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The construction sector has been particularly hard hit as the economy reels from the effects of the credit crunch. Some positive signs are beginning to show but it is unlikely that the fortunes of construction and related industries will turn around overnight. For these companies marketing budgets will almost certainly have suffered as overheads are reduced, and for many the price paid for this reduction in spend will be long lasting. Diminishing the market presence of a business by ceasing promotional activities has such an impact that it is impossible to regain ground over the short term. Studies show that when a downturn ends companies who have made deep cuts in their marketing lag behind those who have been more sensible about maintaining activityand what's worse is that the lag continues for many months, even after the recession is over.
The problem with cutting spend in this way is all down to perception. After all, the customer makes up his or her mind based on the information available and that information is usually provided by the construction company itself. So if you stop putting out key messages into the market place or you diminish those messages by creating confusion, then who can blame the customer for jumping to the wrong conclusion about what you do, where you are, or how you're doing?
This isn't to say that marketing costs can't be cut. Canny companies are examining where they spend their money and diverting costs into areas where they can see real benefit. This is all about accountability of those charged with marketing responsibility. Actions alone are no longer enough; results need to be seen by management as measurable against objectives and as playing a valid role in an increase to the bottom line. To do this will mean serious legwork on all aspects of managing the customer relationship in addition to finding out how your work is generated and understanding who your competitors and key referrers are.
If you believe that the only two relevant factors in a contract win are price and quality, stop and think for a moment. Your customer will want to be reassured about many other aspects of your business before he signs that vital piece of paper. He will need to know about your employee strength, specialist work areas, reputation, geographical coverage and accreditations before he commits his trust to you. Any company that has been forced to cut its marketing budget would be well advised to go back to basics and look again at defining their key messages to ensure they are clearly stating this information, as well as understanding how those messages are broadcast and finding ways of putting them out to the target market place in the most cost effective and eye-catching ways.
Successful companies adopt a multi-layered approach to marketing, using a whole tool-box of methods to get their message across. Think creatively about the marketing collateral you probably already have such as case studies, testimonials, your website, customer reference sites and news stories. Update your website with articles and case studies, include testimonials in your responses to tenders, put out your 'good news' stories as press releases.
The worst sort of budget cutting is 'knee-jerk' where budgets are slashed without consideration of effect. Analysis of spend, evaluation of activity, and thinking that 'breaks the mould' are good business principles that will serve you well in any climate, not just a recession. In the tough and competitive construction industry businesses ignore marketing spend at their peril.
Article Source: Articlelogy.com
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