unparalleled opportunity smart business 0309

© 2009 Smart Business Network Inc. Reprinted from the March issue of Smart Business Dallas

Now is the time to win big. If you go against the flow, you could experi-ence remarkable opportunities to dif-

ferentiate yourself.“According to one study, during the last

recession, 25 percent of businesses aggres-sively increased marketing expendituresand, as a result, increased market share 2.5 times the average for all businesses inthe post-recession period,” says JonathanFisher, CEO of BrandExtract. “Conversely,during expansion periods, 80 percent ofbusinesses increased advertising budgetswith no improvement in market share —because competitors did the same thing!”

Smart Business asked Fisher what mar-keting strategies can fuel your company’ssuccess in today’s economic climate.

How does the challenging economy affectmarketing?

The stronger a company’s brand recogni-tion, the greater the chance it can win busi-ness and retain price points. Business own-ers are demanding returns and tightervalue propositions. Consumers are lookingmore closely at their purchasing relation-ships. This means buyers want provenproducts or service providers they knowand trust.

Cutting marketing budgets in down mar-kets is one of the worst moves a companycan make. Case study after case studyshows that a down market is one of the fewsituations when a company can differenti-ate and gain ground on their competition— without increasing last year’s budget. Intight markets, businesses are able to buymedia, services, printing and more at dis-counts. This translates into increased bot-tom-line gains unlike any other time.

Why is using the right strategy important?

Strategies that yield quality over quantityhave proven to be the most effective whenyou must do more with less. You shouldalso make every effort to increase yourbond with current customers to protectagainst competitors. If you have the cor-rect plans in place, you can thwart theaggressive tactics of other businesses thatare desperate for business.

How can companies in today’s economyevaluate their marketing?

Aside from looking at the returns, com-panies should view the cost per reach andconversion, both short and long term.Marketing departments will defend theirinvestments by touting numbers like hitson the Web site, but business ownersshould look closely at the cost to acquirethese leads or hits. By comparing the costto acquire these returns against each mar-keting channel, you will see a holistic pic-ture of the expense of marketing efforts.

What should be considered in developing anew plan?

Marketing plans are investments and, likeretirement portfolios, should be diversified.This means including a mix of the tried-and-true on up to highly creative (such as newmedia) strategies and tactics. Also, plansshould be geared to the goals and personal-ity of the company — generic, one-size-fits-all methods rarely work.

One of the most effective methods fordeveloping plans in a down market is to

consider each quarter an investment overthe next. We call this momentum market-ing, as you are building on the momentumover each quarter. If your agency or mar-keting manager is proving that their strate-gies are working, be willing to increase thebudget. This approach will yield greaterreturns and not stifle the progress yourmarketing investments are making.

How can a business measure marketing ROI?

Marketing has many measurements,ranging from brand awareness to traffic tosales. Generally, we look at the equationratio of leads to prospects to proposals toconversion rates, but every company’sgoals are different: some want to reduceattrition, others are seeking to reverse anegative trend, and still others are zeroingin on aggressive growth. An important,though often neglected, point is that youneed to invest in establishing your currentbaseline for your measurement to havemeaning.

Any other points to share with readers?

■ Beware of discounting fees unless theprice reduction is truly strategic.

■ Promote value and benefits over fea-tures.

■ Watch for market demand because itmay lead to new services, products orpackages.

■ Talk with your customers and formfocus groups with strategic partners andvendors, as they will be your best referralsources.

■ Concentrate media buys and agencyservices for negotiating power.

■ Get creative with balloon contracts andmultiyear retainer options to save money.Now is a perfect time to negotiate long-term contracts at reduced rates.

Remember, the decisions you make in adown market will have an enormousimpact on your brand. If you let it slidenow, it will be twice as difficult and expen-sive to get it back to where it is now. <<

Unparalleled opportunityDon’t miss out on the best time to grow your business. Interviewed by Elizabeth Saunders

JONATHAN FISHER is the CEO of BrandExtract, an integrated branding and communications firm that guides growing companies

by providing strategic branding solutions, marketing communications, advertising, print and interactive services. Reach him at

(713) 942-7959 or jonathan@brandextract.com or go to the company’s Web site at www.brandextract.com.

Jonathan FisherCEOBrandExtract

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