Know-How Exchange : Strategy

In my rep agency, me and my principals are spending same. however we are marketing to different types of industry-- as some of our markets are not as active right now. We are going where the dollars are.

Spending more. Yes, changing the mix - Allocating more to online initiatives (website design, social media, online advertising).

We already sell internationally (and have for years), but it remains an ever more important part of our strategy as the dollar weakens.

We will be spending more, but with a definite shift in media mix and target strategy. We are in the specialty retail space.

Greg

The attached article from Marketing Vox and The AMA says it all

Marketing in an Economic Downturn: Mistakes, Challenges and Opportunities

Some 60% of American Marketing Association member marketers say halting or reducing spending on key marketing programs is the biggest mistake marketers can make in an economic downturn, according to (pdf) a recent AMA survey.


Focusing on short-term tactics and sticking to the status quo are additional missteps, marketers say.
In all, 66% of respondents to the May survey say the current state of the economy is having an impact on their marketing plans. Marketers most often say it is a challenge in this economy to…


• Demonstrate the value of marketing when sales are decreasing
• Realign marketing strategies to match businesses’ changing objectives
• Focus on longer-term brand strategies
The AMA offered four strategies to enhance marketing plans in a downturn - shape the message, don’t slash the price; focus on whom not to target; stand apart from the crowd and invest in innovation; and sustain the brand:
1. Shape the message, don’t slash the price
Only 3% of American Marketing Association marketers say it is important for marketing functions to adjust pricing strategy to help sustain and grow business during an economic downturn.
Implications for marketers: Conduct research to understand your competitor’s positioning and your target audiences’ perception of the economic environment; hone and refine your messages; highlight the value of your product or service, rather than slashing the price.
2. Focus on whom not to target
Some 67% of AMA marketers say it is important to mitigate the impact of an economic downturn by refining target audiences.
Implications for marketers: Assess which segments of potential customers you do not want to target; don’t market to inappropriate market segments (simply stated, some customers are more costly to serve than to lose); focus marketing strategies on customer segments that will produce the greatest ROI.
3. Stand apart from the crowd and invest in innovation
Most AMA marketers, 66%, report that they would take the same amount or less risk with a new product and/or service innovation during a time of economic uncertainty.
Implications for marketers: Differentiate through innovation with a product or service that performs in a faltering economy; invest in R&D now to ensure that your company is in a position to compete when the economy rebounds.
4. Sustain the brand
63% of marketers say they can lessen the impact of a downturn by investing in brand building as part of their marketing plan.
Implications for marketers: Establish access to executive officers to understand ongoing shifts in business strategy; realign marketing strategies to match business objectives quickly to demonstrate a commitment to the bottom line; qualify and quantify results quarterly to establish an ongoing dialogue with executive officers.
About the survey: From May 6, 2008 through May 16, 2008, the American Marketing Association conducted online interviews with 244 AMA members in the continental United States.


Wayne Wood
Melbourne Australia

I am advising my clients to spend the same amount but to expect 10% greater activity.

The budget is the same, but the focus is different. In the internet age, more focus is on organic search marketing, which is primarily free, and goes well with paid marketing campaigns. It's mainly about boosting the impact of your budget.