Recession - marketing still works doesn't it?

Long time since last post which shows that either I’ve:

1. Given up
   
2. Been very busy
   

The answer is (fortunately for me) 1 – been busy – in fact I still am. I’m one of the lucky ones. Given the current economic climate, being busy and gainfully employed is starting to feel almost like a luxury.

Assuming that we all now agree that there is a recession on, one question was put to me over the weekend – does marketing in a recession still work in the same way?

I have to admit that I’ve only seen a mild adjustment rather than a full recession in my working life but to be honest, I think we can all see from the high street that the rules are shifting a little bit. In the last week, lots of retailers have been having “extravaganza” events or similar – 20% off everything, Buy One Get One Free etc….

I think a quote from Time magazine best summed up the feeling of many consumers towards these offers – “Is that the best you’ve got to offer”. That’s a dangerous message but it’s what many people seem to be saying. The danger is that we all wait until tomorrow then the next day to spend. Here in the UK, we’re about to get a sales tax reduction (if you believe the papers) but retailers are warning that it’s going to cost them to pass on this reduction.

What then are the tactics that will work in the current climate? If conspicuous consumption is out of fashion, what’s the solution for marketers? Maybe things aren’t as bad as they seem here in the UK or maybe they are worse than many realise.

In terms of making sure that marketing is effective, many advertisers and retailers are turning to “tried and tested” direct tactics – Direct Mail, Vouchers, Online etc to try and buy short term sales. This undoubtedly makes sense for most and must be a real worry for the big media companies. Whether this type of activity damages brands in the long term doesn’t really matter right now when everyone is just trying to improve cash flow. The price of traditional brand building activities will certainly be reducing as competition for spots or sponsorship opportunities dries up. At some point the pendulum will swing back as brands stop fighting fires and look to rebuild. Those that are nimble will undoubtedly do well – others will fail.

What is clear is that unaccountable marketing is going to be one casualty of this whole economic event. If you’re marketing budget is delivering only unquantified benefits then you’re about to lose it. The good news for some is that there is no marketing activity out there that needs to be unaccountable.

25 Pieces of Data for You to Review

John Billett is writing a fantastic series of articles currently called “25 Things we know about what we don't know about Marketing Effectiveness”. This is one of the most concise series of its type that I’ve had the pleasure to read. I suggest you take a look at this since John has essentially covered all the great myths about effectiveness in one simple to digest framework. He’s now up to number 18 so let’s see what the next 7 installments bring.

See http://blog.johnbillett.com/

It may not be the catchiest title but it’s certainly worth reading.

New Media driving out Old?

The common perception is that new media is driving out old. Given the current recession, many DM and digital agencies are hoping this is going to be the case. However market forces are at work....

Traditional media is going cheap or at least cheaper. It's also getting it's act together re accountability.

An interesting battle awaits...

Way Off Topic - don't sync your RSS feeds with Microsoft Outlook

Just a quick FYI – unless you have a great reason to do so, don’t sync your RSS feeds between Outlook 2007 and Explorer. Outlook maintains all your RSS history which can stack up over time – at least Explorer doesn’t do this.

Great Ad but Did it Sell?

I always thought this was a very underrated advert. However given that it's never won any awards that I'm aware of nor is it well known, I can only presume I'm missing something.

Did it sell any product? No idea. What I do know is that Alan Sugar hasn't got a clue either. On room 101 this week, he suggested that both the Honda Cog and launch adverts for Orange were both worthless since they can't have sold any product. I can't comment about the Honda ad (although I have a stong belief that it did very well) but I can be certain that the launch ads for Orange were vastly more successful that the traditional positioning employed by One2One (now T-mobile in the UK). For more on this, check out Simply Better by Patrick Barwise.

I think Alan Sugar may have misunderstood the nature of building a brand or he's being deliberately obtuse about the whole thing. More on this another time...