Adapt Your Marketing Strategy

I just finished reading Harvard Business School's online publication, Working Knowledge http://hbswk.hbs.edu , "Marketing Your Way Through a Recession," by Professor John Quelch.

According to Quelch, during an economic downturn, companies should keep several factors in mind when making marketing plans for 2008-2009. Among the factors are, supporting distributors, adjusting price tactics, and stressing market share.

More interesting, however, is Quelch's insight into consumer spending patterns and cultural tendencies during a recession. Quelch contends that instead of cutting the marketing budget, get to know how consumers are redefining value and how they are responding to the recession. For example, consumers take more time searching for durable goods, are more willing to postpone purchases, and they buy less in economic hard times. They learn to live without what was just yesterday a "must-have."

In a recession, the consumer retreats to home, hearth and village. Cozy family scenes tend to replace images of extreme sports, adventure and rugged individualism. Zany humor and appeals on the basis of fear are out. Greeting card sales, telephone use, discretionary spending on home furnishings and home entertainment will hold up.

According to Quelch, economic downturns are not a time to cut advertising. It is shown that brands that increase advertising during a recession when competition is cutting back, can improve market share and return on investment at a lower cost. Uncertainty leads consumers toward known brands, and more consumers staying home watching television can deliver higher than expected audiences at lower cost-per-thousand impressions.

Customers will be shopping around for the best deals in tough times. Price cuts attract more consumer support than promotions such as sweepstakes and mail-in offers.

Finally, Quelch urges companies to emphasize their core values; maintain quality rather than cutting corners, serving existing customers rather than trying to be all things to all people.

Check out this article! These are only a few of the many strategies he discusses. John Quelch is the Lincoln Filene Professor of Business at the Harvard Business School.