Steve Mills, The Prudent Marketer, has spoken out to all businesses in order to encourage them to use the recent recession as a launch pad for change. New statistics revealed have shown that the past twelve months have been very successful for small pockets of people, with online spending increasing significantly and entrepreneurs profiting generously from the last year or so; the man known as the Prudent Marketer is now urging businesses to use the volatility of the past few years as a prime opportunity to improve their marketing strategy and boost their profits.
Steve says, “The word ‘recession’ is described as a period of time shorter than a depression, during which there is a decline in economic trade and prosperity. Nowhere in this definition does it say that you need to be poor, nor does it say that you must succumb to failure and blame the recession for all the shortcomings of a business.
The businesses that are prospering now are the ones which are adapting their marketing models to the current economy and refusing to rest on their laurels. Marketing is key to profits, and all businesses should be focusing on how they can improve their marketing strategies rather than make cut-backs in this period.”
The advice is backed up by solid facts from recession periods throughout history. In the 1974-1975 recession, according to a Meldurm and Fewsmith study, companies which didn’t cut their marketing expenditures experienced higher sales and net income during the two years of the recession, and the two years following, than companies which made cuts to their marketing budgets.
Six years later in 1981-1982, B2B firms that increased marketing expenditure average higher sales growth both during the recession and in the three years immediately after.
Most recently in 1990-1991, firms which increased budgets and took on new staff members were twice as likely to pick up a substantial market share.
All of this anecdotal evidence points to a need for businesses to increase, rather than cut, their budgets in all things marketing; those which do will enjoy a boom period post-recession that will beat the competition hands-down.
Steve Mills has offered up four tips for businesses looking to increase marketing expenditures and use this recession as a force for growth.
- Put up prices. Would customers or clients stop buying from you if you were 1%, 2% or 3% more expensive? The chances are slim, so boost your profits with this simple action.
- Invest marketing time, money and effort wisely. If a marketing strategy is clearly not working, scrap it. In recession recovery periods, time spent on unproductive marketing is time wasted.
- Measure ROI in every sales and marketing action, without fail. Then put strategies in place to improve it.
- Implement a plan for winning business through referrals. In a time of recession, when consumer trust in businesses is at an all-time low, they rely largely on word-of-mouth recommendations to choose where their business goes. Ensure you have a solid referral scheme in place.
Following these tips from The Prudent Marketer himself will help businesses to make the best of a volatile situation as the country struggles out of recession.
For more information about Steve Mills, the Prudent Marketer, and to discover some of his personal marketing tips, visit www.theprudentmarketer.com