Are companies in a marketing freeze as we await election results along with what will happen to taxes in Washington? We have companies giving their lowest approval ratings for the job Congress is doing in DC. With the uncertainties of election results, taxes, and healthcare costs for businesses, your marketing efforts have to be much more pinpointed in order to reach your targeted consumers. Over the past few years, consumers have less expendable income and they feel poorer. These conditions make people more frugal and cautious when spending their hard-earned dollars.
Your business has to do more research on customers and prospects to find out where they are placing their value with the fears continuously looming of a further recession. The research budget for marketing needs to increase and not decrease. People are taking more time in their buying decisions and they are now deciding to live without some of the things that would have previously been purchased. We need to know where the consumers are placing their values for products and services.
Companies also need to focus marketing around families and their homes. People will stay connected with close friends and family as they retreat in their shell with fear. You want see the rugged, outdoor individuals as they will have retreated back to their friends and families. Marketing your business in NC or throughout the country will take careful strategic planning.
Marketing is an investment in your company, not an expense line item. Companies need to maintain marketing spending and in fact, case study after case study clearly shows that by increasing your marketing expenditures, companies are able to increase their market share in a recessionary environment. So many companies retreat in fear and in turn they lose revenue and market share when people are looking for trusted brands. The uncertain consumers need reassurances from known product brands and if you disappear out of the consumer’s marketing view, you can’t be trusted to provide them with a product or service they need.
Successful companies cannot scrap their marketing plans in a recessionary climate, they must be like a chameleon and adapt to the current market conditions. Get rid of all the gimmicks and bring on the durability, reliability and performance. Companies may also have to adjust their product portfolio as consumers will be looking for multi-purpose products and services as opposed to the individually specialized products or services. You may have to reduce your product lines with higher emphasis on the multi-purpose products so you don’t have large inventories in product lines that will not be selling as well.
And yes the pricing question always comes about with thinking you have to go the route of the low-price leaders. This is not necessarily true that you have to discount your list prices. What will be advantageous will be temporary price reductions or price promotions. People are looking for better pricing with the recessionary market conditions. Research shows that a temporary price cut or promotional pricing is more attractive to consumers instead of registering to win something or a mail-in offer. It’s like Jerry Maguire says, “Show me the Money”!
Princeton Marketing is a Greensboro, NC Marketing Firm and can help your business to thrive in the current market conditions.