4 days ago
3 Ways to Adapt Your Marketing Strategy During Continued Inflation
What does digital marketing during inflation have in common with a triathlon?
In both, you're playing to your strengths, mitigating your weak points and budgeting your fuel or resources so that you can pull through.
Inflation, the general increase in prices and the decline of purchasing power, negatively affects marketing. Specifically, when there's inflation, marketers are gun-shy about increasing their marketing spend since their customers are buying less.
However, contrary to this knee-jerk reflex of reducing marketing activity in the face of inflation, businesses should consider each inflationary period as a rich vein of innovation and creative marketing.
Going back to the triathlon analogy, you wouldn't entirely take yourself out of the race. Instead, you would pace yourself until you reach your final sprint.
What we're saying is that contrary to popular belief, inflationary periods, no matter how long, can still facilitate tremendous growth for your business.
The caveat is that you must optimize your digital marketing strategy to offer customers solutions for inflation-based challenges.
We'll break down marketing strategies that can help you:
Cast your net marketing wider to access underserved markets
Optimize your digital marketing strategy for various market segments
Keep your customers' interest in your brand
Restructure Your Product Mix to Maximize Marketing Spend
Consumers are unhappy when brands raise their prices because they see this as passing the cost burden onto them. Worse yet is shrinkflation, the quiet reduction of package sizes without lowering prices.
Reevaluating your product mix is a great way to make these cost savings on the product and marketing without burdening your customer.
What does this look like in practice?
The 80-20 rule probably applies to your product offering. Identify the 20% of products yielding 80% of the output and focus the marketing spend on them. Back burner the rest.
During an ongoing inflationary period, you want to focus your marketing message to the masses around affordability, so keep prices steady.
Leverage the upmarket segment of your customer base. The top 5% income bracket hardly changes their spending habits because of inflation. In fact, they expect prices to go up. Choose a product in your inventory that can be marketed as a marker of success and innovation and charge a premium for it.
Kraft Heinz exemplified the last tip by introducing a more expensive, chef-inspired line of sauces, the Heinz 57 Collection, to elevate their customers' culinary experience.
Think Globally
Shifting focus towards a global marketing strategy can open up avenues for growth while your stronghold undergoes economic disruption and cannot yield the return you're used to.
Marketing globally provides:
New revenue growth opportunities
Increased awareness of your brand and credibility
Insights into where your product can improve
Lego, the toy company, is a stellar example of this. Lego limped into the 2008 financial crisis, mostly servicing the North American market, burdened with debt and an overloaded product portfolio.
When the toy manufacturer refocused on marketing their classic products in European and Asian markets, their sales rose by a third in 2009 despite the economic downturn.
With the reach of digital marketing, targeting the global market has never been easier.
Optimizing your marketing strategy globally isn't so much about pushing new products; rather it's repackaging your existing product for a new demographic.
If you're in e-commerce, Shopify and similar platforms can yield analytics on the locations where you have the biggest draw. This is a great place to start your new market research.
For digital marketing campaigns, whether pay-per-click, email marketing, or content marketing, tools like Google Analytics, HubSpot, Semrush, and others can give insight into your untapped or under-serviced markets.
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