Marketing During a Recession: 18 Strategies for Organizations, Business Owners and Entrepreneurs

DMAsc Thousand Oaks Chapter

Marketing During a Marketing During a Recession: 18 Recession: 18 Strategies for Strategies for

Organizations, Business Organizations, Business Owners and Owners and

EntrepreneursEntrepreneursMay 18, 2010May 18, 2010

Recession Marketing RetoolingRecession Marketing RetoolingAnticipating Economic RealityAnticipating Economic Reality

Recession A significant decline in activity spread across the economy, lasting longer than two quarters of negative economic growth as measured by a country's gross domestic product (GDP).

DeflationA fall in the general price level or a contraction of credit and available money.

Inflation Inflation is a rise in the general level of prices of goods and services over time caused by high rates of growth of the money supply. Inflation can be thought of as a decrease in the value of the unit of currency. It is measured as the percentage rate of change of a price index.

Stagflation A condition of slow economic growth and relatively high unemployment—accompanied by a rise in prices, or inflation.

• A McGraw Hill research study of recessionary marketing revealed those that maintained or increased their advertising during a recession posted an average sales growth of 256%

• In the last recession, only 25% of companies increased their marketing. As a result, their average market share growth outpaced other businesses by 2.5 times

• Recession…16-18 months?

18 Recession Marketing Strategies

Strategy #1Time for accountable advertising: Re-examine your current marketing initiatives and assumptions

Know your: Cost per lead Cost per sale Lifetime value (LTV)

Is half your advertising wasted?Is half your advertising wasted?

“Half the money I spend on advertising is wasted; the trouble is

I don’t know which half.”

—John Wanamaker, Philadelphia Department Store Founder

The #1 marketing mistake?

Image Advertisingvs.

Direct Marketing (DM) =Scientific AdvertisingScientific Advertising

Image Advertisingvs.

Direct Marketing (DM) =Scientific AdvertisingScientific Advertising

• Targeted

• Accountable

• Test (assumptions)

• Looking for future database marketing

(upsell/cross-sell)

Direct marketing for:Direct marketing for:

• Direct sales • Drive to retail• Drive to web • B2B • Database • Consumer • Lead generation • Local• Fund-raising • National• Membership • International

Direct marketing using:Direct marketing using:

• Direct mail • Email • Ads • Paid search • Radio • Viral marketing• TV • Websites• Ezines • Banner ads• Mobile

Strategy #2

Reinventing your positioning and image: Review your Unique Selling Proposition (USP)

Strategy #3

Reality in advertising: Address marketing evils with preemptive copy

• Recession• Fear of government• Government uncertainty• Information overload• Rising costs• Unemployment

• Recognize, and if appropriate, address these evils

• Don’t ignore them

• News is your friend

Every marketing effort

Direct response copy mega difference Online Hard copy

o Theme Fear Greed Anger Exclusivity Safety

Strategy #4

Normal approach

Features

Benefit approach

Product: Litigation software

Feature: Sort and tag.

Benefit: You’ll save $2 million a year and reduce staff time for e-discovery by 75%.

Ultimate Benefit: Your litigation team will be more efficient and it will free up the financial and staffing resources you need to run a profitable firm.

Sell benefits not features

Other copy essentials

• Be specific• Be conversational• “You” oriented• Easy to read• M²• Drama/surprise

Short Copy Clicks Cost CPC Revenue ROI* Conversion 1,700 $258.62 $0.15 $295.75 -66% 0.18%

Long Copy Clicks Cost CPC Revenue ROI* Conversion 1,440 $218.83 $0.15 $1,092.15 50% 0.69%

*The profit margin used to calculate ROI was 30%

Copy lengthCopy length

At the end of your copy presentation

Ask yourself. . .

1. Does it grab my attention right away? 2. Does it recognize recession/pain/fear?3. Do I recognize immediately a good value

proposition?4. Is it written to me and me alone? 5. Do I feel the writer cares about me? 6. Do I feel the writer believes what he is saying? 7. Do I believe the writer? 8. Why should I respond now and not later? 9. Is there an alternative? 10.Do I feel safe/comfortable about ordering?

10 deal killers: critical response

Strategy #5

• Cost cutting Printing Media costs Lists Postal Media options

Deals!

Strategy #6

• Reevaluate your offer – make it preemptive Premiums Guarantee Price/Discount

PremiumPremium

Premiums

Guarantee

Price________________

Discount

DiscountDiscount

Price wordingPrice wording

Test #1—7 days FREE or continue at just $24.95 for 8 weeks at a savings of 50%

Test #2—7 days RISK FREE then continue at just $24.95 for 8 weeks (50% savings)

Call to action (CTA)Call to action (CTA)

Test #1—Click here for your FREE report

Test #2—Download your FREE report now

Customer

Strategy #7Concentrate on your database

Customer

Database marketing

Relationship

marketing

Letters

Emails

Newsletters

Ezines

TelesalesCustomer

Action Plan

• Upsell • Cross-sell • Loyalty program• Former clients• Database leads• Retention series• Conversion series

Smart marketers will focus on their database…BUT

Do NOT neglect prospecting

Create a professional Create a professional direct response direct response

conversion seriesconversion series

Strategy #8Strategy #8

Mobile marketing breakthrough

Corporate websites are obsolete

Antimarketing madness: Revise website strategy

Direct marketing microsites and landing pages

The greatest The greatest loss of orders comes loss of orders comes on the _____________?on the _____________?

Avoid shopping cart

insanity

Online lost sales and leads

Streamline your shopping cart

2 big mistakes2 big mistakes

1. ?2. ?

Mistake #1Mistake #1

Tombstone carts

Mistake #2Mistake #2Multistep process

Seamless, smart Seamless, smart shopping cartshopping cart

Expand globally

The rules of email are changing:

Secrets for success

#1 email #1 email marketing mistakemarketing mistake

The 3 RsThe 3 Rsof email marketingof email marketing

to prospectsto prospects

1. _______________________

2. _______________________

3. _______________________

Crisis unfolds: Carter-era inflation on the way

Bailout nightmare: Your wealth is in jeopardy

Free market nightmare: Socialism-style bailout

How to protect yourself and profit in 2010

Email subject lines

9.630%Crisis unfolds: Carter-era inflation on the way

26.437%Bailout nightmare: Your wealth is in jeopardy

20.854%Free market nightmare: Socialism-style bailout

6.757%How to protect yourself and profit in 2010

Email subject lines

68% Picture vs. no picture

33% Chart vs. no chart

92% Non-superscript vs. superscript

113% Video vs. no video

Recent TestsRecent Tests

The digital video explosion

Megatrend:Megatrend:Video explosionVideo explosion

• Email• Website• Podcast• Viral marketing

Web videos: Help or hurt?

Test: Which testimonial format was most effective?

. No testimonials

B. Text testimonials

C. Video testimonials

Fawn’s viral video

Fawn’s landing

www.barrykaye.com

Strategy #14

Direct response TV

Swiss Swiss ConfidentialConfidential

TV Commercial

Strategy #15

Direct response radio

Inflation Survival KitRadio Commercial

Untapped potential of paid search

4 keys to success

1. Keyword strategy2. Test headlines/ad

Test headline 46 ways to raise prices

Headline #1The easiest price increases you’ll ever make or your money back

Headline #2The secrets of making customers happy to pay more

3. Test separate landing pages

Which worked best?

(A) Mold Help for Morons

Find out if you have a toxic mold

problem without spending a fortune!

www.StopBlackMoldNow.com(B) Mold Help for Morons

Find out if you have a toxic mold

problem without spending a fortune!

www.GetMoldSolutions.com

4. Test URLs

Strategy #17

Online ads

Back to the future:Direct mail

Postcard

50,000 pieces

Postcard

• Cost: 45 cents

• .4% response rate

• Cost per lead: $122.50

• 200 leads

Traditional Package

• Cost: 75 cents

• 1.9% response rate

• Cost per lead: $39.47

• 950 leads

* Mailing costs adjusted to 2007-2008 expense levels

BookalogBookalog

Postage

1. Brochure in envelope.………………………….0.5%

2. Self-mailer.………………………………………1.0%

3. Elaborate brochure and short letter in envelope………………………………………3.2%

4. Letter and brochure combination in envelope………………………………………4.0%

5. Brief brochure and long letter in envelope………………………………………7.3%

5-way test5-way test

Letter

Lift note

Added - value insert

Responsedevice

Mailing List

DR vs. Compiled Matchback!

Putting It AllTogether

WARNING!Be sure to integrate your direct mail (other marketing

efforts) with your website

Direct response microsite

Anti-marketing corporate site

Integrated campaignIntegrated campaign

Make sure everything you do is accountable

Rework all old materials Concentrate on marketing to your

database Don’t neglect prospecting Use an integrated direct marketing

approach

SummarySummary

1. Accountable advertising2. Review your USP3. Reality in advertising4. Direct response copy5. Cost cutting6. Reevaluate your offer7. Concentrate on your database8. Mobile marketing9. Revise website strategy10. Streamline your shopping cart11. Expand globally12. Email secrets13. Digital video explosion 14. Direct response TV15. Direct response radio16. Paid search17. Online ads18. Direct mail

18 Strategies18 Strategies

QuestionsQuestionsIf you have any questions about If you have any questions about

these strategies, please call Craig at these strategies, please call Craig at 310-212-5727310-212-5727

Fill out the handout and give it to Craig

Thank you

Email: craig@cdmginc.com

www.cdmginc.com

Marketing During a Recession: 18 Strategies for Organizations, Business Owners and Entrepreneurs

Business

Hope in Progress: 27 Entrepreneurs Who Inspired Me During the Great Recession

Immigrant Entrepreneurs and Small Business Owners and ... · Business Owners (SBO). For the first time since 1992, the U.S. Census Bureau collected information on whether business

Differentiating Entrepreneurs From Small Business Owners

Using the Economic Census to Support Entrepreneurs and Small Business Owners

Public Relations Intro For Entrepreneurs & Small Biz Owners!

Economy and Jobs - London Borough of Croydon · Croydon’s small businesses and budding entrepreneurs are being offered a boost with ... in May, which saw business owners and entrepreneurs

Permission Marketing The Successful Internet Marketing Growth Strategy Entrepreneurs & Business Owners By Leon Streete BSc (Hons)

Exploring the Lived Experiences of Deaf Entrepreneurs and Business Owners

Marketing for Entrepreneurs and Business owners

CONNECTING VETERAN ENTREPRENEURS AND BUSINESS …...CONNECTING VETERAN ENTREPRENEURS AND BUSINESS OWNERS WITH THE RESOURCES THEY NEED TO BE SUCCESSFUL IN THE MARKETPLACE Join the Utah

Householdwealthinequality,entrepreneurs’inancialconstraintsandthe … · 2020. 7. 29. · Household wealth inequality, entrepreneurs’ financial constraints, and the great recession:

Black Entrepreneurs of the Eighteenth and ... - MAAH.orgmaah.org/documents/BlackEntrepreneursexhibitguide.pdf · northern coastal cities during the Revolutionary period. ... owners

BA 101 Introduction to Business 6. Entrepreneurs and Small Business Owners

Essential Finance for Entrepreneurs Essential Finance for Entrepreneurs, Business Owners and Professionals Why you need to be financially savvy

Strategic wealth management for entrepreneurs and business ... · PDF fileStrategic wealth management for entrepreneurs and business owners ... Strategic wealth management for entrepreneurs

Acknowledgements · entrepreneurs who are in the first three months of running a new business. New business owners are former nascent entrepreneurs; they have been in business more

Immigrant Entrepreneurs and Small Business Owners and their

Survey of Business Owners and Annual Survey of Entrepreneurs · Survey of Business Owners (SBO) Joint effort between the Ewing Marion Kauffman Foundation (Kauffman), the Minority

Strategic wealth management for entrepreneurs and business ... · Strategic wealth management for entrepreneurs and business owners ... tax minimization, estate planning, ... Business

Making Sense of Social Media for Entrepreneurs and Small Business Owners