If your business is assumed to be a vehicle, consider marketing as the fuel which keeps it going. If thereís no fuel, there would surely be no movement.
In order to make your business survive in the extremely competitive global market, you have to market your business well. A lot of businessmen make the mistake of cutting the marketing budget along with other expenses at the time of recession. They have the misconception that they can generate better business if they cut down all their costs.
There are a large number of people who have enough money to spend, in every economy, no matter how dwindling it is. They are not hesitant to spend their money on the thing they want. If people have a will to buy something, they will surely pay for it. Effective marketing implies that you attract the customers to buy your product and not your competitorís.
Cutting down prices is more of a dead-end strategy. If you lower down your prices, youíll boost up your business temporarily but soon enough, your competitors will do the same. This will make you end up with the same level of business you previously had. At the same time, youíre getting very less revenue from your business. It is not a practical approach since you work for the same number of hours and get less income.
The main thing to do when the economy is falling is realizing that people still want to spend money but now they want value for it. People would definitely think twice before spending money. The best way to face such a situation is market your product as the high-value choice. Cheap prices are certainly not a solution to this. The more realistic solution is high prices and top class services. People have the mentality that cheap prices means services which are not upto the mark. If your prices are high, it automatically means that your product is genuine and of high quality.
Build long lasting relationships with your customers instead of building sales. Retaining customers throughout the life is very important part of successful business. Target a small market. Determine the customers who are perfect for your business and focus on selling to them. You can charge higher prices since the customers see you as an expert manufacturer of that product.
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