When you begin dealing with the effects of recession on your business, your initial reaction may be to cut out marketing altogether since it could be an immediate way to cut costs. However, marketing during a recession is extremely vital. In fact, marketing during this time can be more important than during the regular times.
As soon as you realize that the recession is impacting your business, or as soon as you read this article if you are already feeling the effects, you need to evaluate your marketing strategy. You do not need to cut it out altogether. However, there are some changes that you will need to make. In order to evaluate and change your strategy for the best, ask yourself the following questions.
Do I understand my customers? Too many business owners think only of what products and services are supposed to be big sellers. The trends do not matter if they do not apply to your customer base. Instead of worrying what you have been told should be big profit makers, take time instead to evaluate your customers.
One of the best ways to cope with a recession is to keep loyal customers. Spending time making sure that what you offer is what your customers want or need can pay off. This is an integral step in your marketing strategy since you need to make sure you are marketing truly sellable products to buying customers.
Am I spending too much or too little on marketing? Of course, you may need to cut back in some ways, but you still need to spend an adequate amount on marketing. The key is to spend the money wisely.
Am I wasting marketing funds? Many people spend quite a great deal of money on blanket marketing tactics. However, in times of recession when every dollar truly counts, you will want to spend your marketing budget reaching out to real customer possibilities. Spend time to target the right demographic.
Am I pricing to sell or to make money? Of course, you want to make money, but you are going to have to face a few facts. Many people are cutting down on spending. In order to continue bringing in revenue, you may need to adjust your prices. You will have to find the balance between making money and selling products.
Evaluating your marketing plan is as easy as asking yourself a few questions. Once you have the answers to these questions, you can then make the changes needed in order to make sure your business not only survives, but also thrives during the economic recession.