Marketing in a falling market
The market has fallen many times. The crisis is not a new phenomenon. Every strong political upheaval in the last few hundred years, every war, a change of government, and other similar disasters cause a decline in a particular country.
At the moment when this article is written, Russia is experiencing a downturn in the economy and a new flourishing of propaganda. In fact, right now nothing foreshadows the growth of financial indicators. We turned the whole world against us. Regardless of the reasons that drove our government and how justified it was, this is a fact. And no matter how hard the propagandists on TV screens scoff, businessmen feel worse and worse every year. And this trend has no prerequisites for completion.
Any organization can be rich only by exchanging its products on the market external to it. For example, a small business enterprise will not survive by selling goods exclusively to its employees. The same goes for the country.
Using your own population as a market is perfectly correct. But for this it is necessary that this population have money. And the gain of money is possible only from export operations. A closed system will not grow.
If a country does not sell goods and services to foreign markets, its welfare will decline.
There are two more ways to become rich. The first is to conquer other countries and rob them, distributing the conquered wealth among the elite (as the USSR did). The second is to steal from the budget and take bribes (as officials and oligarchs in corrupt countries do). Both of these ways are dead-end, since in both cases compromising material accumulates on you, which can be put into action at any moment. A person who knows that literally everything can be taken away from him at any second (including freedom or even life) cannot enjoy the stolen wealth. He will turn into a neurotic and will lose the ability to enjoy life. Will become an emotional impotent, feverishly seeking to experience happiness that will never be achievable. This is the answer to the riddle of why rich people drink and drink drugs and commit suicide. Or, even worse, in an insane asylum.
The only way to make a lot of money in a falling market is to become a true marketing expert.
The word “marketing” comes from the word “market” – the market. The ending “ing” in English means continuing action. That is, marketing – is working with the market. Its sole purpose is to generate income.
Thus, marketing can be attributed to any action on the market, which leads to income. So this term is easiest to understand in the right way.
You need money? So you need to know marketing. After all, the market is the only source of your income.
When a weak and stupid person faces a problem, he slows down or even stops. When a strong and competent person is faced with a problem, he doubles the speed and amount of effort involved.
In marketing, doubling the amount of effort would be to enhance market promotion. And most businessmen in a crisis reduce the amount of advertising.
When do you need to save on advertising and which one? It is imperative to cancel the advertisement (and refuse any expenses for it), which does not bring any income at all and does not pay for at least a minimum profit. Losing advertising must be CANCELED.
But what then will remain?
Profitable advertising. Or profitable promotion activities that are not advertising.
If you canceled unprofitable advertising, should you reduce the advertising budget by this amount? Maybe even completely abolish it, and put money into circulation?
No, no and NO. You must INCREASE your advertising budget. Double or triple. And let him only on those methods of advancement, which bring money.
If you ride a bike, and the road suddenly went uphill, you need to double down on the pedals, instead of throwing them. If you want to go anywhere at all.
In a crisis, you have more indirect competitors – a person may prefer to spend money not just on your direct competitor, but on something completely foreign. Because, in principle, there is less money, and the client chooses not to “buy a Japanese air conditioner or a Chinese one”, but “to buy me an air conditioner or pay a doctor (buy clothes, food, a bicycle)”. Since he lacks both for that and for the other. And before enough.
You should be able to argue much better why you should buy from you, and why this purchase is now so important for the customer.
Professionalism in sales (individual sales) and in marketing (mass sales) should be enhanced.
Think time to relax? Think better. Time to gather strength. Yes, again.
Then there is a dilemma: but if no action on the promotion does not give the desired effect? If the cancellation of all ineffective advertising will lead to its complete cancellation, since all advertising is ineffective?