Keep Pushin' that Barrow

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 inexpensive 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.

Mosaic creates customers for business-to-business companies through specific project work, on-going retainer assignments or marketing coaching sessions.

Rosemary Walter
847-483-5018
Rose1Walter@MosaicMM.com

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"By Rosemary Walter of Mosaic Marketing Management, Inc. Please visit Rosemary's web site at http://www.MosaicMM.com for additional marketing articles and resources on marketing for business to business companies."