Marketing in Tough Times Roger James FAMI CPM Chairman Australian Marketing Institute

Today:  What does the GFC mean to you?  How can businesses respond from a marketing point of view?

The Role of Marketing  Inclusive view of marketing  Marketing orientation as well as marketing function  Source of value creation  An investment not a cost

Re-visiting some marketing fundamentals Marketing information critical  Markets  Customers  Products – as seen by customers  Price – in the eye of the customer  Channels  Advertising and promotion

Markets  Examine markets/customer base – macro level  Analyse segment profitability  Competition – marketing response to competitive activity

Customers  Review customer base – micro level  Retain current customers vs. acquiring new customers  High value/low value customers

Products – goods and services Your product in the mind of your customer  A staple?  A luxury good?  A discretionary purchase?

Price Role of pricing in addressing a downturn  Price reduction can stimulate sales but has risks  Alternatives may be available – bonuses, incentives

Channels  Review channel costs  Close contact with any distributors, wholesalers  Support programs?

Advertising and Promotion  Often the first cut – Why?  Evaluate efficiency of different marketing modes  Evaluate ROI of different marketing modes

Advertising and Promotion  PIMS (Profit Impact of Market Strategy)

Practical implications – Advertising and Promotion  Understand your brand, its values and qualities  Does your marketing express these qualities clearly?  Communicate consistently

Practical implications – Advertising and Promotion  What do I need to know to keep my present customers and to increase sales to them? How can I collect, store and use the information I need to do this?  Who and where are my future customers; how can I reach them with an arresting communication about my value proposition?  What are the critical differences between my offering and those of my competitors? How can I ensure my point of difference is communicated to my markets?

Practical implications – Advertising and Promotion  Internal marketing – the start of any effective marketing communications strategy  Low cost/high impact channels such as word of mouth, referrals, recommendations  Sampling, buzz marketing  Marketing training for front-line sales – turn order-takers into marketers

In Summary  Information critical – if you can’t measure it you can’t manage it  Marketing measurement should be across the marketing mix  Marketing should be the solution – not the problem

Thank you