Enough Internet space has been devoted to the global economic downturn over the past quarter to last an entire year if we sit to read at one stretch. However, we have been fortunate to see that a lot of businesses are still hanging on and haven’t nosedived into bankruptcy. Business is slow but not dead..yet. And just like the American democracy voted for change (helped by no small means by the Internet), it is perhaps time for firms to review and change their online marketing approach to make the most of this recession.
The biggest problem in selling products during a recession scenario is the lack of demand in general. Lack of demand halts growth and therefore puts a punctuation on marketing spends (not just advertising), and this pulls an entire segment down with it. However, no business can sit idle, machines need to run or they rust, businesses need to function. A certain amount of demand is bound to exist, people are even buying shares of Satyam for that matter, the point being that businesses will still run if not grow. In such a scenario marketing to bring in better sales numbers might not be the best option at hand for most products and brands, because no matter how much you push the consumer might not have enough spending power at hand. So we are in a situation where businesses need to put survival at the forefront instead of the bigger piece of the pie.
It is in times like these that we can actually test the power of the digital medium to show its prowess beyond measurement and control. Times when we can finally test the power of brand advertising online. Much like the ant and grasshopper story, this can be the time when we act for the future.
A lot of marketers have jumped on the online advertising bandwagon in the past few months because it is measurable. They can keep a check on marketing spends and given that the Internet does provide better analytics on customer acquisition it on the face seems a better medium to advertise on. This is in a way good news for digital marketing enthusiasts of course, but in my opinion doesn’t quite help the cause of brands or product, because the demand itself is low. Also, while online sales have shown a marked improvement online compared to traditional channels, it has also been followed by a considerable dip in brand value especially of high profile brands. This suggests a picture that the long term marketing goals of brands are taking a beating. Sales online can only go to a certain level given the slowdown we spoke about, in such a scenario denting brand value is akin to brand suicide in the long run.
On the contrary, if businesses invest time and effort in building brand values, it can have a lasting impact on their marketing goals. In a downturn people look for information more than ever. They seeks assurance, they seek support, they seek solutions, and they seek trust. assurance, support, trust – these are factors that play a major role in building brands, people associate such characteristics with brands. Products and brands that facilitate these for the consumer therefore stand a better chance in a slowdown. Build communities, provide answers and information, seek new ways to reach out to the customers to let them know that you are there whenever they need you, build new touch points, build new relationships, empathize and don’t just shower sympathy, make that change from numbers to people. All this so that when the demand returns which it is bound to, they don’t even need to come to you. All your efforts would mean that they are already with you when the good times return (just the way Tendulkar said it).
Besides that, investing in online marketing not tied to number goals would mean you save on inventory costs. The digital media makes customer access and therefore customer service better and a tad cheaper, this invariably peps the brand image up. Brand building instead of a number building strategy would mean you don’t need to discount prices which would have harmed brand value beyond measure. Of course an online strategy would also mean you don’t need to invest in new stores and traditional advertising that follow.
The bottom line therefore is that – Invest in relationships and you might recount these days later on as the best in your marketing efforts.
The old method of advertising is interactive marketing. The term is misleading. Most people think it means that there is some type of interaction on the part of the person advertised to, and there is. But, it is not conversational. Instead, the advertiser wants you to interact with their campaign in a specific set of steps. Following the call to action and visiting a website for instance. It’s the push to make you do something. Live this image. Buy this now.
Social Media Marketing is just the opposite. It’s the pull of the tribe. The tribe already has your trust so the actions they take are ones you align with. On a larger scale, it’s the allure of belonging in the group as you take action together. “I am doing this so why don’t you do it with me?” On an individual level, the attraction is to behave the same way to get the same results that benefits your fellow tribeswoman or tribesman. “She looks hot! I want to look hot too. I want to go to her hairstylist” and you do. Social Media Marketing uses the power of attraction.
While advertising tries to use the same tactic, with a billboard for instance, of a gorgeous woman telling you the benefits of the salon, it doesn’t have the same impact because it’s pushing you to go. It is not pulling you in as a trusted friend. Your friends have your best interests at heart and advertisers do not. Social Media Marketing is based on building trust and that foundation will make Social Media a dominant player in Marketing.