Business in General Archives - Page 24 of 25 by Mark Murnahan

Target Layoffs

I often keep an eye on Google Trends to find the hot searches of the moment. This is a great way to find interesting news articles, and since I am a search engine optimization guy, it makes good sense. When “Target layoffs” became a leading search phrase at Google today, I could not help but wonder how it may affect my hometown of Topeka, Kansas. It was only a few years ago that the economy was strong and Target built a new distribution center in Topeka. Fortunately for many, Target says it will only plan layoffs at the corporate headquarters in Minneapolis, Minnesota.

The topic of mass layoffs got me to questioning how bad it has become. What I found was that The Bureau of Labor Statistics reports mass layoffs (defined as “establishments which have at least 50 initial claims for unemployment insurance (UI) filed against them during a 5-week period” ) are at an ever-increasing rate with totals as follows:

Month	Mass Layoff Actions
January 2008	1438
February 2008	1672
March 2008	1571
April 2008	1308
May 2008	1626
June 2008	1643
July 2008	1512
August 2008	1772
September 2008	2269
October 2008	2140
November 2008	2328
December 2008	N/A

Recent and Upcoming Mass Layoffs

Layoffs seem to be unavoidable with large corporations recently. A few of the companies joining Target with massive recent and upcoming layoffs include Sprint Nextel, Caterpillar, Home Depot, Pfizer, and Texas Instruments. This makes the Target layoffs seem like only a raindrop in a sea of recently unemployed, estimated at roughly 170,000 American layoffs in January 2009.

Internet Job Searches: Self-Promotion

Considering all of these layoffs, surely the number of people using the internet for job searches will be at an all-time high. It is an “employer’s market” due to the flood of available talent, which reminded me of my recent blog article on marketing in a recession. I realized that not only must companies develop a stronger marketing presence by embracing the Internet during a recession, this also applies to marketing an individual’s talents while seeking employment. I am very thankful that I am not seeking a job, but for anybody who is, a look at my list of social networks on the left of my blog would be a good start for the person wanting to make themself more visible for potential job opportunities. Using social networking and the power of search engines may be just what it takes to help you to stand out in a crowd. It only takes a few minutes to join and create a profile, and will likely be time well spent.

American Work Ethic vs. Globalization

At first sight, you may wonder how “American Work Ethic” (or decline thereof) ties into a blog about search engine optimization (SEO) and Internet marketing. I will try to sum this up quickly by reminding you of another term that has been equally misunderstood and ignored, and that is “Globalization” or “Global Market” and the increasing comparison of American workers to other nations.

Comparing American Work Ethic

When comparing American work ethic, a useful measure is in the entrepreneurial success enjoyed by many immigrants to the USA versus natural born citizens. According to a November 2008 study by the Small Business Administration, immigrants are 30% more likely to start a business than non-immigrants. The study also shows that while immigrants comprise only 12.5% of the total American population (2000 US Census), they represent 16.7% of all new business owners in the United States.

With a deeper look into the culture of immigrants to the USA, we can see a greater willingness to sacrifice today for a better future. Immigrants also do not see the challenges that many Americans blame for their lack of achievement, but rather see all of the opportunity that natural-born American citizens overlook. It is common that immigrants will keep to a more humble lifestyle, avoiding the need to show off their hard work in the form of a flashy car or home. This can be attributed, in part, to the fact that even a less than magnificent lifestyle in America is often still much more luxurious and comfortable than found in their country of origin.

When comparing an average American worker to their counterpart in other nations, it spells out a picture of being very spoiled with luxury, and taking much for granted. As an American worker myself, I have enjoyed many of the spoils, and I am not at all removed from this. I can imagine that most proud Americans would agree with the statement that for the most part, we have had it really good here in the USA. All the while, many people from other nations will work much harder and display greater work ethics to achieve the luxuries that Americans take for granted. Such luxuries in America as food on the grocery store shelves, paved streets, running water, and functioning sewage systems, are not government entitlements in many countries.

The American Work Ethic: Possible Causes

Family: The question of declining American work ethic could be related in some ways to the question parents have always pondered of whether kids are really getting worse “these days”, or are we just viewing it from a different perspective. It is easy to argue each side of the equation, but if you try to quantify it, I think the answer is yes, kids are getting worse in many ways. The decline in the American family due to divorce, job demands, and many other environmental factors has left many kids to be raised by their peers. Clearly, if you look back 20, 30, or 50 years, you will find violent crimes, drug use, teenage pregnancy, and many of the other woes of America today were at much lower levels in the past. You cannot sum this up to just having our eyes closed in the past. These are real problems that have become much more common as time goes by. Relating this to the American work ethic is not a big stretch.

Entitlements: Americans as a society base much of their security on entitlements. This entitlement mentality has worsened with time, to the point much of America relies on things that have no perceived cost. If you put figures on the cost of any given family, many American families would be shocked to find that while they believe they are contributing, they are rather taking multiple times more than they give. This multiple would grow to an epic level for any family with a member in one of our overcrowded luxury prisons. Those entitlements I mentioned above, are not entitlements in many nations, and they have a cost. In America, these luxuries are supposedly gratis, because some rich uncle named Sam just makes it all happen for them. This is not to say that USA is not a better nation with many of the entitlements, but without careful limits there is a point when it all breaks down. When entitlements deter work ethic, and when corporations jump on board and are entitled to bailouts, we have perhaps found that point of failure.

American Work Ethic: Decline in Rewards

The rewards for high work ethics in America have declined. This decline in reward for achievement has become more apparent in 2008 and 2009 than in recent years, with a decline in the global economy. The majority of Americans have cut back in spending, while often working more than before. This makes the reward for high work ethic a tough adjustment for many Americans. Adding to the struggle is a vast improvement over USA in technology and education in other industrialized nations. This makes it more important than ever for Americans to recognize the sweeping influence of the “Global Marketplace” or “Globalization“, and to take action.

At perhaps the worst time ever, the American society continues to threaten incentives for future generations. A frightening factor in the future of a globalized market is an American education system that is increasingly accepting the notion of eliminating the system of rewards in our schools with the A, B, C, D and F grading system, but rather incentivizing efforts. I remember the words of a great sales manager I once worked with. He would always remind his sales team to “never confuse efforts with results”. Sadly, the systems of incentive are breaking down, and make no mistake, the results will follow.

De-incentivizing excellence out of concerns for marginalizing the average is completely counter to productivity. If you take out the incentive and make it tougher for those with the means to pull the train, the train will stand still. There will always be a 20/80 rule in life that shows that 20% of the work force will produce 80% of the results. This is not a myth, and it is not a new notion.

Americans in a Global Marketplace

How Americans can prosper in the global marketplace comes back to the purpose of my blog. I cannot offer a magic pill to cure the American condition, but I can give some useful information on how to remain competitive in the face of globalization. Some will have a position of defending their standing in the global market, while others will embrace globalization. Whatever your position, the Internet, particularly the search engine, is your front line. The Internet has held a huge role in expanding globalization, and is also your best means to work within or to defend yourself against a market that is increasingly globalized. Your best leverage of the Internet is with high quality search engine optimization (SEO) to place your Website in the most visible top rankings in searches.

Search engine optimization (SEO) holds an even greater role than ever before in reaching your market, whether locally or globally. There is neither job nor company immune to the expanding reach of globalization. If you are waiting around with a “wait and see” mentality, you will find that you will have accrued a great cost of lost opportunities, and a much steeper hill to climb when you reach your decision.

It is not time to form a committee to meet about thinking about talking to a SEO professional and taking five Americans to do the job of one decision maker. It means that the train is coming down the track, and you must choose to be on board or be left behind.

Back to Business Basics: Remember Your Market Research

Chicken or Egg: We all have pondered the question of which came first, but how does this apply to your business? Once upon a time, you knew what came first. Recent economic concerns have led many people to forget or neglect the things that made them successful in the first place. If you have had concerns with the recent economy or how to improve your business, this is to you.

Market Research

Most successful businesses started as a great idea, but before you built a factory or opened a bank account, there was market research. Even if it was just asking a few friends, there was something to say that it would be worth the effort to bring your great idea to market. Market research is what gives people the confidence to invest themselves in a business or dismiss the idea and move on to the next brilliant plan. Once the market research returns favorable answers, progress can begin.

Marketing Plan

The next reasonable step in any business is a marketing plan. After all, without marketing, a business will fail. In order to sell a product, you must first know your market, and then find the best way to reach your market with your message. Even if the plan is to order 1,000 business cards and hand them out to everybody you know, there is a plan.

OK! This is where I can stop with the whole business lesson. What I covered in the first few paragraphs of this blog entry should be enough to remind you of where you started. If the present economic recession has clouded your view of the things that come first, it is time to remember the earliest days. The first challenges nearly any business will encounter revolve around marketing and helping others to discover the product or service offering.

Executing a Marketing Plan

In the beginning of most new companies, the funds are tight. For many business owners, the present economic environment provides a clear reminder of those times. If you can relate to this, what you knew back then was that regardless of all else you must execute your marketing plan. Executing your marketing plan was the only way you had hope of better days. The sales you received from that first marketing plan brought the profit needed to expand and continue. So, why should it be any different now?

Internet Marketing is the Most Affordable

The facts and figures surrounding the marketing industry show beyond a shadow of a doubt that Internet marketing is the most cost-effective means to reach your market. Even more specific than that, search engine optimization (SEO) is the most cost-effective approach to Internet marketing. Your marketing efforts shold be viewed as an investment, and any investment requires diligence.

Never Give Up!

Another clear lesson that everybody in business has learned is to never give up. If your marketing plan is not working, realign yourself and keep working to find what is effective. If your Internet marketing efforts are ineffective, Internet marketing did not fail, the execution failed. Consider the tips as follows:

Start with the most basic market research. Ask people you respect and trust for their evaluation and use what they tell you.
Read until your eyes hurt, and start with my blog. The new perspective is worth the investment of your time.
Learn about your market and how to reach the right people (see above).
Accept your marketing failures. Failure teaches far more than success.
Use what you already learned and perhaps forgot. Marketing came first.
Execute your marketing plan. A poorly executed plan beats well executed negligence.
Hire a professional. With qualified professional help, you greatly increase your opportunities.

Author Mark Murnahan is the Chairman and CEO of YourNew.com, Inc. and provides SEO consulting services to companies and non-profit organizations. Mark Murnahan may be reached toll free at 866-A-Web-Guy (*REDACTED DUE TO AGING WEBSITE*) for consultation.

The Money Fairy is Coming January 2009

Many businesses of all sizes and industries had a sharp blow to the budget in late 2008. This should not be a shock to anybody who has seen the news recently. Fear not, my friends, for the money fairy will be making Santa-like deliveries in January 2009. At least this seems to be the consensus of business owners and managers that I have talked with and read about recently.

I have operated businesses for decades, but I have never seen such a confused view on business and economy as the past quarter. I have had many conversations with brilliant people in many industries, and without fail, they all seem to project a brighter outlook in January 2009. With this sort of bright outlook for January in the shadow of their bleak view in December, I have to question where they get their information and inspiration.

I reflected on the balance of logic and emotion in the marketplace in my recent article titled “Recession Marketing: Choosing Logic Over Emotion“. Since that article, I have had opportunities to hear from others and I want your input.

Is There a Money Fairy?

I will share my experience, and I would love to hear from you and know if your experience is similar.

I fielded extraordinary numbers of requests for proposals for new Website development in December. In fact, it was a big rise from the past few months. In an attempt to move the market to swift action and even out our scheduling, I offered anywhere from 50-70% discounts for them to take action yet in 2008. This produced many seemingly earnest answers from respondents, but the overwhelming majority was willing to pay double the cost for the same work in January. Some of this was surely a put-off by people without the financial means to take action, but some was not. I have spoken with many other professionals in my field as well as other industries, and what several of us concluded is that there is a “money fairy” coming. This is the only way we could reconcile the wasted opportunities to save huge amounts of money and spend more money a very short time later to receive the same thing.

Are You Waiting for a Money Fairy?

I want to know your take on this. Do you believe in the money fairy, or are companies really scared enough to waste time and money by waiting for greener pastures in January?

Recession Marketing: Choosing Logic Over Emotion

Asserting marketing assets properly in an economic recession can be the making or breaking of a company. When everything on the news and everything you hear around the office sounds gloomy about the economy, you must question whether you are using more logic or emotion in your marketing decisions.

Regardless of the industry, we are all in the people business. When people are involved, it is easy to let emotion cloud logic, and this is very commonly seen in marketing during an economic recession.

Growing Market Share in Recession

Economic recession often provides the clearest path to expanding your market share. When the economy is strong, competitors are strong, too. Being persistent in your marketing is key to making it through a recession and growing your market share while competition is weakened. It is important to remember that you are not alone. You hear all of the miserable failures around you, but do not forget that all of the gloom and doom also includes your competition. Think of it like a staring contest. It is a test of will, and if they blink first, you win.

When people lose their wits to the point of cutting their marketing efforts, it serves only to worsen their market position. Looking back to the Great Depression, there are many lessons to be learned from companies who achieved success by continuing and even expanding their marketing efforts. As an example, Amana Appliances saw huge success coming out of the recession, because they appealed to the American housewife, and gave her something to feel good about even during the worst of times. There is always success in a recession, if you seek it, and if you continue to invite prospective customers to do business with you.

A recession offers much opportunity if you are persistent. You can cut costs in many ways, but if you eliminate your marketing, you eliminate your market. Remember what pays you, and remember why you spend money on marketing in the first place.

Redistribute Your Marketing Efforts

Evaluate your marketing, and redistribute it if needed. Tough times call for smarter marketing. Successful companies are moving their marketing away from television, radio, and print and focusing their efforts on the Internet. Cost per exposure and available customer reach of Internet marketing is far superior to any other marketing. According to widely accepted statistical reports by Nielsen NetRatings, Zenith Optimedia, and others, the Internet accounts for nearly half of the media intake of the average consumer. This quickly growing trend can be seen in many ways, and not the least of which is the 15.2% increase in Internet ad spend in the first half of 2008 while television, radio, and print marketing each took double-digit losses industry-wide.

Cutting Your Marketing Budget

Cutting the marketing budget is a common knee jerk response to economic recession. This reaction to the economy defies logic. After all, if you did not need the marketing, why were you buying it in the first place? Were you spending money on marketing because you had so much business that you just needed an extra tax deduction? Of course not. You invest in marketing because you want more business. For most companies, marketing is the single most important investment they will ever make. Only when the desire for more business subsides should you cut your marketing.