Recession Proof Your Marketing
By Dino Piccinini

The dreaded words to any business owner-Yes, a recession is coming. It is something you can ignore if you choose to, but if you plan for it there are ways that small business owners can not only survive but thrive in a recession.

There are four major things to consider as you recession-proof your Marketing Plan:

1. Anticipate the downturn now
Our nation maintains the greatest purchasing power in the world. A recession will undoubtedly influence consumer spending, but it certainly will not eliminate it.

The job of business owners and marketers is to anticipate the effects that a tightening market will have and then consider adjustments to (1) the products or services they provide, (2) the manner of distribution used to deliver their products or services, and (3) the communication of their value.
In a nutshell, they must prepare a marketing plan with contingencies for doing business during a recession.

2. Adjust your product and service offerings
The first order of business is to examine the products or services you sell. Are they luxury items or staple goods? If they are luxury items, don’t panic, there are plenty of people who still eat caviar and purchase diamonds even when the economy is bad. However, you will most likely encounter a lower density of luxury buyers. That is, there will be fewer big spenders in a given area. You may need to expand your geographic reach.

On the flip side, if your products or services are staple goods, don’t underestimate the number of other factors that contribute to your sales. Understand exactly why consumers make the choice to buy your products. A shift in retail locations to address the elimination of seemingly unconnected luxury goods might also result in a shift from your staple goods by mere approximation.

3. Adjust your delivery
The next order of business is to consider the manner in which you deliver your products or goods. Oil prices keep rising. This puts price pressure on delivered goods and causes consumers to reconsider their driving habits. Consider strategies that make your product more easily obtained in times of increased transportation costs. This could mean more or less emphasis on Internet sales. It could also mean an entirely different distribution strategy. See the value from your customer’s perspective given the expected change.

4. Adjust your messages
Finally, consider how you communicate your value. The first two considerations were internal. These do very little good if you don’t successfully communicate with your customers. Understanding their pain and providing solutions to ease that pain is very important. For customers unaffected by the economic changes, reassure them that their continued purchasing makes sense. Others might need to be informed of other options as they begin to reevaluate their budgets and priorities.

If the nation dips into a recession, how will your business change the way that it markets? Will you be prepared to implement a plan relevant to the new markets? Economic forces dictate only to those that do not anticipate their arrival. Businesses have plenty of reasons to expect changes in the very near future. So get ahead of the curve and begin your preparation today!

Dino Piccinini is the owner of The PRstore in Toledo (www.prstore134.com), the first full-service marketing and advertising retail center created exclusively for the promotional and communication needs of today’s small business owner. Contact him at (419) 842-8580.