| p>The short response to this query is: Because it | | | | and ready to accept our offer; or will be soon. |
| works. It always has, and it always will, in any | | | | This time, our contact information is in print, in |
| economic climate. | | | | their hand. Some innovative advertisers even |
| The more important aspect of this subject is how | | | | attach a small magnet to the printed material so it |
| you should advertise anytime... especially in a | | | | can effortlessly be put on the refrigerator for |
| recession. To effectively advertise, it is | | | | future reference. |
| mandatory to understand the philosophy and use | | | | Using TV, radio and/or direct mail will yield |
| of each medium available. Therefore, in this | | | | opportunities to make your full presentation. That |
| informational offering, we'll address, in lay terms, | | | | is true whether it's done one on one, or as a |
| these areas of interest: | | | | shopping experience associated with a trip to a |
| - The definition of Recession | | | | retail location. Advertising brought this prospect to |
| - The philosophy of Advertising in a Recession | | | | us. Our marketing and sales skills must be able to |
| - Hunting for Customers with Advertising | | | | "close" the deal with the potential customer. |
| - Being Hunted by Customers with Advertising | | | | Historically, the methods of advertising we've |
| The definition of Recession: An economic | | | | identified as "hunting for customers" yield a |
| recession is, by definition, "a period of reduced | | | | response of approximately 1%. This is normal and |
| economic activity". The US economy and the | | | | acceptable performance. Simply stated, for every |
| global economy, by extension, is a living, breathing | | | | 100 people our message reaches, 1 will afford us |
| thing. Compared to the human respiratory | | | | the opportunity to present our offer. |
| system, there are striking similarities. | | | | Then we apply a factor to the number of |
| As we breathe, our lungs inflate and deflate. | | | | respondents. It is our closing ratio. If we are an |
| These events are so natural that we don't even | | | | excellent sales and marketing organization, we will |
| notice them in the course of our daily routine. | | | | typically close 6 out of 10 opportunities we are |
| They happen while we are occupied with the | | | | given to present our offer. |
| activities of the day. | | | | To keep the math simple, let's say we reach |
| We become aware of our breathing when we | | | | 1000 people with our message. Our advertising |
| have engaged in enough activity to need a period | | | | campaign should have produced 10 responses. We |
| of rest and rejuvenation. We can feel ourselves | | | | can make 10 presentations; or our retail location |
| tiring and we most likely experience a yawn; our | | | | has 10 new visitors from our advertising effort. |
| system's last ditch attempt to get the needed, | | | | When we close 6 of those, we have seen a 0.6% |
| precious oxygen to our brain to make it alert and | | | | return on that effort. We should have made 6 |
| fully functional again. | | | | sales while reaching 1,000 people. |
| Then we succumb to the need for renewal, and | | | | There are more intricacies and nuances to the |
| we fall asleep. We're not deceased, simply resting. | | | | advertising mediums mentioned above, but these |
| Our blood pressure drops, our temperature | | | | are the basics. |
| lowers, and our respiration becomes shallow and | | | | Being Hunted by Customers with Advertising |
| slow. The more sustained and strenuous the | | | | Due to a paradigm shift regarding personal safety, |
| activity of the day was, the more soundly we | | | | rising fuel costs and consumer awareness, a |
| sleep. The amount of time and the quality of our | | | | modern phenomenon is occurring. It's called |
| sleep is directly related to the energy expended | | | | "cocooning". Families and individuals are staying in |
| prior to this period of rest. That's the reason we | | | | their homes more where they feel a degree of |
| "sleep like a Log" after a hard day. | | | | safety and security. The days of going window |
| Translate this scenario to the economy and we | | | | shopping or for a Sunday drive are gone forever. |
| can identify a recession. It is the period following a | | | | The pace and cost of life doesn't allow for a single |
| sustained and energetic flurry of economic activity | | | | wasted movement. So why you should advertise |
| during which we've used all our available resources. | | | | in a recession or any other economic environment |
| Now the economy needs a rest. These occur | | | | takes on even more significance. Let's drill down |
| cyclically, just as human breathing does. In the | | | | into this and explore it. |
| 233 years of US history, there have been 22 | | | | Let's use an easy to follow example. If one of |
| identifiable recessions or sleep cycles in the | | | | our major appliances suddenly and unexpectedly |
| economy. | | | | experienced a permanent failure, what would we |
| Once the economy has recovered its energy, it is | | | | do? For the sake of this exercise, let's make it |
| ready once again for the normal level of activity | | | | our refrigerator. We can delay the replacement of |
| with routine inflating and deflating. | | | | many other appliances, but not the fridge. So we |
| The current recession of the early 2000's is | | | | must research, locate, purchase and install a new |
| arguably the worst economic downturn since the | | | | refrigerator today. |
| Great Depression following the crash of the US | | | | What does the modern family do in this process? |
| Stock Market in October, 1929. In other words, | | | | Do we jump in the car and travel all over the |
| the economy is exhausted, and "sleeping like a | | | | area until we find the perfect replacement |
| log". Some forecasters feel that when it wakes | | | | refrigerator and arrange for a friend to meet us |
| form this cycle, it may never be the same again. | | | | at the store with a pick up truck to take it home |
| The traumatic events leading up to this sleep | | | | with us? That's what we used to do, not too long |
| cycle, they predict, have changed the way we do | | | | ago. |
| business forever. We will all be more cautious and | | | | Then along came the Business section of the |
| frugal in the foreseeable future. | | | | phone book. We learned to let our fingers do the |
| The philosophy of advertising in a recession | | | | walking. We could visit dozens of appliance stores |
| Why you should advertise in a recession and how | | | | in a short time and even make our best deal with |
| to do so are closely tied to the overview of what | | | | the friendliest salesperson we'd met via the phone |
| happens to a river during a drought. | | | | system. Of course, we still had to make the trip |
| Picture in your mind a large, flowing river. It's | | | | to the location to see this perfect appliance in |
| teaming with life and activity. Imagine that you | | | | person and make the payment so we could |
| are dependent on the flow of that water for | | | | follow their delivery truck back to our house, let |
| your livelihood. Let's say you purify, bottle and sell | | | | them install the new fridge, dispose of the old one |
| river water to travelers. Positioned on the bank of | | | | and we could get back to the business of life. |
| the river, you have a plentiful supply of flowing | | | | The Yellow Pages created a new approach to |
| water at your disposal with minimal effort; simply | | | | advertising: Let the customer hunt for the |
| divert a small percentage into your place of | | | | advertiser. That means simply that when |
| business, capture it, process it and you're are a | | | | someone opened the phone book to look for an |
| profitable entrepreneur. | | | | appliance store, they were a buyer. Typically with |
| What, though, if drought conditions set in? The | | | | an immediate need. |
| river doesn't dry up completely, but it has | | | | Since the 1980's when home computers became |
| receded from the bank and you have no more | | | | available and affordable, and internet providers |
| water being diverted into your processing | | | | brought their services to residential neighborhoods, |
| equipment. Would you simply presume that since | | | | life has taken another surprising turn. |
| you're not immediately adjacent to the flow of | | | | Today, if our fridge went on the fritz, we |
| water any longer you should just sit and wait until | | | | wouldn't even look for the phone book. We'd |
| it rains again and hope for the best? | | | | simply launch our favorite web browser and enter |
| Typically you would find yourself busily relocating | | | | the key word "refrigerators". Very likely, we'd |
| your diverting mechanism back into the flow of | | | | have upwards of 100,000 possible places to look |
| the river. And you would be willing to make the | | | | online. This is a great situation for the consumer. |
| needed adjustments as often as the | | | | This is even better for the business owner; this |
| circumstances require. When the flow has | | | | buyer is hunting for you with an immediate need. |
| receded significantly from your processing facility, | | | | Still, how many of us get past the first page or |
| you will most probably find the installation of a | | | | two of the listings? |
| booster pump necessary for the survival of your | | | | Here's the question business owners must |
| enterprise. | | | | address: since there are 100,000 options, how |
| When we visualize the flowing river as dollars | | | | does a company earn and retain a top position in |
| being spent, we get a sense for a compelling | | | | the listings? If we are a brick and mortar |
| reason to advertise during a recession. When | | | | business, how do we "geo-target" our efforts to |
| money is flowing freely, almost anyone with an | | | | effectively advertise and market our retail |
| offer to sell a product and/or service has | | | | location(s) to the families in our service area(s)? |
| customers; and collects or "diverts" some of the | | | | Unless Search Engine Optimization (SEO) and |
| available dollars into their establishment. | | | | Keyword Efficiency Index (KEI) analysis are a |
| When the available dollars have receded, our | | | | couple of our core competencies, this whole |
| diverting mechanism, our advertising/marketing | | | | concept is very intimidating. Many companies have |
| program must adapt to the changing | | | | a presence on the internet, but can't proficiently |
| circumstances. We want to relocate our efforts | | | | "drive traffic to their site". |
| where the flow still exists. And we want it | | | | The good news is that there are people available |
| embedded in the deepest part of the remaining | | | | to share their knowledge of how to execute a |
| dollar flow. When the force of the economic flow | | | | successful internet marketing program. Many of |
| will no longer yield sufficient volume to sustain our | | | | these mentors are willing to offer the coaching |
| business, we need to install a booster pump to | | | | programs they have at their disposal to business |
| draw dollars from a weak flow. That would be a | | | | owners and/or one of their staff members. Think |
| new and/or additional marketing/advertising | | | | of what that could mean. As market conditions |
| initiative. | | | | change, as the economy experiences any one of |
| Hunting for Customers with Advertising | | | | its many moods or cycles, you and your |
| One traditional approach to advertising is to "hunt" | | | | organization would be prepared with an existing |
| for customers with our advertising. Here's what | | | | program to keep your name in front of your ideal |
| that means: we have a product and/or service to | | | | client with a minimum of "tweaking". A surprisingly |
| sell and we are going to contact as many | | | | small amount of time is needed monthly to |
| prospective customers as we can in the hope | | | | maintain a well "connected" program. And best of |
| that when we contact some, they need or want | | | | all, almost all of the sites that create your high |
| our offer immediately. | | | | profile status, allow free posting of your |
| Radio and television advertising fall in the category | | | | information. |
| of hunting for customers. To be effectual, both of | | | | How would the return on effort look using this |
| these related mediums require a sustained | | | | model? If you remember, we looked at the |
| commitment and a significant budget. Why so? | | | | typical return of effort of traditional advertising |
| By far, the majority of us now fast forward | | | | methods. Let's use the same numbers to |
| through television commercial messages. So we | | | | determine the opportunities earned when your |
| only see an advertiser's message if we | | | | customer is hunting you due to an existing need. |
| inadvertently forget to hit the >> button on | | | | In our previous example, we said your advertising |
| the remote. If we do, it's normally because we're | | | | message was sent to 1,000 people. As we applied |
| preoccupied with something other than the TV. | | | | the 1% response and the 6 out of 10 close ratio |
| Therefore, if we're not watching, we probably | | | | you enjoy, we saw a 0.6% return on your effort |
| miss this commercial as well. A television campaign | | | | since you interacted with 10 people that |
| must be run for a sustained period of time. | | | | responded to your effort and you made 6 sales |
| Radio is now a background noise to almost | | | | while reaching 1,000 people. |
| everyone. We have the programming on while | | | | Here is the "customer hunting you" scenario. |
| we're otherwise occupied. The easy, affordable | | | | When 1,000 people click your ad on the first page |
| availability of music and information we prefer | | | | of their browser, for all practical purposes, 100% |
| without any commercial breaks is a reality. | | | | of them are ready to see your presentation. |
| Therefore, a radio ad must be run hundreds or | | | | They're looking for you. You will now have 1000 |
| even thousands of times to effectively catch the | | | | opportunities to make your presentation. If your |
| attention of our audience. | | | | same 6 out of 10 closing ratio is maintained, the |
| At their best, radio and television still haven't | | | | return on your effort is 60%. That would |
| captured any revenue. Why not? The last time | | | | translate to 600 sales out of 1,000 responses. |
| you heard a commercial message on TV or radio | | | | This information is quite exciting to most owners |
| and thought to yourself "I should call them" what | | | | and managers. |
| telephone number/address/website did they give? | | | | Let's face facts: internet marketing is not a |
| Can you remember right now with no memory | | | | passing fad. It is here to stay for the foreseeable |
| aid? Probably not. There is something to be said | | | | future. Consumers are spending less and that's |
| for these mediums in gaining name recognition and | | | | why you should advertise during a recession, to |
| establishing branding. This choice is a challenge for | | | | capture your fair share of the available market. |
| a fledgling organization on a shoestring budget. | | | | They're also educating themselves on the internet. |
| The other advertising method of hunting for | | | | That's why you should advertise on the internet |
| customers is direct mail. This is called | | | | regardless of the economic environment. |
| "geo-targeted". Very specific geographical areas | | | | It's time to assign someone in your organization |
| are selected for a direct mail campaign. A | | | | to be mentored and coached in the best practices |
| variation of this is being market specific in your | | | | associated with internet marketing. It will be a |
| mailing. This is self explanatory. | | | | pleasant surprise to find how much control you |
| Once again, our aim is to have our mail piece | | | | can regain of your own economic future. |
| arrive just at a time when our audience is primed | | | | |