Branding In a Down Economy

Well, it's official. In case anyone was wondering, the government has declared that we are now in a recession. Who knew?

In light of that cheery announcement, I have some good news for people willing to invest in their business when everyone else is holding back out of fear. I ran across this great article on branding and marketing in a down economy and wanted to share it with you... I'd love to hear your thoughts if you have seen these principals in action.

How to Market Effectively in a Down Economy
By Henry Russell Bruce

Marketing in a Down Economy. Marketers begin to fear for their budgets when whispers of a recession arise. Since World War II, the United States has weathered 11 recessions. Veteran marketers have experienced economic slowdowns before and they know how to deal with them. Marketing professionals need to look at both the long and short term solutions and opportunities to marketing in a down economy.

Be aggressive. Marketing budgets will be slashed. Advertising Age states that in the most recent recession, the first three quarters of 2001, the advertising industry suffered its deepest budget cutbacks in 75 years. It is important to know that if an organization continues to proactively market in this environment, it can gain leverage. Research conducted at Pennsylvania State and University of Texas at Austin reveals that organizations entering a recession with a pre-established strategic emphasis on marketing can come out of a recession ahead of the game. The marketers who perceive the recession as an opportunity can capitalize on it quickly. A recession creates a unique environment that makes aggressive marketing even more successful. There will be less “clutter” in the short term for marketers to compete with. Less proactive organizations will slash their budgets and the number of marketing efforts will decrease. Consumers will be easier to reach. Also, media outlets will be more willing to make deals, such as decreased rates, increased placements, better placements and even category exclusivity.

A down economy is a great opportunity for brand strengthening. Proactive marketing sends a message to customers that the organization is confident in its staying power during hard times. The credibility that public relations efforts offer is perfectly suited to slowing economic times. Public relations is a less expensive marketing tool that also maintains relationships and keeps the organization’s name in front of its audiences. This sort of marketing may also act as a buffer against declining sales and increase market share by stealing customers away from those with slashed budgets.

Stay ahead of the game. The “invisible hand” will reassert economic balance in the long term. As the economy upswings, organizations will start actively marketing again. But the organizations that continued to proactively market during economic downturns will have a competitive advantage over those that are playing catch-up.

“Advertisers that continue to advertise during slow times will come out better and faster when the economy picks up,” said Wall Snyder, President and CEO of American Advertising Federation during his visit to Cedar Rapids, Iowa, in January 2008. This approach is tried and true. Marketing News reported that in 2001, companies that maintained or increased their marketing efforts managed to boost their market share and outperform those organizations with decreased marketing by almost 250 percent. Organizations that aggressively marketed increased their market share by 1.5 percent, and the organizations that managed to survive the recession and decreased their marketing budget only gained 0.2 percent.

Go into a slowing economy prepared with a plan tailored to the new environment. The researchers at Pennsylvania State and University of Texas at Austin found that an organization’s interpretation of a recession as an opportunity was a predictor of success. Also be prepared to set, defend and actively reach ROI goals. Organizations will weigh every penny against results. BtoB Magazine recommends increasing the use of Internet tools because of the inherent measurement qualities for ROI.

Listen to your customers. During an economic slowdown, organizations cannot afford to lose current customers. It is much more expensive to gain than to retain, which is why it is so critical to focus on current customers. Turn current customers into loyal brand advocates by focusing on their needs. Use marketing tools to assert confidence in the brand in a way that will resonate with the customer. Ad Age recommends, “Understand the recession and its impact on your consumer, and act quickly.”

Consumer habits change as the economy takes a nosedive. For example, they will spend less on personal items and discretionary purchases. But they are willing to spend more on brands that they value and trust. Use limited dollars more effectively to develop a stronger brand relationship with customers. Jupiter Research noted that most marketers still struggle to create messages that appeal to customers. Monitor customer activity to learn what resonates. Customer-focused research can provide insights into customer behavior, as well as potential opportunities.

Focus on interactive marketing tools. In the short and long term, social and interactive marketing tools deliver numerous benefits. Interactive marketing is less expensive and often more effective than traditional marketing outlets for reaching target audiences. Use these tools as a personal touch-point to strengthen brand confidence.

Forrester Research found that even if a recession occurs in the next six months, 26 percent of interactive marketers plan to increase their interactive marketing investments and 46 percent will maintain them at current levels. Also, more than 40 percent will increase their use of social networking tools such as blogs,
user-generated content and e-mails. Research also showed that using these tools can boost revenues nearly four times. If an organization is not utilizing these tools, then now is the time to learn. Marketing professionals are entering the age of Web 2.0 and consumer habits are changing.

Interactive marketing tools also allow measurable results that show ROI, the first line of defense against budget cutbacks. The tracking and analysis capabilities also reveal data about consumers that can be used to target and communicate with them more effectively. Ad Age reports that most marketing budgets are not yet being reduced. Maintain your budget by understanding the impact of a slowing economy and applying adaptive marketing methods. And stay positive, because in the end it will pay off to be a proactive marketer.

Brand Navigation

One Sparkling Moment

Dear Blog,

Talk about a whirlwind! I know I will look back at this time of my life as the most insanely busy, but also some the most exciting years.

Yesterday:

1. The business cards were officially in my hand. THANK YOU Ryder Graphics - you guys are my favorite people right now! They did such a great job, and Kyle Hawkins has just been awesome to work with.

2. The website went live and looks fantastic! There are still a few updates to make, but I imagine it will evolve and morph a lot over the next year. THANK YOU Greg for doing an incredible job on the programming, and THANK YOU Russ for designing this gorgeous site, and THANK YOU Benjamin, Paula, and Jen for the freaking awesome photography. You guys are the cream of the crop. www.studioabsolute. com - check it out!!

3. The last two months of working with Let's Make a Space on their marketing and creative culminated with an "absolutely" incredible VIP Party. We had about 160 special guests in their new retail location. The blue drinks were flowing, the music was pounding, and the gorgeous fem-bots put on a runway style furniture fashion show that was out of this world! Guests left saying they'd expect to attend a party like this in San Fransisco - not Bend, Oregon. Pictures and video forthcoming!!

After everyone left, we spent a few hours just hanging out with the Let's Make a Space team and making sure that no open bottles of champagne went to waste. There was uncontrollable laughter, blue-drink-induced-dancing, and even an unexpected wrestling match that ended with one broken champagne flute and a fat lip. Not mine, as much as I probably deserved it! Sorry Joey - I love you.

{Sigh...}

So tomorrow morning was supposed to be the much anticipated grand opening, but alas, the city inspector couldn't come to sign off on the new facility for reasons unknown. Today was a lesson in reverse publicity - how quickly can we get the word out that: NO, the store will NOT be open tomorrow. But at the same time - we've got to carry the existing momentum and excitement over to next Saturday. Our success depends on how that message is delivered - even the tone of the announcement must remain consistent with the Let's Make a Space brand. It has to breathe excitement, drama, entertainment, and surprise! And you know what, Blog? It was simple because their brand speaks for itself. Their business model is built around suspense, surprise, and radical change, so the drama behind the grand opening is actually to our benefit. We're going to take this extra week before next Saturday, and leverage the drama to create even more buzz and curiosity. It'll be perfect. I'm excited. :)







Check out the fashion show!



CLICK HERE to view Slideshow

Insomnia V

Dear Blog,

This is just a quick note to let you know that I hadn't forgotten about you, and insomnia will undoubtedly keep me a loyal pen pal. However, I'm pretty excited about the amazing team that's on board with Studio Absolute, and I think it buys me a free pass to one good night's sleep. The fact that my "night" starts at 2:00 AM is not the point.

Good night, my friend. See you on the next late shift.

Cheryl

www.studioabsolute.com

Insomnia III

Dear Blog,

Still not any closer to coming up with a viable solution for insomnia - but not for lack of hours thinking about it. Even during those sparse moments when I'm enjoying what some people affectionately refer to as "dream land", I'm subconsciously wondering how long it will last and what I need to do as soon as I can escape from it.

Tonight is the first school night after the time change. So technically, I've got an extra hour to sleep in. At least, that's what everyone's Facebook status updates are saying. Sleeping in isn't something I've experienced since I was a rebellious, lazy teenager, so I just group these people in with the rich and famous elitists that I simply can't relate to.

Maybe it's not such a bad thing though, this insomnia business. I usually get more accomplished between the hours of 1:00-4:00am than I do during the day when there are so many shiny things to distract me. All the articles you read on insomnia will tell you that opening up your computer is a fatal, overstimulating mistake, but what if you embrace this as an extension of your work day? What if being a part of the secret vampire society of the undead makes you vastly more productive? Hell yes! That's what I'm talking about! It's a GIFT, this so-called problem with insomnia. Who says we need to work from 8-5, have dinner, then slip into blissful unconsciousness until 6am the next morning when we wash and repeat?

{Sigh} Alright. I'm going to give it another shot. Crawl under the covers, curl up in the fetal position, and try to postpone my thoughts about the week ahead until the alarm goes off.

Good night, dear sweet blog. Happy dreams.

Cheryl

Insomnia II

Dear Blog,

First off, the last time I tried to post anything, you were having technical difficulties and refused to save. So you can't say I didn't try. It takes two, you know?

So do I give you the recap about what I've been doing since we last spoke, or do I take this moment to publicly bitch about not being able to sleep? Ironically, the reasons I'm unable to sleep are likely tied to what I've been up to since we last spoke. Not that it was bad, but you know what I mean.

A good blog contains useful information that will keep people coming back. Or, at least a few juicy details about someone's private life that people can live vicariously through. Unfortunately, at 3:00AM, my brain contains no useful information, and I have no idea why people post intimate, personal information on the worldwide web.

Here's a stab at trying to be useful: Is there a cure out there for chronic insomniacs? Because I've tried melatonin, warm milk, bananas (eating them, you pervert), and every kind of hard core prescription drug, but nothing seems to work. Valium at least makes for interesting dreams, but the problem is, you don't feel like you ever really slept after taming giant fleas, being raised by a pack of guinea hens, or leading a board meeting naked AND without makeup.

A good blog probably offers some real solutions, not asks the questions. So I'll work on that and get back to you. Not that you care, because you're a BLOG and you never sleep anyways.

Well, there it is. My quarterly post. I hope you enjoyed it, Universe.

Good night.

Insomnia

This is my first ever post to Studio Absolute's blog. It's a significant day - one that I've been putting off mainly for lack of words, but also for the sheer lack of understanding behind the blogging mentality. I never kept a diary or journal when I was growing up - it just seemed pointless to recap what I already knew about my day or how I was feeling. I was there, you know? There's also this thing about the word "I" that "I" have to come to grips with if "I" am going to amount to any kind of blogger. I usually read over my emails and letters and count how many times I've said it (I)... and if it's anywhere near the number of times I've used it in the last two sentences alone, a major rewrite is forthcoming.

So that said, the one thing I have now that I never had as a kid, is insomnia. Big, fat, insomnia - which explains why there wasn't a need for a diary growing up. I simply slept, and dreams would carry my thoughts from my heart, through my brain, and dispel them out into the universe with one clean swipe off the whiteboard. Now that the universe is Web 2.0 savvy, I guess it's time I find a new, more relevant way of communicating with it than simply sleeping my day off.

Dear Blog, would you like to know what's keeping me awake tonight? Where to start... The clock taunting me ("It's 12:56, 1:00, 1:30... you know you've got a meeting at 7:00... what do you think you're doing writing a blog at this hour!?"); the unrelenting pressure of starting a new business; wondering where I will find the time to create the forms, the plans, the web content - all the necessary business evils that are so important, yet so hard to stop and DO; the desire to help our team grow while cultivating passion for what they are naturally, and uniquely gifted at; wondering how I could have forgotten to take a critically important medication for over a week - wait, oh yea, I HAVE TONS OF STUFF ON MY MIND!

Well there it is, dear Blog. I hope that unlike all the diaries and journals I've written only one entry in and then abandoned, that we actually meet again.

Good night.