Five marketing mistakes to avoid in a weak economy

Consumer confidence is at an all-time low. The housing and mortgage markets are in the tank. Gas is selling for $4 a gallon. What’s a marketer to do? A few of us at Wayfinder Response have enough gray hair to have seen a few recessions. Here are a few tips on what not to do.

1. Don’t overreact. If you’re not a value brand, times may be rough and it will be tempting to re-cast yourself on the basis of value. Resist this urge. It’s ok to introduce a value item, but don’t get caught struggling to re-position yourself entirely based on value. Value is a very difficult positioning to maintain unless it’s part of your DNA. The economy will turn around, probably quicker than you imagine. When it does, you want people to know you for what made you special (and made you money) in the first place.
2. Don’t just hack away at your budgets. Know that you’ll be asked to cut your budgets as senior management looks to prop up the bottom line. Resist the urge to just cut back across the board. Now’s the time to be open to changing your media mix. First, some media will be affected more than others. Look for media bargains. Also, recognize that people will be spending more time researching purchases now that money’s tight. Respond to that need by putting more money into information-rich media, like online, newspapers and magazines.
3. Don’t delay good ideas. In a recent AdAge article, Jack Neff recounts how many innovations emerged during recessions. Crest Whitestrips, frequent flyer miles, CNN, MTV and the IBM PC were all introduced during recessions. In fact, Steve Jobs introduced the iPod just 45 days after 9/11. And that turned out alright. The lesson here may be that the usual “me-too” line extension may or may not work out in the current environment, but truly good ideas will flourish despite tough times.
4. Don’t put your head in the sand. What characterizes this downturn? High energy prices and hard-to-get financing. If you can respond to those forces, go for it. And you don’t have to be in the car or bank industries to do so. Maybe it’s time to emphasize home delivery. Or how about offering your own financing? Or maybe your quality lends itself to long-term durability. These all appeal to current conditions without cheapening your brand.
5. Don’t forget your current customers. Now’s the time to leverage your relationship with people who historically value your brand. Play to those strengths both from a media standpoint (hello email and direct mail) and by talking about your brand and how it translates to value.