A study by Penn State's College of Business states that a period of recession, which many believe the country is in, is a good time to increase marketing, not decrease it.
The study found that businesses entering a recession with a pre-established strategic emphasis on marketing, an entrepreneurial culture and a sufficient reserve of under-utilized workers, cash and spare production capacity were best positioned to approach recessions as opportunities to strengthen their competitive advantage.
Companies that increase marketing during hard times — when competitors are cutting back — can generally boost both market share and return on investment.
But that doesn't mean you need to spend more. Just be smarter and make sure you're hitting the right markets. The Automotive Parts Rebuilders Association offers six suggestions to make this happen.
- Go online. The high cost of postage, paper and printing is one reason to turn to the Internet as a selling partner, rather than the post office. Also, the affordable cost of online marketing, the ability to communicate with customers on a one-to-one basis, faster results and better tracking capabilities are good reasons to go online, and e-marketing is also more environmentally friendly. Keep in contact with your customers to remind them of upcoming appointments or maintenance opportunities via e-mail.
- Search for media deals. During an economic slowdown, paid advertising rates often decline, as media outlets start to feel the pinch. So you may be able to negotiate a great deal on space. Consider opportunities for barter transactions. Perhaps a couple of oil changes could be performed after hours in exchange for ad space.
- Don't forget public relations. A public relations campaign can complement a marketing campaign at a reasonable cost. By using certain Web channels to distribute press releases, you can get information out to more readers and get listed on search engines.
- Anticipate customers' behavior. Will your customers look for quantity discounts, postpone purchases, negotiate for lower prices or trade down to less expensive products and services? Tailor your promotions and marketing messages accordingly. Emphasize reliability, quality and value.
4 SBA makes it easier to learn about loans
THE U.S. SMALL BUSINESS ADMINISTRATION (SBA) has modernized its Standard Operating Procedure for lender and development company loan programs.
The revised document, SOP 50 10, has been cut in length from 1,000 pages to 400 and is more logically organized, the SBA says. The SOP is directed to SBA's Lenders and Certified Development Companies and is streamlined and more user-friendly.
In addition, the SOP has been updated to be an electronic document using Internet hyperlinks to take the user to the most recent editions of relevant regulations and forms.
"Re-writing an SOP doesn't sound glamorous, but it is one of the most important tasks we have undertaken to improve our relationship with lenders and enhance delivery of our loan products," SBA Administrator Steve Preston says. "The previous SOP was long, complicated and outdated, and lenders cited it as a major impediment to working with SBA. We hope the new document will make it easier for lenders to understand our programs and use our product."
The new SOP is divided into three sections: Lender and Certified Development Company Participation criteria, 7(a) Business Loan Program and 504 Certified Development Company Loan Program.
