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Marketing during recession - are you smart enough?
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Bikky Khosla | 21 Apr, 2009
Even during the best of times companies, particularly small and medium enterprises (SMEs), find it difficult to market their products. But now that the economy is in recession, things have become even more difficult. Demand for products is at an all-time low and finding buyers is also becoming fast difficult.
However, smart companies still have their hands full with orders. Many SME holders I have met in the last couple of months have asked me the same question: How are they getting orders while we are not? And the answer is simple. They have acted smartly and made adjustments in their marketing plan in accordance with the changing market demand. They know that marketing during recession calls for the realisation that the needs of customers or buyers change and thus strategies suited to the new reality should be adopted.
During recession it becomes a necessity for any company to thoroughly research the customer. Instead of cutting the market research budget, one needs to know how buyers are redefining value and responding to the recession.
Contrary to what people might say, recession is not the time to cut advertising. It is a fact that companies that increase advertising during recession, when competitors are cutting back, can improve their market share and returns on their investment than during good economic times.
It is also essential to make adjustments in one's product portfolios while marketing during recession. Tough times usually favour multi-purpose goods over specialized products. So weaker items in product lines should be pruned or should take the backseat while preparing a marketing strategy.
Pricing tactics too need to be made according to market realities. Buyers during recession will be looking for the best deals. Although marketing during recession does not necessarily mean cutting down prices, one may need to offer more price promotions, extend credit to long-standing customers, and market value-added after-sales services or warranties more aggressively.
In tough times, price cuts attract more consumers and a price elasticity can help. Buyers during recession take more time searching for the products and will also negotiate harder to get the best deals. They are more willing to postpone purchases, or even buy less. So SMEs need to give them a price that they can't resist.
I think it is a good period for us to take an objective look at our marketing plan and the products line before we approach a buyer.
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Marketing during recession - Are you smart enough?
Omongwe-Samuel Ramakoba (Gaborone-Botswana) | Mon Apr 27 16:59:39 2009
Excellent article, I totally agree on this one. To add to this I have observed that companies have all adopted a one-way solution of cutting budgets and staff during these hard times. As one of the commentators has indicated, things should differ case by case. I am of the opinion that companies should boost their marketing by not necessarily cutting all staff but also should engage in the following; 1. Customer-service training of their key staff to reflect a customer-centred entity & attract business 2. Re-deploying sales staff into the field to do more one-to-one marketing & sales 3. Reinforcing high-quality product output
Marketing during recession
S. Z. Ali | Thu Apr 23 16:00:55 2009
A good analysis, and useful sugessions to the SMEs in these difficult times.
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Re: Marketing during recession
Y.Veeraraghava krishna. | Fri Apr 24 03:28:05 2009
It really helped me to restructure my gameplan and create an aggressive sales and marketing.
Thank you,
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in the time of recesssion the price of products has to be slashed,,,,
vel kumaran | Wed Apr 22 04:23:10 2009
sir,
from the above article, the article was good,, but the while coming to pricing strategy the price of the product has to be slashed down because during the recessions the whole market gets down and when you approach them for advertisement the budget will not be sufficient to full fill the promotions.
EDLP (Every Day Low Pricing) has to be followed,,,,
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Re: in the time of recesssion the price of products has to be slashed,,,,
PP Shrivastav, Mumbai | Wed Apr 22 06:02:57 2009
Are you smart enough? Yes, we should be, at least by taking the clue from this editorial.
Good discussion, very practical approach, simple tips but very powerful. People should be smart enough to pick up the points and as well said, it is never too late, orient the business strategy to deal with this recession, which is going to end by the end of this year ( as per my view).
With best wishes,
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Re: Re: in the time of recesssion the price of products has to be slashed,,,,
kksave | Thu Apr 23 08:53:33 2009
These are management book excerpts and in practice only work as guides in the complex scenario to run an organisations. There are products which buyers will not buy today even if offerred at zero price! But there are products like life saving drugs or any other common medicines even if they are priced high. So my advise is to study the entire operations, and try and ensure higher productivity, required qualities of your products and control input costs. Parameters will vary from organisation to organisation, product to product, location to location etc.
I am sure with watch on Productivity/Quality and Cost aspects, one can still continue to sustain during this trying period.
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