavyweights say companies should take a balanced approach and gain good strategic insight into how the business paradigm might be changing. Wall-Street offers you some tips given by marketing directors on how to guide your organization through the second year of crisis while keeping your marketing spend intact and grow in the top line.

Be confident in your capacity to change

Business executives should keep a balance in these stormy times: neither too optimistic nor pessimistic. They should stay flexible and realistic, instead of chasing after moonbeams and waiting out the storm, according to Costas Kapetanopoulos, marketing and communications director at Cosmote Romania.

“Although it is a difficult time, it’s in his power to change, adapt and react depending on how the crisis plays out. It is a crisis, no doubt, but as long as he is confident in his abilities, any entrepreneur should see it not only as a challenge, but as an opportunity”, Kapetanopoulos said.

Don't cut back your marketing spend this year

The first part of 2010 will be more difficult for companies compared to last year. In the panicked search for “non-essential spending” to cut back on, inevitably the eye falls on the marketing.

“If I were to give a piece of advice, I would say: Under no circumstances should you cut back on marketing this year, because it will be tougher than in 2009, it is the last year of crisis, and only a smart marketing strategy will define who wins and who loses in this year’s challenging environment”, said Alexandru Popescu, marketing director Centrul Medical Unirea.

But more efficiently would be to increase marketing spend, if they have projects they want to advertise, because they would increase awareness on their company or products while others will just stick to their knitting.

Alexandru Popescu added:

Get creative – the timing for doing things you dreamed of couldn’t be better.

Use the non-conventional media

Look at the resources you have at-hand (existent or former customers).

Stay informed and be flexible

Opportunities are always out there, be it crisis o not. The difference is that in good economic times, they are easier to identify, said Camelia Hoinarescu, marketing&development manager, Agroli Group.

“During times of economic downturn, it is vital to have a good market insight in order to scan the environment for strategic opportunities that could minimize risks and help us work our way out of crisis. We also have to be flexible and adapt to a changing environment, to find the courage to redefine our business lines according to the new opportunities that arise and the new market demands”, she added.

Take an optimistic view, she continued, “If we think positively and look on the bright side of the crisis, we will emerge from the crisis even stronger than before”.

Get smarter, not louder

Grant McKenzie, marketing VP at Ursus Breweries, says business leaders and executives should focus more on finding more persuasive, ‘dispersible’ brand ideas, and efficient and scalable ways to market them.

“Take more time and energy developing a smarter approach, rather than spending more”, said McKenzie.

Get close to your customers

Marco Kind, chief marketing officer at Vodafone, says business leaders should focus on putting their customers first, in these recessionary times.

“In marketing, you have to be focused on helping and serving your customers every day, to improve their experience. For us, marketing leaders, it is always important to find new ways of getting closer to our customers”, Kind added.

Find a balance between survival and conservation

Corina Gonteanu, marketing and PR director at Cinema City outlines two strategies companies put in place during economic downturn. The first one is a strategy of survival when the company focuses on cost cutting and accepts compromises to stay afloat. The second one is the strategy of conservation wherein the organization focuses on the conservation (very often without developing) its assets (both tangible and intangible).

Survival-oriented companies minimize their marketing expenses, shift their focus from branding campaigns to a solution that boosts acquisitions and hopes to work its way out of the crisis with zero marketing spend. On the other hand, conservation-oriented companies want to preserve the value of the brand in the consumer’s mind, in order to avoid a ROI loss or lose its competitive edge when the crisis ends.