Marketing in an Economic Downturn
Businesses today face an increasingly stark choice. They can aim to reduce costs and deliver their products and services at the lowest possible price – and leave themselves vulnerable to being beaten on price. Or they can inspire genuine loyalty from customers by giving them products, services and a whole experience, answering needs that not even the customers knew existed.
To take the second path and achieve secure growth, enhanced efficiency and continuous improvement, businesses need design – not just making their existing products and services look new and exciting, but right at the heart of their strategy, acting as a catalyst for completely new offerings. That requires vision, a measure of courage and a willingness to take risks and work in new ways.
Today consumers are re-evaluating their priority purchases. Yesterday’s must-haves are today’s can-do-with-outs. Purchases that once would not have been given a second thought are considered more carefully, postponed for later or not bought at all. The knock on effect of this is that companies have to cut back in all areas, whilst at the same time they are expected to do more with a tighter budget and fewer resources. This all requires a serious degree of focus.
During a downturn, companies look internally to see where cost savings can be made. Today, most senior management consider their sales department as solely responsible for delivering revenue whilst Marketing is an expensive cost centre. The fact is (and it is well documented) that during times of economic uncertainty both existing and potential clients need reassurance that a company can provide the most effective product or service which addresses their needs and that those companies that invest in marketing can not only protect but actively grow their market share at a lower cost than during times of significant growth and prosperity. Indeed, a survey undertaken recently by the Design Council highlighted that over 50% of businesses are incorporating some sort of design related services to support them during these difficult economic times.
Businesses should go back and look again at how they brand their company. Is it unique, does it stand out from the crowd and do your customers and staff understand the core values which ultimately differentiate you from your competitors? Understanding this and getting it correct is imperative, as by doing so you will ensure consistency of message, which in turn will lead to greater brand awareness, higher staff retention and a greater conversion of prospective into paying clients.
Despite what many companies might think, it is more important in these times to focus on building relationships with those prospective clients with whom they already have some contact, rather than chasing new custom. Priority should be given to creating innovative lead nurturing and client retention campaigns. This could include uploading new content to your website, undertaking direct mail campaigns and spending time updating existing databases.
Based in Surrey, Liven offer a host of design consultancy services. We deliver unique and innovative experiences by creating positive and engaging brands, websites, digital campaigns, stunning literature and media projects for clients from start-ups to global corporations.
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