2009: Becoming strategic just in time

Like every  business owner, we are taking a hard look at 2009 projections and taking a pessimistic view of the economy until Q4 2009. We are having conversations with our clients on how to manage the downturn so that they are poised for a strong recovery as the economy stabilizes and we start to pull out of the recession.

Economists have long taught us that those companies that continue to strategically advertise and market their brands will see a market share grow as the economy rebounds. My grandmother would have put it more simply, she would have said, “Out of sight; out of mind.” Great axioms to remember as we discuss media planning for 2009.

We are encouraging clients (as well as our own business planning) to concentrate on building efficiencies, reducing costs where appropriate and strengthening their core business. These strategies can help companies weather the economic storm. Yes, cuts are on the horizon and most companies will not be spared sacrifices. Cuts are inevitable, but I believe they help make businesses stronger when executed appropriately. Cutting staff as a way to save money is short-sighted and the lazy man’s way to save money. Let’s be smarter than that. Sadly, some people will have to go. But, their departure is because we found a better way to do something not because we can save a salary line.

We look at processes first. What are doing that could be done better, faster, cheaper? When we identify something we make the change fast. That’s probably one of the best things about being a small company…we can make significant change to our organization in the course of one brainstorming session. If only companies like GM were so lucky!

We aren’t afraid to try something new. Just because it’s been done a certain way for a long time doesn’t mean we can’t do better. In fact, when I can’t figure out a better way to do something I start asking people for ideas. I gave up thinking I know what’s always the best thing to do years ago.

So, let’s take a look at media planning for 2009. Henry Ford said, “Stopping advertising to save money is like stopping your watch to save time.” Marketing and advertising budgets are always the first place we look when trying to trim costs. It’s only natural. And, quite frankly, often a good exercise. But, let’s look at what works? Where are we spending money in marketing and advertising and what generates the best ROI for us? If we could justify spending money on it 8 months ago, why are we not able to justify that expense today?

Those are just a few litmus tests we talk with our clients about when it comes to media spending. We counsel our clients on finding laser-focused results where possible. We can trim costs and pull back on certain media buys and we can generate better economies-of-scale on ad buys for our clients. But, to slash media budgets arbitrarily to save money is a fool’s errand.

Those competitors that continue to deliver their message to prospects and existing clients continue their “top-of-mind” presence in the public. When dealing with consumer goods, that’s a no-brainer. You don’t want to be forgotten when people do start spending money again.

But what if your campaign was for brand awareness or for a call-to-action? The strategy may be different, but the questions are very similar. How do you intend to generate awareness or get your call-to-action without a strategic and responsible media campaign. Advertising’s ability to accomplish those goals have not changed because of the economic downturn.

Let’s look at your overall budget. What is your media mix? Offline expenses…are you creating direct mail campaigns with four color direct mail pieces? What’s your response rate? If we continue to use direct mail, how can we accomplish the same or greater response rate while reducing costs? Could we go two-color? Could we improve our bulk mail prices? Maybe our list needs revision.  And so on and so forth.

We know that those companies that use strategic marketing and advertising opportunities will fare better during a recession than those that leave the media space altogether or don’t respond to a changing climate.

Bring on 2009 and let’s get busy!