Marketing In a New Economy

Throughout 2008, we seemed to hear from countless sources about the declining economy. We saw home values continue to drop and the markets fall to all-time lows. “We are in a recession and we haven’t seen the worst of it” many said. If you are like me, you had several friends, associates and loved ones who were subject to lay-offs, lost their jobs as their employers went out of business, or they lost the business they invested so much time, money and energy to start & build. With all of that being said, you may agree with the doomsday reports and say, “Yep, we are in the midst of a bad economic crisis.” I’m not hear to say that’s right or wrong; I will say that I have my own perspective and that is we are simply moving into a NEW Economy. And in order to thrive in this new economy, it will require a new way of thinking, being and acting in the marketplace. Historically, the people that prosper during tough economic times are those who are willing to go against the grain and do what to some may seem UNREASONABLE and Unconventional.

Let’s say I’m one of 100 widgets sales people in a relatively competitive market in a healthy economy. In order to capture my ideal amount of business, I have $500 per month going toward marketing and advertising. Suddenly, the economy takes a nose dive and business slows, there are less people buying my widgets. I’ve got a choice to make, I either have to cut back my expenses to match the lower income or I have to increase my sales to meet my established needs. It is a common practice of many business owners and sales professionals to cut back on their marketing and advertising when business slows down and money’s tight, It’s a knee jerk reaction; its seams reasonable to do, right? If there is less money flowing in, then we must tighten the reins on our expenses.

If all of the widgets salespeople do the same thing and cut back their advertising budget. Then they will all be in front of less potential buyers and will continue to experience a drop in sales. Let’s imagine that I decide not to cut back my advertising budget, I keep advertising and promoting. I decide to work smarter, not harder. I realize through analysis of my marketing plan that 2 of my 6 advertising venues were producing sub-par results. I eliminate those two and research and implement a creative, innovative marketing method that is proven to be highly effective in customer acquisition, retention, as well as increasing referral business. The other 99 widget sales people have cut back on their advertising and now have less presence in the market place. I have maintained and even enhanced my presence in the marketplace and thus, hold a greater share of the available market. The result is that when someone decides to go widget shopping, I’m most likely to be the one they find or the one that they are referred to. My business is maintaining or growing, while the other 99 widgeters are crying in their soup and some are even going out of business.

Suggestions for Marketing in the New Economy:

o Business by Referral through Business Networking Organizations (i.e. Business Network Intl, Le Tip, etc.)
o Social Media Marketing – LinkedIn, Plaxo, Facebook, Twitter, etc
o Article Marketing and Blogging - establish yourself as the expert in your field through article writing and blogs!
o Relationship Marketing/Personal Contact Marketing – establish Lifelong customers & increased referral business through multi-touch point system.

SMART Marketing Tip of the Week: Maintain, increase, and/or enhance your Advertising Plan for 2009. Be Unreasonable and Unconventional. Seek expert guidance if necessary. Stay tuned for more on successful marketing in our NEW Economy!


To Your Success!
Melissa Guthrie


Melissa Guthrie is the founder and President of MBS Development Group. She has been a success coach and business development advisor to entrepreneurs, business owners, sales professionals and network marketers since 2002, and has a specialization in Personal Contact Marketing/Relationship Marketing.

MBS Development Group
Developing Highly Effective Entrepreneurs and Sales Pros
Developing Business Relationships to Last a Lifetime
Developing Six-Figure Income Earners – Annually and Monthly