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“Keep calm and carry on marketing” was the message from last week’s FMO meeting, where delegates were told that cutting promotional spend in challenging times was commercial suicide.
Philip Preston, Regional Director of the Chartered Institute of Marketing, told the FMO audience that “time and again it has been proven that this was the wrong thing to do and that companies which increase their spend through a recession emerge three times faster than those which do not.”
“In tough times the easiest thing to do is to cut the budget and some companies are too quick to do this. If you disappear from view it can suggest that your company is failing, especially if the competition continues to market itself.”
He cited the example of 9/11, an event which was expected to decimate the travel industry and which saw many airlines retract. Ryanair saw this as an opportunity, promoted itself and grew revenues by 20% in the aftermath. Similarly, Coca Cola had marketed itself throughout the depression of the 1930s, leaving its competitors to fold “and the rest is history”.
While fear of unemployment is still affecting much discretionary spend, UK business confidence was improving and Philip said that maintaining empathy and understanding the customer-base was vital. It is, however, important to recognise that consumers are changing their habits with many preferring to buy on line and cinema and take-away food defying market trends.
“Brands like Apple have continued to flourish and the latest blockbuster Avatar – the biggest grossing film ever – did not achieve this by cutting prices.
“They earn their success by enhancing the product. The key is to have insight into customers’ needs. Some brands understand and empathise with their customer base very well, particularly the supermarkets.”
Crisis gives the opportunity to be creative and to develop new marketing strategies –
1. Visibility – keep in the consumers’ mind
2. Empathy – let the customer know that you are on their side
3. Differentiate – have a competitive advantage
4. Adapt – move in the way that the market is moving
5. Do not discount – price war is a slippery slope
6. Digital marketing – this has a much higher role to play
7. Monitor competitor activity – but avoid the temptation to copy
He stressed that a website should no longer be a static online brochure but should be generating leads and revenue, optimised for the search engines, and use of banner advertisements and affinity marketing should be explored to reduce the cost of direct mail.
Legal Advice
The FMO’s other speaker of the day, an employment law expert, James Cronin, provided some useful advice on the fair reasons for dismissal; discrimination in the workplace; ill health at work; the myths about probation periods and the consultation needed to make changes to a contract.
“In all cases of dealing with staff you must consider management time and the cost of this – not just the cost of the legal advice,” said James.
Drawing on his experience as a member of the Association of Human Rights lawyers, and his work with vet practices, High Street banks and other national companies, he stressed the importance of keeping a paper trail of all staffing issues and disciplinary procedures. He also stressed that employers should not “confuse justice and the law”.
Malcolm Polley, FMO Chief Executive said that “his entertaining presentation and anecdotes from case studies were warmly welcomed by the FMO audience, and it is likely that James will be invited to speak again on these very important issues.”
www.fmo.co.uk
Issued for The FMO
By Janice English
01372 465265
16 March 2010
KEEP COMMUNICATING WITH CUSTOMERS WARNS FMO
“Keep calm and carry on marketing” was the message from last week’s FMO meeting, where delegates were told that cutting promotional spend in challenging times was commercial suicide.
Philip Preston, Regional Director of the Chartered Institute of Marketing, told the FMO audience that “time and again it has been proven that this was the wrong thing to do and that companies which increase their spend through a recession emerge three times faster than those which do not.”
“In tough times the easiest thing to do is to cut the budget and some companies are too quick to do this. If you disappear from view it can suggest that your company is failing, especially if the competition continues to market itself.”
He cited the example of 9/11, an event which was expected to decimate the travel industry and which saw many airlines retract. Ryanair saw this as an opportunity, promoted itself and grew revenues by 20% in the aftermath. Similarly, Coca Cola had marketed itself throughout the depression of the 1930s, leaving its competitors to fold “and the rest is history”.
While fear of unemployment is still affecting much discretionary spend, UK business confidence was improving and Philip said that maintaining empathy and understanding the customer-base was vital. It is, however, important to recognise that consumers are changing their habits with many preferring to buy on line and cinema and take-away food defying market trends.
“Brands like Apple have continued to flourish and the latest blockbuster Avatar – the biggest grossing film ever – did not achieve this by cutting prices.
“They earn their success by enhancing the product. The key is to have insight into customers’ needs. Some brands understand and empathise with their customer base very well, particularly the supermarkets.”
Crisis gives the opportunity to be creative and to develop new marketing strategies –
1. Visibility – keep in the consumers’ mind
2. Empathy – let the customer know that you are on their side
3. Differentiate – have a competitive advantage
4. Adapt – move in the way that the market is moving
5. Do not discount – price war is a slippery slope
6. Digital marketing – this has a much higher role to play
7. Monitor competitor activity – but avoid the temptation to copy
He stressed that a website should no longer be a static online brochure but should be generating leads and revenue, optimised for the search engines, and use of banner advertisements and affinity marketing should be explored to reduce the cost of direct mail.
Legal Advice
The FMO’s other speaker of the day, an employment law expert, James Cronin, provided some useful advice on the fair reasons for dismissal; discrimination in the workplace; ill health at work; the myths about probation periods and the consultation needed to make changes to a contract.
“In all cases of dealing with staff you must consider management time and the cost of this – not just the cost of the legal advice,” said James.
Drawing on his experience as a member of the Association of Human Rights lawyers, and his work with vet practices, High Street banks and other national companies, he stressed the importance of keeping a paper trail of all staffing issues and disciplinary procedures. He also stressed that employers should not “confuse justice and the law”.
Malcolm Polley, FMO Chief Executive said that “his entertaining presentation and anecdotes from case studies were warmly welcomed by the FMO audience, and it is likely that James will be invited to speak again on these very important issues.”
www.fmo.co.uk
Issued for The FMO
By Janice English
01372 465265
16 March 2010
FREE LEGAL ADVICE FOR FMO MEMBERS