ANUBIS

INVEST IN MARKETING DURING RECESSION WHILE YOUR COMPETITORS SIT STILL, SAYS MARTIN LINDSTROM

Advertising guru gives top 10 tips for an economic downturn in the run-up to his live Buyology Symposium in Dubai on April 19

(Dubai, February 22, 2009): Emphasise tradition and heritage in your advertising campaigns and don’t cut your prices, said marketing guru Martin Lindstrom, as he revealed his top 10 tips for the advertising industry during the economic downturn.

Brands that invest in marketing during a recession tend to gain market share as their competitors lose focus on their overall strategy, he said.

Lindstrom was speaking in the run-up to his Buyology Symposium, to be held in Dubai on April 19. The symposium – the first time it will be held in the Gulf – will cover the impact of subliminal advertising and the revolutionary influence of neuroscience in marketing.

The book, Buyology, which was released in October, is the result of a groundbreaking study on NeuroMarketing, which studied thousands of volunteers and was the largest of its kind ever taken.

The three-year study, which uses the latest brain scanning technology to reveal the science behind what makes consumers tick, is the single biggest breakthrough in marketing in decades, according to global experts. The pioneering research will turn advertising and market research approaches on their head, and refute most of what we thought we know about why people buy.

Here are his top 10 tips:

1.    Don’t cut your prices – research shows that by discounting your brand during a recession it will take you 7 years to recover to your original price level.

2.    Focus on your brand strengths (real not imagined!), and emphasise heritage and classic / traditional values – while the crisis is on people tend to hark back to the memories of the good old days.

3.    Do exploit the fact that your competitors may have shrunk their advertising spending – you can rapidly win back mind share as well if you have the courage to act now. Then rely on your operations and product teams to keep you ahead long-term.

4.    Brands that invest in marketing during a recession tend to gain market share when the recession ends. It might seem wrong to splash out on a new ad campaign when you are cutting staff, but if the message is right and the campaign is well executed, the investment will pay off in the long run.

5.    Bundle up: instead of cutting prices on your top brands, offer something for free as an add-on to your core (non-discounted) brand. So if you happen to sell bags, don’t discount your bags but throw in a free keyring instead.

6.    Create strategic alliances with matching products or brands. If you happen to sell jewellery, then team up with the local flower store. Let the flower store promote your jewellery and ensure you’re promoting their flowers whenever a couple comes to you to buy an engagement ring, for example. The result? You double your reach and marketing budget – for next to nothing.

7.    Play on the practical dimensions of your brand. Does the product you sell last longer or stay fresher, or can they be used for multiple purposes (for example, if you sell jackets, can you turn them inside out and suddenly have a second colour option)? During recessions consumers are practical – make your brand practical too.

8.    Make your agency more accountable for strategic decisions as well as costs. Take advantage of the economic downturn to make your agencies work and think harder for their fees.

9.    The overriding influence of the global ad agency or mother brand in campaigns is over. Local agencies and marketing teams within the organisation must have an increasing influence on marketing strategy to ensure campaigns speak directly to their consumers – so listen to them!

10.    Don’t spend money on a flashy new logo – you’re not going to need it in five years time. Instead, spend the money on making your marketing communications adverts appeal to more than one of the senses (the sense of smell is far more effective than sight!).

The Buyology Symposium, which will tour more than 50 countries in 18 months, will have its first Gulf event in Dubai on April 19, before moving to other countries later in the year. Lindstrom will appear live and in person at each event. International events organiser Global Leaders – based in Dubai – has been awarded the exclusive event contract for a number of countries in Africa and the Gulf.

The research project lasted three years and cost US$7 million. Among the companies to take part in the research were: Apple; Coca-Cola; American Express; Ford; Louis Vuitton; Nike; Samsung; Sony; and Tiffany & Co.

The findings are predicted to revolutionise the advertising and marketing industries. According to the findings, the majority of the $600 billion global advertising spend is currently wasted, TV commercials are “dead in the water” and product placement is completely off-track. For the first time in history, the application of neuroscience and Lindstrom’s findings will accurately predict what budgets are wasted and what products will fail.

Event partners include: The IAA Kuwait Chapter, The Times International, The National, Communicate, Gulf Marketing Review, MediaWeek, bime.com, ameinfo.com, eyeofdubai.com, Function Films and knowledge network. More details are available at www.globalleadersevents.com/lindstromae or www.martinlindstrom.com.

ABOUT MARTIN LINDSTROM
MARTIN LINDSTROM is one of the world’s most respected marketing gurus. With a global audience of over a million people, Lindstrom spends 300 days on the road every year, advising top executives of companies including McDonald’s Corporation, Procter & Gamble, Nestlé, Microsoft, The Walt Disney Company and GlaxoSmithKline. He has been featured in The Washington Post, USA TODAY, Fast Company, and more. His previous book, BRANDsense, was acclaimed by the Wall Street Journal as one of the five best marketing books ever published. Lindstrom’s latest book Buyology is published on Doubleday New York. Visit www.MartinLindstrom.com to learn more.

Source:  www.globalleadersevents.com/lindstromae

Related links: http://www.globalleadersevents.com/event/pdf.cfm?eventID=92&pdf=92-PG053-en.pdf

www.martinlindstrom.com