Advent Blog

If you had just one dollar left to spend in your company…

The dark forecast of economic woe looms like a menacing cumulonimbus cloud billowing on the horizon.  To be sure, current patterns indicate it may be blown off course.  But consumers are battening down the hatches.  As the United States tightens its purse strings it is no time for companies cut their marketing budgets.  Advertising strategies like experiential marketing and interactive marketing are becoming more popular.  In his new book, Marketing in a Slow-Growth Economy, Avraham Shama writes that concerned consumers become more critical and conservative about their spending and that companies must change their marketing habits to be successful (read the review).

Shama points out that recession is a new economic climate.  This shake-up offers a unique opportunity for those who can adjust, adapt, and innovate.  During tough times companies cannot afford to spend precious marketing dollars on advertising that does not work. Face-to-face marketing to be the most effective, memorable, and trusted form of marketing.  Listen to your customers and speak to their needs in authentic ways they will remember.

What do your customers want?

What could a rise in SPAM sales possibly mean for your company?  Rising costs for fuel and feed means many companies are passing the buck to consumers.  Faced with an economic downturn and rising prices many spenders become more discretionary and look to cut corners to ease the strain on their wallets.  The people at Hormel realize this and have increased advertising for their affordable meat product option SPAM.  In a Fox News interview Smucker Chairman and CEO, Tim Smucker says, “In tough economic times, the comfort, cost and convenience of a peanut butter and jelly sandwich gains even greater favor with our consumers” (read the article).  Companies like Smuckers and Hormel have increased advertising, are listening to customers, have identified the authentic nature of their brand, and are offering high value with their products.  Both have reported impressive earnings.

Proctor and Gamble is another company that has embraced its role and invested heavily in its brands which incluce Charmin toilet paper, Crest toothpaste, and Tide detergent.  The company has reported an impressive third quarter profit rise of 8 percent.  “Virtually everything we sell is not discretionary. You know, it’s a staple,” Lafley told analysts. “You have to go to the bathroom. You have to get up in the morning and brush your teeth. You’ve got to shower. You’ve got to shave … you’ve got to wash your clothes,” says A.G. Lafley, P&G’s chairman and chief executive in a Fox News interview (read the article).  Toothpaste is not optional for consumers, but the Crest brand is.  You even have to market the essentials.

So you don’t sell SPAM or toilet paper?  Not to worry.  Bentley, whose cars retail for upwards of $300,000, reported records in sales and profits last year (read the article).  Even the most opulent of luxury cars that carry abhorrent price tags and offend any sense of decency and stewardship are still being gobbled up by hungry spenders.  The lesson is that although competition may be tight, people are still spending.  The key is to target your specific audience.  I guarantee the people buying Bentleys are not the same people buying up all that SPAM.  “Marketing is the craft linking producers of goods and services with customers” (halfsigma.com).  Don’t break the link.

Be aggressive

“A weak economy is not the time to cut back on communicating with your existing and potential customers,” writes Jeff, Cornwall, director of the Belmont University Center for Entrepreneurship (see his website).  Instead of cutting back on spending, companies should ramp up efforts in order to energize sales.  Cornwall suggests experimenting with different tactics and attaching special offers to each promotion to track which ones are the most effective.  Focus on maximizing your effectiveness at tradeshows.  Makeover your office, lobby, or showroom to create a branded space that can stike an emotional chord with customers.  Be more aggressive than ever.  Cornwall cites the sage wisdom of local Nashville entrepreneur, Charles Hagood, “If I had just one dollar left to spend in our company, I would spend it on marketing” (read the article).

Related Articles:

• Review: Marketing in a Slow-Growth Economy, Avraham Shama
• Food Makers Weather Downturn, Shares Rise
• Cost controls, emerging market growth boosts P&G profit
• Don’t ease up on marketing in these slow economic times
• Brand, Your Most Valuable Asset

Advent thrives at the forefront of the cutting edge experiential marketing industry and for 20 years has helped rapidly growing companies communicate the essence of their brand and vision domestically and abroad through exhibits, events, and office environments.  Based in Nashville, Tennesse, the company is a creative industry leader with Fortune 500 clients like VF Corp and Mars, International. For more information, visit http://www.adventresults.com/.

Tags: marketing, recession, slow economy