As a nation, we are facing uncertain times; we are seeing challenges in the political environment and in the economy, and the financial markets are volatile.
As a marketing executive search firm, MarketPro understands the importance of having a great chief marketing officer (CMO) when times are good, but when times are uncertain, your company needs a phenomenal CMO.
It Is Time To Check Your Marketing Readiness
Your organization’s potential for growth and advancement always depends heavily on having the right marketing strategy and being proactive in adapting to whatever is going on within the industry and rapidly changing market conditions.
Choosing the right individual to lead your marketing initiatives is always essential, but having a strong, intuitive, strategic-thinking CMO becomes even more critical when your company needs to navigate through uncertain times. If your marketing strategy remains strong during these unfavorable stretches, then your potential for expansion and growth is far superior to your competitors when the economy begins to recover.
Enhance Your Marketing Program In Tough Economic Times
An article in Forbes conveyed the importance of how many companies feel that during uncertain times, they should curtail their spending on marketing and advertising when they should really be ramping up these efforts.
During our 25 years placing top-tier marketing talent, we have observed organizations facing challenges similar to what we are dealing with today. We have watched them navigate through the uncertain times in 2001, 2008, and more recently, the pandemic, and those who invested in the right marketing talent and marketing campaigns came back stronger as the economy leveled out.
Investing More In Marketing During Tough Times Yields Greater Market Share
Forbes cited a study that looked at the outcome of different marketing strategies during difficult times and put the companies into three categories:
- Companies that decreased their investment in their marketing strategy;
- Companies that made no changes in their marketing and advertising spend;
- Companies that invested more in their marketing strategy.
Guess what happened? Companies that reduced their investment in marketing lost 0.8% of their market share; companies that maintained their current strategy saw an increase of around 0.6%; but the companies that strategically invested in their marketing efforts saw an increase of 4.3% and were ahead of the curve when things began to turn around.
In Uncertain Times A CMO Must Customize Their Marketing Strategy Using More Than Usual Demographics
During times of economic downturn, it is vital to the survival of your organization to have a CMO who possesses marketing acumen, is business savvy, and can creatively think outside the box.
During the tough economic times surrounding the pandemic, one marketing firm suggested considering consumers in a non-traditional way by looking at how they were “feeling” vs. using their age, income, or other customary demographic criteria
Different Consumer Groups Were Identified
The largest group of consumers were scared about the future, and their immediate reaction was to cut out all spending except beyond what was necessary. This group was the most diverse in terms of income, age, location, etc., and while some were dealing with big financial hits, there were consumers in this group of all income levels.
Some consumers were more optimistic, and while they focused on saving more and spending less, they did not take as drastic the action as the scared group did.
The other groups made up a much smaller portion of the population (around 5%) and included individuals who were financially secure who did not make huge changes in their spending but were more discriminating about their choices and those who didn’t make any changes at all and did not seem to be the least bit concerned about the future.
CMOs Had To Use Their Knowledge, Creativity, And Strategic-Thinking Skills More Than Ever
Companies had to make an unprecedented number of adjustments to stay relevant, and the ones with savvy CMOs came up with some great strategies that carried them through.
Some of these creative marketing and revenue-generating initiatives included:
- Many retail outlets began offering online shopping with curbside pickup, allowing consumers to make purchases and have their goods delivered to the trunk of their car;
- A well-known electronics & appliance retailer started a program that could help individuals troubleshoot computer problems remotely;
- One specialty clothing store offered virtual services in addition to curbside pickup, and provided consumers the assistance of a personalized shopper that would meet with them virtually and help them choose the styles that suited them best;
- Drugstore chains entered into partnerships with delivery services to bring medication and groceries right to the consumer’s door.
While looking at consumers from a psychological standpoint is not a new concept and the drivers of consumer behavior have been the focus of many studies, these serve as examples of exceptional CMO’s. They adjusted their traditional marketing and advertising model, and focused more on the consumer’s needs and experience. They were savvy in keeping their product or service in the forefront of the consumers’ minds as well as looking for opportunities to provide them with the help they needed. They earned increased customer engagement and loyalty during that time and into the future.
How Confident Are You In The Strength Of Your Marketing Department?
Having an A player in the CMO position is critical to the future success of an organization now more than ever. Is your organization future proof? Partner with MarketPro today and let us help you secure the exceptional marketing talent that will drive your success tomorrow.