Top 7 Dangers of Marketing in a Slow Economy…And How to Avoid Them
The ever-slowing economy has no mercy for anyone, leaving individuals and businesses in tight situations. Even the biggest of corporations are getting a taste of its fury. You can avoid having your business shut down by taking heed to the top 7 dangers of marketing in this horrible economy. The first danger that should being avoided is:
Not Cutting the Right Costs
This is one of the worst mistakes many businesses make. Everyone is pretty much muddling through this difficult time in our economy and are looking create tighter budgets in order to reduce their spending habits. Yes, this is a good plan, but if you aren’t eliminating the right expenses, you could be digging yourself deeper into debt. During the cutting and slashing of costs, some businesses wrongfully believe that they are able to do away with marketing. Researchers have shown that this is indeed a horrible mistake because it’s chopping off the piece of a company that helps to stimulate growth. With marketing, you’re business generates sales and from sales comes profit. Tom Watson said it best, “Nothing happens until a sale is made.”
Solution: The solution to this problem is SWOT Analysis. This means Strengths, Weaknesses, Opportunities and Threats. This gives your business an in depth analysis of its strong points, harmful attributes, external conditions that will help reach goals and external conditions that can possibly damage goals.
Not Realizing the Opportunity
Second on the list is businesses that are too blind to see when opportunities are a-knocking. Today, a lot of companies are backing down because they’re too afraid to go head-to-head with the downing economy. This is the time for taking advantage of the situation! Many of your competitors are basically out of the picture, paving the way for you and business to pick up their slack and their customers. Since your competitors are trying to save money, you won’t have to worry about them spending loads of money on expensive ad campaigns. If Kellogg and Post were able to do it during the Great Depression, why cant you?
Solution: Creating a marketing plan and budget. Without a good ad campaign and budget, you could end up over-spending for ads that don’t work.
Not Cross Selling
The third danger on the list is for businesses that are focused on selling to new customers than re-selling to their current clients. It has been proven that selling to an existing client costs a lot less than trying to market an obtain a new client. You should explore every avenue for earning extra income and enhancing sales. One avenue that should be in your view is selling to your existing base. Send out info on all the services and products your company has to offer them. Never think that you can sit back and wait for them to figure out all of your services and products -- consumers want you to sell to them because it’s less work on their part.
Research has shown that it can cost businesses 5 to 8 times more to acquire new customers than resell additional services to a current client.
Solution: Specialized campaigns. Gear your marketing towards your existing customers who are already familiar with you. This way you can build stronger relationships and a loyal client base.
Not Knowing Your Clients
Okay, you know you have services and/or products to sell, but who exactly are you selling them to? Don’t make the mishap of not knowing who your customers are -- a lot of businesses are trying to sell to the wrong demographics. When you know who your clients are, you will be able to sell your product to them a lot better. Try to obtain as much info about your clients as possible. It is important that you know who, why, when, where and how your customers are buying from you.
Yes, back in the hayday, up starting companies were able to place bulletins all over the place about their services and products, but to get a headstart, you will have to be more intellectual than that. Do market studies to see who your products and services would benefit the most. Get your audience right and advertise to them efficiently during your ad campaign. You can have an amazing product that could make you millions, but if you don’t let the right people know about it in the right way, then it will never reach potential high sales brackets.
Solution: Data management. Get your information correct and soon you will develop the perfect marketing strategy to gain maximum customers and sales.
Not Being an ROI Master
Just because your company has been awarded for beauty and design doesn’t mean you’ve mastered true marketing. It takes more than just advertising with email blasts, online promotions and direct mail. These aren’t true marketing strategies, but you don’t have to dump them altogether. They are indeed important tools for marketing, but true marketing is when you take your sales and grow them for better return achievements. Making your company look good isn’t going to give you a big return, and unfortunately a lot of companies fall for this illusion. Of course, your appearance is always important, but beauty will only get you but so far in this industry. In order to increase sales and profits, you will need to track your ROI. Not knowing how makes you a victim of danger number 5 on the list.
Solution: Simply code and track your ROI.
Not Staying on the Horse
A lot of companies jump off the ad campaign bandwagon much too early. If you want to see results, you’ll have to stay consistent. It’s already been proven time and time again that on average, buyers must be touched 8 or 9 times before they seriously consider purchasing from a business. Figure out what would work best for your company then jump on the horse and ride it to the finish line. And don’t let nay sayers talk you off of it. It is vital that you stay focused and committed through to the end. Once you find what marketing strategy works, stick with it. Even get pigheaded if you want to. Too many businesses grow weak and discouraged before finally giving up.
Solution: Automated drip marketing. Don’t waste a lot of time sending out thank you letters and follow-up emails, get automated software to do that for you, so you can focus on other important aspects of running your business.
Not Being Integrated
Don’t get stuck with old habits. What worked for earlier generations won’t necessarily work for today’s market. We’re living in a fast paced world that is ever-changing, so you have to be willing to research all platforms. The best strategy is to have all platforms combined and working together. For example, your ads should work with your direct mail; your direct mail with your web site; and your web site with your social media. Make sure to research, study and experiment with different platforms. This is what will give you the best results.
Solution: Integrated marketing.
Now that you know what the top 7 dangers are for marketing in a slow economy, you should be able to take charge of your business and grow in into a grand success.