Marketing is a critical tool used to leverage companies, and during financial crises it takes on even greater importance. Contrary to the approach of many business owners, marketing activity should not diminish during a recession unless the company has seriously deteriorated, in which case financial consultants should be brought in.
The competitive market includes two routes – the “red ocean” (named as such because competitors bite each other until blood is shed), and the second route – the “blue ocean.”
What is the “red ocean” and how should one behave within it?
In the “red ocean,” the company is forced to fight for its status according to the prevailing circumstances: If the company is a large one, it is advisable to take advantage of the recession in order to expand and acquire other companies with the aim of enlarging the market share. On the other hand, if the company’s advantage lies in its affordable prices, the recession period should be used to increase efficiency within the company in order to further lower prices. Companies that deal in unique niches also have a considerable advantage over companies that have no specialty, and efforts should be made to boost the niche.
However, there are many companies that do not stand out due to affordable prices or an added value (such as a niche). What can they do during a period of financial turbulence? Such companies should seek out an important added value that they can offer to the public, something innovative that no one has thought of. For example, not long ago a company that produces men’s tailored suits launched a suit that does not need dry cleaning. This constitutes a revolutionary innovation in connection to a veteran product.
The “blue ocean” strategy is radically different because it concentrates on non-competitive marketing. This is a more daring marketing method which chooses to focus on what matters to the majority of consumers while relinquishing other conventional components. For example, a well-know hotel chain was having difficulties competing with its peers. As the chain’s hotels were geared mainly for businessmen, it chose to underscore the fact that the hotels are located in quiet places and that the beds are extremely comfortable. On the other hand, the hotel decided to relinquish advertising about room service and restaurants, which the businessmen did not really need. As a result of the focused advertising campaign, the chain’s bookings soared by double digit percentages.
The “blue ocean” strategy also encourages appealing to “non customers.” For example, a car dealership might publish an ad addressing adults who do not have a driver’s license and offer to pay for driving lessons if the consumer agrees to purchase a car from it after acquiring the license.
Experts believe that a business owner’s tendency to cut back on advertising or give it up completely during a recession is inherently wrong. That is in fact the ideal time to advertise, when other companies withdraw their advertising. During recessions, advertising must not be low key but rather highly conspicuous and even radical – all with the aim of attracting the potential consumer’s eye.
What is effective advertising?
Considerable significance is attributed to factors that link a brand to the consumer’s subconscious. A particularly successful method is to build a picture, symbol or brand which the consumer’s subconscious links to the product. A classic example is the picture which has advertised Marlboro cigarettes for decades. When the consumer sees a picture of a cowboy sitting on a horse, he immediately thinks of the Marlboro brand.
Color can also stimulate the consumer’s subconscious. For example, red and yellow are often reminiscent of MacDonald’s. A product with an unusual shape can also serve as an effective means to raise awareness. The famous triangular shape of Toblerone chocolate is a perfect example of a product that rose to fame thanks to its shape.
Sometimes the logo itself awakens associations for the average consumer as is the case with Coca Cola’s logo.
The appeal to a person’s senses, a collective memory for a group or nation, and even religious faith also constitutes effective advertising. The goal is to connect with and conquer the customer’s subconscious so that your product will always be lurking somewhere in his memory.
This article is based on a lecture by Ari Manor, CEO of ZOOZ, and a presentation by Martin Lindstorm.
