by Rebecca A. Novack | Editor | The Daily Anchor
That is so last week: marketing products that have lost their luster or inherit a bad rap.
My heart bleeds for those marketers trying to promote Hummers, high-rise condominiums, real estate in general, traditional music stores, shopping malls, or home design. In this economy, consumers are cutting back on luxury desires and going green as much as possible.
Ideally, if you are one of those marketers trying to make your “unpopular” product survive, especially in this downturn, you need to remain positive and think strategically and creatively. Believe it or not, there are some people out there that need and want your product now. “From the individual marketer’s point of view, there are times you feel selling something is impossible. But if you think more about it, there are so many different kinds of customers out there. You just need to find them,” says marketing professor John Zhang from Wharton Business School. Go back to the drawing table, put on your thinking cap, and craft a new marketing plan exactly for that target market waiting for your message of that product that fits their needs and wants today. Marketers must study their market and customers, figure out why there is no chemistry with their niche consumers, and rearrange the control room to woo those targeted customers straight to your honey.
Overlapping Marketing and Sales
I never understand why those in marketing are not directly communicating with their sales team on a daily basis. How can marketers learn the best way to reach their target audience if they do not take the time to learn what objectives the sales team deals with each day? Marketers need to use a sales approach to overcoming objections and finding those key tactical skills that sales people use each day to turn a prospect into a client. Take those objections and knock them out with a marketing solution that removes the prospects concern and turn it into a positive. For example: If consumers don’t want a Hummer due to the high gas consumption; offer them a free gas card for one year when they purchase a Hummer. If people are laying off the traditional malls due to parking headaches; allow them to park down the street and offer a shuttle to bring them to the front entrance of your mall. There are solutions and ways to overcome these objections, so do your research as a marketer and put yourself in the consumer’s shoes.
Adjust to the current economy and technology
Realize that you can’t control everything and that the current economy will not turn around overnight, but don’t give up. Adjust your marketing and business decisions to the times or you may become just another once-great-idea closing its doors. Accept that we are in an economic slump and if you want to make it through it will take price adjustments, stronger marketing messages to your targeted consumer, and stronger relationships with your client database. For instance, real estate is in a cyclical slump and high rise condo’s are hurting the most. No one knew last year at this time that the economy would drop to this level, but it did, so pick yourself up, wipe your tears, and don’t let that high rise fall by feeling sorry for yourself. Figure out what it will take to sell those units and at least make your money back. Pricing is a critical element of successful marketing and many companies do not spend enough time making that price point just right for their target market. Identify those most recent buyers, break down their profile and reasons for buying a condo, and go find more consumers like them. Trust me, they are out there and will listen to your marketing message if you do it right.
Traditional music stores are so behind in the game, hence why Virgin America music stores is not doing very well at all, and had to close their flagship store in New York Times Square. Ouch! Did they not see that coming? I wonder if they have heard of iTunes. This is an example of a business model dying quicker than the speed of light and I don’t feel sorry for them. Their marketing strategy was to play off their well-known brand and huge following, but this obvious mistake of not changing with the times has led them straight to the chopping block. On the other hand, Kodak remained ahead of the curve and used forward thinking at an early time by embracing digital imaging products and services. Kodak was very smart to accept that things were changing in our technology-driven world and went with the flow to assure they would remain a top dog in their category.
Slapped with the Scarlet Letter
The Pharmaceutical industry often faces marketing crises as a result of a new study or journal article reporting the harmful side effects outweigh any benefits of taking the drug, for example Vyoxx or Vitorin. Wharton marketing professor Lisa Bolton says, “Pharmaceutical companies need to find a way to respond to the concerns raised by the article or study. Multiple audiences may need to be addressed because concerns could be widespread among patients who use the drug, potential patients, the media, health care professionals, government regulators, the company’s own salespeople, employees and investors. These groups vary in their levels of expertise as well as in their involvement and interest in the issue. As a result, the response needs to be tailored to the audience. This kind of news also tends to be fairly complex, especially for the layman audience, so you need to find ways to communicate clearly and simply, without talking down, in ways that will reassure the consumer… The challenge here, of course, is that drug companies must be careful what they communicate, since drug advertising is subject to regulations. Above all, firms must be ethical and avoid deception. Their reputation — not just their bottom line — is at stake.”
The best position as a pharmaceutical company is to always respond promptly, be honest, and ensure patients taking the medication are reassessed and obtain the correct medical attention to fix any issues or are taken off the medication. Fighting back negatively or denying any negative side-effects will just dig you a deeper hole and create more negative press about not only that drug but the company as a whole.
Don’t Panic; Be Smart
Be realistic and positive moving forward in 2009. Recently I was in a 10-year-old high-end boutique on a popular street in San Francisco. When I walked in the “scrooge” sales person moping in the back of the store didn’t greet me; she stayed put shuffling through a box. I really liked the jewelry in the front glass case and was curious who the designer was and how much the shiny necklace was in the case. She didn’t know the name of the artist and that was that. I asked her how business was and she immediately snapped back with a laundry list of complaints and negative feelings toward the economy. I politely listened to her rant and then left the store. Fast forward a few weeks and I noticed they have gone out of business; no surprise there. Then I continue to walk down to the new boutique a couple blocks down and I am immediately greeted with a huge smile and a warm feeling throughout. I learned about the different local artists she carried and her passion for what her boutique is about. Let’s just say Meggie, the new boutique owner, is weathering just fine through the economy and living her dream to own her own boutique, no surprise there.
Photo credit: M. Alreshaid
