The economist have released this presentation about managing a client’s temptation to slash their marketing and advertising budgets in times of recession. This sort of response is not unusual for these unsettling times and as an argument it makes a lot of sense. But I’ve been thinking, not necessaily how we can persuade clients to maintain budget levels, but why clients feel they can make the cuts in the first place. They know the arguments better than anyone, they probably agree with the thinking, but yet they still cut them. Why?
My intuitive response is: because ‘marketing’ is not a part of the business that consumers need and the business model does not DIRECTLY rely upon it to deliver the promised service or good.
So how to recession proof your marketing? The obvious response is to create marketing that is as much a part of the business as the product or the manufacturing process; to make the marketing, not just something the consumers want, but something they need in their lives. I can’t imagine the first thing Nike would consider cutting at the moment would be their spend on Nike Plus, when millions of potential customers use and need it in their life. The same could probably not be said about their traditional media budget.
Many believe marketing is already heading down the utility/useful path anyway, but it sometimes takes unsettling events to unearth the reality of situation and potentially kick-start the widespread acceptance of a new path or order. Thoughts?
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Patrick 7 Jan 2009
ReportI think that although the recession will act as a kick start to encourage clients/agencies down the utility path you describe, this has been inevitable ever since social media started to force companies (whether they wanted to or not) to listen to their customers and live up to the brand values that they had laid down, or face the consequences.
Adrian from Zeus Jones talks about this when describing the work he did for United Airlines- despite putting together an amazing campaign, United fired them 5 months later as they realized that the best thing they could do was actually fulfil that promise and put in the high quality seats. http://tinyurl.com/6ny7jv
Rob Campbell echoes this when describing the reasons for Tesco’s and Virgin’s continued success, it’s down to their continued promise to give their customers the best value/experience AND to then go on and achieve them. http://tinyurl.com/7t8u42
But just like Adrian had to leave Wieden and start Zeus Jones, the interesting question is- whether a large agency like BBH will actually be allowed to implement these changes for their clients, can they?
sloane 7 Jan 2009
ReportGood marketing should really be communication with the target market. And a good product should be meeting the needs of a target market. So in these times, especially, it makes sense for companies and brands to consider not whether or not to market but how to market–and perhaps to more carefully target their marketing.
The Marketing Doctor (John Tantillo) has written how in these tough economic times, marketing will be more rather than less important. He points out that the steel and auto industries are now doing poorly…having ignored the needs of their market (and they have the luxury to do so in good economic times).
Perhaps 2009 will be a time to expose good, effective marketing for what it is.
Grocery store brands, for instance, are paying attention to what their target market wants.
Those companies who think through their brand and business model and market effectively–rather than throwing everything at the net and hoping for the best–are shown to be successful even when those within the same industries are flailing: cases in point: TriCityNews–a paper that has resisted the online trend and continues to provide local advertisers and, at the other end of the spectrum, Amazon–which actually saw sales increase while most other retailers saw sales decline.
Joe Heath 7 Jan 2009
ReportPatrick, I agree there is a degree of inevitability about the utility route, I do find it interesting that Zeus admit that sometimes their job is more about turning stuff brands already do into marketing, not the other way round. Analogue Folk are another agency like Zeus Jones set up to create communication products.
BBH are definitely moving in the right direction, BA’s Metrotwin is, I think, one of the best examples of brand utility, delivering in a very real and tangible sense on BA’s promise to help people get under the skin of their destination.
Joe Heath 7 Jan 2009
ReportThanks Sloane, great insight. I think 2009 will definitely be the year that reveals a few home truths within the industry.