Smart Marketing 4 Tough Times - Volume 1, Issue 1

From Volume 1, Issue 1 - 2003

"Get It On"

Are you as tired as I am of this sluggish economy? It seems like we’ve all been living with the misguided notion that something is going to happen, someone is going to do something and all of a sudden the economy is going to pick up. But month after month of news about executive scoundrels, terrorists at the gates, despots wielding weapons of mass destruction and sickly corporate earnings have continued to grind on our economy in virtually every sector. So, given the circumstances, what’s the best marketing course of action?

If any of us thinks for one minute that some magical action from some larger-than-life leader is going to pull our businesses out of this mess, we’re dreaming. Not going to happen. In truth, the savior is us.

Let’s get it on.

The simple solution isn’t so much a marketing decision as an emotional one. It’s time to get back to work. It’s time for real leadership in every company to stop the “hunker in the bunker” mentality and start forcing the gears of commerce to turn.

Think I’m crazy? Listen to this.

Airlines are losing billions of dollars, right? But do you know that the only major US airline to be profitable since 9-11 is outspending every other airline in – are you ready for this – advertising. In 2001 Southwest spent $115 million on advertising. Compare that to the world’s largest airline, American, that spent $71 million. United spent $57 million. And Delta spent $30 million. So far, those three airlines have lost billions of dollars while Southwest has made millions. Can you remember any commercial you've seen for any airline over the last six months besides Southwest?

Okay, it’s not as simplistic as that, you say. So, call it an interesting coincidence and listen to this.

In every market downturn since the great depression, companies that continued to spend money on marketing outgrew their competition by a quantum factor, and retained their market share lead for at least three years after the market resumed normal growth.

And, in research conducted with over 23,000 businesses in virtually every industry, Cahners Research concluded that is more difficult to grab market share during growth economies. In other words, now is the time. Your competition is bunkering, cutting marketing expenses, eliminating sales travel, reducing market exposure. It’s cheaper now to get attention than at any other time because there’s not as much competition for your customers' attention. According to Cahners, “Normal to increased marketing efforts in a recession have a higher return on share than they would in normal or expansion business cycles.” In other words, if you want to eat your competition’s lunch, and continue to eat it for years to come, now’s the time to get it on.

As long as we’re all in the bunker, we’re all victims. Those brave souls who get fed up, jump out of the bunkers and charge the hill are called leaders. And they will lead their companies to success.

Here’s to marketing success for your company.

Other feature articles

	Volume 2, Issue 1 - 2004	- "It's not too late to be a leader."
	Volume 1, Issue 5 - 2003	- "How Easy Is It To Do Business With Your Company?"
	Volume 1, Issue 4 - 2003	- "The myths of branding."
	Volume 1, Issue 3 - 2003	- "How to use market intelligence as a competitive weapon."
	Volume 1, Issue 2 - June 2003	- "How to know what your market wants and needs."

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