The severe economic recession of 2008-2009 caused
marketers to rethink best practices of management. Phillip Kotler and John
Caslione see management a new Age of Turbulence in which chaos, risk and
uncertainty characterize many industries, markets and companies. According to
them turbulence is the new normal, punctuated by periodic and intermittent
spurts of prosperity and downturn-including extended downturns amounting to
recession, or even depression. They see many new challenges in the foreseeable
future and unlike past recessions, they may be no assurance that a return to
past management practices would ever be successful again.
According to the Kotler and Caslione, markets should
always be ready to activate automatic response when turbulence whips up and chaos
reigns in. They recommend marketers to keep these 8 (Eight) factors in mind as
they create “chaotic marketing strategies”.
1. Secure
your market share from core customer segments:
This is not
a time to get greedy, so get your core customers segments firmly secured, and
be prepared to ward off attacks from competitors seeking your most profitable
and loyal customers.
2. Push
aggressively for greater market share from competitors:
All companies fight for market
shares, and in turbulence and chaotic times, may have been weekend. Slashing
marketing budgets and sales travel expenses is a sure sign a competitor is
buckling under pressure. Push aggressively to add your core customer segments
at the expense of your weakened competitors.
3. Research
customers more now, because their needs and wants are in flux:
Everyone is
under pressure during the time times of turbulence and chaos, and all
customers—even those in your core segments whom you know so well—are changing.
Stay close to them never before. Research them more than ever. Don’t find yourself
using old, tried-and-true marketing messages that no longer resonate with them.
4. Minimally
maintain, but seek to increase, your marketing budget:
With your competitors aggressively marketing
to your core customers, this is the worst time to think about cutting anything
in your marketing budget that target them. In fact, you need to add to it, or
take money away from forays into totally new customers segments. It’s time to
rescue the home front.
5. Focus
on all that’s safe and emphasize core values:
When turbulence
is scaring everyone in the market, most customers flee to higher ground. They
need to flee the safety and security of your company and your products and your
services. Do everything possible to tell them that continuing to do the
business is safe, and to sell those products and services that keep making them
feel safe.
6. Drop
programs that aren’t working for you:
Your marketing
budget will always be scrutinize, in good times and bad times. If anyone is to
cut your programs, let it be you, before anyone else sports any ineffective
ones. If you’re not watching, rest assured someone else is, including your
peers whose budgets couldn’t be produced from the axe.
7. Don’t
discount your best brands:
Discounting
your established and most successful brands tells customer two things: your
prices were too high before, and product won’t be worth the price in the future
once the discounts are gone. If you to appeal more frugal customers, create a
new brand with lower prices. This lets value-conscious customers stay close to
you. Without alienating those still willing to pay you the higher-priced
brands. Once the turbulence subsides, you may consider discounting the product
line—or not.
8. Save
the strong; lose the week:
In
turbulent market, your strongest brands and products must become even stronger.
There’s no time or money to be wasted on marginal brands or products that lack
strong value propositions and a solid customer base. Appeal to safety and value
to reinforce strong brands and products and service offerings. Remember, your
brands can never be strong enough, especially against the waves of turbulent
economy.
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