Marketing During a Recession

Marketing During a Recession?

In January of 2008, a poll administered by Fortune Magazine found that 4 out of 5 Americans were concerned that the U.S. would soon be or already is plunging into an economic recession. On the surface, this *sounds* like a grave situation. But no matter what the economy is doing or what the headlines are saying, the fact still remains: you've got a company to run and clients to serve. Will the economic downturn affect your business? That all depends on how successfully you navigate the change.

Business as usual, for many Americans, means finding creative ways to meet the needs of our customers. A recession or pending recession demands that you take some time to reevaluate whether your current products and services provide value for your clients, or whether modifications to your business model, your marketing, or both, need to be made.

Is Your Product or Service Counter Cyclical?

The good news is that when recession hits, spending doesn't cease; it just filters through different channels. According to an article titled Four Mistakes Entrepreneurs Make in a Recession by Scott Shane, Professor of Entrepreneurial Studies at Case Western Reserve University, "When customers cut back on their spending, they often substitute one product for another. For instance, in a recession, people might cut back the number of steak dinners that they eat out. But, because they still want to treat themselves, they increase their purchase of cheaper foods, like pasta, making pasta a counter cyclical product."

Another example of this is the rise in outsourced human resource consultant jobs that's been predicted as a direct result of corporate downsizing. Regardless of economic conditions, companies still need to manage key aspects of doing business. In 2008, they're searching for solutions that will allow them to retain or even improve their level of quality while reducing overhead costs.

For businesses both large and small, this clearly this points to a shift in consumer attitudes and perceptions, which in turn affects spending habits. If you plan to continue selling to them, it's a smart idea to be concerned about the wants and needs of your clients. Are they the same as they were last year? If not, what's changed? What will they be searching for tomorrow and how can you fill that need?

Economy on the Downturn, Your Marketing on the Upswing

Another key point covered in Scott Shane's article: "When unemployment rises, people start businesses because their opportunity cost of doing so goes down, further increasing competition. So the need to have a competitive advantage is even more important in a recession than in a booming economy."

In marketing, a competitive advantage starts with knowing your ideal customer intimately. In other words: now is a great time to analyze or reanalyze your target market. Large corporations such as Disney, Verizon and many others constantly tap into the wants and needs of their clientele. They do this by putting out customer satisfaction surveys. The findings obtained via these surveys are then used to develop new products and client solutions or modify existing ones.

How to Create Demand for Your Product

The best way to create demand for what you're selling is to figure out what the customer wants and then provide that. For a web based business owner, it's easy and inexpensive to conduct surveys of your target market and existing customer base. Websites like http://SurveyMonkey.com offer multiple membership levels that allow you to enter survey information right into their forms and then distribute them to your readers via a link in your blog, newsletter or other means. You can also elect to hold market focus groups via websites like the Ryze Business Network or via online conference rooms such as those at Voxwire.com.

You can also conduct market surveys and focus groups the old-fashioned way; by phone, via business reply mail, or in person. No matter which option you select for your business, the important thing is to find out what your customers are searching for and then work toward satisfying that need.

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Marketing During a Recession?

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