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

Don’t cut marketing when things get slow

| Print |  Email
Archives - October 2008
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

Liquid gold

June 2014
Thursday, May 29, 2014
BY JENNIFER MARGULIS

Don Gentry navigates Klamath Basin water rights.


Read more...

Understanding Oregon medical marijuana dispensary tenants

News
Friday, June 13, 2014
061314 thumb grassrentBY CLIFF HOCKLEY | OB GUEST BLOGGER

This article summarizes the key considerations a building owner must keep in mind when thinking about leasing to a medical marijuana dispensary.


Read more...

What I'm Reading

June 2014
Thursday, May 29, 2014

The CEO of Axiom EPM, Peri Pierone, and the co-founder of McMenamins, Mike McMenamin, share their recent reads.


Read more...

Creating a culture of compliance

Business tips
Thursday, June 19, 2014
DataBY MONICA ENAND | GUEST CONTRIBUTOR

Nine tips for building habits among employees to respond when needed.


Read more...

Beyond cheese

June 2014
Thursday, May 29, 2014
BY SOPHIA BENNETT

Tillamook expands its tourism niche.


Read more...

EPA Standards: A breath of fresh air for the region

News
Thursday, June 12, 2014
EPABY ANDREA DURBIN | OB GUEST BLOGGER

Last week, the Obama administration took an important and welcomed step in the effort to protect the health and well-being of all Oregonians by limiting carbon pollution from existing power plants.


Read more...

2014 Best Green Companies to Work For announced

News
Wednesday, May 28, 2014

100BestGreenMore than 350 people turned out today for Oregon Business magazine’s sixth annual celebration of the 100 Best Green Companies to Work For in Oregon.


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