recession marketing Archives by Mark Murnahan

Your Recession is Yours, My Recession is Mine

I talk to a lot of people. I have some amazing friends, with amazing perspective. The wise ones are not afraid to talk about recession, and brainstorm ways to improve their respective place in this recession.

You are a bit scared, right? I hope so, because you should be. If you have just consumed a small fraction of reality over the past couple years, you have certainly noticed something different about people’s spending habits. Lines at restaurants are shorter, and lines at homeless shelters are longer. Let’s not sugar-coat it. Shit hit the fan and business is harder to come by these days.

One of my long time close friends is a well-informed Magna Cum Laude Princeton University graduate of economics with his MBA and a bunch of letters at the end of his name. He is a top-level economist and one that many other number-crunchers rely on to evaluate major business decisions. He is about as scared as it comes. Me, I lost squillions since recession started in 2007, and I got sick of being scared. Instead, I made a plan, and I continually work with my plan.

Improve the Future You’ve Got

This is not an uplifting “rah rah, go get ’em” sermon I am here to give you, but rather the cold hard truth of where things stand, and ideas to improve the future you’ve got. Ahh, but there is the key! If you note that I said “the future you’ve got” I mean that the future is something you already have. It is not some unrealistic thing that lives in some other dimension and never comes to pass. Time keeps marching on, and every day marks another day into your future. You do have a future, and if you are too freaked out about today, the future gets pretty blurry. In any case, your future will get here, and you are the one who makes all the tough decisions on how it will look.

I understand that it gets harder to envision your future when you are still fighting today. I have seen the future become blurred, too, but I have made a plan. I made a flexible plan, and one that can be amended as needed. I keep my eyes moving, and I always look in all directions. It is tricky and requires constant attention, but without a plan, results would be pretty bleak. Don’t you think?

If you feel like you are alone in the recession, stop feeling that way. Not just because I said “stop feeling that way”, but because you know it is true. You see it all around you. There are two divergent ideologies on the topic. One says the sky is falling and we are all doomed, and the other talks in ambiguous Wall Street phrases about improved economic indicators and tries to influence a stronger market by helping people feel safer to spend money. Reality is somewhere in the middle, and your economic reality will come from the actions you take.

Owning Your Recession

Let’s face it, you own your recession, and the sooner you realize it, the better. Sure, it has affected most of the people you know, but there are still people thriving in a bad economy, and I will give you some reasons why. It starts with making good decisions, having confidence in your decisions, and taking action on your decisions. That is a lot of decision making, and many people are more comfortable making the decision to “wait and see what happens” and to follow the same course. Getting ahead means getting uncomfortable, and if you are in business, you must understand that fear affects success in more than logic.

I can own up to my recession, although it is not all my doing. I still know that my decisions have everything to do with where I am and where I go from here. I will give you an example. In 2007 and 2008 I watched some huge suppliers to my company kill thousands of jobs and shut down some of their operations. One of my suppliers of network services laid off 5,000 people in a single day. I knew my industry very well, and I knew in advance that I should have sold off or severely downsized one division of my company. Instead, I wanted to be a hero to my clients, so I took a “wait and see” approach. It was not long before the “wait and see” kicked me squarely in the ass.

You will not catch me seeking sympathy, but I saw my corporation’s annual accounts receivable drop by over half a million dollars in a single month during 2008. As the CEO, I knew that it would eventually hit my personal economy pretty hard, so I made sacrifices. I cleared out $250,000 worth of cars from my garage, I suspended a six figure per year auto racing budget, I downsized my home by over 3,000 fewer square feet, and I worked harder and for less money than I had in many years. It made sense to cut certain things that I did not require, and it made sense to kick myself back into gear. I made many sacrifices!

Making the Right Sacrifices

I write a lot to help people regain vision for their business and personal lives. In fact, I wrote three books last year and a whole lot of blogs. You surely cannot knock me for dedication. So much of what I write is aimed at helping others to grow their market and regain the market they once enjoyed. I know I make some people very uncomfortable, and I am pleased for that. If you are comfortable with how things are, you have less reason to do something brilliant. On the other hand, if you get sick of being scared, like I did, maybe you will come to make the right choices to build upon your own economy.

Maybe you never read any of my biographies or ever heard of me before, but from the time I dropped out of school at age 15, I have built multiple very successful companies. Something I have learned well is the value of sacrificing unnecessary comforts today in return for a better tomorrow. Sure, you can say that tomorrow never comes and that you should seize the day, but isn’t that the same thing your credit card issuers count on? If you work harder, try harder, create a solid strategy, and do more for your future, you are the one who collects the interest.

The Wrong Sacrifice

I could bang my drum and toot my horn all day and night, and you can still call it all “bullshit”. I can give you good ideas and direction, but you can still call me crazy. A lot of good thinking has been called crazy. Christopher Columbus was “crazy” for saying the world is round, and Albert Einstein said “Great spirits have always encountered violent opposition from mediocre minds.”

Crazy is relative to your own sense of reality. I was crazy to leave school at 15, but less crazy as I earned millions by 25. Something which cannot be denied and is based on solid math is that effective marketing will grow a business. Effective marketing can get you the job you want. Effective marketing and reaching the right people with the right message is what creates opportunities, from meeting the right spouse to becoming the head of a political party. So how can you possibly abuse and neglect your marketing when it is the one quantifiable thing which can lead you to your goals?

My Murnahanism for Today: “If you want something, it mostly requires asking the right people. You should place quality first, and quantity second, but success usually requires both. If you keep asking the wrong people, refine your efforts. When that fails, you probably need to ask more people.”

If you want a better economy for yourself, do something different. As I have said before, “Do Shit They Will Remember” and note that sometimes you must “Choose Logic Over Emotion“.

If you want more, market more, and market better. Of all the sacrifices I ever made in business, marketing has never been in the list. It has always been the one thing that mattered most. Recession is actually the best time to market your goods, because your competition is running scared, too.

I wrote of sacrifices I made to create millions of dollars in business from my 6th grade education (I left at 15, but I failed a few times first) in my book “Living in the Storm“. This is not my evil plot to shake you down for the huge $2 royalty I make per book, but if you have a hard time understanding the sacrifices it takes to grow a business, you should consider reading it.

Accepting your own recession and doing more to improve it does not mean everything will be amazing again. However, if you are not doing more to market yourself or your business, you are accepting what you have and that will become less as others keep moving forward.

Photo credit to Eric Pouhier via Wikipedia

Help Abolish Procrastination Tax

I made a follow-up call to a man about his marketing needs. He previously asked me to follow up, and so I did just that. Within about a minute of my call, he said “Well, this is a really busy time of year for us” and started with more excuse-crafting. I interrupted him to say “Hey Bill, I am not calling to waste your time” and quickly ended the call. What I really meant was that I was not calling to waste my time, and I think he got the point.

Bill is a man who knows very well why his company is bleeding money. He knows that he needs better marketing. That is why we have been talking. He expresses good intentions, but he always has an excuse. Is being busy a good reason to put off better marketing? Is money a good reason to put off better marketing? Is there really ever a good reason to put off something that will improve your business?

Let us consider where money comes from in most businesses. It comes from doing more business, and that means more customers. More customers comes from marketing. Is this really such a mystery?

“Procrastination Tax” is the Extra Cost of Waiting

People have been frustrated by taxes for centuries. They vote, they write their government leaders, and they even overthrow their government, but mostly they complain. They complain a lot! I hear people every day complain about the economy, and how everything is swirling down a big toilet bowl. I am not completely excluding myself. I don’t like it any more than the rest of you. The difference I make is that I realize one of the biggest “taxes” I pay is “procrastination tax”.

Putting things off until it is too late, or until the cost of waiting makes problems much worse is common. It is one of the easiest mistakes to make, and also one of the most damaging. The good news is that you have a choice.

For somebody like Bill who makes excuses, the additional cost caused by procrastination is high. He said that this is a busy time of year. It is the time when his business seems to be getting better. It only lasts for a short time, and then things will be slow again. Bill knows this, because he has been in his business and waiting for the next busy season for decades. Wouldn’t it make sense to maximize that seasonal opportunity, since it only comes once in a while? By procrastinating, Bill has effectively put off his best chance to turn his business around and stop losing more money until another year. Yes, another whole year before he will have another opportunity like he faces right now. Another year with mediocre results … and that is if all goes well. Another year to worry about whether he socked away enough to make it through the next slow period. Another year that he could have done more business and grown his company and had an even better year, next year.

I wonder how many years Bill can waste procrastinating before he realizes that action today is worth a lot more than action tomorrow. For some industries there is a year between each big rush, and for others it is a much shorter time. In any case, the tendency to wait for just the right time can have damning results to a company. I wonder how Bill will feel when he looks back a year from now and wishes he had set a better plan in motion. Oh yes, and next year will come … faster than ever.

Bill will always be waiting for something. While he waits for the perfect time, his procrastination tax is growing each day.

This reminds me of something my mother told me many years ago. She said “If you wait until you are ready to have children, you will never be a father.” I have three kids now.

Related Article: Push Your Marketing “Go” Button

Podcast: Play in new window | Download

The Business of Money, Marriage, and Marketing

Money is a huge topic for businesses and marriage alike, and they are each influenced greatly by psychology. The psychology surrounding money is so profound that many of us lose all sight of why we do the things we do … and why others do the things they do. Losing sight of the power and myths of money will often create a huge confusion and misrepresentation for people in their marketing efforts. Yes, I am tying money, marriage, and marketing all together, and I will not get to the point in only a couple paragraphs, but upbringing and psychology really do have a place here in marketing. Here are just a couple thoughts for your day, and I hope you can find ways to use this.

I could write all day on the topic of people’s psychology surrounding money. Perhaps this is because I have been in business for a while … over 20 years. In that time, I have controlled squillions of dollars. I have seen how even the topic of money makes people squirm. Sales representatives may love to show their product, but when it comes time to ask for the money, it is the scary and uncomfortable moment of “yes” or “no”. Money is a top cause of divorce, and yet, seldom the top cause of happiness. I can say these things about money and back them with statistics, and I can say them from experience, because I demystified it by making a ton of money. I have earned money at rates that would make some countries jealous. I have also lost money at rates that would make most people leave a pucker mark in their seat. I know both sides of the money deal. I also know that overcoming money and doing great things for great purposes and putting the fears away can create even more joy, inspiration, and success than chasing the dollar. I even wrote a great (of course I say “great”) book about creating joy and inspiration. No, I didn’t write it for the money, either.

Basics of Money and Psychology

So, let’s look at the basics first: A business needs money to survive. They use their money to create more money. Of course, without money, a business cannot survive. Tragically, when left to their own devices, many businesses will focus more on what they sell, and forget to properly address this one essential fact: Every decision about money is made by a person. Even decisions coming from the most brilliant boardrooms and teams of financial experts still come down to people. They make decisions the best they can based on information, and some of the most important information comes from their experience. This means that their psychology plays an enormous role in whether they decide to do business with you or not. Regardless of the job role, whether it is as a spouse, executive, or etcetera, they rely on their decisions to please themselves and / or others around them. Making the wrong decision of buying from your company could come in the way of the things they seek. Are you surprised? Probably not, but how much do you consider this in your marketing?

The topic of psychology of money came to mind while I was on the phone with my wife as she was driving home from taking our kids to her parents home for a visit. Our kids will spend about a week with their grandparents, as they do each summer. They will catch toads, get muddy, and ride horses. We will miss them very much, but it is a great adventure for them.

We got to talking about the years we have spent together and the ways our upbringing still influences our companies. We will soon celebrate our eighth wedding anniversary, and we have spent nearly every day of the last ten years together, working, playing, and raising our family. We talked about the way her parents once really doubted our decisions and our ways of being self-employed and owning multiple companies. When we merged two of our companies back in 2001, I recall her parents liking me and hating me at the same time. We spent every dollar we had to build a business and create something big for our future. Her parents have always worked for companies and had a great sense of security from that. They raised their daughter (my wife) to think that way, too. They often did not understand our ways of sacrificing today for tomorrow, and the struggles it would require. I understand how a parent thinks. I have three kids. I want good things for them and I want them to always be secure.

It made me think of two dramatically different psychological approaches to money. There are the kind like them, who feel more secure with other people’s decisions about money. The company will handle all of the money, and they will give the employees their cut, in the form of a paycheck. Then, there is the kind who run the companies, make hard decisions about money for other people, and have what some would consider a risk taker mentality. I was raised by entrepreneurs who never understood the idea of having a job. It rubbed off, and I think working for somebody as an employee would be about the scariest thing. Actually relying on the mood or means of a boss to feed my family spooks the heck out of me. It seems to me that either approach has its risks. Either has its long term and short term advantages and disadvantages. I think most people live their lives in a safe space somewhere between my wife’s parents and my parents. They find a comfort zone that keeps them feeling good.

I say to heck with the comfort zone … you will never experience “spectacular” being comfortable. Your sofa is comfortable, too, but seldom very productive. That is just me … and yes, it gives me that crazy little edge you may have picked up on.

Companies have had a lot of shake-ups in the last couple years. People are doing jobs they never expected to do. Many have entered business ownership against their will or their plans. Markets have changed, and jobs are scary … self-employed or otherwise. Many people react with more caution than ever, and it is hard to call them “wrong” for this. Much of the reaction in a marketplace comes from psychology, and when it involves money, there is sure to be a look-back into their upbringing and the things which made them who they are.

Be careful how you address these matters of money and psychology. You may have to justify your cost more than ever. You may have to develop a more meaningful call to action and a better value proposition. It will make your company stronger and better than ever. It will probably cost money, too. Don’t fight it when it is for your benefit.

Marketing Without a Budget: Guerrilla Marketing Tips

Juan Martin Diez: 18th Century Guerrilla

If you struggle to produce the money needed for marketing, you had better learn some guerrilla marketing, and fast! You should always assume that somebody else in your market segment has deeper pockets and the longer you wait the harder it will be to reach the customers. When marketing a business with a small marketing budget or no marketing budget at all, you can still improve your chances of success using free or very low cost guerrilla marketing.

How to Grow a Business Without a Marketing Budget

I do not want to let you down, but the truth is that it absolutely cannot be done. You will have to budget something, and if it is not money, it will be time … probably a lot of time. Be ready for that, and budget your marketing time. Set aside a scheduled time to learn more, do more, and earn more. This is your business we are talking about and if you have a family to feed, like I do, it really starts to seem worth it to make it a success. Budget your time well, because although you may think you are too busy to budget time for marketing, the truth may be that you are just busy with the wrong things. If you are marketing your business well, time in other areas will almost surely free up for you. While you are budgeting time, be sure to budget enough to finish reading this article. I have some guerrilla marketing tips for you.

Useful Guerrilla Marketing Tips

I am going to give you some free and effective guerrilla marketing tips that you can start using today. I will also welcome your thoughts and additions, but if I try to add more than a short list, I will be writing this all day. This is only intended to help prime you for the task of marketing your business.

Guerrilla Marketing Tip Number One: Get Uncomfortable

If you are sitting back in your easy chair feeling comfortable about your marketing, you are not ready for this. If you are marketing without a budget, and you are comfortable about your marketing, you are really not ready for this.

One of the first things I would suggest for anybody trying to grow a business is to get uncomfortable. The more uncomfortable you are, the more likely you are to take serious measures to do something about it. If you relax and think things are just fine, you are just asking for that comfortability to all slip away. I have been in business for over 20 years and I have seen the good times and the bad times. I remember joking with my wife while living in my ivory tower and having a whole lot more time and money than I ever thought I could want or need and saying “I’m tired of living like this.” I actually joked but also kind of meant it, because while earning more per year than an average family does in ten years can be fun and all, a fall can also happen a lot faster. I have seen it … the hard way. Never get too comfortable, and always find reasons that you are “tired of living like this.”

Guerrilla Marketing Tip Number Two: Find Success and Follow It

Find success and follow it! Look for what successful people have done and learn from their experiences. I am not saying to imitate their every move, but rather to learn what they know and find ways that it can be applied to your marketing efforts. Many successful people will blog about their experiences and are happy to share what is in their head. Read blogs until your eyes hurt! Although it may seem like a waste of time at first, look at it this way; if you want to know how to do something better, doesn’t it make sense to use what others have learned instead of trying to learn it all the hard way?

Do not believe everything you read, but choose carefully and read a lot. Pay attention! Pick out a handful of blogs and spend some time to do more than just scan and click. Your competition is scanning and clicking through a lot of information. You want to learn and improve your business profitability, so what you should know is that even a little of the right information is better than a lot of average information. Get involved and find information pertinent to your industry. Find information from marketers who know marketing. Find things that challenge convention, because conventional is what everybody else is doing. Here are some blogs to help you get started, and of course I should mention that I have a blog archive with many nice trinkets to share.

Don’t just sit there! Learn opinions from other readers and add your comments. Note that while you are commenting that there is a place to enter your web address URL and it will create a link back to your website. If you are active in blogs, those links can add up to a lot. It is also a great way to become familiar with other frequent readers or people who had a common interest. Reach out to them and find out what works for them. Also be sure to read “10 Really Good Reasons to Blog” … seriously, add it to your time budget and read it!

Guerrilla Marketing Tip Number Three: Look Where Your Market is Looking

Look where your market is looking. I want to be really clear on this when I say that your customers are using the Internet. I was recently visiting with an old client of mine who is in the railroad construction business. They came to me about a website several years back, because they knew that they were supposed to have a website. They did not really know why, and their biggest focused use of it was to find job applicants. Even today, they still find it hard to comprehend that the people out there who make decisions about who will build their railroad bridge or railroad extension are using the Internet. Think of it this way, if you were running this company, even if they are not using the Internet to search for where to buy a railroad bridge, you should be there to increase their awareness of you. The company spends virtually zero money or effort in marketing, yet they want more business. This is what happens when you stop saying “I’m tired of living like this.” The moral of the story: Don’t get railroaded by thinking that your customers don’t use the Internet. Unless your potential customers live in caves without computers and no cellular signal, they are using the Internet every day. Just because you do not sell the product online or receive immediate gratification does not mean you can slide by without it. Selling more of what you offer does not always mean you are pitching them your next deal. There is a reason that Mc Donalds runs ads that say “You deserve a break today” and not just “$.99 Big Macs for a limited time at participating locations.” Branding is important, and the company the potential purchaser has heard of will have the upper hand.

Guerrilla Marketing Tip Number Four: Guerrilla Marketing is a Stepping Stone

You should be aware of some basic assumptions about companies that try to perform marketing without a budget. You need to know this before you can overcome it. If your marketing budget is small, we can make a couple of accurate assumptions. Whether these assumptions are right or wrong, it is very likely how your prospective customers and your competition will perceive your business, so be aware of this. Here is the first assumption about marketing without a budget: If you do not have a marketing budget, it is pretty likely that you are broke. Successful companies that can afford marketing do not flinch at the idea of investing in growing their market share to squeeze you out of the picture. This brings me to the second assumption about marketing without a budget: Wouldn’t you, if you were them?

You could just try the old line that you don’t spend money on marketing because you are trying to keep your cost low. Sorry, anybody who has ever been in business will see right through that one. Let’s face it, your cost is lower when your company is productive and making money. Marketing does not create a net loss … it creates profit, money, business, customers, growth, market share … you know, all of those things you want more of. Marketing lowers your cost by making your business successful.

Guerrilla marketing is a good way to get started, but businesses that do not reinvest in professional marketing services will often fall into a wasteful trap that they are not able to get out of. Once you have seen the benefits of good guerrilla marketing, use it for professional marketing. You probably answered affirmatively when I asked “Wouldn’t you, if you were them?” Stop imagining that you are above this one very basic law of successful business: It takes money to make money. Remember that without experienced marketing talent, it will be much harder to get your hands on money. It is like a chicken and egg question, only worse: What came first, the money or the money? The more you invest, whether time or money, the more you will receive in return. If you use guerrilla marketing as a stepping stone to grow beyond your current constraints, you will then understand why you did all that reading i assigned you.

I will have some more tips for you soon, so budget your time and keep coming back.

Will Your Customers Wait for a Flat Tire?

Do your potential customers know that they need your product or service offering? You may be surprised to find that many marketing shortcoming are not only in lack of exposure, but also because potential customers failed to see a need … or enough need to do business with you. Maybe you have addressed this question before, but perhaps I can help you with a different spin.

Imagine First Generation Drivers

Back when cars first gained popularity as a mode of transportation, most people did not know much about them. The first generation drivers were pretty clueless about the new “horseless carriages”, but they sure were eager to learn. They had a lot of crashes back in those days. I can imagine why they crashed. Just picture the kids back then having to actually hand write their text messages on paper!

Try to imagine the days before anybody had a father to nag them about checking their tires. Cars need maintenance, but in the beginning, most people didn’t know anything at all about tire care. Drivers overlooked maintenance and had a lot of breakdowns. My father told of his first car, which was a Ford Model T Roadster. Stop right there, I am not all that old. My dad was about a hundred and twenty something when I was born. Anyway, he said it seemed like he blew a tire every time he turned a corner. This created a need for better tires. Not just a need for better tires, but also used tires, tire repair, tire changing, and of course some good tools for changing the tires. All of the sudden, there was an emerging market. It became a pretty huge market that made many people such as the Firestone family abundantly wealthy. Tires were expensive, and people tried to use them as long as they could. They would drive them until they blew out. It is why the term “tire kicking” is still used today. Back then, people would kick the tires because if the tires had been repaired, kicking them would help them to know if there was a “boot” in the tire. No, not the kind of boot on your foot, but a piece of rubber that was used inside the tire to repair it.

Now, back to the Firestone family, the Firestone’s did not get wealthy only because there was a market need. They helped people to understand their need, and they did this better than the rest of the tire companies who competed with them.

How Would You Market Tires?

When you imagine your market, try to think like the earliest tire companies. Pretend that you are the first company to try and explain to people about tires. What would you do, and what would you say? Would you wait until their tired blew out and they knew they had a need, or would you try to help them to be safer by knowing when their tires were getting too old? Would you teach them about tire pressures and how to make their tires last longer, or would you hope they wore them out sooner so you could sell more? TIP: Even tire companies selling the same tire but who help customers prolong their tire life have “better tires” because they last longer.

Think about how you would reach those early drivers. How would you let them know, not only that you exist, but how you would impress upon them that they need your tire store and not just the closest tire store to where their next tire blows out. How far would you reach to grow that market if the big obstacle was to help people understand that they are safer when you are their tire guy?

Exposure is a huge component of marketing, but never forget that there are already a lot of people who know about you, but do not realize how much they need you, or why you sell “better tires” than the others.

People Don’t Repair Good Tires

People do not repair good tires that hold air. This occurred to me as I consider the Internet marketplace. A lot of people who really need the marketing services which I provide just don’t know how much it can help or how bald their tires are. Do you need a better tire seller?