Businesses begin to fear for their marketing budgets when whispers of a recession arise. Since World War II, the United States has weathered 11 recessions. Small businesses need to look at both long- and short-term solutions and opportunities to marketing in a down economy.

Those who perceive the down economy as an opportunity can capitalize on it quickly. Be creative and be aggressive.

A slow economy creates a unique environment that makes aggressive marketing even more successful. There will be less “clutter” in the short term for businesses to compete with. Less proactive organizations will slash their budgets and the number of marketing efforts will decrease. Consumers will be easier to reach. Also, media outlets will be more willing to make deals, such as decreased rates, increased placements, better placements and even category exclusivity.

Advertisers that continue to advertise during slow times will come out better and faster when the economy picks up,” said Wally Snyder, president and CEO of American Advertising Federation.
What can you do? How can small businesses focus marketing efforts in a down economy? First, cover the basics.

• Have a clear brand identity, a logo or tagline that differentiates you from your competition.
• Nearly every small business can benefit from a basic Web site that defines and explains its products and services. The more professional-looking the site, the more interest and more trust it will generate in your company. Some local vendors can create a site for you for as little as $1,000, or you can create your own through GoDaddy, Yahoo or other suppliers.
• Aggressively collect customer and prospect names and e-mail addresses so you can start sending out inexpensive text e-mails to alert them to special offers, sales or new products. Make sure you offer recipients a way to unsubscribe so you can take them off the list, or your messages can be seen as unwelcome spam.
• Go overboard on customer service and take care of problems immediately.
• Maintain or increase your level of promotion and advertising so you will stand out when others pull back on their marketing efforts.
• Design and send out a simple postcard promoting a special offer you create for the down economy. If you don’t have a good customer list, you can buy specialized lists from brokers.
• Send out simple but brief news releases to your local media, business journals, national consumer or trade publications to maintain your visibility for customers.
• Consider running banner or static ads on high traffic radio, television and newspaper Web sites, where viewers can click and be transported directly to your Web site.
• Start a blog on your Web site to build a relationship with your customers. This should not be marketing or sales oriented, but a way to offer helpful hints or advice.

Marketing News reported that during the 2001 recession, companies that maintained or increased their marketing efforts managed to boost their market share and outperform those organizations with decreased marketing by almost 250 percent. Organizations that aggressively marketed increased their market share by 1.5 percent, and the organizations that decreased their marketing budget gained only 0.2 percent.

Listen to your customers. During an economic slowdown, organizations cannot afford to lose current customers. It is much more expensive to gain than to retain, which is why it is so critical to focus on current customers. Turn customers into loyal brand advocates by focusing on their needs. Use marketing tools to assert confidence in the brand in a way that will resonate with the customer.

Consumer habits change as the economy takes a nose dive. For example, they will spend less on personal items and discretionary purchases. But they are willing to spend more on brands they value and trust. Use limited dollars more effectively to develop a stronger brand relationship with customers. Monitor customer activity to learn what resonates.

Focus on the marketing message. Simple and clear marketing messages resonate the best with customers. Try promoting a single product or service in a little more detail rather than using a laundry list of things you can do. Lead with your strongest product and support it with several valuable benefits — what it will do for the customer. Features are not always as important to customers, unless you are selling well-known products where everyone knows the benefits. Then pointing out special features can differentiate you from the competition.

Jim Thebeau is a partner at Henry Russell Bruce strategic marketing. He can be reached at jthebeau@hrb-ideas.com or (319) 298-0242.