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Marketing has taken a hit on both sides with cutbacks by their companies and their customers. For example, on the business side, a great example would be Estée Lauder reflected in 2009 what’s happening at companies across the country. William Lauder, CEO, told Business Week last year that he prepares for the worst by asking every brand manager, “What must you have? What would you like to keep going? And what can you give up?”  These are all important strategies to keep in mind as companies are watching their bottom line costs without sacrificing their marketing messages to the right target audience.

Many other companies have implemented drastic changes. AT&T and General Motors slashed their 2008-2009 marketing budgets, while Visa consolidated its ad account at one agency to save money in 2009. What does all this mean to a business in today’s economy? According to a 2009 article in the New York Times, “Cowed by the financial crisis, American customers are pulling back on their spending.” Business buyers are following suit, as Sam Rovit, a partner at Bain & Co., noted, “Many companies will be forced to cut expenses that in normal times you would not touch” – less money to spend to get customers and businesses to spend what little money they feel they have to spend which is not a good scenario.

There are many articles, blogs, and newsletters that offer advice for what business owners should and should not do to grow their businesses in tough or stalled economic times. We seem to come across a trend article or tips piece at least once every day. We sift through all the hottest trends in recession and stalled marketing tactics and the rash of strategic opinion articles to come up with our own suggestions of what we should “do” or “not do.”

As an Entrepreneur or Senior Level Manager responsible for growth strategies and cost cutting, become a researcher and do your homework to be in the know of what is really going on in the economy.  Subscribe to economist articles from sources you trust.  Take steps to improve marketing effectiveness without spending more in 2010. To do so, be sure to employ significant tactical changes such as:

•    Shift some of the marketing investments from traditional to digital media;

•    Shift advertising investment from brand-building initiatives to promotional marketing;

•    Shift into lower-cost media, such as local vs. national TV or radio spots, 15-second versus 30-second, etc.

With marketing accountability, processes have become strategic imperatives.  The more strategic and focused a business is when determining marketing strategies and, implementing metrics along the way, the more confident they feel that their dollars are being spent in the right place.
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After listening to the media talk about economic outlooks throughout 2009 and the volatile stock market, business survival has become a major concern for many business owners for 2010 and forward. Companies should be focused on strategies that can allow opportunity for growth, even though the economy may appear stalled or changing.

After the historic bank sell-offs and companies folding and/or filing bankruptcy, the stock market volatility, and all the media coverage regarding the state of the economy, it is no wonder business owners are unsure about the future growth of their businesses. Instead of being concerned about how long a recession or stalled economy is predicted to last, businesses should be focused on what could be a good outcome with the money that the federal government is putting back into the economy. What effect will that have? Nobody knows for sure but it will do something. At least businesses shouldn’t see the value of almost every asset class continue to come down. So, rest assured, everything should work out, and business will go on. There are opportunities all around – let’s seize the moment!

I spend a lot of time reading articles related to marketing, leadership, and economic outlooks. While some economists predict a short economic downturn and are optimistic, other economists are stating the downturn is likely to be steep, long, and turbulent. How do successful businesses adjust, position themselves, and play on their strengths with such an unsure future?

Now is the time to determine where you stand. A tropical storm viewed from a weather satellite looks more or less uniform, as if every area is affected with equal force. However, on the ground, the picture is much different. I remember when my parents’ home was hit with a tornado in Pinellas Park, Florida, in October 1992. Their home was hit hard. Many in the neighborhood lost roofs, walls, and entire homes – yet others remained intact. It is not unusual for one community to be devastated while another one a mile away escapes unscathed.

So it is with business storms – a sharp downturn affects everyone differently. Analyze strengths and vulnerabilities. Each business owner will have different answers to three critical questions:

1. How would a slowdown affect the industry in which you compete?

2. What is your company’s overall strategic position within that industry?

3. From what financial resources can the company draw to weather a downturn or stalled economy?

The best strategy depends on where the company stands in the areas set out above. For  example, if a company is strong financially and has a positive financial position, then the strategic and industry position allow a variety of options. One may want to out-invest competitors in marketing to increase customer loyalty. One could also attack or even acquire weaker competitors, and price products to gain a greater share of the market. One may be well positioned to lead consolidation within the industry, or to dominate critical market niches by concentrating on financial and marketing strengths.

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