Help Boost Market Share   And Return on Investment

In today's weak economy, many companies are experiencing lower sales and at the same time being squeezed by higher fuel prices, increased postage costs, and a variety of other financial pressures.

The Price of Mailing a 1-Ounce Letter Over the Past 75 Years 1933 3¢ 1985 22¢ 1962 4¢ 1988 25¢ 1963 5¢ 1991 29¢ 1971 8¢ 1995 32¢ 1974 10¢ 2001 34¢ 1976 13¢ 2002 37¢ 1978 15¢ 2006 39¢ 1981 20¢ Today 42¢

New Mailing Rates Select Prices New Effective May 12 Prior to May 12 First-Class Letter (1 oz.) 42 cents 41 cents First-Class Letter (2 oz.) 59 cents 58 cents Postcard 27 cents 26 cents Large 2 oz. Envelope $1 97 cents Certified Mail $2.70 $2.65 1st-Class International Letter (1 oz. to Canada/ Mexico) 72 cents 69 cents 1st-Class International Letter (1 oz. to other countries) 94 cents 90 cents

"Stopping advertising to save money is like trying to stop your watch to save time." -- Anonymous Quote

So, how do these companies plan to meet the economic challenge? They may have to cut staff and expenses. But a slowing economy or a recession is usually not the time to cut marketing.

In fact, one study by Penn State's College of Business, found that a recession should actually prompt an aggressive increase in marketing spending.

The study found that businesses entering a recession with a pre-established strategic emphasis on marketing; an entrepreneurial culture; and a sufficient reserve of under-utilized workers, cash, and spare production capacity were best positioned to approach recessions as opportunities to strengthen their competitive advantage.

Companies that increase marketing during hard times -- when competitors are cutting back -- can generally boost both market share and return on investment.

Aggressive marketing can stimulate demand from new and existing customers. But this doesn't mean simply throwing cash at marketing campaigns. You need to come up with smarter, more targeted marketing strategies.

Historical examples of this include:

• Proctor & Gamble pushing Ivory soap during the Great Depression.
• Intel launching "Intel Inside" during the 1990 to 1991 recession.
• Wal-Mart bombarding its rivals with Every Day Low Prices during the difficult economy of 2000 to 2001.

Few companies can afford to stop or cut back drastically on marketing -- no matter what the economic conditions. New products can be revenue generators if marketed properly. Determine what sets your business and its products or services apart from the competition and proactively market your unique selling proposition.

Here are six suggestions on how to make the most of marketing during a sluggish economy:

1. Do more online and e-mail marketing. The high cost of postage, paper and printing is one reason to turn to the Internet as a selling partner, rather than the post office. But there are other good reasons: The affordable cost of online marketing, the ability to communicate with customers on a one-to-one basis, faster results and better tracking capabilities. E-marketing is also more environmentally-friendly. Other ideas:

• During appointments and after trade shows, direct your sales force to steer customers to documents posted on your Web site, rather than putting printed four-color brochures in the mail.
• Use keyword phrases in online content that cause your company's Web site to rank higher in search engines so that more prospective customers come to you.
• Use e-mail to communicate with existing customers and follow up with them. Drive traffic to your Web site by including at link at the bottom of every company e-mail message. Announce new products or offers by varying messages.
• Use the Internet to test and tweak offers before offering them in a more expensive marketing platform.

2. Search for media deals. During an economic slowdown, paid advertising rates often decline, as media outlets start to feel the pinch. So you may be able to negotiate a great deal on space. Consider opportunities for barter transactions. For example, a business short of cash may want to make a trade and sharing in the arrangement conserves your company's cash flow. It is not unusual to get more premium placement advertising during an economic downturn than when the economy is thriving.

If you absolutely must reduce your marketing budget, try to maintain the frequency but shift to smaller or shorter, less expensive ads.

3. Don't forget public relations. A PR campaign can complement a marketing campaign at a reasonable cost. By using certain Web channels to distribute press releases, you can get information out to more readers and get listed on search engines.

4.  Anticipate how customers are likely to change their behavior and shift your marketing message. Will your customers look for quantity discounts, postpone purchases, negotiate for lower prices or trade down to less expensive products and services?  Tailor your promotions and marketing messages accordingly. Emphasize reliability, quality and value. For example, a General Motors executive announced last week that the automaker would be changing its marketing to focus more on gas-efficient cars and less on trucks. 

Bottom line: Companies have a better chance of weathering an economic storm if they look at marketing as an investment and a potential opportunity rather than an expense.