To promote or not to promote? That is the question that confronts business executives today. Do you spend money and promote the business or do you wait for the economy to improve? Some say that marketing is the first to be cut as some executives go into survival mode. The worst thing you can do is to cut back on your marketing and promotion. The key is to never stop promoting. Promote both in good times and in bad times.
Just think about it, as companies are shrinking and downsizing, this void creates opportunity for others. Businesses that stay focused and keep the edge can actually grow bigger, no matter what the economy is doing. People still have to live and they are still spending money.
Some companies will seize the opportunity and still make money and some will conserve; barely get by or go out of business. Good news is that you’ll have fewer competitors next year as many of your competitors may be out of business. When one business closes, another business profits as customers must buy from someone. So don’t get the business blues, you’ll gain more market share and secure new customers.
Democracy at work, the country has spoken - to the left America moves. Barack Obama has been chosen as the next President of the United States of America. This unprecedented and historical race has been an arduous journey, and in a decisive manner the race has now come to an end. A country that has been sensitive to balancing the power in Washington has just unleashed one party to victory. The Democrats now have the Senate, the Congress and the Presidency. What they do with that power is now up to them. As Americans we must each respect the system and hope.
As you look back throughout the history of our country the one thing you can count on – is that change will come. Regardless what side of the aisle you fall on you must resign yourself to the fact that you live in a democracy. Like it or leave it – we all have our views and opinions – but the people have spoken. But rest assure that change will show its head again soon…
I came across some interesting input to the question: “What conventional wisdom about how companies should behave in a downturn is especially wrongheaded?”. A group of Harvard Business Review writers has some very relevant recommendations:
1- Fight Back Against Inflation
Marketers must take a closer look to how their customers deal with higher prices: talk to you customers directly and understand what exactly changes in their daily behavior. Redefine value in this new context: is it more about the total cost or the cost per piece? What catches their eye? Make the decision easier by giving them a menu of options or products to choose from at their own price level. Read More
2- Hard Times Demand Teamwork — Not an MVP
While in times of trouble many leaders believe that they need to take control, there is business in crowds. Leaders must tap into the wisdom and energy of the entire organization. The leader’s role is to do 3 things:
- Ask great questions.
- Build relationships and trust deep in the organization. Don’t cut out internal communication, collaboration or knowledge exchange.
- Challenge the status quo. Keep your team challenged and excited. Encourage new ideas now more than ever. Read More
3- Hack Away at Costs, Carefully
Don’t loose the customer relations, knowledge and passion that made you successful in the first place. A lot to be learned from the Avon and Home Depot experiences. Read More
4- Increase Your “Social Capital”
Enhance your managers’ skills. It is time to correct the abnormalities in your organization. Helping your managers to develop the ability to look at the big picture and to act in ways that strengthen the organization is probably the best investment that a firm can make in a downturn. Read More
5- Don’t Manage IT Costs, Manage IT Truths
Engage senior business and It leadership in managing what drives IT costs and institute policy changes that will result in lowering costs and increasing returns. The disciplines developed during the tough times will pay off in a big way during the good. Read More
6- Don’t Discount Prices
Discounting and sales promotions are a vital sales technique when done correctly. It inspires excitement and creates a call to action. However, when offered at the wrong times–for no other reason than to boost sales–it can cut the other way and create brand deterioration. If you discount prices during adverse times, consumers may begin to question the original value. Read More
7- Start a Company
Downturns can be times of tremendous opportunity–and, yes, profit–for entrepreneurs. Entrepreneurs view financial challenges and, instead of wringing their hands, find ways to innovate and spin them into gold. Take advantage of vendors and investors availability and focus on the key things: few key things–product development, sales and marketing, packaging, distribution. Read More
Organizations have used the Sterling/Baldrige Criteria successfully to manage and improve their performance since 1987. They have faced different challenges over the years, but have successfully addressed changing conditions by having strategies focused on their vision of the future. The Sterling Management System helps organizations ask the right questions to comprehensively look at their management of processes for today and their planning and execution for a sustainable future.
Registration for the 2009 Sterling Criteria: “Managing for a Sustainable Future” is open. It will take place on Tuesday, August 26th in Orlando, FL.
Originally published in Media Post’s Marketing Daily
Even as companies have begun to shell out more money to market products and services to reach consumers with tighter purse strings, their marketing departments are facing major hurdles to getting the job done, a new survey finds.
For one thing, the survey of nearly 400 Marketing Executives Networking Group (MENG) members suggests, more than 70% believe there is a shortage of qualified executive-level talent.
MENG President Richard Guha says companies are shifting employees from other areas into marketing or sitting on job vacancies. “I know companies that have not had a chief marketing officer for two years because they can’t find someone,” he says. “The alternative has been to rely on consultants.”
The financial and the energy sectors, which have not historically spent a lot of money to market consumer services, are stepping up efforts. “There’s always a shortage of the best marketing people, especially in tech“.
“It’s disturbing that the average person these days is in a job for 2.5 years,” Guha says. “Very few people join a company saying in a year or two I’ll move on. It takes more than a year just to get familiar with the job and the company.” Guha says marketing professionals get the least amount of time to learn a company business, and in many ways they need the most to fully understand the brand’s position. Too often, he says, companies bring on competent staff and don’t give them the time to figure out the business.
I recently attended the Brookings Institute’s “The Summit for American Prosperity: Washington and Metropolitan Areas working together” in Washington D.C, on June 11 and 12, 2008.
Attended by over 900 people, this summit launched the policy phase of the Blueprint for American Prosperity: Unleashing the Potential of a Metropolitan Nation, an ambitious, multi-year initiative to build long-term U.S. prosperity by reinvigorating the federal role in promoting the health and vitality of America’s metropolitan areas. This Summit builds on the Blueprint’s earlier efforts to demonstrate that the nation’s assets are concentrated in our metro areas, and are the vital engines of the U.S. and global economy.
I was particularly interested in the sessions on Innovation. This session explored two federal policy proposals that address America’s innovation challenge. Listen to the session’s audio here
Roger Martin, dean of the University of Toronto Rotman School of Management, talks about the potential pitfalls and rewards of trying to “buy” innovation.
The worth of worldwide megamergers and acquisitions in industries ranging from automobiles to video games was up 23% last year to $4.8 trillion ( according to market researcher Dealogic).
Efforts to acquire innovation usually translate by mergers and acquisitions that bring in new technology developed by another firm, or human talent known for its creativity. These acquisitions do not always guarantee success… Martin contrasts that strategy to the “ connect and develop “ approach that made the success of Procter & Gamble, where innovative elements are brought in and further developed by the back-end structure of the organization. Read the full article here
1. I don’t have the time.
2. I can’t get the funding.
3. My boss will never go for it.
4. Were not in the kind of business likely to innovate.
5. We won’t be able to get it past legal.
6. I’ve got too much on my plate.
7. I’ll be punished if I fail.
8. I’m just not the creative type.
9. I’m already juggling way too many projects.
10. I’m too new around here.
11. I’m not good at presenting my ideas.
12. No one, besides me, really cares about innovation.
13. There’s too much bureaucracy here to get anything done.
14. Our customers aren’t asking for it.
15. We’re a risk-averse culture. Always will be.
16. We don’t have an innovation process.
17. We don’t have a culture of innovation.
18. They don’t pay me enough to take on this kind of project.
19. My boss will get all the credit.
20. My career path will be jeopardized if this doesn’t fly.
21. I’ve already got enough headaches.
22. I’m no good at office politics.
A lot has been said and written about cultivating an environment that encourages creativity. The “put smart people together, stand back and let the magic happen” philosophy has made the success of Silicon Valley since the 90’s, and is prevalent in most creative industries. Network innovation has been embraced by many large consumer products and drug companies. They have all embraced external resources and have no problem engaging outside partners: start-ups, academic researchers, independent consultants and advisors.
What about you? Who are your internal innovation catalysts? What formal processes do you have in place? What is your “Innovation style”?
