October 2002

BY NADJI TEHRANI

This slow economy may not be popular among many, but, for marketers, it offers the greatest opportunity to seize additional market share and leapfrog the competition through powerful advertising and marketing. To me, this is a golden opportunity to position your company for market-share leadership and maximum profitability when the economic turnaround comes.

Everyone becomes extremely lean and mean by downsizing and reducing costs substantially. Its amazing how corporations, when under pressure, will learn to eliminate so many unnecessary expenses without which you can really live very well. For the savvy businessperson, that means a great opportunity to turn your company around and make it much more profitable and grab a far greater market share. If you are not already, then become the new market leader by leapfrogging over the competition.

The Biggest Mistakes Of All
In my judgment, two of the biggest blunders made by corporations are as follows:
1) The greatest mistake made by downsizing is laying off the core people who are the foundation of your business success. Let it be known that categorically I truly hate to lay off anyone solely because of economic conditions.

2) Many ill-advised senior managers also authorize drastic cuts in advertising, marketing and trade show participation. As far as I am concerned, these people are making the greatest possible mistake and thereby inflicting the greatest possible damage to their corporations. Here is why: in a slow economy such as the one we are now experiencing, every corporation loses anywhere between 50 to 70 percent of its current customers. We also know that all sales begin with a sales lead. Furthermore, the sole purpose of marketing, advertising and trade show participation is to generate qualified sales leads which, when handled properly by the sales department, will become new customers. However, when you cut all marketing, advertising and trade show budgets, and you lose 50 to 70 percent of your customers, how then can you replace the lost customers and still remain in business? To me, this is a very simple principle of business and yet in every recession, the majority of corporate leaders still make the mistake of eliminating their marketing, advertising and trade show budgets. In my judgment, this explains why so many companies go under at such times! Its like cutting off your nose to spite your face!

A Blueprint For Making The Most Of A Slow Economy To Gain Market Share
If you study business extensively, you will reach the conclusion that the new leaders in any business usually arise through aggressive marketing, advertising and trade show participation in a slow economy. My position is that if you dont advertise aggressively in a down economy, then you wont be around when the economy turns around.

A Few Success Stories
Over the last six months, I have studied the companies that are effectively marketing and advertising in this economy, and as far as I have been able to determine, their market share has improved considerably.

Example 1 The Computer Industry
Dell Computer: In my judgment, Dell exhibits the best in class in innovation in marketing and advertising in a down economy. Whether you are an avid television watcher, reader or radio listener, it is impossible to turn on a popular channel on TV, pick up a business magazine or listen to a popular radio station without running across a clever Dell advertisement.

Recently I turned on the TV set in my office around 7 p.m. to listen to the news and there it was a Dell Computer commercial. I left the office that night, got into my car, turned on the radio and what did I hear but another Dell advertisement. I have seen and heard their ads so I often I have even memorized their tag line: Easy as Dell.

You might ask yourself, what did Dell gain by doing this? They used to be number two behind Compaq, but as far as I can determine, they are now clearly number one. By contrast, I rarely see advertisements by Dells competitors, which leaves the field wide open to Dell as their competitors are making the biggest mistake of all no marketing, no advertising and no trade show participation, which means the kiss of death.

Example 2 The Auto Industry
BMW: For the last six months and even longer, in my personal opinion no luxury car manufacturer has as aggressively and cleverly advertised as BMW. You can praise BMW for practically everything for which I praised Dell Computer when it comes to aggressive marketing, advertising and market share improvement. No matter what medium you are looking at or listening to, you are bound to hear or see a BMW advertisement, which is contributing, Im sure, to their domination in the luxury car sector. Once again the competition is napping and leaving the marketplace wide open to BMW.

Example 3 The Financial Services Industry
Charles Schwab: Charles Schwab has cleverly picked up a new niche for themselves by differentiating themselves from all other financial services companies by embarking on an aggressive marketing campaign by saying that at Charles Schwab the investment banking side of the business does not control what the brokerage side tells the customers. In other words, there is a higher degree of integrity in what Charles Schwabs brokers say.

Example 4 The Bedding Industry
Sleepys: Anyone who lives within the New York metropolitan area must hear or see a Sleepys ad in the newspaper, on TV or on the radio every single day, even perhaps several times a day. As I indicated in my editorial last month about differentiation and positioning (http://www.tmcnet.com/cis/0902/0902po.htm), this type of 24/7/365 marketing is vital to any companys success. Sleepys came out of nowhere to overtake the former number one bedding company and is currently in the number one position and of course, no one cares about the number two company as I explained in my September Publishers Outlook. You might ask, how did they do it? Simply stated, by aggressive marketing, advertising and promotion in all kinds of media 24/7/365.

The Bottom Line
As all of the above examples point out, there is one and only one way to increase your market share and become number one in your field, and that is by aggressively marketing, advertising and trade show participation and dominating all media including the Web.

What makes this marketing strategy so critical today is if you adopt it you are practically the only show in town because most of your competitors are staying on the sidelines waiting to go out of business. Great opportunities dont knock several times: one is knocking now.

Step-By-Step Guidelines
If you are really and truly committed to positioning your company for maximum market share and profitability, here are a few suggested steps for you to take:

1) The Role of CRM: You must genuinely try to keep most, if not all, of your existing customers through implementation of a truly functional and sensible CRM and e-CRM program.

2) The Case For Marketing Frequency: Position and differentiate your company 24/7/365 in an advantageous way and remember that aggressive marketing, advertising and promotion are NOT part-time jobs. A true leader doesnt claim leadership for one week, disappear for six weeks, place a couple of ads and then disappear again for six months. Those types of leaders wont be leaders for long. In fact, they will become followers and in some cases go out of business.

3) On Positioning And Differentiation: Through your clever positioning and differentiation tactics, be very specific communicating to the marketplace what sets your product or service apart from your competition. This is vitally important because it gives your customers and your prospects a reason to buy from you rather than from your competition.

4) Remember, if you do not position yourself 24/7/365, your competition will position you in the most disadvantageous way.

5) Market Aggressively: Maintain the most powerful, aggressive marketing campaign that includes a clever marketing strategy, truly effective advertising and targeted vertical trade show participation. Remember, that there is no shortcut to marketing domination, the greatest market share and success.

In my opinion, the above guidelines are a few of the most vital points you need to keep in mind. Focus on them 100 percent and implement them around-the-clock, 365 days a year if you are to gain the lions share of the market and leapfrog your competition. And remember that this economy is truly on your side to help you gain your dream market share make the most of it.

Announcing A Teleservices Research Report From TMC
Last but not least, TMC is proud to announce a new, authoritative research report on the teleservices industry. Please see Rich Tehranis High Priority! column for more details. You will find it a useful tool in your efforts to improve your market share.

As always, I welcome your comments.

Sincerely,
Nadji Tehrani
TMC Chairman, CEO and
Executive Group Publisher
ntehrani@tmcnet.com

[ Return To October 2002 Table Of Contents ]