In today’s economic climate, I see lots of companies abandoning sound marketing strategy and retreating to adopt a fear based marketing strategy. While fear can motivate, it also camouflages real underlying problems. If you want to survive these unsure times, you need to have a plan that will keep you afloat today and lets you emerge as a stronger business at the end of the tunnel.
First off, kneejerk short-term strategy is always a bad idea, both in grim times and in upbeat ones. When you’re implementing plans that reflect what’s going on today, you also need to look at what those plans mean for tomorrow. Ask yourself if the cost cutting changes you’re proposing would also make sense if it was a boom time. If they don’t, then you’re making a mistake.
Right now, lots of companies are pulling back on customer service options, cutting off communication paths to potential markets, and cutting back on the quality/quantity of the goods they sell. All bad ideas because they hurt long term relationships with the customer.
And it’s a slippery slope. Sure, eliminating one customer service rep, cutting the ad budget, or making a quarter pound hamburger with 3.5 ounces of meat saves a few bucks today. But when you think you’ve gotten away with it, you are tempted to go further and further. Eliminate an olive today and become a hated industry tomorrow.
I’ve heard some marketers say it’s a great time to make the most of the situation and use the fear that’s out there to the company’s advantage. I say becoming an advocate of today’s fears makes you look like an idiot tomorrow after the real or supposed danger has passed. Remember the companies who thought it was a really smart marketing move to capitalize on Y-2-K? They marketed their products using fear of the millennium bug in the same way that lots of companies are using fear of the recession today. Fear marketing hurts your long term brand equity.
I’m not saying that you should keep marketing as if nothing has happened. The zeitgeist has changed. People have adjusted their buying habits. The first thing you need to do is reevaluate the mindset of your customer and adjust your marketing plan accordingly. If you’re a necessity, then there may not need to be much adjustment. If you’re a luxury, then major modifications may be needed. Or maybe you need to really step back and figure out if your customers view you as a necessity or a luxury.
But as you adjust, remember this: A strategy of fear makes you look weak. It infers that you’re unsure. And just like animals, people can sense fear.
There is a huge opportunity for marketing right now. I’ve always said you should market against the grain. While everyone is cutting back on marketing, step yours up. It will be more impactful. And while everyone is running fearful and pessimistic marketing, be bold and market like you’re going to win.