Marketing in Tough TimesMarketing in Tough Times

Roger James FAMI CPM

Chairman

Australian Marketing Institute

Today:

What does the GFC mean to you?

How can businesses respond from a marketing point of view?

The Role of Marketing

Inclusive view of marketing Marketing orientation as well as marketing function Source of value creation An investment not a cost

Re-visiting some marketing fundamentals

Marketing information critical Markets Customers Products – as seen by customers Price – in the eye of the customer Channels Advertising and promotion

Markets

Examine markets/customer base – macro level Analyse segment profitability Competition – marketing response to competitive activity

Customers

Review customer base – micro level Retain current customers vs. acquiring new customers High value/low value customers

Products – goods and services

Your product in the mind of your customer A staple? A luxury good? A discretionary purchase?

Price

Role of pricing in addressing a downturn Price reduction can stimulate sales but has risks Alternatives may be available – bonuses, incentives

Channels

Review channel costs Close contact with any distributors, wholesalers Support programs?

Advertising and Promotion

Often the first cut – Why? Evaluate efficiency of different marketing modes Evaluate ROI of different marketing modes

Advertising and Promotion

PIMS (Profit Impact of Market Strategy)

Practical implications – Advertising and Promotion

Understand your brand, its values and qualities

Does your marketing express these qualities clearly?

Communicate consistently

Practical implications – Advertising and Promotion

What do I need to know to keep my present customers and to increase sales to them? How can I collect, store and use the information I need to do this?

Who and where are my future customers; how can I reach them with an arresting communication about my value proposition?

What are the critical differences between my offering and those of my competitors? How can I ensure my point of difference is communicated to my markets?

Practical implications – Advertising and Promotion

Internal marketing – the start of any effective marketing communications strategy

Low cost/high impact channels such as word of mouth, referrals, recommendations

Sampling, buzz marketing

Marketing training for front-line sales – turn order-takers into marketers

In Summary

Information critical – if you can’t measure it you can’t manage it

Marketing measurement should be across the marketing mix

Marketing should be the solution – not the problem

Thank you

roger.james@ami.org.au