In this series I am considering ways in which executives can take positive action so that they make the best use of their people and resources; in Part One I cover market strategy and how we should modify our strategies in a changing marketplace.

This is one of the primary rules of marketing and most businesses will have a very good idea who their customers are; but we need to understand what the effect of negative media coverage and tighter belts is having on them.

Unless your business is selling oil to the Chinese or footballers to the Russians, your customers will be taking more time considering purchases and will put off expensive purchases until they are sure they are getting the best value.

Must have luxuries of recent credit fuelled years are now viewed as unnecessary expenses, and ostentatious displays of wealth are out. Consumers would rather spend money paying off their credit cards than buying the latest gadget or foreign holiday.

...marketers should focus on so called “traditional values”; warm homely images, the joys of a British summer (stay with me on this) and quality time with friends and family.

Professor of Economics at Harvard, Alvin E. Roth, describes consumer behaviour in such times as “retreating to the village”. By this he means that they will be more concerned with family, friends and the reassuring comfort of home, than with adventure and independence.

To appeal to more cautious consumers, marketers should focus on so called “traditional values”; warm homely images, the joys of a British summer (stay with me on this) and quality time with friends and family.

This might seem like foolish advice given the lessons of recent times, however just because the spending patterns of your market are changing doesn’t mean your market is shrinking; they just need more persuading that you are the right place for them to buy. 

While competitors are reducing their advertising spend, evidence shows that businesses which increase their efforts during downturns can substantially increase their market share.

If your market strategy budget is reduced then be savvy about where you spend; perhaps reduce the length of TV commercials and change to more direct marketing methods, focus less on selling concepts and building brands and more on offering value and showing you understand your customer’s needs.

Value is top of the list of the more budget conscious consumer, but this doesn’t mean cheap, it means that the customer feels that by buying from you they are getting the best possible return on their spend.  Reduce prices strategically and run attractive offers but don’t fall into the trap of thinking your customers only want the cheapest.

Target customers and breed loyalty by making them feel that you understand their concerns by offering introductory discounts and ‘exclusive’ time limited repeat purchase discounts.

Reduce prices strategically and run attractive offers but don’t fall into the trap of thinking your customers only want the cheapest.

Not only should you focus on competitive pricing structures and high profile offers, but also consider what else the customer is building into their value judgement of a purchase. Brands perceived as durable, established and high quality often do well in downturns because consumers consider longevity and reputation as primary considerations in making a value judgement.

In difficult conditions market strategy should be given more attention, not less; the temptation for executives is to focus on cutting waste and reducing costs, and while this is important, it is equally as important to ensure you are still maintaining or increasing your market share.