The economic downturn

The economic downturn

The economic downturn presents an opportunity for businesses to find fresh, creative ways to become or remain visible. A business can take the appropriate steps to address this situation and stand out as a distinctive brand and be the leader in that category (Quelch & Jocz, 2014). This can also be achieved on a smaller budget allocated for marketing. The business should strive to be visible while projecting an image of strength and stability. The marketing and public relations efforts should be distilled into a potent concentrated mix that will deliver enhanced visibility and impact on a limited budget. The marketing strategy used will have to optimize every cent and integrate activities to gain the highest return for every effort that is put in. The business will have to evaluate its brand, the market, and its competitors (Quelch & Jocz, 2014). The business will have to align its marketing activities with the current market conditions. The entrepreneur will have to ensure the marketing assets, including brochures and the website, are relevant to the customer and the economic situation

Pricing

Determining the appropriate price of a product is both an art and a science. The client has to be first understood how much they would be willing to pay to get a product. During this period, the pricing will have to be spot-on as there will be no room for errors. The pricing will have to be both beneficial to the customers and the business. The objectives that should be used by the business in setting prices include maximizing the amount of money earned; the total sales should be increased, consolidation of business prestige, and neutralization of product prices (Rollins et al., 2014). While setting the price for products, the entrepreneur should keep in mind the potential clients. Several factors will be considered in setting prices during the economic downturn. The first strategy the business should use is neutralizing. This will involve setting up prices that are similar to other stores in the area. This is different from the original marketing plan, where product prices were to be higher than the surrounding stores.

The entrepreneur, in this case, will use pre-established prices for its products to immediately blend into the market (Rollins et al., 2014). The other pricing strategy that the business could use is ladder pricing. In this scenario, the entrepreneur begins by setting low artificial prices and gradually increasing them. Once the business gets a good client base, the prices can then be adjusted to the preference of the entrepreneur. This strategy will be useful in gaining customers quickly from similar stores. This strategy will also be useful because the business will be new, which will gain interest with the customers.

Value proposition

The entrepreneur should adjust their value proposition to reflect the current realities that are ongoing. The value proposition is what tells business apart. During the harsh economic times, reframing the value proposition strikes a chord with consumers. Clients are generally interested in products that may help them in weathering the poor economic conditions (Quelch & Jocz, 2014).

The adjusted value proposition should be made of several components. First, they tell the client what the product will do for them and the opportunities they will create. The value proposition should also differentiate the product from the competition. The proposition should also indicate firmly the value the entrepreneur’s product brings, which may be lowering the cost of the client. Lastly, the proposition should contain testimonials to prove what it states (Quelch & Jocz, 2014). This will indisputably set the business apart.

Product

Streamlining product portfolios will be one of the crucial steps the entrepreneur will take. Product marketing will receive a boost when the entrepreneur does a clean up of their product lines. With the reduced demand in the economic downturn, complexity in product lines should be significantly reduced. This involves product models that may have trivial differences between them or maybe be perform marginally. Having a broad product line will absorb many marketing costs and tie up needed resources and the working capital in a slow-moving inventory (Rollins et al., 2014). This does not, however, mean that innovation stops. Innovative products and improvements are to be continually incorporated since they will gran customer attention and be the motivation to make purchases. Improved affordability of products will involve customer discounts that require little effort from consumers. In these economic times, customers’ preference will be on products that stress good value. Product gimmicks should be abandoned for durability, performance, reliability, and safety. Products with the ability to address the current customer reality, which will provide an edge on the competition, should be embraced (Rollins et al., 2014). Studies show that during economic downturns, customers reduce wastefulness, and embrace cheaper local brands. Therefore the entrepreneur should stress these factors to attract and retain new customers.

Promotions

This period will require even more promotions where the entrepreneur should increase the marketing budget. It is at this point where customers tend to be restless and may be vulnerable to making changes in their buying decisions. Helping them find the entrepreneur’s products will involve making sure the business’ name is out there. In promoting products, the entrepreneur should integrate traditional methods and online tools (Rollins et al., 2014). Integrating conventional marketing strategies with online tools, including social networks which will boost response rates by engaging potential and current customers on a deeper level. Increasing the network of the business will also be another essential step. Networking with customers and business owners will help in raising awareness of the company and generate interest. It will also utilize word of mouth, which is a proven, cost-effective marketing tool. The advertisement, in this case, should stress the superior performance of the product, and not on the business image (Rollins et al., 2014).

Increasing marketing spending is an investment for a higher future turnover. Increasing the level and amount of advertising, the market share, sales, and income may increase during this time may increase, and even after the downturn is over. In these periods of economic downturn, customers prefer to be given information than commercials. This, therefore, means the entrepreneur will have to provide clear information concerning the objectives and advantages of the product, including safety, durability, and overall quality. This will help in gaining the trust of the customer, which will capture their loyalty.

Place

The placing of the business will be vital to attracting customers. Self-service retailers have proven popular in economic downtimes. Customers are also willing to make their ‘locate-compare selection’ to save money (Rollins et al., 2014). Non-store retailing can also present a cheaper way of reaching out to more customers. Marketing on the internet may prove a more economical, simple, and cost-effective way to reach many customers at the same time. Employing specialists to find a suitable location can be a wise move though it may be costly (Rollins et al., 2014). Since the business will be a small retailer, specifically a shoe specialty store, the assortment of products will be narrow but deep with an enhanced focus on the quality and provision of excellent service.

Conclusion

During economic downturns, finding fresh creative ways to market a business and its products presents the business with an opportunity to become visible. The marketing strategy used will have to optimize every cent and integrate activities to gain the highest return for every effort that is put in. The objectives that should be used by the business in setting prices include maximizing the amount of money earned; the total sales should be increased, consolidation of business prestige, and neutralization of product prices. The value proposition of the business will have to be structured in a way that reflects the current economic conditions. The business will also have to streamline product portfolios to reduce the marketing cost. This period will require even more promotions where the entrepreneur should increase the marketing budget to increase business awareness.