Bad news makes sensational headlines and effective click-bait.
Look at any news media and the overwhelming tone at the moment is depressing. In the last few months, there has been a succession of bushfires, floods, trade wars, elections, viruses, quarantines and stock market plunges that dominate the leading stories. Some of these events are here in Australia and others far away, yet in our connected global world, they still impact us.
Negativity is the real contagion to avoid.
Negativity is contagious, and it is potentially the real danger to our economy at the moment.
Confidence in any economy is one of the most influential ingredients to its success. If consumer confidence weakens, the sales in many market sectors fall.
Business to business sectors also then suffer as a consequence.
Confidence seems to be in free-fall at the moment as hysteria and weak political leadership take their toll on the national psyche.
Irrational behaviour takes hold, and suddenly toilet rolls become the most sought-after commodity.
Positivity is the antidote to a downturn.
There has never been a better time for us to stare down this negativity and avoid a slump.
We all understand that the media love terrible news and that click-bait drives website traffic so let’s not get sucked in.
If we all continue to live our lives and run our businesses by ignoring the sensational headlines, we may be pleasantly surprised.
For the first time in history, we have mass access to social media that can offset the negativity with a contagion of positivity. Avoiding irrational decisions is crucial for our economy.
History repeats itself.
In previous recessions, we saw businesses that continued to invest in innovation and marketing not only can survive the recession but emerge from it even more potent than their weakened competitors.
The weakest businesses will succumb first during economic stress, and the stronger ones survive.
There is nothing new in this.
A business strategy to manage through rough times and emerge stronger is progressive leadership.
In 2009 the Harvard Business Review published How To Market in a Downturn. They studied marketing successes and failures during recessions from the 1970s up to 2009, including the GFC.
“Companies that put customer needs under the microscope, take a scalpel rather than a cleaver to the marketing budget, and nimbly adjust strategies, tactics, and product offerings in response to shifting demand are more likely than others to flourish both during and after a recession.” HBR
Avoid a self-fulfilling prophecy.
Marketing is an ongoing business function that leads potential customers into a sales conversion process. If the marketing slows, then the sales funnel will inevitably slow, and sales income will reduce. A downward spiral can ensue as costs within the business get trimmed according to the reduced sales income.
Keeping the business funnel full is the best way to survive and thrive.
Keeping the sales funnel full to flourish.
Businesses that continue to find and satisfy their customers also have the potential to attract customers from defensive competitors who reduce their marketing campaigns.
Marketing is an ongoing investment that builds brand awareness as well as specific campaigns.
Reducing or stopping marketing means you lose the benefit of all the prior marketing dollars and effort spent to achieve your current status.
Your brand will become less prominent at a time when you need it to be most prominent.
Your sales revenue will deplete when you need it most.
The best way to manage during this tumultuous time is through reviewing your marketing plan to maximise its effect with the least cost.
Let C4MG be your tactical marketing difference.
- The key to success during a downturn is subtly switching the focus from strategic to dynamic tactical marketing.
- Tactical marketing is very responsive and modifies the campaigns, messaging and timing to meet the changing economic environment.
- Our philosophy is not to upsell our clients to boost our income but to focus on giving them a return on investment, no matter the size of their marketing budget.
- We believe that marketing should pay returns through sales.
- We work within a client’s budget to ensure they get the best possible return by generating sales. That is the reason clients like us and C4MG is growing.
- If you are worried about your marketing choices, we will help you quickly and efficiently review how to use your marketing most efficiently.
- Smart businesses flourish in adversity and position themselves for the recovery.
Author: Brendan Barrow, for C4MG