Five keys to marketing in a down economy

1. Move from discretionary to necessary
Is one’s daily $4 latte a discretionary purchase, a “like to have” paid for with what little is left over after paying for what is needed? Many consumers would say it is a necessary purchase (“must have”) and won’t be compromised during belt tightening. Positioned as an indulgence or reward, sales might decrease. Positioned as a productivity enhancer, consumers might feel less guilty and dub it a necessity. The B2B translation: position your product as mission critical. Understand how customers view your product now and make sure they must have your product.

2. Redefine your competitive set
As eating out decreases, will people eat less? No, they change how they eat. So grocery stores should focus on stealing share from sit down restaurants, not each other. Compact cars now compete against Hummers and SUVs rather than each other. If you are marketing $1,500 flat screen TVs in a down economy, why compete on price against other $1,500 flat screen TVs? Compete against other forms of family entertainment, like vacations. Instead of increasingly expensive travel outside the U.S., cozy up with friends and family to many nights of enjoyment in your home theater. Or, build a deck for 100 mini-vacations a year at the same price as a week’s stay in Europe.

3. Move from invisible and rational to emotional
New tires can cost $800. And if you can’t see the problem, you are not motivated to fix the problem. Tire tread wear is a rational appeal that many don’t take the time to explore. But shift the argument from rational to emotional—the safety of your kids and others’ kids while you commute to soccer tournaments out of town—and you are more likely to influence purchase.

4. Develop an overseas marketing plan
Things might be slower in the U.S., but foreign countries are using the dollar’s decreased value to buy American because in many categories we are still the high-quality producer or style leader. Furniture marketers’ overseas efforts are one bright spot in an otherwise dismal category. The U.S. Chamber of Commerce, the Web, and current business partners already doing business overseas are good resources for building an international marketing plan.

5. Win more share of wallet, not share of market
With consumers less willing to make significant purchase decisions and new customer acquisition costs rising, focus on getting as much business from your current customers—who also buy from competitors. Cross-selling or increasing share of requirements is 10x more cost-efficient marketing than acquisition marketing, which comes in handy as marcom budgets also decline with the economy.

About the author: Mike Fox is a brand strategist and consultant who also teaches as an adjunct professor at Wake Forest University in Winston-Salem,NC.