Page 39 - Marketing Management

16 PART 1 UNDERSTANDING MARKETING MANAGEMENT

In practice, however, in the highly competitive marketplaces that are more often the norm,
marketing planning is more fluid and is continually refreshed.
Companies must always be moving forward with marketing programs, innovating products and
services, staying in touch with customer needs, and seeking new advantages rather than relying on
past strengths. This is especially true of incorporating the Internet into marketing plans. Marketers
must try to balance increased spending on search advertising, social media, direct e-mail, and
text/SMS marketing efforts with appropriate spending on traditional marketing communications.
But they must do so in tough economic times, when accountability has become a top priority and
returns on investment are expected from every marketing activity. “Marketing Insight: Marketing
in an Age of Turbulence” offers some recommendations for adjusting to new marketing realities.

them as never before. Research them more than ever. Don’t find
yourself using old, tried-and-true marketing messages that no
longer resonate with them.
4. Minimally maintain, but seek to increase, your marketing
Marketing InsightInsight
Marketin g budget. With your competitors aggressively marketing to your
core customers, this is the worst time to think about cutting any-
thing in your marketing budget that targets them. In fact, you need
to add to it, or take money away from forays into totally new cus-
tomer segments. It’s time to secure the home front.
Marketing in an Age
5. Focus on all that’s safe and emphasize core values. When tur-
of Turbulence bulence is scaring everyone in the market, most customers flee to
higher ground. They need to feel the safety and security of your
The severe economic recession of 2008–2009 caused marketers to re- company and your products and services. Do everything possible
think best practices of management. Philip Kotler and John Caslione to tell them that continuing to do business with you is safe, and to
see management entering a new Age of Turbulence in which chaos, sell them products and services that keep making them feel safe.
risk, and uncertainty characterize many industries, markets, and com-
6. Drop programs that aren’t working for you quickly. Your mar-
panies.According to them, turbulence is the new normal, punctuated by
keting budgets will always be scrutinized, in good times and bad
periodic and intermittent spurts of prosperity and downturn—including
times. If anyone is to cut one of your programs, let it be you, before
extended downturns amounting to recession, or even depression. They
anyone else spots any ineffective ones. If you’re not watching, rest
see many new challenges in the foreseeable future, and unlike past re-
assured someone else is, including your peers whose budgets
cessions, there may be no assurance that a return to past management
couldn’t be protected from the axe.
practices would ever be successful again.
According to Kotler and Caslione, marketers should always be 7. Don’t discount your best brands. Discounting your established
ready to activate automatic responses when turbulence whips up and and most successful brands tells the market two things: your
chaos reigns in. They recommend marketers keep these eight factors in prices were too high before, and your products won’t be worth the
mind as they create “chaotics marketing strategies.” price in the future once the discounts are gone. If you want to ap-
peal to more frugal customers, create a new brand with lower
1. Secure your market share from core customer segments. This
prices.This lets value-conscious customers stay close to you, with-
is not a time to get greedy, so get your core customer segments
out alienating those still willing to pay for your higher-priced
firmly secured, and be prepared to ward off attacks from competi-
brands. Once the turbulence subsides, you may consider discon-
tors seeking your most profitable and loyal customers.
tinuing the value product line—or not.
2. Push aggressively for greater market share from competitors. All
8. Save the strong; lose the weak. In turbulent markets, your
companies fight for market share, and in turbulent and chaotic times,
strongest brands and products must become even stronger.There’s
many have been weakened. Slashing marketing budgets and sales
no time or money to be wasted on marginal brands or products that
travel expenses is a sure sign a competitor is buckling under pres-
lack strong value propositions and a solid customer base. Appeal to
sure.Push aggressively to add to your core customer segments at the
safety and value to reinforce strong brands and product and service
expense of your weakened competitors.
offerings. Remember, your brands can never be strong enough, es-
3. Research customers more now, because their needs and pecially against the waves of a turbulent economy.
wants are in flux. Everyone is under pressure during times of tur-
bulence and chaos, and all customers—even those in your core Source: Based on Philip Kotler and John A. Caslione, Chaotics: The Business and
segments whom you know so well—are changing. Stay close to Marketing in the Age of Turbulence (New York: AMACOM, 2009) pp. 151–153.