Marketing in times of uncertainty

Someone told me that recessions cycle around roughly every 18 years. What do they know?! It seems just like yesterday when the IT industry was flattened by the post Y2K and post 9/11 gloom. An now here we are again. If you’re in any doubt of what’s coming, read Richard Holway’s pessimistic but usually accurate view of the short term future.

Marketing’s core purpose comes to the fore in times of recession. If it doesn’t impact sales, directly and measurably, then it’s impact is questionable. Demonstrable short term sales impact is the best defence against cuts, because in a recession it’s all about short term sales.

Budget cuts are inevitable. This is good news, if you’re still in a job to be able to spend your diminished funds.

Firstly, it means that you must stop doing things that don’t work, or can’t be measured. What would happen if you didn’t do the next event you’ve got planned? What’s the impact of not doing PR for a quarter? Is that DM campaign really worthwhile? Cut what doesn’t work and invest it activity that truly generates sales. Be bold. Ask tough questions.

Budget reductions also mean that you have to be creative, which is what marketing types should be good at. So try new things. I expect more companies to invest in social networking technologies, as they try to reach their customers in new and innovative (and cheaper) ways. I think word-of-mouth campaigns will grow, looking for referrals and leads from existing customers. And I believe vendors will engage more with partner organisations in structured and sophisticated ways, like SAP’s Industry Value Network approach.

Recession is tough for everyone. But there are opportunities to take, if you’re brave enough to chuck out old and ineffective ways of marketing.

Batten down the hatches. Good luck.