Fears of recession, a sinking real estate market, and a weak American dollar are all contributing to a slow economy. In turn, businesses are feeling the crunch – especially small business owners.

By Marlene Bauer Pissott

“A small business’ first instinct is to cut spending when the market slows,” says Marlene Bauer Pissott, Founder and President of InGroup, Inc. and WebSwagger.com. “Where they make a mistake is cutting their marketing budget altogether. Now is actually the time to step-up marketing efforts.”

The Center for Research and Development conducted a study during the 1990 recession that reported businesses who increased their advertising during the economic downturn obtained 4 ½ times the market share gain of competitors who did not increase marketing spending during the same time period.

Pissott explains however, that when the economy is suffering, small business owners need to market wisely. Here are some ways to focus your strategy:

• Stick to the basics of marketing. Every small business should have at least a Web site, brochure, and proper signage with important contact information including a Web address. 
• Evaluate your marketing budget by reviewing previous campaigns to weed out any that did not have a favorable return on your investment. Repeat what worked the best.
• Consider staying local with marketing and advertising campaigns. Target a smaller audience in your surrounding area. When times are tough communities become tight-knit and prefer to support local businesses that they know and are close-to-home.
• Target your message to the audience (or demographic) you are reaching out to.  Speaking specifically to them will more likely get you a response.  
• Call to action!  Every advertisement, direct mail or e-mail campaign, and Web site should have an incentive to motivate a response such as a free consultation or limited-time offer.
• Don’t rush to offer deep discounts. This can affect the perceived value of your business, which can have a bigger impact on your bottom line once the economy turns around. In addition, the customers you gained while you reduced your prices will most likely leave as your prices return to normal.
• Offer referral incentives to maintain long-time customers and encourage new business. Your loyal customers can bring in qualified leads and new clients who are ready to purchase the great product or service they heard about from their friends.

 “The most important thing to remember is that the economy will turn around,” says Pissott. “You want to maintain your visibility so that you’re the first name on customers’ minds when they start spending more freely again.

Marlene Bauer Pissott is the President and founder of InGroup, Inc. and WebSwagger.com.

Serving the needs of small businesses and professional service firms around the nation, WebSwagger.com offers unique, professional and affordable Web sites and co-branded marketing materials. Web services include creative development, hosting, e-mail, basic site optimization, e-commerce and more.  Print materials include brochures, folders, announcement cards and other collateral to assist with sales and marketing efforts.

WebSwagger.com is managed by InGroup Inc.— full-service creative agency, in Bergen County, N.J., providing innovative marketing and communications services since 1995.  For more information visit www.WebSwagger.com or call, (888) 772-6400.