30 Ideas in 40 Minutes to Reject the Recession & Profit in 2009!

www.marketingsavant.com/30in40

Why are you in business?

“Because the purpose of business is to

create a customer, the business enterprise

has two—and only two—basic functions:

marketing and innovation. Marketing and

innovation produce results; all the rest are

costs. Marketing is the distinguishing, unique

function of the business.“-- Peter Drucker --

After-Event Slides & Resources

The slides and e-book are available electronically after the event:

www.marketingsavant.com/30in40

MARKETING IN A

RECESSION…

...is about turning something

which is seen as a

negative...

...into a positive – more revenue /

sales, greater share of voice and

better consumer relationships

More than ever

before, it‟s

about working

together!

People working

together in a

structured and

customer centric

way to create

customer value

and achieve

results.

Reject the Recession!

Myrtle Beach, SC

printer partners with

local TV station in a

“Reject the Recession”

campaign

$$$ in free publicity,

250 businesses signup

to support, TV station

covers the “RTR”

campaign weekly

Build Trust

We are currently in a “Trust Recession”

Following is a small list of what‟s been lost to the trust recession:

Banks no longer trust other banks‟ balance sheets, freezing interbank loans;

Investors distrust most financial asset classes outside of US short-term

treasury notes, driving those rates down toward zero;

US voters don‟t trust their government to handle a bailout competently,

openly and fairly;

Financial asset managers don‟t trust risk models--neither do investors;

The investing public doesn‟t trust accounting firms to identify shareholder

risk (I know, it‟s arguably not their job…);

Financial asset ratings agencies‟ trustworthiness has been gravely

wounded;

We no longer believe that lenders wouldn‟t lend to un-creditworthy

consumers--because they did

Build Trust Through Honesty &

Transparency

Local bank puts CEO and president on the spot, in the

media and out in front to address today‟s challenges

Do your customers see you as a point of clarity

amidst chaos, creating order out of the disordered?

Change Your Internal Diagloue

Employee issues are critically important during

recessions and in preparation for recovery

Constant communications has been proven to sustain

high morale and maintain company strength

For Example: Black and Decker increases communications during times of recession in

order to maintain morale and credibility among their employees.

• The company alerts employees to changes in their respective departments

• They communicate up front what the managers see as areas for potential reductions in

employment or financial support

• Black and Decker continues its investment in organizational development

• The company philosophy is to promote employees from within, even during a recession.

Keep Team On Task & Upbeat

Don't sing the Recession Blues around any staff what-so-ever.

If people feel like they have a reason to fail some of them just

might - don't give them the opportunity.

It starts at the top. Don't ignore reality, be willing to speak

candidly about the changing circumstances that impact your

business, but don't emotionally "throw in the towel."

With the exception of a handful of businesses...the market still

exists for what you sell. Somebody somewhere is buying what

you're selling.

The question is, are you positioned well enough to be the one

to sell it to em' and are you capitalizing on every opportunity?

Pricing decisions should be viewed not as Band-Aid

solutions for bleeding income statements but as part of a

long-term strategy for fiscal fitness.

- Reed K. Holden, Harvard Business Review

Leverage Price Segmentation

First class, business & economy = same

destination

Offer premiums for those willing to pay while

moving others „upmarket‟

Dynamic pricing based on (any factor you

like!) time, location, quantity, derived benefits,

perceived value

“The more you can slice and dice your prices and offerings without

affecting your brand, the more you can sustain profitability.”

- Eric Mitchell, Professional Pricing Society

Accenture reports

that a price

increase of just

1% can improve

operating profits

by 11% if sales

volume remains

constant.

Cost Cutting Can Backfire

In 2002, Kimberly-Clark reduced

the number of diapers in each

package of Huggies in order to

improve margins.

Procter & Gamble could have

followed suit, but instead they

kept their pack size constant and

added the word “Compare” to

the label.

At the same time, they increased

discount coupons and store

displays for Pampers, effectively

spoiling the pricing power of

Huggies.

Make Products Accessible With Price

During the Argentinean economic crisis of

2002, Unilever made it possible for

people to buy the Skip laundry brand

by making small packages available,

which carried a low unit price. They also

introduced large economy sizes that

offered people a better deal.

Even if your brand is relatively high

priced, that high price, per se, need not

be a problem as long as people believe

your brand provides value for money.

Most people find security in buying an

established and reputable brand. What

you need to do is make your brand

accessible.

Innovate to Accelerate!

Historically, some of the best innovations come from

recessions

Less noise and clutter means more room for you

(increase SOV & SOM)

Innovations are proven to keep customers buying in

times that are otherwise slow

For Example: There are two examples of great interest:

1) Paychex, an payroll processor, launched Taxpay in 1990 as an additional service for

it’s existing customers on Paychex. It brought in a burst of new revenues from

existing customers while introduced new customers to both Taxpay and Paychex,

setting itself up nicely for the recovery

2) Black & Decker introduced a highly successful line of 33 new power tools during the

1990 recession that set it up to capitalized on the DIY boom of the next decade.

Launch a New Product/Service/???

The public is looking for

strength, stability and a

positive message.

It‟s easier to cut through

some of the clutter in

recessions with a positive

message, as the MSM

are seeking out things

that aren‟t all „doom and

gloom‟

Leverage „recession-oriented

behavior‟

Nesting

Video game system sales &

DVD rentals are steady

Competition- “Looking

Good is Feeling Good”

Pricey acne treatment vs.

dermatologist

Survivors

Escapism & Hope

1975 RecessionGeneral Motors

In 1975, during a

deep recession in the

automotive industry,

GM introduced Mr.

Goodwrench as the

“smiling, balding

mechanic (with clean

hands)” to help sell

their profitable

services and parts.

1980‟s Recession

Softsoap out-innovated

giant Colgate-Palmolive in

1980 with “revolutionary”

liquid soap and was later

bought by C-P in „87.

Absolut vodka was brought

to the US in 1981 and had

#1 market share by 1985

Carnation pioneered

premium cat food in 1980

Loyalty marketing was

launched with the first-ever

frequent flier program by

American Airlines

Pop-up Retail

Get into that killer space for cheap

Commercial property owners willing to negotiate

Generate awareness & traffic for your main location

Implement an aggressive CRM strategy to keep

those new customers

informed

Fits right into the

„experience economy‟

Throw A Party

There's enough bad news circulating as it

is, don't add to it. Instead, create

something fun where people can get together.

Morgans Hotel Group is taking the recession head-on with anti-

recession themed parties at their hotels across the country. The parties

are part of their larger campaign, "RecessIsOn," which includes a micro

site devoted to how people are not letting the recession talk keep them

down.

You can stand out from all the other brands complaining about how tough

things are going by throwing a party where your fans and customers can

come together.

Learn more: RecessIsOn

The Lesson: Lift the spirits of your fans by finding a reason to celebrate.

Go Direct

Branding and other forms of

push marketing drop in a

slowdown, while direct

marketing tends to rise.

Increase measurable and

relationship-based strategies

such as search marketing, email

marketing, lead nurturing, and

online communities.

Target + List + Offer

= REVENUE

Bail Out Your Customers

What if you could offer your customers a little taste of a

bailout?

Laguna Grille in New York selects a random table at every

lunch and dinner to be "bailed out." The bailout covers the

winning party's tab (except alcoholic drinks) and comes

with a "Laguna Grille Bailout" certificate.

You can bailout your customers by forgiving interest they owe,

extending their payment plans, or giving them a freebie.

The Lesson: Your customers will appreciate a bailout, even if

it's not in the billions.

Take Off The Stress

Buying a car is stressful enough, so how do you sell one to someone who is

also concerned about losing their job?

If you're Hyundai, you offer a year-long return policy where customers can

return their vehicles should they lose their job or suffer some other "life-

altering circumstance" such as a transfer.

Take a look at your return policies, payment plans

and guarantees. Do they relieve the stress of

spending money on your stuff?

Learn more: Hyundai Assurance

The Lesson: Use your return policies

and payment plans to reduce the

stress of your customers.

Lasso Your Leads

Ensure every lead opportunity is being handled and

accounted for properly.

What many business don't realize they get good

leads, everyday, that "slip through the cracks“

If you can identify and "plug up the holes" in your

customer acquisition funnel - your lead generation

and sales process will become more efficient.

An efficient lead gen process will free up cash and

give you flexibility to put more resources into

advertising and sales initiatives.

Partner Up!

Leverage adjacent marketing and sales strategies.

Because everybody is "feeling the heat" or worried about the

changing economy develop relationships with other companies

to pool resources and refer internally.

Devise a strategy to offer your customers more service, special

offers or other incentives to do business with you because of

your relationship with fellow business owners.

For Example: If you sell auto parts, develop a relationship with a service station for

discounts on gas (of course only available through your store). Develop a relationship

with an oil change station, etc. Workout a mutually beneficial referral system that gives

each business a better shot at a customer. I guess you could call this a Co-Op Win-Win.

Mine The Gold At Home

Get more from what „ya got - focus on your existing client

base. According to the late Peter Drucker:

Your business has a 1:14 chance of doing business with someone with

whom you have never done business,

You have 1:4 chance of doing business with someone with whom you

have had a relationship but have stopped and,

You have a 1:2 chance of doing business with an existing customer.

So, what does this mean? A great recession proof strategy is

to communicate more with your existing customers - focus

marketing and sales resources inward.

Build a loyal tribe of followers and use your client base to

drive referrals.

Recession Busting At Hobart

Two Tactics Hobart Uses to Defy the Recession: 400 Customer Testimonials

and 0% Financing

Hobart gathered 400+ usable customer testimonials and case histories

during the promotion, which they used to create a "great database which is

a fabulous tool for selling for their distributors. This library includes

testimonials from just about every industry segment we are in around the

world.”

The online library of testimonials is also highly popular with Hobart's site

visitors.

Sometimes no amount of superior marketing can make up for all the sales lost to a shrinking

economy. A Hobart spokesperson said, "We've had some difficult times this year in terms of top-line

sales, but we're very positioned for recovery."

Which is smart thinking: Right now it is not just about surviving the downturn, it is about putting

systems, relationships, and campaign tests in place so you can bounce into recovery faster the minute

the economy allows you to.

Avoid The Middle

My money is on strong brands with high net promoter scores

who are consistently delivering genuine and perceived

value.

This is a bad time to be Sears and a better time to be Best

Buy or Bergdorf‟s. Sears is stuck in the middle without

competitive advantage on price, value or service.

Best Buy offers both value and service (via Geek Squad)

and Bergdorf‟s regulars are unlikely to cut back

drastically.

Mass consumer brands with a wide range of products would

be smart to emphasize their high-end and entry-level

models again with the goal of avoiding the middle.

Partner With A Nonprofit

Non-profits will feel the

pinch as their supports

cut back on donations.

Mobilize your employees

and your customers behind the non-profits you truly believe in and

you will be amazed at the good will and good business you will do

as a result.

It may seem counterintuitive to increase your CSR (corporate social

responsibility) now BUT that is exactly why it is worth considering.

Your employees will undoubtedly respond with increased loyalty that

will also translate into higher productivity.

Start a Cause

Founding or aligning with a cause is a perfect way

to match your organization‟s passion with a worthy

pursuit that generates awareness, action and

revenue for all parties concerned

One of the first “cause marketing” campaigns

occurred in 1976 through a partnership between

Marriott Corporation and the March of Dimes

What‟s your cause? Pick a local, national or global

cause or start your own and devote your energy to

it. Get your customers, partners and vendors

involved too.

Start a Marketing War Room

Popularized by Wiston

Churchill in WWII

Emerson electric created an

“Innovation War Room” to help

innovate through a downturn and it

has make them one of the most

reliable earning machines in their sector

Hold every marketing and business building meeting in your

“War Room”

It will force your people to focus on reinventing your marketing

and devising bold approaches to building the business!

Engage in RELEVANT Social Media

Do you know where

your customers are

hanging out online?

Have you asked them?

Social media helps us

build relationships with

little financial outlay -

we only need to invest

our time.

Ask, Listen,

Participate, Profit!

Social Media for Small Business

Caminito Argentinean

Steakhouse is a single-

location restaurant in

Northampton, Mass

Using a website, local

ads, blogging, video,

Twitter, MySpace and

other digital tools to

drive business

Caminito‟s World…

The Social Homebuilder

Martell‟s Holistic Strategy

The strategy that dictates

Martell‟s business plan is not

focused on social media, it‟s

holistic.

Advertising, customer relations,

vendor relations, public relations,

website execution, social media

and more

Martell went through the

strategic process of defining

their audience, establishing their

objectives, developing strategies

to accomplish those objectives

Learn to Listen

Where are your customers online/offline?

Blogs, Social media tools (e.g. LinkedIn Answers), Discussion Forums, Twitter, etc…/Events

Monitor these conversations:

Find your brand using Google Alerts, Keotag.com, Boardreader.com and Technorati.com

Use a central tool to track the different conversations happening around your company. Most online conversations are RSS enabled, barring a few Yahoo! groups that don’t support RSS. Use a RSS reader (e.g. Bloglines.com) to gather all these conversations into a central repository and create a folder that you check on a daily basis.

For Example: Best-in-class organizations pursue social media listening as a daily

discipline and have a response strategy to engage in the conversation if necessary.

Get an Online Personality

Personality Toolkit

LinkedIn Profile

Facebook page

Personal or corporate blog

De.licio.us page for bookmarks

YouTube page (youtube.com/yourname)

Share photos online (Flickr, Photobucket)

Thou shalt have a complete profile

40x more likely to succeed when complete

Choose your own social media adventure!

Be the Media

Feature a link to the

blog on your company

home page.

Employ a team of

bloggers.

Provide guidelines to

bloggers.

Share company news and thought leadership.

Post a combination of written word, photos and video.

Link generously to other digital influencers.

Allow moderated comments to foster a two-way conversation.

Tap Into Your Community

Community members can

be worth 30% more

Tap the power of your

customer base

Increase long-term

lifetime value

Involve them in

something meaningful

Know what customers

really want to buy

Crowdsource Your Next Big Idea

Define an idea

management process.

Design and develop the

online community.

Promote the community

with your customers.

Invite them to contribute.

Post questions to spur

their thinking.

Celebrate great ideas.

A Crowdsourced Business

Seventh Generation, a leading green consumer

products company, used a crowdsourcing approach to

design an eco-friendly diaper bag as part of its Wee

Generation campaign. Mommies, children and leading

environmental experts collaborated to design a state-

of-the-art, limited edition bag, which Seventh

Generation now sells.

Harness the Power of Social Networks

Connect with your customers

in their network.

Facebook, LinkedIn, MySpace,

etc…

Build applications for them in

their networks.

Assign someone in your

organization as the

„community manager‟.

If you build it, they won‟t

come – put together a sound

seeding strategy

Share Your Assets!

Create a brand channel on YouTube,

a SlideSpace on SlideShare and so

on…

Upload your company‟s videos to

your YouTube channel

Adds to your search results

Promote your company‟s YouTube

channel or specific videos on your

Web site, emails, newsletters.

Engage your audience by

encouraging them to add comments,

rate videos, share video.

Update your content frequently to

keep it fresh. This is critical to keep

people coming back.

What Should Marketers DO?

Build cross-marketing relationships with a variety of partners

Actively encourage customer referrals

Take advantage of no-cost media publicity

Behave, company-wide, according to highly ethical and Green

principles

Use those principles to demonstrate points of difference that

cast the company favorably in the eyes of its customers,

suppliers, employees, competitors, media, and general public

Track, measure, and evaluate all paid advertising--looking

both at immediate results and at lifetime value

What Should Marketers DO?

Devise a strategy for marketing when times are tough, so you

can revisit it again in future slow downs

Evaluate where your marketing dollars are going and only

spend in the most effective places

Create new, meaningful ways to reach out to prospective and

existing clients

Focus on brand awareness

Increase your networking, including social networking

What Should Marketers DO?

Think like a winner.

Review their marketing expenditures and be prepared to shift

dollars around at short notice.

As the recession carries on, review their competitors marketing

efforts and determine where they are leaving the field open.

Shift marketing dollars to increase their presence slightly in

areas where their competition has backed off.

Encourage their marketing and customer service staff to see

this as an opportunity to shine. Award them for their efforts

and communicate with them, so they don't fear for their jobs.

Business Building Top 10

1) If you don‟t have a marketing plan, create one, even if it‟s really simple, to

keep you focused on what‟s most important. Having a plan means having a

budget, and that can actually help you reduce spending.

2) Avoid the knee-jerk reaction of eliminating marketing expenses just because

your accountant says they‟re discretionary.

3) Take extra care of your current customers, because others will be pursuing them,

and it costs less to take care of a current customer than finding a new one. Be

creative about finding ways to show appreciation that also reinforce how good

you are at what you do for them.

4) Examine your budget with a critical eye for how you‟ve allocated, looking at the

expected payback of competing line items. If you must cut, do a forced ranking

and delete whatever falls to the bottom of the list.

5) Sharpen your statements of competitive advantage (“Why buy from us?”

answers), including hard facts and meaningful customer testimonials. Replace “We

believe in quality” with “Our customers enjoy 30% less downtime.” Use that to

modify your messaging for greater relevancy in the current economy.

Business Building Top 10

6) Revisit customer pain points that your business can address. Refresh your

empathy for customers‟ current situations, and use that in dialogue with customers.

7) Consider incorporating more trigger marketing tactics in your arsenal, i.e. event,

life-stage, or interaction-triggered promotions or offers that hit your customer when

they‟re most inclined to respond (like promoting snow-blowers right after a blizzard)

8) Use social media tools to focus on topics and conversations about the role your

business plays in a difficult economy.

9) If you‟re a paid advertiser, try to renegotiate more favorable terms and more

added value components from media sellers facing a very soft market.

10)Don‟t forget to integrate public relations into the total mix, and don‟t let tight

budgets allow you to lose PR momentum. PR will enhance the credibility of

everything else you do. It‟s a tough world out there right now, with no safe places to

hide. If ever there was a time when your decisions can make a critical difference on

the vitality of your business, it‟s now. So what are you waiting for?

Prepare For Economic Recovery

Typical recessions are 6mos – 2 years … Prepare

your plans for a 2 year horizon

Look for bargain acquisitions, leases, employees,

whatever you need to be successful on the upswing

Marketplace protection moves rapidly to

marketplace expansion

You‟ll be flush with cash from the new customers

acquired in the downturn, ready to expand into the

recovery

A.G. LafleyCEO, Procter & Gamble

“We have a

philosophy

and a strategy.

When times are

tough, you build

share.”

Marketing Tools, Tactics and Ideas for Rejecting the Recession

ThankYou!

Need help after the presentation? Email dana@marketingsavant.com

Download slides at: http://www.marketingsavant.com/30in40