Home Archives October 2008 Don’t cut marketing when things get slow

Don’t cut marketing when things get slow

| Print |  Email
Wednesday, October 01, 2008

It’s fiscally tempting to scale back the marketing budget of your business in lean times, even though doing so may only cause more pain.

When the economy is tanking and business slows, companies often hastily react by “hunkering down” and shelving new marketing efforts to save money, says Keven Malkewitz, professor of marketing at Oregon State University. But that only exasperates business woes.

“If you go dark it takes a lot more energy to get in a consumer’s mind when the economy improves,” says Scott Nowack, president of Portland-based advertising firm Livengood Nowack.

Successful companies view a tough economic climate as an opportunity to outsmart, and overtake, their competitors with more cost-effective and experimental marketing strategies. Chances are your competitor is feeling the pinch, too, says Malkewitz.

Malkewitz, who conducted a seminar in Portland in April on marketing in a down economy, recommends that a business start by reappraising customers and their return of business relative to the amount of resources devoted to market toward them. “It’s a good time to fire customers,” he says.

It also helps to re-evaluate the viability of your product or service. In other words, a little empathy for the customer goes a long way. “In a down economy customers may need different things,” Malkewitz says. “The company that responds best to that usually wins.”

For Nowack, business is brisk and his clients are asking for more exposure, so he’s helping them sharpen their customer target and move to the Internet. One method is locating online communities and creating ads solely aimed toward them. He also is experimenting with “positive message” ads to contrast with negative political ads and news.

But new doesn’t necessarily mean better, according to Malkewitz. As much as businesses like to salivate over a quick fix or a new marketing tool or strategy, it’s really only a pipe dream that wastes precious time.

In the effort to survive, all the best marketing techniques still rely on building customer relationships and a quality product or service, he says.

Sure, temporary promotions such as lowering rates when customers have less money helps generate a bit more business, Malkewitz say, but in the long run, “the lowest price doesn’t always win.”

JASON SHUFFLER


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it


 

More Articles

OB Poll: Wineries and groceries

News
Friday, October 24, 2014

24-winethumbA majority of respondents agreed: Local vineyards should remain Oregon-owned and quality is the most important factor when determining where to eat or buy groceries.


Read more...

Innovation: a critique

News
Wednesday, October 08, 2014
1008 innovation thumbBY LINDA BAKER | OB EDITOR

A Design Week panel discussion raises questions about how innovative we really are.


Read more...

Podcast: Interview with Pete Friedes

Contributed Blogs
Wednesday, August 27, 2014

082714-thumb friedesbookTom Cox interviews Pete Friedes, author of "The 2R Manager," about becoming a Best Boss.


Read more...

The Diaspora

October 2014
Thursday, September 25, 2014
BY LEE VAN DER VOO

Former newspaper reporters move into brand journalism.


Read more...

Video: The 100 Best Survey

News
Thursday, August 28, 2014

100-best-logo-2015 500pxw-1OB Research Editor Kim Moore shares some pointers about the 100 Best Companies to Work For survey.


Read more...

Fork & Bottle

October 2014
Thursday, September 25, 2014

National media can’t get enough of Oregon’s pinot noir, artisan-food purveyors and lively, independent film scene.


Read more...

The 100 Best Companies survey is open

News
Friday, October 24, 2014

100-best-logo-2015 500pxw-1How does your workplace stack up against competitors? How can you improve workplace practices to help recruit and retain employees? Find out by taking our 100 Best Companies to Work for in Oregon survey!


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS