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Posted by: Victor_Claveau on 02/14/2009 03:55 PM
Updated by: thepinetree on 02/14/2009 06:42 PM
Expires: 01/01/2014 12:00 AM
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Are you prepared for a slow economy?
As the economy continues to get worse, it’s more important than ever to stand out from your competitors if you want to survive the current challenges that most business owners are facing as well as the many more that are sure to follow. The knee-jerk reaction during tough times is to reduce costs in any way possible, which usually includes reducing or eliminating marketing...
budgets. Unfortunately this only increases the problem by reducing or eliminating any chances of producing new revenue. Think about it like a camp fire - if you stop adding wood to the fire, it is going to produce less heat. If you want to be warmer but plan to wait until your fire starts producing more heat before adding more wood, you’re going to have a long, cold wait ahead of you.
First and foremost, you will need to continue your marketing efforts and if at all possible, increase them. When the economy slows down and your competitors cut back on their marketing, it’s your opportunity to increase your market share by earning the clients they are losing. Your profit margin may be temporarily reduced during this period but your client base will increase. When the economy picks back up, your profit margin will return to normal levels if not higher than before, with even higher revenue provided by your new, larger client base.
You should also take a look at what is missing in your competitors’ marketing and fill the void. For example, if you run a custom pool company and you know that all of your competitors just build the pool and move on, while your company actually takes the time to replace any sod, plants and fencing that was removed or damaged during the construction, make sure that your marketing emphasizes that.
Another effective approach to add to your marketing strategy is to eliminate what isn’t needed so that more emphasis can be placed on what is. Cirque du Soleil did this when competing with traditional circuses by omitting certain aspects of their shows so that they could focus on the elements that provided the highest entertainment value while creating higher profit margins. You can and should do the same thing in your marketing strategy by determining what factors are not optimal, then eliminating them in favor of those that are.
A slow economy can be rough on small businesses, but it can also give them a serious advantage if they are prepared. Are you?
Posted by Wildfire Marketing Group on June 14th, 2008 in Advertising, Marketing Strategy.
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