WHAT you can do

Instead of cutting your market research, you need to know more than ever how consumers are redefining value and responding to the recession.*

It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times. If you must cut ad spending, look for ways to stay visible in more affordable ways.*

Customers will be shopping around for the best deals. While you may not necessarily have to cut list prices or rates, you may need to offer more temporary price cut promotions. In tough times, price cuts attract more consumer support than promotions such as sweepstakes and mail-in offers.*

Chief executives can cement the loyalty of employees by assuring employees that the company has survived difficult times before, maintaining quality rather than cutting corners and servicing existing customers rather than trying to be all things to all people. CEOs must spend more time with customers and employees.*

When the economy heads south, its time to regroup and refresh your game plan. First, take stock of your current customers and segment them into those who are: Then, target customers who are locked into your product or service. These are your customers where the cost of switching to a new product or service would be too high. Concentrate your marketing efforts on them, and subtly emphasize the cost that they will incur if they switched. Many companies, eager for new business, are less than scrupulous in their promises. Your customers need to understand that it may be costly to get emotionally locked-in by switching to a competitor who may not follow through on their promises of delivery, service or quality.**

Lowering prices is the easiest short-term measure to win sales, but avoid cutting prices when possible. It cheapens your product or service and teaches customers to expect and shop the deal only.

For example, magazine subscriptions: when was the last time you paid full-cover-price for a magazine you subscribe to? Not to mention what price-cutting does to your bottom line in the long run. Instead, show how your product or service will save your customer money.**

Economic recession tends to stagnate the market. While it is easy to stick with familiar markets, finding additional markets that are less saturated can be a great opportunity to generate capital, profit and market share.

Target customers whose perceived value of your product outweighs the price. You can even use your existing customer database to see whom you serve now, in the crack you may find new markets you hadn't considered with great potential. Be careful not to stray too far.**

Cover the maximum amount of the market you can. If 30% of the market requires packaging you don't offer, you are only reaching 70% of the market. An analysis of your competition's benefits to consumers could help develop your brand to better serve current customers and gain new business.

Recession shrinks the size of the market. To get maximum market share, it is necessary to maximize distribution to better reach the smaller market. Using several channels can expose your product to new markets and reduce sensitivity to investment. For example, Apple computers targeted their home-use focus to include business customers that value and can afford their products.** Today, they continue their dual-strategy and have a very strong brand along with that. It is important to not let opportunities get away during iffy times.**