Use Back-to-Basics Marketing to Weather this Stormy Economy

With the state of the economy in flux and no clear answer as to when the market will bounce back, many small businesses are looking to tighten their budgets and lay low in order to weather what Alan Greenspan has called a “once-in-a-century credit tsunami.” However, there is no time like the present to launch back-to-basic marketing tactics to strengthen your sails and coast through this economic storm.

Lawren Just, owner and president of Persimmon Ridge Golf Course and principal broker of Persimmon Tree Realty, has felt the effects of the down-turning economy first hand with a slump in her property sales at Persimmon Ridge. However, Lawren remains optimistic about the future of the economy and Persimmon Ridge and is maintaining her marketing efforts in order to stay top of mind with her target audience.

“While we have had to decrease our marketing budget somewhat, we need buyers to still know that we have product available for sale,” said Lawren. “We are keeping our name alive in the marketplace and letting buyers know we still are vibrant and eager for customers!”

Lawren’s efforts should pay off in the long-run according to the Strategic Planning Institute whose recent study found companies that maintained advertising during an economic downturn increased market share by an average of 1.5 percent while companies that cut budgets gained only 0.2 percent (from weaker competitors dropping out during a recession).

During a down economy, sustaining your small business while developing new customers and clients requires creativity, relationship building and an understanding of your market. Follow these back-to-basic marketing tips to maintain your small business during this down turn and emerge ahead of your competition when the economy recovers.

• Recognize the purpose of advertising: Advertising is often viewed as an expense with the sole purpose of delivering immediate sales. However, your advertising budget should be deemed as an investment in the future of your company, not only for short-term sales gains, but also for developing a stronger name and brand in your market place. With this in mind, you should think twice before eliminating your advertising budget.

• Re-evaluate your advertising budget: While you shouldn’t eliminate your advertising budget during times of constraint, don’t feel as if it is completely off limits either. Look at a down economy as a time to trim the fat off of an inflated budget. Look into what advertising mediums were effective and those that did not produce results. Also, take time to investigate alternative media options. Particularly look into those avenues that have a high reach with your target audience and where you can buy high-frequency advertising.

• Know your message: Put forth a clear, consistent message of yourself and your business, highlighting your unique selling points and the value of your product. Don’t muddle the message with heavy industry jargon or mixed messages. It is also imperative that your message reflect an economy-driven attitude shift.

• Know your audience: When budgets are tight, you don’t have the leisure to experiment with broadening your market reach. Focus on your best customers to ensure they continue to use your product or services.

• Don’t ignore past clients: During a slow economy, past customers may be your best chance for business as it is often easier and cheaper to get returning business from them than to get business from new prospects. Therefore, maintaining contact with previous clients is as important as attracting new ones. Create a customer database and contact them on a regular basis through monthly e-mails, birthday or holiday cards or phone calls to keep your name, phone number and service on their mind.

• Obtain referrals: Don’t hesitate in asking for a referral if you know you’ve done a good job for a client. And the best time to ask is during the transaction – six months later is too late. As an incentive for clients to give referrals, offer a discount on your services or products for the next time they work with you.

Bad economic news does not have to mean bad news for your small business. Use these back-to-basic marketing tips to weather the storm. When the clouds break, your small business will see the results.