Mr Tito Mboweni - Governor of SA Reserve Bank - has cautioned South Africans to fasten their belts, as we've officially hit our first recession in 17 years. Our economy shrunk by 6,4% in the first quarter of 2009 on compared to a contraction of 1,8% in the fourth quarter.
Trimming overheads is not the only way to weather the current economic downturn. And desperate times do not always call for desperate measures so don't be too reactive when faced with the negative economic news in the media.
Rather assess your organisation's performance across the various marketing departments and initiate some of the following profit protection strategies. That way you'll reduce the effects of the economic downturn in ways that go beyond profit-threatening cost cutting.
Focus your strategy and competitive advantage
Snap out of any fearful paralysis and take another look at your business goals and marketing strategies. Trim out all the "luxurious" marketing activities and focus your valuable resources on core activities that will get results in these times. Importantly, make sure that your brands offer additional value to your customers.
Keep an eagle eye on your competition
Consistently monitor your competitive by regularly reviewing their product offerings, advertising communications, price points, websites and press coverage. Be sure you are always aware of their new products, promotions and strategic moves.
Reassess your objectives and prioritise
Create a special strike force to monitor key indicators and be sure your marketing and sales teams are perfectly aligned with your key objectives and with each other. Do this by creating an approved list of marketing priorities and ensure everyone is on the same page. Also identify your best performing employees and look after them.
Have a strong online presence
And sweat your website to become a hard working business tool. Be sure its optimised, user-friendly, easy to navigate and that your content is always current. You do not have to have an expensive website but make sure you have the basics in place.
Lead by example
During tough times managers have to stay positive and convey a positive and confident message to your staff and your clients. And be sure that you nurture your relationships with key accounts if you're a B2B brand or your existing and potential customers if a consumer brand.
Be brand-centricTM
The brand-centricTM approach is the process of entrenching your brand and it's values within your organisation and in your communications to your customers. This means encouraging your employees to live by your brand values and creating the appropriate infrastructure to enable this. It also means ensuring that all your brand messaging communicates those values at all touch points with your consumers.
Enhance customer relationships
Nurture your relationships with your current customers. Stay in contact with them via direct channels such as SMS, emails and maintain your above the line presence. For example, Vespa SA has initiated a Vespa community and organises regular Vespa Club Runs. It also keeps potential Vespa clients and current clients updated with news, offers and events in a monthly e-newsletter called the "Vespa Sting".
Offer potential clients with guarantees
A believable guarantee will make it safe for prospects to give your organisation a try. This will work for consumer brands and B2B brands.
Maximise call to action and cross sell
Provide vouchers and sampling opportunities as often as possible to the right target market. Offer incentives to purchase and actively cross-sell related products.
Capture new customers and steal market share
Publish customer testimonials and success stories on your website. Make use of word-of-mouth and viral techniques. This can be done by calling for feedback either via your call centre or your website - a good way to create awareness of your positive brand experiences and for finding out your weaknesses.
Yes its official, South Africa is in an economic recession, but make sure it doesn't become a psychological one as this could snowball into a self-fulfilling prophecy. Rather turn your attention back to marketing your brands using smart, prudent methods. That way you will ensure that your business and your goals don't contract and will pass through this downturn stronger than ever before.
Source: http://www.moneyweb.co.za/
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