Getting Past the Bad News to Marketing's Future
It’s difficult to imagine financial market headlines any worse than those we saw last week. And as markets tumbled, the repercussions already were being felt in marketing. Some of the stories I was reading: “UBS Cuts Online Advertising Outlook,” and “Credit Card Companies Cut Ad Spending Amid Crisis, Nielsen Says.”
So how should you cope? I’d suggest looking beyond the daily headlines to discern what long-term trends will emerge out of this mess. Marketing News will be looking at those trends on the b-to-b side in our Nov. 15th issue and next year as we continue our Austerity Marketing series of articles for you.
In the meantime, I found a very insightful Associated Press piece you can read discussing whether the era of easy credit is over for American consumers and what that might mean for future spending habits.
The article chronicles the changes in credit during the past 30 years or so. That basically coincides with my post-college adult life, so I know the article is touching on many facts from that period.
For example, when I finished work on my masters degree in 1976, getting a credit card was almost impossible for a new grad. That certainly hasn’t been the case in recent years as card issuers practically threw credit at former students already burdened with college loans to pay off. After the current credit debacle gets sorted out, we may be going back to that 1976 scenario.
The same will likely be true for mortgages. Applying for a mortgage in those days meant documentation on top of documentation followed by a long waiting period before the approval came through. In recent years, just breathing seemed enough qualification for a mortgage. Those days have got to be over now, thankfully.
How do you market when credit isn’t easy anymore? I would argue you appeal to consumer’s search for value in what they buy, stress durability for products and value propositions for services. On the b-to-b side, the value proposition becomes even more important, I think, given the larger investments that will be made in equipment, software and other business products and services. If you can’t show returns and real value, it’s going to be increasingly difficult being heard. What do you think?
Comments
Yes, we may be returning to the era of basic fundamentals in banking and credit. Credit will be tighter that what it has been recently, but everyone can (or should be able to) see where loose credit has gotten us. The marketing community will have to sharpen its focus back to the fundamentals as well.
There are still opportunities to market and sell in difficult times. During WWII when a new car was no where to be found, car manufacturers like GM and Ford still promoted automobiles, as they knew after the war was over demand for new cars would be there. Keeping their name and concept car ideas out in the public view put them in a better position once the war was over. Car manufacturers that did not run similar promotions did not survive.
During the 1970's during the oil crisis car sales also dipped, but Joe Girard, recognized by the "Guinness Book of World Records" as the most successful salesman, still managed to sell cars when others barely moved one a month. He did it through marketing himself through what we would now consider guerrilla tactics.
Even in an era where new media is replacing traditional media, there still are opportunities for savvy marketers to help their clients and companies survive and flourish.
Loose credit probably contributed to easy marketing; where anyone could toss advertising dollars out there and see some results. Now things will get interesting as those marketers that craft sound marketing plans with ROI monitoring will survive. Difficult times in a free market, capitalistic system tends to weed out the weak and build up the strong.
Marketing's future is still bright for those that can see and seize the opportunities that lay before us even in upcoming difficult times.
Posted by: Jeff Quandt | October 16, 2008 9:15 AM
I totally agree with your report and point of view, but when will the marketing industry become more integrated with the rest of the business operation? In my opinion, most marketing and advertising firms are more concerned with the accounts and expenditures than the relationships and the relevancy. With this recent crisis, it's obvious that many of the financial professionals are reluctant to have restraint in the midst of potential growth, so how valuable does that make the marketing professional in an organization who can only speak to growth but remain silent during times of necessary contraction?
Posted by: KL Creative | October 25, 2008 3:06 PM