Recession or Depression: Does it Matter?

What’s the difference between a recession and a depression?

The old joke is it’s a recession if your neighbor has to close his business, but it’s a depression if you have to close your business. Of course it’s no laughing matter in either case.

Economists can eagerly offer precise descriptions of the difference between a recession and a depression. Those who lived through the stock market crash of 1929 and the Great Depression can clearly describe the difference. As we all approach the economic conditions of 2009, those descriptions may be important, but they will make little difference in what you need to do to survive and thrive during the next year.

The key to business success is the effectiveness of your marketing. Take note that I didn’t say the key to success was your advertising. In fact, you may need to STOP advertising. It may be a radical thought, but if your advertising isn’t working, doing more of it isn’t the answer.

Let’s get back to marketing. Here are several prescriptions to keep the doom and gloom away from your door:

• Narrow Your Focus: It’s time to really understand who buys from you and direct your marketing efforts to a more narrow, focused target market. Continuing to cast a wide net and hoping someone will buy from you will lead to an early demise for your business.
• Bundle Your Products and Services: What can you do to increase the value of your products and services? Why not combine several items into a package of even greater value? Why sell a la carte when you can offer the Full Meal Deal?
• Rethink Your Pricing: Unfortunately, you have probably based your pricing on your competition’s prices. What you didn’t know was they were losing a nickel on every sale – hoping to make it up in volume! It’s time to sharpen your pencil and set your prices based on the real value you offer the market.
• Improve Your Sales Process: What if you could improve your conversion process – get just one more prospect to become a customer each week? That’s fifty (50) new customers a year. How would that help your business survive the economic crisis?
• Connect with Your Customers:  Customers change who they buy from due to a lack of interest by the company. It’s pretty obvious that you don’t want to lose any customers now. Start communicating and get your current customers to come back again, and again and again!
• Get in the Internet Game:  Is your website driving people towards you or away from you? Your website is simply the most important piece of marketing your business in 2009. Why? Because no matter how people hear about you, they are going to visit your website to learn more before they buy. Make it better – now and every day henceforth!
• Build Strategic Alliances: You know you don’t want a depression for your business. Why not help your neighbor avoid a depression for their business? It’s the greatest leverage you have in helping each other survive and thrive in 2009 – and beyond!

Your business can survive these economic conditions. If you focus your energies on effective marketing, there will be neither a recession nor a depression for your business in 2009.

About Bill Merrow
Bill’s marketing career began in 1984, leading to opportunities to manage a 40,000 person sales force and sell over $500,000,000 through direct mail. His consulting clients include General Electric, American Express, Walmart and hundreds of smaller firms. Bill specializes in helping small businesses differentiate themselves from their competition and create massive growth in sales and profitability. Contact Bill at bill@azprofitplanners.com or visit http://www.azprofitplanners.com/.

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