The Salak Group : Stragic Communcations and Research
Outlook 2010: Welcome to New Hope
January 20102010 brings the welcomed promise of better times for almost all sectors. Companies are expected to spend more on infrastructure, personnel, research, product development and marketing. Customers, in turn, are expected to return to their pre-recession spending ways as credit eases; the threat of job layoffs diminish; and general confidence re-emerges. Of course, it is not hard to beat the terrible economic times that began in late 2008 and carried through 2009. But it is critical to realize that growth is likely to be tepid well into 2010 and that the Great Recession has probably put a well-defined dent into the psyche of businesses and consumers alike – ultimately affecting how they think and spend. Companies, in turn, need to respond accordingly. The Salak Group’s Outlook 2010 provides guidance on driving returns in the New Year by identifying seven marketing shifts to keep in mind.
Recession: The Aftermath
The Great Recession that began more than a year ago has already safely claimed its place in history and its mark on our collective consciousness. But as the recession retreats in the face of the pending recovery, the market must come to terms with the intermediate and long-term impact of the last 18 months. Investors, for example, took years to return to the tech sector after the Dotcom Crash of 2001. So what are the consequences of this economic collapse?
There are several. The cult of the business executive, while not entirely dead, will be lessened for the next few years as companies look to promote their brands instead of their C-level executives. Corporations will undoubtedly increase their spending on IT, marketing, sales and product development going forward, but they’ll also strive to identify and secure greater returns on their outreach investments. This will result in an uneven move to digital-based outreach as companies wrestle to determine how these initiatives can effectively drive business.
In line with the focus on ROI will also come a shift to centralized decision making – at least for the next few years as companies focus on getting it right (read: making money). Ultimately, the legacy of the Great Recession won’t actually hinder or help the recovery. As always, the economy will be driven and led by companies that can connect to their targets, leverage new channels and integrate their outreach.
Marketing 2010
The good news for marketing companies is that 90 percent of all businesses plan to spend more on various outreach initiatives in 2010 – which comes as at least 50 percent of their customers report they’ll also spend more this year, according to a Print in the Mix survey. Not surprisingly, these executives say they’ll be driving most of their increases into popular and inexpensive digital initiatives such as e-mail marketing, social media and search engine optimization.
The greater challenge for marketing executives is distinguishing between popular (read inexpensive) digital tacks and effective outreach that will take advantage of the rebounding economy. Marketing heavyweights Kevin Clancy of Copernicus Marketing and Charles Colby of Rock Research recently told MarketingAcademics that winning the sales and marketing battle of the recovery is going to require leveraging customer loyalty, targeted marketing, and data driven initiatives – in short, investments in business intelligence.
