Competing During the Economic Downturn

Businesses all throughout the United States are feeling the impact of the current economic downturn, but that doesn't necessarily mean the demise of your business. In fact, while the economic crisis will negatively impact many businesses, others will have a window of opportunity to thrive.

Impact of the Current Economic Climate on Business

Business closings, layoffs and cutbacks in labor force are visible all around as businesses are facing strained and exhausted budgets. Stocks are taking huge hits as investors are wary about the future of their investments.

While it is easy to only consider the negative aspects of the economic situation, some companies will come out of the crisis in a better position. The steps may be painstaking, but if you treat economic pressure as an opportunity for improvement, your business could emerge more efficient and productive.

Marketing When the Economy is Bad

As America continues to be a consumer society, it is important to remember there is still a market for your product or service. Spending may be scaled back, but certainly not eradicated altogether.

Your competition may be crunching numbers in an effort to get their marketing budgets out of the red. A survey conducted by MarketingProfs revealed that "52 percent of marketers are making changes to their marketing plans and budgets" because of the current financial situation. Herein lies an opportunity to expand your market share. Rather than leading your customers to believe you're struggling by reducing your advertising, assert your position as a reliable and strong business by making the advertising you do more effective.

According to Coopers & Lybrand, "Maintaining a company's advertising during an economic downturn will give the image of corporate stability within a chaotic business environment, and give the advertiser the chance to dominate the advertising media." If you can bite the bullet and reorganize your budgets to free up some cash for additional advertising, it can very well pay off in the long run.

Getting your Business Back on Track by Going Online

Many experts believe that the way to approach marketing in an economic crisis is to move away from print and other traditional media and into online marketing. Consumers are becoming more and more technologically savvy, and using the Internet to access information they might have looked for elsewhere only five years ago. Advancements in technology like the iPhone and BlackBerry are making access to the Internet available in more places. Online directories are becoming commonplace for locating businesses, accessing directions, and even finding people. Consumers expect to have information at their fingertips at all times, and businesses that meet those expectations will succeed.

Websites as a Low Cost and Effective Marketing Channel

Websites offer limitless ways to promote your product or service. Unlike a printed advertisement, websites and Web-based ads are flexible and can be changed as often as needed to meet market conditions. Try something, and if it doesn't work you can change it tomorrow. There's little investment required to test an idea. More sophisticated approaches like A/B testing allow you to measure reactions and change your strategy in real time.

Social Networking

Online advertising doesn't necessarily mean just using traditional website content, press releases and banner ads. Social networks such as Facebook, Twitter and LinkedIn also offer opportunities to promote a business, both with and without cost. Businesses of all sizes and types are learning to use these sites effectively. If you aren't familiar with them yet, it's time to start exploring.

Opportunities Exist

Despite the poor state of the economy, your business can still survive -- even prosper. The trick is not to stop advertising, but find more cost effective ways to get the job done. People who succeed in difficult times are those who learn to think creatively and recognize opportunity.