marketing in a recession (survey results)

8/14/2019 Marketing in a Recession (Survey Results)

1/27


2/27

2009 Real Results Marketing & Al Dente Marketing. All rights reserved.

REPORT OVERVIEW

2


3/27


REPORTO

VERVIEW

About the Study

In June 2009 Real Results Marketing and Al Dente Marketing partnered to study marketing spend and tactics during the recession. This

report details our survey results question by question, as well as offers respondent verbatims.

This study, in conjunction with secondary research and first hand interviews with executives growing their companies during the recession,

was used to form Eat the Stunned a comprehensive presentation highlighting observations and implications for marketing success in the

recession.

Eat the Stunned was first delivered at the Business Marketing Associations Annual National Conference on June 12, 2009 and will be

available in upcoming webinars and onsite workshops. For more information and dates, please contact the researchers.

Survey Administration & Report Details

1. Survey administered between June 2-8, 2009

2. Distributed to:

Marketing Executive Networking Group (MENG), an

association of current and former Marketing Vice

Presidents worldwide

Opt-In news subscribers of the researchers

newsletters

LinkedIn network

3. 188 marketers responded

4. Snapshot of marketing spend and tactics to manage

through and drive growth where possible during therecession

5. Includes complete results including selected and

representative verbatim comments.

Raw data may be made available to interested parties wishing to

conduct their own analysis.

What To Expect

This report offers the reader summary data for each question, aswell as visuals to better illustrate the findings.

Due to the overwhelming number of verbatim comments,selected and representative quotes highlight and reinforcenumerical findings.

The researchers would like to thank all those who participated inthe study and hope you find the information useful in your questfor marketing excellence.

Enjoy!

Ian G. Heller Andy Martin

Real Results Marketing Al Dente Marketing

3


4/27


5/27


QUESTION

S1-3

1) Are you spending MORE on marketing, LESS on marketing or about

the same on marketing in 2009 vs. 2008? [n=184]

2) Please indicate how much more you are spending on marketing in

2009 vs. 2008. [n=41]

3) Please indicate how much LESS you are spending on marketing in

2009 vs. 2008. [n=71]

There is a 60% gap between the average DECREASE of companies

spending LESS vs. the average INCREASE of companies spending

MORE on marketing.

Observation

Only 42% of respondents indicated their organization is spending

less on marketing in 09 vs. 08.

Observation

5


6/27


QUESTION

4

4) Please indicate how your 2009 OVERALL SALES have changed vs.2008. Choose the answer that best represents your situation. It's okayto estimate. [n=160] 1. We are in the affluent client banking industry and sales are

down -15% mainly due to investment losses.

2. We are a private lender and capital is very tight.

3. My business segment is represented almost exclusively by

small-to-medium sized businesses. Some have posted strong

growth results, but a majority are struggling with this

economy.

4. The home building industry has seen a significant decline in

both new builds and remodeling is just starting to increase.

5. Our business has seen a decline in capital projects. As a result,we are experiencing modest growth on the maintenance side

of the model.

6. Some clients have reduced our fees by x% in lieu of

discontinuing our services.

7. We are seeing organic volume with existing customers

decline, but have been able to offset with new business.

8. Spending 200% more time on marketing, 70% less in dollars.

9. Sales are new money investments but also recurring revenue

is tied to the stock market so that source of revenue is down

36%.

10. Sales isn't the issue. Retention is.

Verbatim Comments

Observation

Sharp sales declines are common, with more than -25% the

most frequent response.

6


7/27 2009 Real Results Marketing & Al Dente Marketing. All rights reserved.

QUESTION

4(CONTINUED)

Verbatim Comments (continued)

11. We focus on mid-cap clients and they have reduced spending

in many cases much more substantially. We have gained some

new clients to mitigate the revenue per client.

12. We think the increased marketing has minimized sales losses,

even though the economy stinks.

13. February and March were brutal. I lost all of my clients. Since

then I've engaged with 3 new clients, I'm close to deals on

four other clients, and I'm also re-engaging with two of my

past clients.

14. Our sales come from a biennial tradeshow. It's interesting to

note overall booth sales were approximately 10% higher than

our previous event in 2007 ... BUT ... these increased sales

came from approximately 50 fewer exhibiting companies.

15. Our business is in agriculture, specifically post harvest

agricultural chemicals for disease control. Farmers are more

focused on saving as much of their crop as possible because of

their return from the increased price of food to the consumer.

16. Many customers in new home construction have had drasticlay offs or have gone out of business directly affecting my

business. Framers, Drywallers, electricians, etc.

17. Gross sales (initial applications for product purchase) are up,

net sales (those that can obtain financing after desiring the

product) are down about 5%.

18. Weak demand across the entire IT spectrum, especially for

hardware (servers, storage, PC's, et). Only bright spot is in

services (IT consulting & management). Capital budgets for IT

have either been drastically cut or severely scaled back.

19. I have several clients with whom work had dried up almostcompletely. Fortunately they have been replaced by several

steady gigs. I have had to branch out into areas I hadn't

worked in before, though.

20. As a marketing consultant I am working on less pieces of

business, but the size of project has increased.

7



QUESTION

5

5) Please indicate how your 2009 marketing expenditures haveINCREASED or DECREASED for STAFF. [n= 127 to 134]

1. Hiring freeze on consultants.

2. Most have remained steady although we added to the

retainer of one of our outsourced sales consultants.

3. We have not used telemarketing very much in the past...but

plan to begin to use it more in 2009 and beyond.

4. increase in public seminars

5. We are not replacing people who leave and we are looking for

interns and temporary labor in the peak season.

6. Created strategic alliances with nearby competitors to co-market non-competitive products.

7. Used to have full-time webmaster, now we outsource web

development. Used to have a PR agency, now we use a PR

consultant. Built out new inside sales team (previously we had

no inside sales).

8. In my small business no change. As President of a non-profit

we have for the first time in 10 years hired a marketing

consultant to help with our promotional events.

9. Over 50% of the Corporate Marketing staff have been

eliminated. A large shift has gone into lowering fixed costs and

shifting more dollars into variable cost programs. (Less

expensive headcount, off-shoring, etc).

Verbatim Comments

Observation

Almost half of respondents are not changing staffing levels with a

slight overall bias to reductions.

Consultants appear to be suffering the most cutbacks.

.8



QUESTION

6

Observation

Some bias towards spending more on internet marketing. Biggest

change is in email marketing.

6) Please indicate how your 2009 marketing expenditures have INCREASED or DECREASED for INTERNET MARKETING, including social media. [n=137]

9



QUESTION

6(CONTINUED)

Verbatim Comments

1. Doing a lot more with LinkedIn.

2. More email newsletters.

3. Internet Marketing is all we do. Launching blog in one month.

4. Social Media expenditures is really an expense of "time" vs

"money.

5. Started using a company for SEO organic search. Using lead

nurturing program called Market2Lead for nurture campaigns.

Chief Strategy Officer has blog and podcast (launched in '08).

Don't currently do banner ads or webinars (trying to jump

start webinar program).

6. bigger push towards online

7. we have increased staff time devoted to social media, but not

really any dollar outlay... we have increased both staff time

AND dollars to e-mail marketing.

8. We are doing a lot more in social media but it isn't costing any

more.

9. Using more web seminars for lead gen.

10. Our use of the Social Media has increased, but at no additional

cost.

11. Virtually the entire budget focus is on "digital" and "social

media".

12. Will be adding webinars 3Q 2009.

13. Actually, planning to do webinars for the b2b segment.

Haven't done it yet, and budget is not yet approved, but

appears to be likely.

10


11/27



QUESTION

7(CONTINUED)

Verbatim Comments

1. Participating in a few more local shows.

2. Drop in expenditure not necessarily in delivery - prices are

down

3. We are using blast faxing.

4. Don't do any 'traditional' media. Will start going to some

tradeshows this year.

5. Skipping NAB, NATPE, CTIA, E3, and CES this year. Cutting

budgets for all other advertising by 1/2 for 09.

6. Traditional media still focused on events/tradeshows (we havea small budget so can't afford anything else).

7. Traditional media not used much. cut back on presenting at

big industry tradeshow, "what's the return? Most

competition also dropped out also.

8. Increased speaking at industry events.

9. For the non-profit we were the recipient of a $100,000 grant.

We are using it for PSA's on cycling safety. We also purchased

commercial time for these same ads. We never used television

before.

10. All forms of traditional media have been cut, some more thanothers. In cases where cuts have not been made outright,

shifts in funding have been made from traditional media to

digital media.

11. Event and tradeshows took a big hit - this is a primary

opportunity for reaching new and existing clients in the b2b

segment. However, the high price tag was deemed

unnecessary and many tradeshows and events that were not

spent or committed have been cut for Mar-Dec.

12



QUESTION

8

8) Please indicate how you are allocating resources in 2009 forMARKET RESEARCH & ANALYSIS. [n=136]

1. It's all in the data. We just have to define, track, and gain

better understanding of the results. Gotta get faster at failing

so we can do it less expensively and move along and find the

successes.

2. We are a marketing research and strategy firm. So, ourinclination is to expand in these areas anyway, but our clients

have demanded it.

3. Sadly, virtually all of the metric programs have either been

drastically cut or eliminated all together.

4. Working with sales team to show value of spend is very

important.

Verbatim Comments

Observation

Most marketers are not cutting resources for market research and

analysis.

13



QUESTION

9

9) Please indicate how you are allocating resources in 2009 forPRODUCT AND SERVICE DEVELOPMENT. [n=136]

1. Spending a lot of time on the product. Making an investment

where our competition can't.

2. We have recently expanded our operation to capture more of

the repair business.

3. We are developing new products or enhancing old products to

match the market...more "right-sizing", turnaround, re-

financing, etc.

4. Purchased a managed service provider early 2009 and are

currently building out our managed services offering (more

affordable than installing products in-house, security expertise

not required, etc.)

5. Wrapping more services around existing clients.

6. For the non-profit we have started a membership drive and

are offering incentives for bringing in new members.

Verbatim Comments

Observation

Only about 15% of respondents are cutting resources for new

product and service development. About 3X as many respondents

are increasing resources in these areas.

14



QUESTION

10

10) Please indicate how your distribution strategy and channels havechanged in 2009. [n=131]

1. More social media, community outreach.

2. Using contract sales agent for cold-calling, lead generation.

3. Added services offering that's piped directly through the

channel.

4. Investigating online sales.

5. We have added more customized IP.

6. We added a new service line sold through e-commerce and

distributors.

Verbatim Comments

Observation

Major increased focus on number of products and services,

selling direct to customers and online sales.

15



QUESTION

11

Observation

As would be expected, lots of focus on broad categories such as

Current and New.

Niche and Green more commonly targeted.

Not much activity towards Government and Stimulus targets.

11) Please indicate how your customer targeting has changed in 2009. [n=131]

Verbatim Comments

1. Higher focus on immigrants - Asian, South Asian.

2. The non-profit is expanding our contacts and trying to get our

brand out there.

3. Working to get a broader base of software as service and

broader into manufacturing sales.

16



QUESTION

12

12) Please indicate how your pricing tactics have changed due toeconomic pressures in 2009. We are: [n=127]

1. Price structure remains fairly constant....trying to "add value"

in other ways.

2. Larger discounts if customers purchase more than one of our

products.

3. Reduced fee increases on renewals for clients who are

stressed financially (B to B).

4. Lowered prices for multiple engagements. Share more

information on how pricing is done versus just a project cost.

5. Packaging/bundling services. Pilot program, same services,

fewer keywords=package.

6. Maximizing each current relationship through cross-selling at

many touch points - online, direct mail, etc.

Verbatim Comments

Observation

Marketers are meeting competitors prices and improving value

propositions to be more competitive.

17



QUESTION

13

Observation

Overall pricing has remained stable with a slight bias towards

discounting.

13) Please indicate how your 2009 OVERALL PRICING has changed. Choose the answer that best represents your situation. It's okay to estimate. [n=129]

18

1. Based on our reputation in the current (repair) market, we

have only changed our pricing to reflect cost of living. In the

new product market and as a manufacturer's rep, we are at

the mercy of the factory.

2. COGS have been reduced significantly. resulting in significant

GP% increases, on lower physical volume and lower salesvolume.

3. Moving more and more towards software subscription based

pricing as software budgets are moving to operational

budgeting from capital budgets.

4. pricing is holding firm, and we are offering more

package pricing options

Verbatim Comments



QUESTION

14

14) In my opinion, the economy is: [n=130]

1. We're not experiencing any backslash due to the crisis. Our

globe is the market and we're still penetrating lots of

countries through the Web.

2. Will get worse before any turn-around.

3. Specifically aviation and aerospace is going to move into

decline in 2010.

4. I believe we are approaching the bottom - but it's going to be

a long bottom.

5. A month ago the fire hose was turned on.

6. The tax climate will further dampen profits. Increased

regulation and government mandates will mitigate US position

in a global economy. Lay-offs will continue and will mute

returning consumer enthusiasm. This creates a downward

cycle as the realization of the significance of government debt

is increasingly recognized and manifested in inflation. More

pressure to raise taxes. More downward pressure on

consumer spending. Keynes' theories are dead but our

government officials obviously did not attend the funeral.

7. Believe it bottomed out a few months ago but the effect won't

be felt for several months to come.

8. Was improving, prior to GM bankruptcy.

Verbatim Comments

Observation

64% believe the economy is either improving, or not getting any

worse.

19



QUESTION

15

Observation

47.5% of respondents believe improvement in the US economybegan or will begin before Dec. 2009. 82.5% believe the

improvement will have begun by June, 2010.

15) In my opinion, the US economy began to improve or will improve: [n=130]

20



QUESTION

15(CONTINUED

)

Verbatim Comments

1. Commercial property is now struggling. Access to stimulus

money for small businesses is not happening. Commercial

credit is not available. With the banks, insurance companies

(AIG), and now the car companies in trouble, and state

funding to cities and counties slashed, it is going to take some

time to stabilize and regain consumer trust.

2. We will recover from capitalism to enter into a new era of

socialism....comrade.

3. What if it won't improve at all for five to ten years?

4. Everyone I speak to is having a rough year....and I feel, it's

going to get far worse before it gets better. Remember the old

adage......."As GM goes, so goes America!

5. When a new Congress is elected and there is a balance of

power between Liberals and Conservatives

6. Not until the bailout money trickles through the system and

auto makers are dissolved as they are pending.

7. I feel the impact of the bailout of the auto-industry will holdthe US economy down through the remainder of 2009.

8. Consumers are showing signs of life - although with altered

habits. I think we're going to need to see more consistent

gains on Wall St. to make all the 401K owners feel like it's ok

to spend again. I think this will likely happen when some of

the $8 trillion that was removed from the action begins to

come back into play - Q2 2010.

9. Budgets have been cut for 2009 and are not coming back in

the year for btb world.

10. Companies are getting used to slower sales and they are

starting to invest for the recovery so they are not left behind.

11. Unfortunately, I feel as though the current up-tick in attitude

is a false feeling. With the GM and other bailouts and theastronomical, crushing national debt, we are in for more

difficult economic times.

12. I feel the impact of the bailout of the auto-industry will hold

the US economy down through the remainder of 2009.

13. Americans get tired of being pessimistic.

21



QUESTION

16

16) [Optional, open ended question only] Please tell us your advice for marketers who are trying to drive revenue and profit growth during the

recession and prepare for the upcoming economic turnaround. [n=54]

1. Partnerships, cooperative marketing, joint marketing

efforts...all to maximize efficiency.

2. Stick to fundamentals. Know your customer base. Get out in

the field more. Don't forget to define longer term strategyduring these difficult times.

3. As one of my clients put it, "we do not acknowledge that there

is a recession.

4. Stop wringing your hands and get out there, understand what

the current needs are and find ways to reconfigure your

expertise to serve those needs. Think about helping others

out of their difficulties with cost-effective expert solutions andsmart products.

5. Stick to the tried and true basics. Make sure your brand is

relevant and differentiated. Be open and transparent. Engage

in and build communities. Make sure you clearly understand

what your customers WANT and VALUE from you. Make sure

value is well understood and clearly communicated (value is

not always low/lowest price).

6. 1. Spend more not less on sales teams. 2. Add more value

added and DIFFERENTIATED services/products which

command a higher revenue and margin. 3. Cut every ounce of

fat - even excess WebEx accounts!

7. Targeting specific audiences makes sense and does lift

response to your offer.

8. Invest to grow share now to leverage up turn. Accept lower

margins but avoid "price" brand label. Improve channelpartnerships.

9. Hang in there. Get the great value for reasonable price

message out there. Don't dwell on the bad or current state of

the economy, go for basics and bright future. Keep costs in

line.

10. Never stop prospecting for new products, services and new

customers that fit your ideal customer. Don't try to beeverything to everyone. Drive clarity on your competitive

advantages and how they help your customers improve their

performance.

11. It is the best time to grow market share as most competitors

cutback in recessions. You can buy more media so a double

whammy - more media for the $ with less competition

marketing against you.

12. Seek out opportunities for new products and services to niche

markets. Identify new opportunities for application of your

core competencies in new market niches.

22


23/27


QUESTION

16(CONTINUED

)

16) [Optional, open ended question only] (continued)

13. Focus on these keys: Creating leads to drive sales. Do it as

inexpensively as possible. Measure marketing effectiveness

versus sales. Cut anything that does not lead to sales in 18

months.

14. We're spending less and focusing our remaining resourcesmore on high potential customers and prospects. Good

customer targeting and segmentation strategies can deliver

strong returns on smaller investments. And by cultivating

these valuable customers/prospects now, we'll have a

stronger base from which to build when things do turn

around.

15. Understand the meaning of "value" to your current customer.

Value is not just price, be sensitive to the 4 P's - right productat the right price in the right place properly promoted.

16. Differentiate as much as possible. Drive attention to cost /

energy savings. Farm existing accounts hard for incremental

revenue. Leverage web presence.

17. Understand customers. Focus on communities. Personalize

customer experience. Integrate channels. Expand internet

channels. Grow value-add services. Measure - focus on ROI.Stop "spray and pray" spending on marketing - Start

knowledge-based marketing investment.

18. Now is not the time to cut back on advertising and marketing.

do not lower prices but ad value to what you are doing. Those

who live by price will die by price

19. Concentrate on key customer needs and provide

products/services to meet those needs. Cut out the noise andconcentrate on the core. Don't settle for second place.

Develop new products with customers. Get wrapped into

customer workflow hang on tight & be resourceful!

20. Learn from history -- now is the time to strike! Understand the

meaning of "value" to your current customer. Value is not just

price, be sensitive to the 4 P's - right product at the right price

in the right place properly promoted.

21. Measure. Measure. Measure. Wouldn't invest in anything

without a clear metric for success. Use and expand your

measurement capability and make it a core value-add to

customers you sell to.

22. Increased market penetration thru research (analytics) and

customer contact (touches).

23


24/27


RESPONDENT PROFILES

24


25/27


RESPONDENTPROFILES

17) My company is primarily: [n=128]

20) My company's total number of employees is: {n=126]

19) My company's approximate annual marketing budget is: [n=126]

18) My company's approximate annual revenues are: [n=126]

25


26/27


ABOUT US

26


27/27

ABOUTUS

About Us

Real Results Marketing is a consulting firm specializing in strategic planning, marketing planning, sales force optimization and market

intelligence and research. We have a core of consultants located in Boulder, Orlando, Miami and Los Angeles and we regularly engage

exceptional independent contractors as needed by our clients.

Founded in 2003, Real Results Marketing has helped dozens of clients improve their business results by applying cutting-edge analytics, a

sound, process-based approach to business solutions and the experience of our thoroughly-trained and classically educated consultants.

Al Dente Marketing is a high-octane marketing consulting firm providing solutions that ignite aggressive revenue and profit growth.

Everything we do is geared to help clients sell more, to more customers, more often. We recognize that results matter, and the rest while

interesting, is academic. As our name implies, Al Dente provides just the right amount of analysis, innovation and execution to drive

performance.

Our expertise comes from our ability to adapt world-class, Fortune 500 techniques to entrepreneurial and mid-sized firms. We are not

career consultants. Our marketing and insights practitioners have track records of building brands, products, and services to create

breakthrough outcomes across diverse industries and cultures. We have been in your shoes, delivered results and know how to win.

Real Results Marketing

Ian Heller

Senior Partner

[email protected]

Direct: (720) 565-3071

Mobile: (720) 470-0806

Real Results Marketing

PO Box 19315

Boulder, CO 80308

www.RealResultsMarketing.com

Al Dente Marketing

Andy Martin

President

[email protected]

Direct: (407) 578-6247

Mobile: (407) 617-8148

Al Dente Marketing

1800 Pembrook Dr, Suite 300

Orlando, FL 32810

www.AlDenteMarketing.com

27
http://www.realresultsmarketing.com/http://www.aldentemarketing.com/http://www.aldentemarketing.com/http://www.realresultsmarketing.com/

marketing in a recession (survey results)

Documents