Good Marketing for Bad Times

It's no secret that the Detroit area has been hit pretty hard by the economy. This all started about a year ago (or longer) here. The latest national news sounds like just a rehash of problems that Detroit has been living with for a while. When the economy tanks, there is a lot of news about big changes in American's lives. For example, a poll for Fortune Magazine from January 2008 shows that even back then (doesn't that seem like a long time ago now??)....

• Almost half have been cutting back on spending
• 4 in 10 believe that their personal economic situation has gotten worse in the last 12 months
• 1 in 4 believe that gas (and energy) prices are responsible for the slowing economy

Add to this the horror stories about getting financing we're hearing right now (auto loan refusal is at its highest rate since 1984, according to Businessweek), and you may find yourself wanting to run for the hills.

So, is it time to close up shop and take a long nap until this storm blows over? Hardly. It's time to get to work. From that same Fortune survey...

• Half believe that their personal economic situation has not changed in the last 12 months (15% believe it has improved)
• Almost 3 in 4 have been able to keep up with their credit card payments, and 9 in 10 are able to keep up with other payments (such as mortgage, rent, car payments, etc.)

What this tells me is that there is still money out there, and a savvy business can survive (some may even thrive) in this difficult environment. Additionally, there's an excellent change to set the stage to have your brand be force when this storm does pass. But it's not a time to cut back on that marketing budget. The key to surviving or thriving in this kind of economic environment comes down to refocusing your brand:

• Awareness Is Not the Ultimate Goal - while no one with any sense will tell you that awareness isn't important, keep in mind that just telling people you exist is not the ultimate goal of any marketing that your doing. A friend of mine runs a bike shop that sponsors a lot of events with a tent, repair equipment, staff, and even items to sell. A while back, I asked him why he sponsored them and the answer was "awareness" so that folks know about the shop. But if that's the goal, why spend the time, money, and energy to actually show up? He could have just sent a banner to do the same thing. The real goal of these sponsorships is to move one step past awareness to get entered into the consideration set for purchase (or even make a few sales at the event!). This is the start to an emotional attachment (something very difficult for banners to do by themselves).
  
• Find Marketing Activities that Connect with Customers Emotionally - one of the first things that get cut out of a budget are a business that don't add an emotional value for consumers. Consider Netflix: as they expand further into social networking so that consumers can share their movie lists or take recommendations from friends, the activity becomes more of a social outlet, a connection. This strengthens the emotional connection to the Netflix brand and reduces the likelihood that it ends up on the household budget chopping block.
• Deliver Greater Value with your Marketing - greater value is OFTEN talked about in board meetings and marketing meetings but seems to be lost or watered down too far to be actually useful by the time it hits the trenches. Award or frequent buyer programs are a great way to increase the value of marketing, and I think a very useful way to capitalize on viral marketing techniques. If you provided unique content, games, or parties for those who have X number of points or purchases at a level between your current "free stuff" or discount levels, folks are going to get more out of the path they are on with your brand.
• Understand Why/How People are Spending Money with You - As the household budget gets trimmed, folks are going to have to shift the way they spend their money. Maybe you'll be lucky enough not to be impacted by this, but chances are you've seen a change in sales in the last few months. Talk to your customers. Get a better understanding of what they are buying with you and why things may have changed. There's a chance that while you may not be able to talk them into spending a lot more, you may be able to make changes to the store layout or menu or whatever to help direct customers to more profitable items or items that supplement other products and thereby increase their value while increase the overall sale. But talk to you customers before you make substantial changes. They'll tell you the why and how they are making changes to their spending habits with you.

Now, obviously, it's not a time to relax, but it's not a time to panic and undermine your brand either.