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.

Younger generations are rejecting corporates and demanding CSR and transparency in light of the banking crisis that led to the recession.  Simultaneously older generations are turning their backs on the banks and looking elsewhere for their funding and investments.  And, it seems, the power is really starting to sit with the people.  Bring it on!

In the past few weeks alone, I’ve read a number of articles and spoken to various clients about crowd funding sites and ideas, so it’s clearly gaining momentum.  Here are just a few of the areas we’ve seen:

• The Times reported that prviate investors are now looking to social enterprises for investment; increasing their returns to as much as 6% and knowing their money is invested in worthwhile causes.  Visit www.buzzbnk.org for further details.
• Abundance Generation is a ‘building society for low-carbon technology’ where people can invest as little as £5 into renewable energy schemes.  It’s expected these will return 5%-9% per annum.  See https://www.abundancegeneration.com/ for more
• Funding Circle matches investors and businesses; giving small businesses access to funding at realistic rates and providing a higher return for investors.  A client of mine is using this method to build up credibility and financial history in a non-banking arena – smart move I suspect.  See http://www.fundingcircle.com/ for more.
• Thin Cats operates at a more serious level; funding projects from £50,000 to £1 million and they promote themselves as ‘Business Loans without Banks’.  Visit http://www.thincats.com/

I know we all love to hate the banks.  And I love that our society is creative enough to find a solution without them.  I only hope it gains ground and attracts serious businesses and investors who can create wealth and jobs through this additional funding stream.  That’s the kind of idea that will get our country out of recession.

In all seriousness, there’s a report out today from the Chartered Institute of Personnel and Development (CIPD) which claims bosses have an inflated opinion of their ability to manage their staff.  They claim this is undermining attempts to boost the country’s economic growth and that leadership and management capability is an Achilles heel for UK plc.  (See here for further details: http://www.google.com/hostednews/ukpress/article/ALeqM5haxiNm-wjKvLtXXalWMAVxRoielQ?docId=N0039981335945539958A)

The key leadership skill for me is communication.  And, as marketers, communication should be our strongest asset.  But often, we’re better at communicating with our external customers than our internal ones.  So I thought I should pose the question and ask you to consider your internal marketing strategy.

Internal marketing is marketing communication with people inside your organisation.  This definitely includes employees (especially front line staff who play a significant role in marketing), your management team and possibly your shareholders.

How often do you keep in touch with these groups of people?  If I asked them for the marketing goals and an elevator pitch about the business, could they tell me?  If not, you have some work to do.

Everyone inside your organisation is a potential marketing resource.  And you need to tap into that resource to give your company the best chance of growth. 

Managers may be (allegedly) undermining the economic recovery, but let’s make sure the next finger isn’t pointed at the marketers…

The first thing to realise is that both articles are factually correct – based on the related research and statistics:

• A ‘recession’ is when the country shows negative growth for two three-month periods in a row.  (A piece of information we didn’t know until the recession happened and now it seems even our pets have a grasp of this concept.)
• Consumer confidence is much more difficult to measure.  And it’s based on a diverse range of factors including ‘perceived wealth’, the weather, an individual’s mood, people’s work situations, people’s family situations, the local high street and community activities, the local Council… the list is literally endless.

The word ‘perceived’ is one of the most important both in the context of the paragraph above and also in marketing as a whole.  Perception is a very powerful thing… if we perceive we are better off, then we act that way.  And the opposite is also true.  So you have a number of people who have benefited from the recession through decreased mortgage payments, but they perceive  the country to be at risk, so they save that extra money instead of spending it (as they would have done prior to the recession).

Unfortunately for the UK, the same thing is happening at a country level, caused by the knock-on effect of the so-called ‘European Debt Crisis’.  Countries outside Europe ‘perceive’ Europe to be a risk at the moment, so they may choose to do their investing elsewhere.  If they do invest here, they expect higher returns for the ‘perceived’ risk.  Simples!

But what does all this jargon and hyperbole mean for your business?

Well.. it depends how your customers perceive themselves and their position.  If they are busy / wealthy, they probably feel OK and are willing to spend and invest their money.  If they perceive they are doing poorly, they will be saving their money and cutting costs where possible.  If you don’t know how your customers are feeling right now, you should perhaps be trying to find out.

Good luck – and shout if you need assistance.

Many senior economists are predicting that 2012 will be the year that dictates the next decade.  If it goes well, we’ll have a great decade and if not, it could be a long ten years.  But what does this actually mean for your business?

Customer confidence is currently balanced on a knife-edge.  On the one hand, we hear doom and gloom about the Eurozone ‘crisis’ and, on the other, most British people are sick of the recession and want to get back to the way things were.

There’s no doubt people are being careful about what they spend – in the main.  They’re looking for value and they’re shopping around.  And these are all trends you could align with if you want to surf the current marketing wave.  Consider the following to capitalise on the opportunities there are:

1. When people are cost conscious they look for value – adding perceived value to your product / service may mean you don’t need to cut prices.  Win-win.
2. If customers are looking for coupons and vouchers, consider offering them.  But ensure they make you money instead of costing you money (this is a fatal mistake made by the majority of companies).
3. If people are shopping around, help them.  Why be frightened of your competitors if you’re offering better value and are confident in your product?  Show customers the differences and let them decide for themselves – they’re looking anyway; with or without your help.
4. Quality is king.  People want to buy once and know the item will last.  As a result, trusted branded products are performing well, as are quality products and services.
5. Small, local, family and fairtrade are all useful buzzwords; particularly if you’re targeting the younger generations.  There has been a significant backlash against the corporate world as a result of the recession and this, along with the technology boom, has hugely assisted small businesses

Opportunities remain; as in any market.  Times are changing, as always.  And we need to adapt and remain positive to take advantage.

If your budgets have been cut, please don’t think that signals an end to your marketing campaigns – it simply signals a start to your creativity.  And it might force you back to basics.

There are many marketing tools you can use which are free or very cost-effective.  Here are our top seven, based on the methods we believe offer the best returns:

1. Follow-up.  I’m like a broken record with this point – but follow up is free.  It generates sales.  And most people never follow-up properly.
2. Keep in touch.  Yet another method which is free or cheap.  Keeping in touch with old customers can generate income very quickly – we just proved this with one client; selling a £250,000 property off an email newsletter (without so much as a viewing).  The newsletter cost us very little and generated a great return!
3. Positive Attitude.  This one definitely doesn’t have to cost you anything, but you’d be amazed at the difference it can make to your profits (or your wages, if you’re employed).  If you believe you will sell more products today, you will.  It’s a fact.
4. Referral Marketing.  Helping others promote your product, or offering affiliate schemes can be incredibly cost-effective and can generate amazing results – just look at the network marketing companies, Amazon’s affiliate scheme and others for some great examples of this marketing method.
5. Networking.  This can be a great marketing tool, if you set targets and know what you want to achieve.  Networking with the right people who offer complementary products to yours is the place to begin.
6. Up-selling and Cross-selling.  Offering customers additional products or upgrades at the point of sale can generate incredible sales.  It’s suggested that up to 30% of people will accept an upgrade at the point of sale – would you like to go large?  I certainly would!
7. PR.  If you have a story share it.  And use it in as many places as possible – your newsletters, your website, in the local press… The key is making sure you have something newsworthy and interesting.  (Tip – your customers don’t really care if one of your staff is pregnant or if you have a swanky new office.  They care what you can do for them, so keep on track.)

I’m sure there are more and I’d love to hear your thoughts.  I’ve deliberately left social media out, as everyone’s talking about it at the moment and I believe there are simpler methods that deliver better results right now for the time you need to invest.  Comments are welcome though if you disagree.

Happy marketing!

For more details and to view the adverts for yourself, visit:

http://www.dailymail.co.uk/tvshowbiz/article-2121645/Mad-Men-season-premiere-screen-real-Sixties-adverts-ad-break.html and http://www.digitalspy.co.uk/ustv/s157/mad-men/news/a373432/mad-men-to-air-alongside-retro-60s-adverts-on-sky-atlantic.html

In my professional opinion (for what it’s worth), I believe people in the UK are sick of the recession.  The media and the Government have been banging on about it for years now and we’ve all heard enough and want to get back to ‘business as usual’.  But what will it take for that to happen?

Sunshine is a great start.  People feel better when it’s warm and sunny.  They’re happier, they see a better outlook and, crucially, they spend money. The Lake District was buzzing with tourists this weekend and it’s fantastic to see – people visiting will generally spend money, often with small, local companies.  Many of those companies were recruiting seasonal staff – who spend their wages in the local economy.  And so it continues.

What can we do as businesses to aid the recovery?

Stop being negative.  It’s easier said than done, but we have to play our part and talk the country up.  Confidence really can make the difference and the IODs Chief Economist, Graeme Leache, intimated that what happens in 2012 is likely to set the tone for the next decade.  I don’t know about you, but I want the next decade to be awesome… so let’s do our bit and give confidence the push and support it needs.

The sun in the sky really could make a difference to your bottom line, but we’ve got to back it up!

Of all the plans I’ve seen and created, my top tips would be to:

1. Keep the plan short (if it’s too long people won’t use it)
2. Ensure it’s measurable (so you can prove your worth)
3. Base it on fact (marketing plans and strategies are no place for guesswork)

So what to include?

• Your goals – what are you trying to achieve (over what period)
• Your target customers (with as much detail as possible)
• Your results so far (what you’ve achieved in what time scale)
• Your marketing methods of choice (4-6 methods you think will bring you the best results)
• Your expected results (based on your conversion rates above)

You can then judge whether your plans will achieve the goals you set out at the start.  If not, it’s back to the drawing board.

Good luck!

A = Audience

Everything in marketing begins with your customer.  What problem are you trying to solve for them?  Who are you trying to sell to?  What do you know about them?  What motivates them and what would encourage them to buy?

The more you know about your customers, the easier your job becomes.  So do your homework – this isn’t a section on which you should be relying on guesswork.

B = Brilliant Marketing

OK…I had to make it fit my ABC!  Your marketing mix is the step between working out who your audience is and deciding how you will reach them and with what messages.  This brings into play your product benefits, your pricing, your promotion and your distribution strategies and it flows from the information you know about your customers.

Ideally, you should have products that solve problems for your chosen audience, pricing that will be attractive to your prospects, your products/services available in places your audience shops and promotion in things they see or read using messages that are relevant to them.

C = Conversion

There is no point to marketing unless you’re converting sales… and this is the bit many marketers forget or wimp out on.  But if your actions aren’t leading to profit, someone should be questioning them.

A good friend of mine once told me that marketing is what you do to get the phone to ring and sales is what happens when you pick up the phone and it’s a great distinction.  And you need both elements to have a successful company.

So there you have it…the ABC of marketing.

I look forward to receiving your feedback and comments.