Marketing in an Economic Downturn

New American Marketing Association Survey Highlights Greatest
Mistakes, Challenges and Opportunities for Marketing Community
CHICAGO--(Business Wire)--
According to a recent American Marketing Association (AMA)
www.marketingpower.com survey, 60 percent of AMA member marketers
believe that halting or reducing spending on key marketing programs is
the biggest mistake marketers can make in an economic downturn.
Marketers also report that focusing on short-term tactics and sticking
to the status quo are some additional missteps marketers make.

"Our survey reinforces that these are challenging times to be a
marketer," said Nancy Costopulos, Chief Marketing Officer of the
American Marketing Association. "Management is pressing for greater
accountability from the marketing function, and the industry must rise
to the challenge."

Many marketers surveyed feel their greatest internal challenge is
demonstrating the value of marketing when sales are decreasing. Other
top internal issues include realigning marketing strategies to match
business objectives and focusing on longer-term brand strategies.

To help the marketing community manage these mistakes and
challenges, American Marketing Association offers the following four
strategies to enhance marketing plans in a downturn: shape the
message, don't slash the price; focus on who NOT to target; stand
apart from the crowd and invest in innovation; and sustain the brand.

1. Shape the Message, Don't Slash the Price

"Focus on the company's value to the market" - Anonymous survey
respondent.

Survey Fact

Only 3 percent of American Marketing Association marketers believe
that it is important for marketing functions to adjust pricing
strategy to help sustain and grow business during an economic
downturn.

Implications for Marketers

-- Conduct research to understand your competitor's positioning
and your target audiences' perception of the economic
environment.

-- Hone and refine your messages.

-- Highlight the value of your product or service, rather than
slashing the price.

2. Focus on Who NOT to Target

"Fish where (your) fish are" - Anonymous survey respondent.

Survey Fact

Sixty-seven percent of AMA marketers feel it is important to
mitigate the impact of an economic downturn by refining target
audiences.

Implications for Marketers

-- Assess which segments of potential customers you do NOT want
to target.

-- Demarket to inappropriate market segments. Simply stated, some
customers are more costly to serve than to lose.

-- Focus marketing strategies on customer segments that will
produce the greatest ROI.

3. Stand Apart from the Crowd and Invest in Innovation

"Major opportunities when others are cutting back" - Anonymous
survey respondent.

Survey Fact

A majority of AMA marketers, 66 percent, report that they would
take the same amount or less risk with a new product and/or service
innovation during a time of economic uncertainty.

Implications for Marketers

-- Differentiate through innovation with a product or service
that performs in a faltering economy.

-- Invest in R&D now to ensure your company is in a position to
compete when the economy rebounds.

4. Sustain the Brand

"Sometimes it is the reeducation of a product (that can help
sustain or grow a brand)" - Anonymous survey respondent.

Survey Fact

Sixty-three percent of marketers believe that they can lessen the
impact of a downturn by investing in brand building, as part of their
marketing plan.

Implications for Marketers

-- Establish access to executive officers to understand ongoing
shifts in business strategy.

-- Realign marketing strategies to match business objectives
quickly to demonstrate a commitment to the bottom line.

-- Qualify and quantify results quarterly to establish an ongoing
dialogue with executive officers.

"The key to success for marketers in this economy will be
supporting the short term, and managing for the long term," said
Costopulos. "It is more important than ever that marketers
simultaneously run a sprint and a marathon."

Survey Methodology

From May 6, 2008 through May 16, 2008, the American Marketing
Association conducted online interviews with 244 AMA members in the
continental United States. The sampling error associated with a sample
size of 244 respondents is plus/minus six to seven percentage points
at a 95 percent confidence level.

For an executive summary of the data, please contact Christine
Heath at christine.heath@fleishman.com.

About the American Marketing Association

The American Marketing Association is the largest marketing
association in North America. It is a professional association for
individuals and organizations involved in the practice, teaching and
study of marketing worldwide. It is also the source that marketers
turn to every day to deepen their marketing expertise, elevate their
careers, and, ultimately, achieve better results. American Marketing
Association members are connected to a network of experienced
marketers nearly 40,000 strong.

American Marketing Association offers highly acclaimed Training
Series, professional conferences and Hot Topic events focused on the
immediate needs of marketers, as well as trends shaping the future.
American Marketing Association's website, MarketingPower.com, is the
everyday connection to marketing data, articles, case studies, best
practices and a robust job bank. Additionally, the American Marketing
Association is the source for the field's top magazines and journals,
including Marketing News. Through local and collegiate chapters,
American Marketing Association members are connected with the best
people and the best practices.

American Marketing Association is also the creator of Mplanet, the
unparalleled industry event that brings together the world's most
creative thinkers, including senior marketing executives, top
academicians and other thought leaders, to share fresh insights, new
concepts, the latest research and solutions for the most pressing
marketing challenges and opportunities. Mplanet 2009 will take place
in Orlando, Florida, January 26-28, 2009.

For more information on the American Marketing Association or
Mplanet 2009, please visit www.MarketingPower.com.

Fleishman-Hillard
Christine Heath, 312-932-2804
christine.heath@fleishman.com

Copyright Business Wire 2008