Keeping your defenses up - why to increase Marketing in tough times

When the Global Financial Crisis (GFC) hit the world markets there were a great deal businesses that were put to the sword. Businesses that were already struggling simply couldn't deal with the downturn in consumer confidence.Although Australia was reasonably well insulated from the GFC there is no doubt that it did effect some businesses and its ripple effects are still being felt today.

As is usually the case businesses generally choose to cut back on costs. The first of the major costs that a number of businesses chose to cut back on was advertising. It was obvious from this reaction that businesses purely did not understand how advertising, or more importantly Marketing, could help their business grow instead of decline in this hard time.
Advertising is but a small part of the Marketing process and can be deadly if not used correctly. Businesses can waste thousands of dollars pumping out advertisements to an audience that either a) Doesn't understand the message being sent or b) Isn't interested in the service. However if Advertisements are directed correctly to their intended audience they can be an effective tool if used in conjunction with an overall Marketing plan.

A little while back I was in a Marketing class and we were discussing different advertisements that we had heard or seen and one's which we thought were the most effective in getting their message across. We all started discussing one particular advertisement and how the ad made the business look unprofessional due to the fact that it had a child in it that seemed to have nothing to do with the overall message. It was then stated by one of the students that the owner of the business had told the advertising company that he would not let them advertise his business unless they had a spot in it for his child.

Clearly this business had no idea of the purpose of advertising and was using it to satisfy his personal needs more than trying to achieve the overall goals of his business. The sad thing is that the advertising company would have been more than happy to accept his money. One of the first things that any business should know is who their target market are. Granted the students in the class were not the target market for this particular business but knowing the business and the industry that they were in, it was clear that they were missing the mark.

An event like the GFC was a perfect opportunity for business owners to examine their business and work out who their target market was and come up with a strategy to reach that market and convey any messages the business wanted them to receive.

To successfully achieve this a business must start by:

• Formulating a detailed business plan- Everyone has heard the statistics that a great number of businesses fail in the first year of trade yet many businesses fail to devise a detailed business plan. By writing down the goals of your business you set down a clear path for success.
• Research your business - many businesses have been in business for a number of years yet rely on customers finding them through a couple of loosely placed radio or newspaper ads. By researching who buys your product or utilizes your service you have a better understanding on how to effectively deliver you product or service to them. This reduces waste and keeps overall costs to a minimum.
• Know your competitors- The best way to improve your business is to know who your competitors are and what they are doing differently to steer customers away from your business. By conducting an effective competitor analysis you can find opportunities to differentiate your product or service from your competitors.
• Evaluate your business regularly- By sitting down and evaluating your business regularly you can track how your business is going and if any strategies you put into place are working. An effective way to achieve this is through a SWOT analysis.

By creating a Strategy for your business you are able to anticipate problems and see opportunities that you would have otherwise been blind to. That's why when times are tough it is important to rethink your strategies, reevaluate your position in the market place and look at what your competitors are doing. Imagine the amount of exposure and the money you could have saved if you had been doing it earlier!

Tell us how Marketing has changed your business when times were tough. How important is it to have a plan?