COVID-19  •  Actus des entreprises

Why is marketing much more significant than ever before?

It is crystal clear that present situation connected with the Corona Virus outbreak will lead to a recession. And it is also obvious that everybody will try to minimalize their costs. Nevertheless, how to perceive marketing and advertising as such under these circumstances?  To whittle them down, completely? Yes, or no? 

What I have noticed in the market around me recently, is that the marketing had been stripped of its original meaning, i.e. it should be the main engine of a growth and sales. On the contrary it is now seen as something “that is recommended”.  We do not know if it is effective, but we have a budget for it, so why not to do it. However, it is just an additional cost.

But is it always the best solution? I dare say NO. I would suggest a different path:

Take advantage of the situation, let the marketing and advertisement have their original message back, minimalize with their help present losses and look for the path that would lead to the fastest recurring growth.

Below you are to find several pieces of advice how to reach this goal:

1. Eliminate all the activities where no particular business asset is clear.
2. Identify in the present communication mix all the activities that have a direct business impact and that generate a positive ROI (Return of Investment). These you should support using the principle COS (% share of costs invested in the advertisement contrary to turnover reached), up to the break point = until the very moment when the advertisement costs generate a positive margin of profit.
3. If you are not able to do this, since you measure neither the activities nor their impact, it is a must to start measuring the performance. This indeed plays into the hands of online marketing tools that can be measured very effectively.
4. The activities where you cannot see a direct business effect should be considered carefully. I do not suggest eliminating all these activities without consideration; however, this is exactly the moment when the proverb “Look before you leap” comes in handy. It should be weighed whether the investment is of any long-term strategic use. If not, cross it out. You will either save the money or you can use them for supporting your activities (see article 2 above) or for another business development.
5. After having audited your activities and focused upon the effective ones, it is high time for further development. Each crisis provides a great variety of opportunities. They must be only found and made use of.
6. If you cooperate with an agency that is competent and experienced enough to be a partner for you in this process, engage it. And if you do not have such an agency, find it. You will get a perspective from the outside and on the top of it also the ideas that you might overlook due to professional “blindness”.
7. After having identified new opportunities and having chosen those you would like to focus on:

• You should implement from the simplest to more complicated ones with a direct impact upon business.
• First and foremost, it is advisable to make a smaller pilot for each activity. The market will show whether it is worth further elaborating the idea.
• Measure and assess all the time!
• Do not hesitate to leave the ideas that do not work as soon as possible – don´t fritter away your time or money!
• On the other hand, make the best of the ideas that had proved functional.

8. And first of all: don´t wait and don´t be afraid of any changes. The market in future will never be the same as it had been before the Corona Virus precautions. Only those who will adapt as soon as possible will survive! 

Hence, I strongly recommend not to cross out the marketing as such but to follow the above-mentioned recommendations. Well used marketing and advertisement should be your main tool how to survive and restart your future growth!!!

If you found something from the above-mentioned recommendations interesting or you need to help with the present situation, don´t hesitate and contact me. I am prepared to help you – the first consulting will be free of charge!

Article by www.contexto.cz