Marketing in a Credit Credit Crunch
A stalled economy threatens the viability of many small businesses. Some have experienced decreases in revenues that they cannot sustain. Slower sales have prompted some to institute personnel layoffs others are prone to cut advertising. But, a hasty decision could be a mistake. After all, the reason for advertising is to keep a consistent message in front of prospective customers. This is our advice for What is marketing? during a credit crunch.
Rather than making a hurried decision that may make things worse, a company should consult its marketing plan for guidance. The Marketing Teacher provides applicable guidelines which will help formulate tactics in response to a slumping economy.
There are many factors to consider when conducting a situation analysis. Prominent among them is a review of a company’s Marketing Environment.
A good way to organize a situational analysis of the marketing environment is the use of a device called PEST Analysis. PEST looks at environmental factors such as Political Factors, Economic Factors, Sociocultural Factors and Technological Factors.
During an economic downturn, a company’s Marketing Planning and the Marketing Manager might perform what is called a Marketing Audit during which time he/she would review the current marketing plan against internal and external marketing environments. See below:
Understanding customer needs
Understanding the buyer decision process
Understanding brand perception
Segmentation, Targeting, Positioning
The Marketing Manager needs to utilize the most current data and information resulting from the Marketing Audit and the PEST Analysis results. The status review should lead the Manager to re-evaluate its objectives to determine if they are indeed smart objectives, in light of current economic times.
SMART objectives are those that are specific, measurable, achievable, realistic, and timed. By conducting a situational analysis and reviewing the marketing environment a Marketing Manager is equipped to adapt and monitor its response changing conditions without making knee-jerk decisions.