Dr John Rudd

By John Rudd, marketing specialist, Aston Business School

In uncertain economic times, businesses that reduce marketing spend to achieve a ‘quick fix' are usually misguided.

Information should be used to react rapidly to meet new challenges and whether in thriving times, or times of uncertainty, businesses must be marketing led.

It is relatively easy for businesses to sell goods and services within the "boom town" mentality of a thriving economy. However in times of environmental turbulence and uncertainty, customers, whether businesses or consumer, will naturally scrutinise their spending and be more selective. It is therefore the job of marketers' to make it their company's product or service that customers select.

History suggests that in uncertain economic conditions, organisations tend to immediately reduce marketing expenditure in a misguided attempt to improve their economic position with a "quick fix". But it is not the marketing budget that is usually the problem.

Effective marketing can help organisations to cope with the problems of increasingly uncertain and discerning customers, and come out in front. This can be done this in a number of ways. Changes in the market should be identified using market research which collects customer and competitor information. This information should be analysed and strategies re-aligned rapidly to meet new challenges. If you can add value for the customer, this should be communicated through the most appropriate media.

In times of uncertainty, successful organisations will be able to recognise and adapt to changing conditions. The faster the change in the environment, the faster the response from the organisation must be in order to meet the new set of challenges presented.

So for successful marketing departments, any economic uncertainty should mean more work, not less, which should reflect in holding or increasing budgets, and certainly not cutting them.

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