Marketing efficiency during a recession is not easy. When getting people to buy your product, you must outthink and out-market the competition. Fortunately, certain tactics will help you maintain your company's profitability during tough economic times.
1. Know Your Target Market
Every good marketer knows that you must first know your customer to make a good product. It is even truer when you're in a recession. If your customers can't afford to buy your product as soon as it's launched, you have no chance of scoring a sale. Before making any advertising or product placement decisions, you must first identify your target market by busting the bank for new technology, buying designer goods and exotic vacation trips.
2. Utilize Mass Advertising
To survive a recession, you must make your product as accessible as possible. To do this, you should utilize mass advertising strategies that reach the maximum audience. One way to do this is by utilizing displays at major retail stores. For example, electronics stores regularly place television and radio advertisements for their products. It makes the product more appealing to the general public, who then buy them later when they can afford them.
3. Invest in an Online Marketing Campaign
Just because your customers are in a recession doesn't mean you can't reach them. Instead of using old-fashioned media, such as radio and newspaper advertisements, you can use the Internet, search engines and social media sites like Facebook and Twitter to increase your business's visibility. Many people with limited incomes regularly use social networks to connect and share information about deals.
4. Introduce New Technology
It's important to note that the recession is not an excuse to introduce old products. Instead, it would help if you were creating new technology to help you become a leader in the industry. Creating new and improved products will increase your company's visibility and attract new customers who can't afford to buy high-end items.
5. Respond to Competitors
Many businesses fail during a recession because they don't anticipate what their competitors will do. To avoid this, you should always look for emerging trends and technologies that may affect your business. You may also want to keep tabs on your competitors to determine what they're doing.
6. Invest in Research and Development
During a recession, people purchase cheap knock-off products instead of more expensive branded items. It doesn't mean that you should stop investing in research and development. Rather, you should investigate your competitors' products to determine what they're doing wrong and to improve your product line.
7. Create a Unique Brand
People often buy knock-off products because they're cheaper than the branded items sold in stores. To stand out from the competition, you should work hard to develop a unique brand image that will help attract customers even during a recession.
8. Develop a Strong Relationships with Clients
To survive a recession, you must get creative. One way of doing this is by developing strong relationships with your clients. For example, if you're in the electronics industry, you may want to offer extended warranties and insurance plans for your customers. By doing this, you can increase your brand's visibility while generating more income in the process.
9. Offer Discounts
Although they may seem counter-intuitive, discounts are a good way of attracting customers during a recession. Many companies today offer substantial discounts to customers when they buy bulk items. You may want to do the same for your clients to increase your company's sales.
10. Recruit Your Employees
Business owners often overlook recruiting new employees during a recession. However, it's important because if you don't have enough employees, you won't be able to keep up with sales. As a result, you will lose customers to your competitors.
11. Use Contests
Another great way of attracting customers during a recession is by offering competition. Many businesses give away free items to win prizes, which usually attracts more customers than just free products. For example, companies like Best Buy have used lottery-style giveaways to increase sales by enticing new customers into the stores.
12. Establish Frequent Customer Meetings
Many people buy products once but never return when they're in a recession because they can't afford them. To overcome this, you may want to establish frequent customer meetings. These meetings can address customer problems, introduce new products, and keep your clients up-to-date on the latest marketing strategies.
13. Change Prices
Many companies refuse to change their prices during a recession because they're afraid of losing sales. On the contrary, you should change your prices as often as necessary to remain competitive in the market. You may also want to up-sell your products to generate additional income during a recession since people tend to buy less in a recession.
14. Do Your Homework
Business owners need to do their homework before launching new products to ensure that they won't be affected by the negative effects of a recession. For example, if you're in the electronics industry, you may want to purchase products from competitors throughout the economy to ensure that your products aren't affected when a recession hits.
15. Maximize Your Resources
Although it's not easy during a recession, business owners need to do everything in their power to maximize their corporate resources. For example, you may want to increase your company's advertising budget or hire more employees during a recession to stay competitive.
16. Find New Customers
You may want to consider finding new customers during a recession. Although you won't be able to make money from this at first, it will help your business in the long run since new customers are less likely to buy high-end products. It allows you to train these customers to become loyal and long-term clients when the economy improves.