5 Rules for Marketing & Brand During a Downturn

OK, we are in a recession. The question is what do you do about it? How should you adapt your marketing strategy? How can you retain the value of your brand during the downturn?

Rule # 1. Don’t panic. If you have a game plan, don’t jettison it. This is not the time to start a price war with your competitors. This period will end. It is always easier for a brand’s value to go down than to build it back up. If you do need to respond to a competitor’s pricing moves, match them, but don’t undercut them. You may start a spiraling down of the entire product category.

Rule #2. Continue to think long-term. Your customers’ real needs are still there. Continue to build value in your offerings. Even if they need to go away for a bit, if they know you are investing in what’s important to them. They need to know that you are in it for the long haul, that you have resources to weather you through. This will motivate them to continue to want to associate with your brand. I may not be buying a new BMW this year, but I sure don’t want them churning out the next Yugo to match the current size of my wallet.

Rule #3. Now is a good time to turn on reverse positioning.  If you’ve been thinking long-term, then hopefully you have adopted reverse positioning as part of your long-term strategies. This is where you can strip out some features of your product so that you can afford to add in some sizzle to the next generation. Think Gen2 of the iPod.

Rule #4.  Stay in touch with, and reward, your loyal customers. You still need to reach out to your targeted customers. Use online promotions and communications to stay in contact. Don’t just try to gain new customers. Also reward the customers wo have been loyal to you.

Rule #5.  Use your portfolio to your advantage. If you have a portfolio of products, your brand strategy should assign each of them a role to play in the market. Your low-end products should be used to extend your share and protect you from attacks from below. Don’t over promote these products, but do make sure they are available on the shelf. Likewise, use your higher end products to maintain your brand value and premium positioning.  

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