Part 1:

A rough economy typically takes a toll on marketing.  Good marketers weather the storm by showing realistic ROI for their programs. They shift resources when necessary and use these opportunities to win market share.  Yes, it is easier to grow in good times, but I hold firm to the belief that you win market share by positioning yourself in tough times
better than your competition can.

That being said, researchers have already seen a shift in marketing due to the current economic climate and expect it to continue.  Small and mid size companies have held relatively firm in their spending to date, but larger companies are starting to cut or refocus their resources in response to an increasing difficult climate.

So, where is the spending being cut or redirected from?  Traditional branding tools have taken the hardest cut – print, radio and TV.  This is just accelerating an already established trend of resources being diverted from traditional to new media.  One traditional stalwart has seen less dramatic cuts – direct mail.

Direct mail being spared is no surprise to me.  It is a marketing program that is direct just like its name implies rather than mass. Direct mail can be further optimized by adding one to one elements and can easily integrate as part of other programs.

The benefactors of this redirect in resources are tactics that are more direct in communication or produce direct and measurable results.  The leaders in spending increases: online, including social media, SEO, SEM (Paid search), and telemarketing.

As you begin planning for 2009, take a look at savings to your budget that you may be able to accomplish by shifting some resources from traditional media to new media.  Planning now will prepare you for an uncertain economy and you will find the opportunities to create successes while reducing programs, which might likely be the directive from top management.

Tomorrow, we will continue to look at the economic impact on marketing.

UniversalWit is available in these bumpy times for a free consultation on social media’s impact on an economic downturn for both marketing and PR.  Simply contact us and schedule a 30 minute teleconference.  Gain piece of mind as you navigate new waters at no cost or obligation.