It’s all Greek to MeBy joanne | 21st May | Marketing Ideas, Marketing Skills, Marketing Strategy
Since before the Recession began, I’ve been trying to make sense of it from a marketing perspective. It’s new to me. And in fact it’s new to most people, as the last time we were in such a horrendous mess was in The Great Depression of the 1930s. We know things aren’t good and we wish we could stick our heads in the sand. But if you want to spot the opportunities and be ahead of the crowd, you need to understand the trends and what drives them. And the economy is a major driver.
A significant chunk of the British economy is driven by consumer confidence. When people feel happy, settled and confident, they spend money. And that helps British (and other) businesses. I’ve written plenty about the ‘science’ of understanding consumer confidence. It can hinge on very simple, yet uncontrollable things, such as whether the sun in shining.
Business confidence is a slightly different animal. And we sometimes forget that businesses are large spenders in our economy. They create jobs, they buy products and services from other businesses and they have a large part to play in generating money.
Whether businessses spend money depends on things such as:
- Whether their customers are spending more or less
- Whether they think their customers will spend more or less in the future
- Whether they can borrow any money
- Whether they’re confident of the future
- Whether they can spot opportunities
I don’t need to tell you that funding is hard to come by for most businesses. Which means they have to spend from their cashflow. This is like you spending from your wages and not using your overdraft or credit card. It limits how much you can do and how much you can grow or invest in the future.
And the perfect storm is that business owners have been reading negative news for the past three years. Almost every ounce of positive energy has been tested and the European ‘crisis’ is exacerbating the problem. Europe is a major trading area for British products. If we can’t sell to Europe, some of our businesses can’t grow. And if they can’t grow, they can’t spend. And if they’re not growing, they’re not creating jobs. As I said, the perfect storm.
But there is a HAPPY ENDING… There are many opportunities for marketers and businesses in the current economy. As marketers we must understand what is happening and what is driving it, so we can spot those opportunities and help the businesses we work for. As we improve our knowledge, we can better target customers who are spending and we can create better products and services for which there is a need. Sales and Marketing have never been so necessary than right now…and we have a real part to play in the recovery.