Promote Your Firm...even in a Down Economy

A lot of folks in business today are dealing with a real recession for the first time in their professional lives. The ways they handle this business slowdown have been mixed, including the extent to which they are cutting back on advertising and other sales generating activity. My forays into the business community are not inclusive by any means, but generally speaking I see business owners “pulling in their claws” on marketing. Cost cutting is always a first wise step when sales slow, of course, but reducing costs doesn’t necessarily mean you have to reduce your exposure to the marketplace. But how do you keep in front of prospects when funds may be a bit tight. Advertising is not your only option; there are always promotions. In case you’ve never used promotion widely in the past, keep in mind that sales promotions are normally aimed at three groups. You might aim some promotions at your own salespeople, some at your channel members, and some at the final consumers of your products. You also need to keep in mind that a simple price reduction may do nothing but entice a buyer to purchase ahead of time, for less money, something that they intended to buy a month or so down the road anyway. Such a promotion might be counterproductive. You need to strategize before you begin; decide up front what your goal is and who your target audience should be. Of course your goal is to increase both short-term, and long-term, sales activity. That’s kind of an “understood” in business. But what I mean is to put some numbers into your thinking. Do you want to attract new customers? If so, how many can you reasonably expect to bring around…and where might you find them? Once you find them…what’s a logical and creative way of getting their attention? Maybe you’re best shot is to increase orders from current customers, without simply changing their purchase schedules. The infamous “buy three and get one free” type promotion may do nothing but get your current customers to stock up early and cancel future buying plans. However, if you are prepared to take that price hit, and cash flow is your real concern, it might be worth putting it out there. Just make sure it’s part of a plan, with expectations that are measurable so you can track what you’re doing. There are a number of very cost-effective public relations type promotions that can help in both short-term and long-term sales growth. How about a seminar on your services or products? You could do safety training sessions, new product orientations, maintenance training, and other such get-togethers with your current customers and potential customers. These could be very appropriate if you’re in business-to-business sales. Let’s say you sell forklifts. Invite your customers and a wide group of prospective customers to a seminar on maintenance tricks to keep their machines running longer. Include BBQ and make it a casual atmosphere where your sales force can mingle and start up relationships. Introduce some maintenance products, that you sell of course, and your maintenance experts. Just don’t try to sell forklifts (you might inadvertently have a bright and shiny new one parked nearby of course). I guarantee people will remember you in a positive light the next time they need related services or products. Such activities are a great way to keep your salespeople active when orders are slow, to keep them in direct contact with customers, and to promote your firm and your products. With a bit of brainstorming you can probably come up with a number of such activities that would complement your situation precisely. Even a relatively mild downturn in sales orders can be a good opportunity to put together such programs. The customers you aim such promotions at could be channel members or end-consumers. When we target channel members we are using a “push” tactic. We are trying to fill the distribution pipeline that eventually leads to the end-consumers. When we target the consumer we are using a “pull” tactic. Our hope here is to have consumer demand for the product increase the need for our channel members to increase stock. Smart companies combine “push” and “pull” tactics to maximize the amount of product that goes through the distribution pipeline and to decrease the amount of time product spends there. Here is an example of a promotion aimed directly at channel members: Some years back a manufacturer of automobile wiper blades came to the conclusion that a great deal of money was being wasted each year during their seasonal rush. A large percentage of annual sales took place in the fall and early winter. As this mass of orders came into the factory the distribution system became overloaded and overtime and additional shipping expenses cut into profits. Management decided to give dealers sixty additional days of credit if they would order by a certain date, earlier than the date sales historically picked-up. They calculated that the losses accrued by the additional credit would be well offset by savings in other areas. What they didn’t count on was that word would get around. Retailers who had never carried their line began making orders as well. That first year total sales volume went up by nearly 10% due to new customer orders. The second year the manufacturer gave a full ninety days of credit and began communicating the promotion six months ahead of the season. Total sales went up nearly 30% in the second year. They became a leader in the industry thanks to this excellent, and creative, “push” tactic. A good “push” tactic might be to incent your sales people, or channel sales people, with a bonus in pay or prizes. Channel sales might be receptive to an end-consumer promotion that they could push to increase sales, but that they would not take the financial hit for. Remembering that every business partner you have, both in your company and in companies in your pipeline, are looking for ways to increase business right now. Help them find a way…as long as it involves your product or service. As an example: those training or product introductory seminars I spoke of might be beneficial both to your channel member, and to their customers. Design a seminar or training class that your distributors can bring their best customers along as guests. You will be strengthening your own relationship with both even as you cement the relationship between them. Of course I’ve just scratched the surface of the possibilities in this area. Sales promotions come in many sizes and styles, but all are designed to create some type of change in the habits of customers, sales people, or channel members. Promotions can be equally effective whether they are long term and dramatic or short term and simple. They can be costly or inexpensive. It’s by considering the needs of those who handle and use our products that we come up with promotions that work. I’d love to hear your ideas; especially if you’ve used a promotion that you are particularly proud of. Let me know about it. E-mail me with your story and share it with the world. You will get the glory and some of your fellow business people will get some fresh ideas.  Most importantly…don’t let this recession find you hiding away. I’ve seen worse…a lot worse back in the late seventies…and most people survived. Just keep promoting yourself, your business, and your products and you’ll be fine. 2009-10-10T19:17:37Z

2009-10-11T05:20:43Z

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promote-your-firmeven-in-a-down-economy

2009-10-11T04:19:11Z

2009-10-11T05:20:43Z

Some quick tips on using cost-effective promotions that actually help during a down economy and build long-term relationships.

Promote Your Firm...even in a Down Economy

2009-10-11T05:20:43Z