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Marketing in a Tough Economy

By Debbie Zaroba

 

Unpredictable. Slow. Bleak. Grim. Gloomy. All words that have been used to describe the economic outlook for the balance of 2008, and depending upon who you talk to, the scenario for 2009 as well.

 

There’s no denying the economic slowdown has made a significant impact upon your business. The most important thing is to keep your wits about you. A bend in the road is not the end of the road… unless you fail to make the turn.

 

Remember, there can be some positive effects of a slower economy. Many firms and REALTORS^® are trimming their so called “marketing fat” which in reality is trimming their “muscle”. A recession will weed out the competitors, leaving more business for you. The housing market will adjust to more realistic pricing, bringing you a broader target audience and more clients. Customer service and client satisfaction will become even more important, making us stronger, more patient and compassionate. We will begin to focus on the really important things in life…..our relationships, both personal and professional.

 

As you already know, when the economy slows your target market shrinks. Since your pool of potential clients will be reduced, you have to maintain, or increase your marketing in order to keep your competitors from moving in and taking your valued clients. A strong competitor will view tough times as an opportunity to grab a new slice of the market share and increase sales. Don’t give them the opportunity.

 

Your marketing is more critical now than when the market was gushing with eager buyers and sellers. Now is NOT the time to reduce your marketing activities, but that doesn’t necessarily translate to spending more money. Those who fail to market themselves adequately, or properly in the tough times risk losing their clients to the competition; leaving them badly exposed when the market picks up — as we all know it will.

 

Marketing should be seen as an investment not a cost! So be brave out there and loosen your “marketing belt” a little; while everyone else is putting their business on a diet, you should be feeding your customers the right marketing mix and watch your business expand.

 

Take advantage of the opportunity. Yes, the opportunity.

To quote The Wall Street Journal, “…companies that maintain or increase their advertising spending during recessions get ahead. A less crowded field allows messages to be seen more clearly, and that increased visibility results in higher sales both during and after a recession.”