Prepare now for good times { series: small business marketing tips for the home building industry }
SUMMARY There are pockets of good news even during this recession. Home builders who take smart steps now will be positioned to rocket ahead when the economic tide turns.
Originally published in Toolbox Magazine [ Charleston Home Builders Association ], Feb 2009
By Tiffany Jonas
If you're like me, these days you hesitate before turning on CNN. Economic gloom and doom have filled the airways for so long, it's tempting to think good times will never come again.
Take heart! Not only will good times come again (the economy is cyclical), there are pockets of good news here and now. And better yet, companies that take smart steps now will be positioned to rocket ahead when the tide does turn.
Rays of economic light
We're living in a time of record low interest rates, and adding to that, the Columbia Regional Business Report reported in late October that South Carolina has the fifth best housing market in the US, thanks in part to fewer subprime mortgages and fewer foreclosures. "With newly enacted legislation providing a tax credit of as much as $7,500 for first-time homebuyers, and the SC Housing Authority providing down payment assistance, an increasing number of South Carolinians can reach the goal of owning a house while helping fuel the market and impact the economy," the report said.
For many local businesses, too, the glass isn't empty. The Charleston Regional Business Journal distributed the results of an email poll on November 21. Nearly half (42.24%) of local respondents reported their businesses had grown in the last year, and more than a third (35.54%) expected their firms to grow in the next year. More than a third is a pretty hefty minority… and these firms aren't just treading water, they're actively growing.
Add the historic inauguration of a president inspiring such hope, and the picture becomes brighter yet.
Parting the clouds
The first step is to make it to the upcoming economic turnaround.
Don't lose your head. Instead, use this time to think more strategically than ever. Barry Judge, chief marketing officer at Best Buy, advises, "Take a closer look at the marketplace for areas where consumer demand remains relatively strong or where demand is emerging as a result of the weakening economy."
You might even turn poor economic news to your advantage. In a January Charleston Regional Business Journal article, marketing executive David Rawle noted that in times of turmoil people want to feel good: sales of pajamas and puppies spiked after September 11. Happily, homebuilders are uniquely positioned to provide this kind of comfort. In your marketing, consider featuring images of safe, snug homeowners curling up on the sofa in a blanket or enjoying a movie with a loved one next to a crackling fireplace. Add a mention of historically low interest rates to nudge those gazing longingly at your cozy photos into action.
Prepare for sunny days
Companies that make smart choices now will position themselves for tremendous growth once the sun comes out again… and the smart money is on marketing. "This is not a time to cut advertising," says John Quelch of the Harvard Business School. "It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times."
Public relations guru Elizabeth Boineau of E. Boineau & Company agrees. "If you have to make cuts, try to leave the lean mass (the marketing budget) intact. If not, it could be the other guys who are positioned for the rebound when the economic storm clouds lift, while you're still trying to find your way out from under that rock. When that time comes, and it will, be sure you haven't buried yourself so deep in the economic ditch that you can't jump back in with gusto for all that lies ahead."
About the author
Aio Design founder Tiffany Jonas graduated magna cum laude from the Missouri School of Journalism, a top journalism school, with a degree in advertising. She also holds a Bachelor of Arts degree in English and has taken coursework toward an MBA. She is a member of Mensa, an organization for those who have tested in the top 2% of the population on a standardized intelligence test, and is also a member of the American Marketing Association and the eMarketing Association. She has been the two-time recipient of an 11-state award for design, honored at the Chicago Book and Media Show, and the New York Times called one of her book designs "well-produced and elegant." In 2008 she was named one of the Charleston Regional Business Journal's Forty Under 40, an honor recognizing individuals who have achieved professional success while contributing to the Charleston community.
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