By Kevin McIntosh
Looks like Social Media is getting closer and closer to Santa in terms of having some influence around the holidays.
ComScore Research in Virginia released a report from a survey earlier in December that revealed holiday shoppers were relying more on social media for recommendations on holiday purchases in 2009.
As I’ve mentioned in my earlier post, “When Wolves Knock At The Door,” recessions have a way of thinning the herd. And now we’re seeing major brands in trouble.
And while certain brand categories will fare better than others during these troubling economic times, I think it’s pretty safe to say there are going to be a lot more brands in trouble. The way I see it, if some of our favorite brands are in trouble, then what will become of the brands that weren’t that strong even in good times?
We’re in an economic crisis. And it’s interesting to see how people react in a crisis. Here are 3 possible kinds of mistakes I believe marketers will make in this recession in reaction to the crisis:
1.You’ll stay in your comfort zone.
An economic crisis is very uncomfortable, to say the least. So what happens? People will try to offset the stress by maintaining their comfort zones any way they can. So marketers will continue to work with the same ad agencies and other advisers, even though, there are better options out there.
You’ll continue to use traditional media rather than consider generating digital word-of-mouth through social media channels. Why? Because it’s comfortable. Anything that’s unknown seems too risky. You have found routines that give you security and until now, a certain amount of predictability. It’s during times like these, that people are looking for any comfort zone they can find. You may not understand why you should rock the boat. But if you don’t rock the boat, it just might sink anyway.
Meanwhile your competition may be getting a foothold in social media. They’re seeking out new branding strategies while making product and service innovations. And if your customers like what the competition has to offer, they just might jump.
2. You’ll freeze up.
You know you need to do things differently, but you can’t make a decision about what to do. It can happen in big companies and small ones. They get caught up in paralysis by analysis. There’s a lot of talk about “We need to do something,” but you’re not doing it. Meanwhile your competitors are already at work creating new marketing and plotting to steal market share.
3. You’ll live in denial.
While some sectors such as housing and the automobile industry were the first to get body-slammed in this recession, the fallout may be more gradual for some other brand categories. Do you have a plan in place when for when you do start to feel the pinch? Or will you simply wait until that happens to figure out what to do? I believe that the best time to prepare for a crisis is before it happens.
I know there are other ways marketers mess up during a recession, and may blog on them later. But I think for now, there’s plenty right here to think about.
–Kevin McIntosh
In my recent blog post, 5 Marketing Questions To Ask In A Recession, I discussed how October 2008 changed everything. Business is now more competitive than ever. As a result, most every business out there will have to re-think their marketing. Most will also have to improve their products and services. Because recessions like the one we’re looking at right now have a cruel way of thinning the herd.
We’re now seeing brands suffer that we never dreamed would. Most notable, the 3 major automobile manufacturers, who are now relying on the US government to bail them out. Circuit City has declared bankruptcy and is closing all of its 567 stores. Even Microsoft announced today that they’ll be laying off 5,000 employees, the first massive layoff in the company’s 34-year history. These are just a few examples.
While marketing isn’t the only reason some of our largest brands have suffered, I do believe in many cases it has played a role. Obviously business strategy has played a major role, as well.
But now, the playing field has changed for just about everyone. And competition is heating up.
All of this reminds me of a game we played in my copywriting course in college. The game was called “Knock-Knock.”
The way the game worked was, we all had to line up outside the classroom door. Then one by one, we’d knock on the door. Our professor would crack the door open. At that point, each student would have to say why the professor should open the door. And the professor wouldn’t let us in until we came up with a good reason.
I now understand and appreciate that game more than ever. It was a very simple yet effective demonstration of how marketing really works.
Right now, you’re probably having more trouble getting into some doors. Or perhaps you’re already on the inside, but you feel the pressure of trying to stay there because you know others are now knocking to get in and take your place.
Your relationships with your clients and customers may have kept you where you are for some time now. But when times get tough, relationships will get sacrificed for the bottom line. As the saying goes, “Nothing personal, it’s just business.”
As I’ve said before, October 2008 changed everything.
Are you developing the right kind of marketing strategies and brand messages that will push your business to the other side of this recession? Are you implementing social media strategies to create digital word-of-mouth for your brand? Are you giving your audience a reason to open the door that is better than the reason you had last year?
If not, you might want to get serious about your plan for 2009. Because you can bet that someday soon there will be wolves knocking on your clients’ doors.
–Kevin McIntosh
October 2008 changed everything. It changed credit availability for businesses and consumers. It wiped out consumer confidence. And it must change the way businesses market.
Why? Because business is now more competitive than ever.
Since October, you’ve likely experienced at least one of the following:
1. Current clients/customers have cut back spending.
2. Current clients/customers have totally stopped spending.
3. Prospective clients/customers have put planned expenditures on hold.
Furthermore, your current clients/customers may be getting more attention from your competitors who are trying to make up for their lost business as well.
If you thought business was competitive before, you haven’t seen anything yet. Recessions are the business world’s way of thinning the herd.
It’s now survival of the fittest. It’s the businesses who innovate and offer the best perceived value to their clients that will thrive in a recession.
So to keep on your competitive toes, here are 5 marketing-related questions business owners need to ask:
1. Is our marketing message as relevant today as it was before October?
Your marketing message may have worked for years. But an economic shake-up can change things real fast. What’s important to people when making purchasing decisions can change. Your marketing message may have to change, too.
2. If not, what should our new marketing message be?
Maybe it’s a value message. Maybe it’s a message that says your business is solid and is here for the long haul. Or it could be a message that reflects how your business is changing with the times to reflect the new economic environment. Look at what’s going on in your industry right now and ask how your marketing message can be adjusted to better reflect the times.
3. What new opportunities does the recession present for our business?
Are there new markets that have opened up for you? Perhaps larger clients would be more attracted to working with you than before for cost-savings reasons. Perhaps the service your business offers will now be attractive to companies who are now outsourcing for the first time due to employee cutbacks. Remember, just because some of your regular opportunities have dried up, doesn’t mean new ones can’t be created.
4. What can we do to provide greater value to our clients?
In a recession, everything becomes more value-driven than ever. Take a good honest look at your service and/or product to see what you can do to offer greater value. And make sure you communicate it in your marketing.
5. Is it time to explore new ways of getting our marketing message out there?
Some of the ways you’ve marketed over the past years may not be as effective now. That trade show that you’ve always spent much of your annual marketing budget on may not have a big turnout this year, as companies cut back on travel expenses. Perhaps this year, to get the ROI you need on marketing, you’ll need to start to leverage social media and public relations to your advantage to create digital word-of-mouth.
October 2008 changed everything. As a result, you are going to feel the competition breathing down your neck in the next year like never before.
If you want to survive this recession, the way you market will have to change.
–Kevin McIntosh
