Four Ways That Marketing Can Be More Strategic in a Recession

Despite all the economic problems we’re seeing today, when it comes to marketing, things aren’t as bad as they were in 2001. Sure, marketing budgets are being cut back—73% of respondents in our recent Marketing in a Downturn survey said they are trimming. But the vast majority of those decreases will be less than 15%. And when it comes to staff, the majority of respondents are holding steady (10% said they will add staff).

We have to conclude that marketing today is more strategically aligned with the business. Marketers are making successful business-based arguments for preserving budgets. At a recent roundtable discussion held with some of the survey respondents, I heard from one company that successfully maintained its marketing programs and budget. The marketing leader did so by presenting compelling research proving that in the last five recessions since 1970, companies that maintain marketing investment in downturns are more likely to be better positioned when the economy turns around. (Please email me if you would like a list of sources for that data.)

Marketing is more strategically aligned today because it acts more strategically. Here are some examples of how you can more strategically align your marketing activities:

• Do more than wordsmith your value propositions. Slapping the clause “In these calamitous/rocky/precipitous times” in front of your value propositions is not enough. Marketing must take a more active role in repositioning the offering portfolio and helping sales. For example, one member described how his company is investing in providing training and tools for the sales force to explain more persuasively how their solutions will help the customer’s business.
• Help customers prove the case. The challenge for marketing today is not necessarily to convince buyers but to provide the ammunition buyers need to get approval from their finance teams. Solution providers need to step up their ability to demonstrate results through ROI tools, testimonials and references, and simulations. Eliminating the “marketing speak” and using straight talk is a must.
• Maintain the commitment to research and thought leadership—more efficiently. Back in 2001, market research and competitive analysis were cut back severely. Today there is recognition that marketing is an “outside-in” process that requires getting (and staying) close to stakeholders. Similarly, thought leadership is viewed as essential for services and solutions marketing. ITSMA members are continuing their investments in thought leadership creation and dissemination but are doing so more efficiently. For example, one member said that his company is creating thought leadership globally rather than in each BU. Globally created thought leadership will be “localized” and delivered by the BUs.
• Take a competency view of marketing outsourcing. If marketers want to be strategic about what they outsource, they should view it in terms of competencies rather than headcount. My ITSMA colleague, Bob Baginski, breaks up marketing competencies this way:
  

  Never outsource: Program management, account planning, internal communications, analyst relations.
  Can/must outsource: Advertising, media relations, writing/editing/design, fulfillment, Website.
  Blend: Strategy, product/portfolio management, brand, thought leadership, digital marketing, client forums, research.

It is clear that marketing’s stature within the organization has made strides since 2001. Marketing is certainly seen as more strategic. Yet, given the economic downturn, this strategic role has to be balanced with a shorter-term, tactical focus on payback. Marketers need to collaborate with sales to strengthen the company’s relationship with existing customers, reevaluate their segmentation and target marketing strategies, and keep abreast of changing market trends and competitor moves.

To learn more about marketing in a downturn, please contact Julie Schwartz at jschwartz@itsma.com.

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ITSMA specializes in helping companies market and sell services and solutions more effectively. We work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA annual program clients include business leaders such as AT&T, Cisco, Deloitte, EMC, Fujitsu, Hewlett-Packard, IBM, Microsoft, SAP, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing℠, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.