Shift happens - SMBs tell staff 'just sell harder' to address economic challenges

"Now is the time to be firing on all marketing cylinders."

TORONTO - A survey of SMB (Small to Mid Size Business) owners across Canada shows most have made changes to marketing strategy due to the economic downturn - but these changes mostly focused on increasing sales quotas.

"I refer to this as the 'just sell harder' strategy to growing your business. Doing more of the same but expecting different results," explained Carolyn Reid, President, Red Wheel Marketing.

Red Wheel Marketing surveyed 25 SMB business owners/presidents located across Canada last month, in a July, 2009 survey, to gauge changes in marketing and sales strategies in the recession.

Findings include:

- 76% of businesses have been affected by the economic downturn

- 50% addressed the market downturn by dropping prices

- Business owners/presidents expected the same or better results from sales reps

- None of the companies surveyed provided a new or different sales support such as selling tools, lead generation or incentives

"Very few business owners made strategic changes - except for dropping prices. But now is the time to be firing on all marketing cylinders - in all marketing areas. Our survey respondents are focused on promotional activity - mainly selling. But without addressing other marketing strategies you have critical missing links and will not get optimal traction," added Ms. Reid.

Instead, Ms. Reid advised, SMBs should do a 'recession re-think' of their marketing:

1. First and foremost, understand your customers' changing needs

- Ask them how the recession is affecting their business; how their challenges and opportunities are changing. What are their current business issues?

2. Rethink marketing strategies

- Do address pricing strategy, but don't drop prices

- Consider developing a 'recession buster' offering that customers just can't ignore

- Re-examine key marketing strategy areas: target sectors, your product or service offering, pricing, positioning and promotions

- Tempting as it may seem, don't jump right to promotions. Do promotions last as the other strategy areas will inform it

- Have a fresh perspective

3. Align sales with new strategies

- Structure, tactics, process

- Equip sales team with tools & training needed

"Do not hang sales reps out to dry," she stated.

"The tendency is to freeze all expenditures in a recession. But history has proven that businesses that can invest in marketing stand out, fill the void, and make great traction," added Ms. Reid.