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Many
companies choose to take shelter during economic storms,
riding them out by reducing expenses, cutting staff, and
sticking to core markets. They wait for things to turn
around before thinking about expansion. According to a
recent report from Accenture, that may not be the best
approach.
One
of the Rockefellers once said, "The time to buy is
when blood runs in the streets." In other words,
buy when the market looks worst. Astute investors buy on
the dip and sell on the peak. This approach is effective
because it is so antithetical to the "market"
thinking.
Similarly,
companies that engage in market positioning, expanding
boundaries, acquiring assets and testing new models
during a general downturn find themselves miles ahead of
businesses that take a "bunker mentality."
The
authors of the Accenture report point out that companies
do better by preparing ahead for the inevitable upturn
than they do by trying to forecast the upturn itself.
Some
recommendations include: keeping ahead of the pack by
cutting costs, staying financially fit, making strategic
acquisitions, building future demand - and maintaining
flexibility to build resilience while maintaining core
values and principles.
Outside
the organization, the report stresses the need to build
communications and networks - that companies need to
rebuild trust with investors while maintaining or
expanding their position in the markets.
During
a slowdown, many companies slack off in the marketing
area. But this has consistently proven to be a bad move.
Reports show that time and again, companies who maintain
or increase their marketing during slowdowns have a big
jump on competitors when business picks up.
Think
about it - do you want to be doing business with someone
you haven't heard from in a few years, or with a company
that has been sending you reports and communications,
and that you've read about in articles and news reports?
PR
strategy during a business slowdown is extremely
important. Companies that maintain a press presence can
gain advantage over companies that are reducing their
exposure and losing positioning.
The
battle for mindshare is always raging. The generals who
press the advantage when the opposition is retreating
are the ones who win the war.
To
see the Accenture report, click
here. |
Sales
and Marketing Problems that PR Can Help You Solve
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The economy is in a
slump. Marketing during a downturn is vital; nearly all
case studies support this. When marketing dollars are
tight, PR is the most cost-effective way to maintain and
build market share.
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Your competitors are bigger than you and can outspend
you in advertising. PR, because of its low cost and high
impact, can level the playing field.
§
Your product or service is the best - and nobody knows
about it. PR can get word out in a more believable way
than paid advertising.
§
Your product isn't better than anyone else's. PR can
help set you apart and convince buyers to see you as the
leader in your field.
§
Management cuts your marketing budget. PR can make up
the shortfall, at a fraction of the cost.
§
Management demands tangible results. Publicity results
can be monitored and measured.
§
Traditional marketing isn't working anymore. PR
overcomes the skepticism that consumers have built up
against paid promotion.
§
Your competitors are getting all the good press. PR can
help reverse the situation.
§
You need venture capital or are planning an IPO. PR
gains you the visibility to make both of these
propositions more viable.
§
You have a good story to tell. Some organizations,
causes, products, and individuals have an inherent
appeal to the media. If that describes your company, why
not take advantage of it and profit from it? |
