| As individuals, most of us are still
struggling with the shock of September 11 and just beginning to consider
the larger implications for our families and communities. As marketers,
though, we know that our work will now change substantially. The economic
slowdown will continue and probably deepen; marketing resources will
shrink further; remote activities will become even more important than
personal interactionto cite just a few of the most obvious impacts.
The biggest challenge right now is focus. How do we think about priorities
as we reorganize our work in the days and months ahead? What are the
key issues? Are we looking just at modifying tactics and reallocating
resources, or at more fundamental changes? What strategic guidelines
are most applicable in our new situation?
Quite understandably, we have spent much of the last two weeks dealing
with the immediate fallout. These early reactions, often in the face
of tremendous personal distress and grief, deserve high praise. ITSMA
members and other technology firms immediately organized crisis response
teams and donated time, money, equipment, and space to help affected
businesses cope with the destruction and get back on their feet. Companies
large and small organized volunteers and donated substantial funds to
relief and recovery operations.
Marketing professionals have played central roles in fashioning and
communicating their firms' responses, moving quickly to reach out to
clients, reassure employees and their families, and respond gracefully
to the media, investors, and other key constituencies.
Marketers have certainly differed in their approach to such issues as
how much to continue previously planned activities and how best, if at
all, to publicize their donations. With very few exceptions, though,
technology firms have "done the right thing" in terms of pulling back
from business as usual and emphasizing immediate support and relief.
But now what? How do we get back to some semblance of normal? It's a
daunting challenge, even viewed from a strictly professional perspective.
From a marketing perspective, we have to wrestle with at least six critical
issues.
Critical Issues
Doing More With Less. The economic impact is likely to be substantial.
Some industries will obviously be hit much harder than others, but
it is very difficult to imagine that the tech sector can escape the
general blow to business and consumer confidence. Few IT firms were
doing well before September 11, so the latest shock means even more
belt-tightening and more pressure for immediate revenue generation.
We'll have to change projections again, potentially cut back even further
on marketing investment, and narrow our focus even more toward our
best opportunities.
New Opportunities. The fallout from September 11 will also create
new opportunities, with increased awareness for such services and solutions
as storage, security, contingency planning, disaster recovery, outsourcing,
virtual meeting services, defense systems, and military and law enforcement
support. As Nancy Voith, EDS director of Americas communications and
delivery, notes, "this is a validation of some of the services we have
always believed were important for companies and governments. As opposed
to optional, they are now required."
As Voith also notes, however, marketing such services now will be extremely
touchy. "It's such a difficult line between trying to be helpful and
seeming opportunistic. No one wants to look opportunistic in this environment." Addressing
the new opportunities means developing new solutions, shifting resources
toward existing capabilities that were not being promoted, and developing
sensitive and tasteful initiatives and messaging.
Refining Tools and Tactics. Our repertoire of marketing tools
and tactics will have to change. The most obvious changes are likely
to involve replacing in-person meetings, seminars, and trade shows for
remote activities. Given the primary of personal contact in marketing
and selling services, it will require a great deal of creativity to overcome
the shift toward virtual interaction.
The broader changes in the social and political landscape emanating
from the attacks may have an even larger impact on marketing tools and
tactics. In a more conservative and patriotic climate (at least in the
U.S.), business buyers may become more cautious and skeptical about marketing
claims even apart from their economic concerns. The issue of tone becomes
critical. Uses of humor, irony, and violent imagery will be very difficult.
Global Sensitivities. The global nature of the new campaign against
terrorism may have important impacts on international marketing initiatives,
especially from U.S. companies. Marketers always need to take account
of local differences, but tensions arising from the new situation could
increase dramatically. For example, U.S.-based marketers rallying around
the flag may gain favor at home but potentially alienate clients and
prospects in other countries. The Middle East is not a huge market relative
to other regions, but global firms can ill afford these days to risk
alienating anyone.
Moreover, the politics of the current situation suggest that U.S. and
other Western leaders will likely encourage corporate investment precisely
in countries like Pakistan, India, and Egypt to support political coalition
building. Marketers will have to tread even more carefully in reaching
out to different markets while minimizing the dangers of backlash against
American corporate presence.
Continuing Threats. The depressing reality is that we must consider
prominently the chances of repeated and even more destructive terrorist
assaults in the months and years ahead. Contingency planning is no longer
an option, and marketers need to play a central role in preparing for
the worst. Many technology firms had contingency plans in place two weeks
ago, but many did not. And few existing plans addressed dealing with
such a horrific and far-reaching attack.
Sadly, we all need to review, revise, or develop new plans for the future. "A
lot of firms have done planning for crisis operations but not for communications," according
to Jennifer Sheehy, director of the Crisis Communication Center at Clarke
and Company, a public relations firm in Boston. Marketers need to assess
carefully their emergency plans and capabilities for reaching out to
customers, employees, and other stakeholders in a crisis. They might
also need to address such prosaic issues as which employees serve in
the armed forces reserves or have other skills that might be needed in
an emergency. They may well need to develop and communicate new training
and security measures, as well as new guidelines for marketing operations
in "normal" as well as crisis environments.
Transition to Normalcy. Even as we grapple with all these issues,
we face the immediate task of managing a smooth and respectful transition
from crisis mode to a more normal, albeit changed, mode of going to market.
Many firms immediately pulled back from normal marketing activities on
September 11 (e.g., advertising, events, direct mail campaigns); highlighted
relief efforts on their home pages; launched special communication efforts
for employees and clients; and offered special services without charge
to clients and others.
Already we're beginning to get somewhat back to normal, but we're understandably
caught in a difficult transition period. Especially with the economic
shock, we're all going to have to shift back to revenue producing activities.
But bringing back "normal" activities means carefully evaluating the
content, tone, and targets of each initiative to ensure they remain appropriate.
It may also mean judging when it is okay to restrict or eliminate free
recovery services. And it certainly means looking at how we might incorporate
some of the special efforts of the last several weeks into productive
ongoing initiatives.
Differing circumstances will inevitably affect the ways each of us responds
to these concerns. But as we rethink and rebuild our marketing programs
and priorities, several guideposts can help direct our work.
Guideposts
Business Value. Clients and prospects facing an even tougher
economy will only consider solutions that clearly deliver value. We
need to review value propositions and emphasize measurable business
value to specific clients in specific industries facing specific economic
conditions. ITSMA has long preached the importance of shifting marketing
from a focus on product and service features to one on business value
delivered. This shift is even more important now. At the same time,
efforts to take advantage of new, post-attack opportunities will meet
even more skepticism both internally and externally. We have to make
doubly sure that any new offering designed to address the heightened
awareness of security, disaster recovery, and the like is built on
and presented with highly credible claims.
Relationships. A more cautious psychological as well as economic
climate will likely put an even greater premium on trusted relationships.
We should shift more marketing resources toward existing clients and
partners. Many will want to circle the wagons with existing providers,
thereby creating good opportunities for deeper client engagements. "Trust
becomes extraordinarily important," according to Phil Dover, an expert
on services marketing at Babson College. "We want that security blanket
as tight as possible." By the same token, failures to go the extra mile
for existing clients will be even more noticeable than usual. Prospects,
meanwhile, are less likely to cast a wide net for new providers. Short
lists will get shorter and more difficult for newcomers to penetrate.
Communication. Marketers wisely made immediate and extensive
communication, internally and externally, a top priority on September
11 and after. It was critical to touch base, offer condolences and assistance,
and reassure friends, colleagues, and partners wherever possible. We
should continue with a heightened level of communications to help assuage
all the obvious concerns in the days and months ahead. "You've got to
keep people informed and you've got to keep people's morale up," notes
Cynthia Curtis, director of global services marketing at EMC.
Given the likelihood of reduced face-to-face contact, we'll have to
work harder to make sure that phone, e-mail, and other electronic contacts
are well planned and effective. Strengthening CRM systems and corporate
intranets and extranets are even more important now. And we would be
well served to keep as much of our real, human voices in this effort
as possible. One of the most heartening aspects of any disaster is the
way in which pretense is dropped. If we can now move forward with less
marketing-speak and more human-speak we'll all be better served.
Community. Crises are moments of truth. With little time and
much pressure, corporate reactions generally reflect the organization's
core values. The wonderful response to September 11 from our industry
was a reminder that the community impulse was not just a passing fancy
of the late 90s boom. That impulse is likely to gain more importance
in the months and years ahead as employees, clients, and other stakeholders
seek trusted partners in an increasingly challenging economic and political
environment. Building on current relief efforts with a stronger commitment
to corporate ethics, social responsibility, and community engagement
- and honestly communicating the implementation of that commitmentshould
therefore yield substantial dividends in terms of loyalty and professional
credibility.
The old rules of marketing are certainly not irrelevant, and the guideposts
noted above would be useful anytime. Now, however, the social and psychological
impacts of the attacks in the U.S. suggest that a more personal, human-scale,
and community-minded approach to marketing will become critical to success.
President Bush and many other leaders have argued that getting back to
work and getting back to normal is the best response to September 11.
How we do that will make all the difference. |