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For example, cutting the ad budget is a quick way to cut costs, but beware there is a penalty to be paid. Research shows that firms that cut adspend during a recession typically see sales and income fall by 20-30 percent over the next two years as a result. So any boost to the bottom line is usually small and short term. In fact, a number of marketers are expecting to capitalize on the opportunity to grab market share by increasing spending, according to the insights offered recently by a panel of marketers and analysts at B-to-B Outlook 2009, an annual marketing breakfast conference presented by the Business Marketing Association of New York City and cosponsored by BPA Worldwide and BtoB. "Our research indicates that 31% of b-to-b marketers plan to boost their marketing budgets this year, with 62% citing customer acquisition as their primary goal," said Bob Felsenthal, BtoB publisher and conference moderator. A recession is both a threat and an opportunity. The worst-case scenario is a marketer lowers an ad budget while a competitor increases his. The literature is full of examples of brands that have perished this way. But the flip side is that a recession can be a marvelous opportunity to deal competitors a killer blow. Because media prices tend to fall much faster than sales for most firms, the ROI from advertising often increases in a recession. The combination of low media prices and weak competition gives companies a unique opportunity to buy market share on the cheap. Another cost-effective tactic is the continuing use of public relations. An article in the Feb. 9, 2009 issue of BtoB magazine noted a number of reasons companies are maintaining or increasing PR budgets. One source, Mark Rentschler, marketing manager for Makino machine tools described why PR remains central to the company's sales process. "In our industry, people research more than ever before in this type of economic climate before they make a purchase decision." he said. Public relations is effective in the current climate for several reasons. Diverse outlets - Although space in print publications is declining noticeably, Internet and other online outlets provide new opportunities for coverage. In fact, many customers are relying on search alerts, syndicated news feeds and similar methods to find company information directly, rather than waiting until it is published in more "traditional" media.Our own experience using effective PR tactics verifies these results. A campaign for a national trade association using multiple White Papers to establish technical leadership resulted in a 50% percent increase in requests for information and referrals to association members for potential business opportunities. Norwin A. Merens is managing director of Glenview, IL-based NM
Marketing Communications, an integrated B2B marketing, public relations
and trade show/ special events management firm. He may be reached by
calling 847.657.6011 or at nmerens@nmmarketingbiz.com. Find out more at www.nmmarketingbiz.com
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