I am a 34 year old mother that runs a business with my husband.  We own SFG Group, LLC producer of World Tea Expo, World Tea News and World Tea Championship.  We have 5 employees.  Devoted to tea we are a small family-owned business in its 6^th year.

My first emotional reaction to the current economy is to hoard my money.  I want to cut spending, downsize, and even as VP of Sales and Marketing, my first reaction is to cut the marketing budget.  I have strong motivators to keep our company successful and equally strong fears that threaten to impede that success.  Luckily my emotions only dictate my strategy half the time. 

The fact of the matter is

“…companies that either maintain or increase their marketing spend during times of economic uncertainty experience overall growth at the expense of their competition and continue that growth over a three year period of time after the uncertainty has past,” American Business Media. 

Businesses that engage in b2b marketing will gain market share with high sales growth if they seize the marketing opportunities in a slow economy.

What are the marketing opportunities?

Solid Positioning

Brand Building doesn’t happen overnight nor is it a tactic.  Successful companies continue to build brand during tough economic times, thus they don’t waste the money spent previously.  Buyers trust brands and believe in products far more so if they are seen standing center stage while competitors wait in the wings for a bull market to return.  By being present when competitors have run for the caves, a company proves its fortitude and accelerates its product to buyers’ top-of-mind.  In the end these companies gain market share.

Relationship Building

Now is the time for companies to focus on their customer base.  Successful companies focus on their niche markets.  They decide who needs them.  For some, here is where I say forget the “big buyers”.  Big buyers don’t need anyone and smart companies don’t waste money marketing to them.  Who is your niche market?  I dare say that for the tea industry its new business and independent tea retailers.  Take the time to talk with them.  Serve them.  Charles Cain, director of US operations for TeaGschwendner, the largest tea retailer in the world, once said,

“Big Buyers don’t lead the (tea) industry; they follow the tea shop owners.”

He’s right.  Smart companies that are gaining the most market share in the specialty tea industry market to the tea room owner and new business owner.  Independent retailers cost less marketing dollars and the big buyers find products the same place they find their ideas- from the small guy.

Trade Shows

Trade shows are the most efficient way to gain multiple leads in the shortest amount of time.  They are well documented for having the highest ROI of any marketing vehicle.  They engage customers while advertising alone only pushes product and services.  Trade shows allow companies to build brand and relationships quickly and efficiently.  In the 2001 Yankelovich Harris Study, commissioned by American Business Media it states,

“More than 95% of executives maintain a high interest in learning about and investing in new products and services even in a down economy.”  

Where do executives go to find new products and services?  Trade shows. Successful companies find the shows that attract their niche market and then prepare for each show thoroughly.  Used wisely, trade shows catapult a company’s market share year after year. 

So the next time you have the gut reaction to pull back on your marketing spend, think twice.  Instead of decreasing the dollars in marketing, perhaps its operations that needs a cut back or perhaps it’s simply time to re-allocate the dollars.  No matter where you go, don’t disappear.  Trust me on this one.  I put my son to bed every night too. 

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