Keep Pushin' that Barrow

January factory orders plummet 3.8%
(US commerce Department February 2001)

4 out of 5 manufacturers predict flat or negative growth for the year!
(NAM March 2001)

Given the above headlines and the recent stock market activity, the US (and the world) is facing the possibility of another recession. Between 1854 and 1998 this country has experienced twenty-eight such "slumps" - one every four to five years, with post-war economic downturns lasting about a year.

How to Weather the Storm
If you are in an industry that has been adversely affected by recent economic conditions and your sales are down versus last year, Mosaic would like to offer you a few strategies to get through this recessionary period.

	Don't stop marketing or advertising. Study after study has proven that those companies that continue to advertise and market during a recession have come out on the other end with increased market share while those that have reduced their efforts have lost market share. Cutting strategic campaigns weakens long-term brand equity.
	Don't cut prices. This tact immediately initiates a quick and wicked downward spiral that effects your entire enterprise. As prices are cut, so are profit margins and, before long, working cash. Soon after, budgets and staffing need to be cut. And on and on -- you get the ugly picture. Besides the immediate and dangerous impact, lowering prices produces an even bigger and insidious threat to the long-term health of your company. Namely, by lowering prices you start attracting the wrong kind of customers -- those disloyal types who are mainly interested in prices and not relationships. Hardly the sort to build your business!
	Look for cheap ways to differentiate. By analyzing the needs of your customers and your internal core competencies and skill sets look for easy and cost effective ways to add value to the products or services you're currently offering. These differentiators will allow you to more effectively dismiss the price-cutting issue when it comes up with customers (Who else will give you all this at these prices?) and hold onto customers who may think of roaming.

	Diversify, diversify, diversify. Look for ways to leverage your current core competencies and skills to bring value to other target markets that are non-cyclical, or even counter-cyclical, in nature.
	Look to outsource certain tasks to specialist subcontractors. This is one way to cut costs while still delivering on the same value proposition to customers. Customers generally don't know or care how something is done as long as you deliver it when you say you will and at the agreed-upon price.
	Strengthen current relationships with high profit customers/clients. Build that database and communicate with these customers regularly. Whether you do it with offline or online media or both -- just do it. Your expertise and relationship are valuable to them -- you just need to make sure that they are aware of that!
Springing Forward in Business As my mind simultaneously contemplates the possible gloomy recession ahead and the flowering spring just around the corner I am reminded of one of my favorite business sayings -- "Business is like a wheelbarrow. If you don't push it, it doesn't go." Being professional business folks we know that it's never easy, but we just need to keep on pushin' that wheelbarrow, maybe even a bit harder this year. Strategize, plan and execute! Take advantage of the other guys dropping out when times get tough. You're in it for the long haul. Let us know if Mosaic can help you push that barrow.
-- by Rosemary Walter

e-This!

Many clients ask me if their Web site should be e-commerce enabled (able to sell products and services online)?

The answer to this question (and many others) is to answer it from the perspective of your customers. How likely is it that your current or potential customers are going to actually place an order online for the products or services you sell? If the likelihood is high the answer is "yes," if it's low the answer is "no".

A recent study conducted by Jupiter Reserch indicated that while 70% of B-T-B buyers say moving online is a top priority, they continue to wait for their suppliers to meet them on the Internet. Another timely study conducted by the National Association of Purchasing Management, states that less than 7% of the responding companies reported being more than 40% of the way toward full adoption, with large-dollar buyers further along compared with smaller-dollar volume purchasers.

Among a random sampling of construction supply and equipment distributor-
ships in an Industrial Distribution magazine survey only 5% are selling products and services online! Confusing, isn't it!

So what do you do? Think about who buys from you today and whom you'd like to be buying from you tomorrow. How do they currently purchase products? Where are they and their overall industry in moving towards online purchasing?

In case you can't find a research study that answers these questions for your particular customer group, do the next best thing -- ask them yourself.

This & That

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Pamela Swick has joined Mosaic as a Marketing Administrative Assistant. Previously she worked at Cypress Medical in McHenry assisting with all phases of marketing and marketing communications. She is a great addition to the staff and we are fortunate (and glad!) to have her. Call her and say "hey."

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To assist our clients with their Internet marketing needs, Mosaic has established a strategic alliance with an Oak Brook, IL - based firm. The principal of this firm is an Illinois Insitute of Technology accredited Web master. The company specializes in Web site maintenance and search engine submission.

Remember -- You can always sign up for digital delivery of The Big Picture. It will soon be enhanced with relevant web sites and book titles to provide more depth.