Recently, Dean Michael Knetter of the UW Madison School of Business gave a presentation to the Milwaukee Chapter of the American Marketing Association. Dean Knetter’s presentation focused on the current economy and what it means for business marketing.
First of all, Dean Knetter’s forecast for 2010 – slow and steady Gross Domestic Product growth of three percent – what he called a “sluggish recovery.” He felt that three things were really going to be important for marketing during this recovery:
1) People are trying to be more efficient and to do more for less. He sees more businesses using social media marketing because of the low cost of these tools and their ability to directly “harness the customer.”
Our thoughts: It is important to remember that although the barrier to entry for social media is very low and that many of the tools are free, the barrier to success and actual cost of implementing a good social media program is high. Social media can take a lot of time and time is money. In addition, many business owners make the mistake of jumping in to social media without a well thought out strategy and end up being disappointed with the results
2) There is no free lunch – people want a certain level of expertise when they make a purchase.
Our thoughts: Many of the strategies we often recommend; use of social media, newsletters, educational events, and public relations are excellent ways to demonstrate your expertise. However, it is important to be aware that there are more “experts” than ever, so you must be consistent and provide advice, not just sell when you communicate. Don’t be afraid to share what you know.
3) We are moving into a knowledge economy. People will buy your knowledge, and knowledge is also important when you are trying to sell your product or service.
Our thoughts: Social media makes understanding your current and potential customers and your competitors easier than ever. Even if you don’t use social media to market your business, it is worth taking the time to listen. You never know what you will learn.
There is no doubt that even if the recovery is sluggish, changes in marketing are not. Which leads to another point Dean Knetter made – that if people, whether a business or an entire country, try to hold on to the past and aren’t open to new ideas – they will be passed up by their competition. He saw it happen in Germany and says he sees it happening in Wisconsin. Don’t let it happen to you.
RSS feed
