Using Marketing to Lead the Way to Better Times

All we need to do is to turn on the TV and see that the recession is lingering and how poorly we are all doing. Yet a quick look at corporate earnings tells us that companies are booking record earnings and profits. This seems to be a disconnect in this aspect and it makes me wonder what the heck is going on. While one answer to this question is certainly cost-cutting and keeping costs low, the other aspect is just as clear, there is zero marketing going on. People are being fed a message that feeds upon itself and discourages people to make any decisions that may help boost the economy.

Let me address the issue of cost-cutting first. Tom Peters is attributed as saying either "you can't grow by shrinking," or "you can't grow by cutting costs." What ever the correct statement is, the sentiment is true. If you think strategically and invest in market growth and market your product appropriately, you product will take root in the market place and revenue and, if managed intelligently, profit will follow.

The other mentality is that of the C-level. As usual they see no benefit in marketing and choose not to market their way to prosperity. Instead they choose to entrench and try to survive, not realizing that a downturn or recession has been shown to be an exceptional opportunity to seize advantage in the marketplace. It is telling that Apple, Google, Coca-Cola and Procter & Gamble have all increased marketing spending by at least 10% during the past few years. As a result, they have increased market share and have successfully launched new products.

It can't be said that only consumer companies have been successful doing this. The marketing arms of a number of tech companies such as TI have done great things and are reaping vast rewards. Sadly, these companies seem to be an exception and not the rule. Most companies are taking on a bunker mentality and live in fear of tomorrow which in a sense means they are tying their own noose and will be completely unprepared to take advantaged of a new burst when the economy resumes humming.

The conclusion that can be drawn here is that some companies are choosing to take the lead and market their products to their customers. These companies are the ones who will be uniquely positioned as the next wave of market leaders and some may continue brand leadership, others may sit on their hands, focus exclusively on the near term and lose any market advantage. Investment in marketing and communications will result in brand leadership and market growth if not now then in the future. The question is if you are an entrepreneur and see marketing as an investment with low to moderate risk or if you're completely risk adverse and are willing to sacrifice future growth for short term satisfaction.