Marketing in a Recession

No one needs to be reminded how bad the economy is or how it is affecting each and every one of us.  Instead lets’ just skip over all that and move on to how we can get through these tough times. 

During economic downturns one of the first cut backs many companies make is to pull their marketing budgets. Mistake #1. Studies from previous recessions have proven that businesses that continued to invest in marketing during the recessions saw a growth in their businesses, while companies that pulled their budgets experienced a decrease in sales.  It’s not time to pull your marketing budgets, it is time to get smarter about your marketing dollars and spend it to bring results.  Here are a few things to consider:

1. Stop thinking of marketing as expenditure rather look at it as an investment.  This will help you see the long term value of your marketing dollars.

2. Invest in solutions that allow you to measure your ROI. PURLs and other cross media tools make tracking results easier than ever.

3. Consumers don’t disappear during a recession, or stop spending completely, they grow more conservative. Take this opportunity to encourage brand switching to safer and cost-saving alternatives.

4. A recent study by the American Association of Advertising Agencies study documented a strong correlation between retaining marketing spend during a recession and increased market share.

5. The Strategic Planning Institute developed the PIMS (Profit Impact of Market Strategy), which compared hundreds of companies’ marketing spend during recessions to share and profit gains during recovery. They found that those that spent in recession did far better after the recession than those who significantly cut or eliminated marketing spending.

Next, companies who do continue to market will continue to do it the way they have always done.  Mistake #2.  In a recession three major changes occur: budgets, consumer behavior and the market.  Therefore in order to be successful companies must change their approach. For some that means changing their marketing message and brand strategy.  So instead of using a differentiation strategy, a low cost leadership strategy may be more effective in a down economy.  Brands like Wal-Mart have done an outstanding job maintaining their low cost leadership perceptions.  Even though Wal-Mart may not be the cheapest on every product, they have established that persona so people automatically think of them when trying to find the lowest prices.

Another way to deal with the changes in the economy is to relook at who your target market is and consider reevaluating it.  There may be some hidden potential in different, unexplored market segments.

Also it is important to rethink how we are communicating.  No longer is it cost effective to send a mass message to a large list of prospects.  It has been proven time and time again that a tailored, relevant message to a targeted group will result in much higher returns on investments.  With that being said it is imperative to know your customer.  Know them inside and out.  Know how the economy is affecting them.  Then create your marketing message around them.  Maybe revise your product line to better serve your customer.  Be flexible and continue to evaluate your customer’s needs.

In the coming months, years or however long it takes to recover from the recession consider this- if you stop marketing, how will customers/prospects find you?  Why should they have to try?  Instead continue marking in order to stay at the top of their pile so that your name is the first to pop in their heads when they think about the type of products or services you offer.

Direct Mail: A Killer of the Environment?

Some people think that because direct mail is made out of paper and paper comes from trees that it is automatically adversely effecting the environment and should be stopped. Before you go cutting off your direct mail consider these facts published by The Direct Marketing Association, on its DMAchoice website, about direct mail being the “green” way to shop:  If you are not familiar with DMAchoice, it is a website developed by the Direct Marketing Association to help you manage your mail. This site is part of a larger program designed to respond to consumers’ concerns over the amount of mail they receive.

Facts about Direct Mail:

• Direct mail is a green way to shop. If Americans replaced two trips to the mall each year with shopping by catalog, we’d reduce our number of miles driven by 3.3 billion, a 3 billion-lb. reduction in carbon dioxide and a savings of $650 million on gas alone.
• Mail represents only 2.4 percent of America’s municipal waste stream.
• The production of household advertising mail consumes only 0.19 percent of the energy used in the U.S.
• Mail is made from a renewable resource. The vast majority of paper produced in America today comes from trees grown for that specific purpose. The forest industry ensures that the number of trees each year is increasing, so trees are not a depleting resource. In fact, forest land in the United States has increased by 5.3 million acres in the past three decades.
• Direct mail is critical to the economic well being of communities, businesses and charities throughout the U.S. Last year it represented more than $686 billion in sales, supporting jobs at more than 300,000 small businesses across the country.

Direct mail is not the enemy; it is a cost effective, efficient, green way to get your message to your customers.  The goal of all direct mail is to be as relevant as possible so that your message is not wasted on someone who has no interest or need for your product.  Instead of stopping your direct mail to save the environment, target your list and message to ensure that you are marketing to qualified leads.  After all every catalog or direct mail piece that makes its way into the garbage without being read is a waste of money and lowers response rates.

DataMart Direct – one of the top 5000 Fastest Growing Private Companies in America!

DataMart Direct is proud and excited to have made Inc. Magazine’s annual list of the top 5000 fastest growing private companies in America for the 2nd year in a row!!!  Selection is based on revenue growth from 2005 to 2008.  DataMart Direct started as a mailing and fulfillment company in our founder, Rosemary Bussert’s basement some 37 years ago.  Since we have developed to be a full service direct marketing firm specializing in multi-channel marketing and complex variable print applications.  Some of our core services include direct mail, fulfillment, digital print, web-to-print,  and personalized URL technology.

Our commitment to quality and service and staying on the cutting edge of technology is what helps us to continue to grow!

New Turn-Key Multi-Channel Marketing Package

 

Check out DataMart Direct’s new Turn-Key Multi-Channel Marketing package.  Cross media marketing has never been so simple and affordable!

In these challenging economic times, you must market your business using all of the technology available.  Need help?  DataMart Direct has the tool box to make multi-channel marketing simple and affordable.

To see some of the benefits of multi-channel marketing visit:

www.DMDToolBox.com

Take advantage of DataMart Direct’s multi-channel marketing package and relax while we do the work.  Get started today call 630-307-7100!

Picking The Right Paper For Your Job

The thickness, texture, and components of the paper stock you choose for your marketing campaign may seem like small details compared to everything else that goes into putting a project together.   However, they in fact may prove to be the reasons your campaign makes it out on-time and to the recipient in good condition or not.  Juggling cost with performance has always been part of the balancing act when choosing the right paper for a campaign, and increasing environmental concerns have been thrown into that mix as well.  With all this to consider, where is a marketer to start?

The best place to begin is by clearly defining what your paper will be used for.  Many people will ask what the paper will look like when it is printed, which of course is important, but too often they forget to explain how the paper will be used. (Will it be a self mailer?  Does it need to be folded? Perforated? Stapled? Coated? Are there any inserts?  Is it going into any type of package?)  All of these elements are crucial to determining what type of paper to use.  Once you define exactly how you will use the paper it is time to start considering what you want your finished piece to look like.

Consider the life span of your printed piece.  Is it a direct marketing piece that you will need to quickly grab the recipient’s attention or does your piece have a longer life span like an annual report, a marketing brochure or catalogue? These questions will help you to determine your needs when choosing a paper stock.

Ask yourself what impression the piece should make. A company promoting “green” products sends a mixed message when its mailer is not printed on recycled or synthetic stock.  This oversight may suggest they are not truly concerned with the environment, but rather using it as a marketing ploy.   Instead, choose papers with recycled content, visible fibers or a mixed composition with a lower brightness and a texture that conveys the environmental feel.  Don’t forget to tell them how “green” you are.  Label your printed material with sayings such as, “printed on recycled paper” to publicize the importance your company puts on environmental responsibility. 

For projects that suggest indulgence; metallics, iridescents, suedes, leathers and other specialty papers create a stunning first impression.  However, these specialty stocks may not be the best choice for a non-profit organization asking for financial support.  Premium paper suggests luxury and the recipient may think, “why bother, they seem to have enough money anyway.” 

Another major aspect to consider when choosing your paper stock is weight, especially if you are working on a piece that will be mailed. Watch out for postage costs and make sure the finished piece is below the USPS weight requirements. If you are not sure on those requirements, DataMart Direct will be happy to set you in the right direction!

Additionally, if bulk and weight are important, using an uncoated sheet may be a better choice. Due to the clay coating, a coated paper will weigh more than its same-sized counterpart. Even though it weighs less, the same piece printed on an uncoated sheet will ultimately be thicker because it naturally has a higher bulk.

Once you have a good idea about how the paper will be used, consult an expert to help ensure you pick the right paper.

Consulting an expert early will help you to narrow down what papers will work well for your marketing campaign and still allow you to make any necessary changes.  DataMart Direct is often called on by clients to be their paper expert.  A change of 1/16 of an inch of our client’s design is enough to make a big difference and allow their job to fit better on the sheet, saving them press time and money.

Furthermore, some papers/substrates do not work well with certain presses.  “Picking” is a common setback with some papers.  “Picking” refers to the lifting of fibers or other material from the surface of the paper causing small white dots on your piece. Eliminating this requires a more tightly bound construction of the paper which is completely the responsibility of the manufacturer. To avoid many of the common production hiccups, such as “picking”, ask for hard copy proofs.  This allows you to actually see what your final piece will look like before you are down to the wire and have purchased all of the paper for the job.

Lastly, when selecting the paper for your next job, do not go for the highest quality paper or the most expensive rather consider what paper is most appropriate for your job.  With our tips in mind and help from our experts at DataMart Direct picking the paper for your next marketing campaign should be a breeze!

The thickness, texture, and components of the paper stock you choose for your marketing campaign may seem like small details compared to everything else that goes into putting a project together.   However, they in fact may prove to be the reasons your campaign makes it out on-time and to the recipient in good condition or not.  Juggling cost with performance has always been part of the balancing act when choosing the right paper for a campaign, and increasing environmental concerns have been thrown into that mix as well.  With all this to consider, where is a marketer to start?

The best place to begin is by clearly defining what your paper will be used for.  Many people will ask what the paper will look like when it is printed, which of course is important, but too often they forget to explain how the paper will be used. (Will it be a self mailer?  Does it need to be folded? Perforated? Stapled? Coated? Are there any inserts?  Is it going into any type of package?)  All of these elements are crucial to determining what type of paper to use.  Once you define exactly how you will use the paper it is time to start considering what you want your finished piece to look like.

Consider the life span of your printed piece.  Is it a direct marketing piece that you will need to quickly grab the recipient’s attention or does your piece have a longer life span like an annual report, a marketing brochure or catalogue? These questions will help you to determine your needs when choosing a paper stock.

Ask yourself what impression the piece should make. A company promoting “green” products sends a mixed message when its mailer is not printed on recycled or synthetic stock.  This oversight may suggest they are not truly concerned with the environment, but rather using it as a marketing ploy.   Instead, choose papers with recycled content, visible fibers or a mixed composition with a lower brightness and a texture that conveys the environmental feel.  Don’t forget to tell them how “green” you are.  Label your printed material with sayings such as, “printed on recycled paper” to publicize the importance your company puts on environmental responsibility. 

For projects that suggest indulgence; metallics, iridescents, suedes, leathers and other specialty papers create a stunning first impression.  However, these specialty stocks may not be the best choice for a non-profit organization asking for financial support.  Premium paper suggests luxury and the recipient may think, “why bother, they seem to have enough money anyway.” 

Another major aspect to consider when choosing your paper stock is weight, especially if you are working on a piece that will be mailed. Watch out for postage costs and make sure the finished piece is below the USPS weight requirements. If you are not sure on those requirements, DataMart Direct will be happy to set you in the right direction!

Additionally, if bulk and weight are important, using an uncoated sheet may be a better choice. Due to the clay coating, a coated paper will weigh more than its same-sized counterpart. Even though it weighs less, the same piece printed on an uncoated sheet will ultimately be thicker because it naturally has a higher bulk.

Once you have a good idea about how the paper will be used, consult an expert to help ensure you pick the right paper.

Consulting an expert early will help you to narrow down what papers will work well for your marketing campaign and still allow you to make any necessary changes.  DataMart Direct is often called on by clients to be their paper expert.  A change of 1/16 of an inch of our client’s design is enough to make a big difference and allow their job to fit better on the sheet, saving them press time and money.

Furthermore, some papers/substrates do not work well with certain presses.  “Picking” is a common setback with some papers.  “Picking” refers to the lifting of fibers or other material from the surface of the paper causing small white dots on your piece. Eliminating this requires a more tightly bound construction of the paper which is completely the responsibility of the manufacturer. To avoid many of the common production hiccups, such as “picking”, ask for hard copy proofs.  This allows you to actually see what your final piece will look like before you are down to the wire and have purchased all of the paper for the job.

Lastly, when selecting the paper for your next job, do not go for the highest quality paper or the most expensive rather consider what paper is most appropriate for your job.  With our tips in mind and help from our experts at DataMart Direct picking the paper for your next marketing campaign should be a breeze!