Recession Marketing. Do you know what to do?

It is January 10, 2009, and talk everywhere is about the economy, and what can be done to stimulate it. Will the economic stimulus packages make a difference? Will soon-to-be President Obama know what to do? Will you?

That last one is not a silly question. Your marketing efforts will impact your company and, to some degree, the entire economy. Research has consistently shown for decades that spending during a recession is a good move. Companies that invest in slow times generally do better than those that do not... both during and after a recession.

However, just spending money is clearly not what's needed. It is spending it strategically, given the context of today's limited resources for both you and your customers. Identify your markets and products that are doing best, and focus on those. The tendency for many is to pour more effort into the products that are generating lower returns, in an effort to boost them up. That certainly does make sense... to a degree. But dollar for dollar, minute for minute, the best returns on marketing come from supporting the offerings that are already doing well. So focus there if your resources are limited. You're more likely to see profits coming back to you.

Offer discounts where you feel they would be strategic, but don't rely too heavily on price cuts to save the day for you. People want value, and they will generally pay more to get something that serves them better, even during a recession. The key is that you have to be able to provide something substantially more valuable than they could get elsewhere at a lower price. If you build it well enough, and market it strategically, they will indeed still come.

Finally, always remember the big picture. We've all seen recessions before. Some of you have even seen the Great Depression. No one knows yet how big our current downturn will be. What we do know is that we have to keep moving, no matter how bad it gets. In every recession, some companies do very, very well, by listening carefully to what people want, and understanding how to get it to them. Maybe this recession is your turn to step up to the plate and set an example of how to market during difficult times. Maybe this time... it's your time.