Some 60% of American Marketing Association member marketers say halting or reducing spending on key marketing programs is the biggest mistake marketers can make in an economic downturn, according to (pdf) a recent AMA survey.
The AMA offered four strategies to enhance marketing plans in a downturn - shape the message, don’t slash the price; focus on whom not to target; stand apart from the crowd and invest in innovation; and sustain the brand:
- Shape the message, don’t slash the price
Only 3% of American Marketing Association marketers say it is important for marketing functions to adjust pricing strategy to help sustain and grow business during an economic downturn.
Implications for marketers: Conduct research to understand your competitor’s positioning and your target audiences’ perception of the economic environment; hone and refine your messages; highlight the value of your product or service, rather than slashing the price. - Focus on whom not to target
Some 67% of AMA marketers say it is important to mitigate the impact of an economic downturn by refining target audiences.
Implications for marketers: Assess which segments of potential customers you do not want to target; don’t market to inappropriate market segments (simply stated, some customers are more costly to serve than to lose); focus marketing strategies on customer segments that will produce the greatest ROI. - Stand apart from the crowd and invest in innovation
Most AMA marketers, 66%, report that they would take the same amount or less risk with a new product and/or service innovation during a time of economic uncertainty.
Implications for marketers: Differentiate through innovation with a product or service that performs in a faltering economy; invest in R&D now to ensure that your company is in a position to compete when the economy rebounds. - Sustain the brand
63% of marketers say they can lessen the impact of a downturn by investing in brand building as part of their marketing plan.
Implications for marketers: Establish access to executive officers to understand ongoing shifts in business strategy; realign marketing strategies to match business objectives quickly to demonstrate a commitment to the bottom line; qualify and quantify results quarterly to establish an ongoing dialogue with executive officers.
About the survey: From May 6, 2008 through May 16, 2008, the American Marketing Association conducted online interviews with 244 AMA members in the continental United States.

