Getting value from your marketing in tough economic times
When the economic climate looks tough, cutting costs can be a natural response and marketing spend is often top of the list. But when our clients suggest this, at Shirlaws we first encourage them to get really clear about their positioning because then they can be really focused with every pound they spend – and not just on marketing but a whole range of other investment decisions too.
For Shirlaws positioning is a strategic conversation that impacts everything in the business and the key word is ‘focus’. When you can give a really clear answer to the question ‘what do we want to be famous for?’, then everything from recruitment to product development, sales strategy, premises and advertising falls into line.
Positioning the business – step one: the business model
Try completing this easy exercise for your own company in terms of your ‘product', ‘market', ‘service' and ‘price'. Draw an up or down arrow, or place a dash for a neutral answer - we've given some examples below.
1. Market question – what is your proposition to your market? Remember, all propositions are viable and can be profitable. Some people think only ↑ is good positioning but Easyjet does well even with a ↓ proposition.
| Market proposition | Arrow indicator | Example company |
| Premium end | ↑ | British Airways, Rolls Royce |
| Mid range | - | British Midland (bmi), Ford |
| Bottom end | ↓ | Easyjet, Kia |
2. Product – how does your quality compare with competitors (↑), the same (-) or lower (↓)?
3. Service – what customer relationships do you have? Advocates, loyal customer base (↑), customers get what they expect (-), or customers are disappointed with the service (↓)?
4. Price question – how does your price compare with competitors: premium, average, or cheap?
Choose your model
The strategic question is which business model to choose (high-end, mid, low-end) and to get all your arrows lined up. You can then be much clearer about where to invest, and also where to cut spending if that’s what you need to do. All your investments should support your positioning strategy to best focus your resources. And remember, you will be sub-optimising your business if you try to combine different aspects of positioning. Not only that, but you'll be confusing your target market – rather like taking a first class BA flight only to find it full of backpackers.
For more information on the Shirlaws Seminar series that Bonallack and Bishop will be running at the start of 2009, please visit our Wiltshire Solicitors website or contact Robin Montgomery on E: robin.montgomery@bishopslaw.com, T: 01722 422300
Copyright Notice
This publication is copyright. No part of it may, in any way whatsoever, be reproduced, stored in a retrieval system or transmitted without prior written permission. Names of products mentioned in this publication are used for identification purposes only, and may be trademarks and/or registered trademarks of Shirlaws Screen images in this publication are used for illustrative purposes only and may be the intellectual property of Shirlaws.© Shirlaws 2007
