CallSource^® Aim Higher

Three Simple Ways to Gain Market Share in a Troubled Economy

by Jas Jackson, December 21 2010

A McGraw-Hill study of 600 firms during the 1981-82 recession revealed that businesses that maintained, or increased, their marketing expenditures experienced significantly higher sales during the period after the recession. In fact, these companies enjoyed an average sales growth of 275 percent during the five years after the downturn.  But, those who decreased their marketing budgets were forced to settle for an average sales increase of only 19 percent. What does this illustrate?  By being proactive, you can thrive while your competition falls by the wayside.  Here are three simple ways to gain market share in a troubled economy:

• Focus marketing resources on women. Cutting spending on marketing and advertising in a troubled economic climate can result in both short and long-term negative effects on your company’s bottom line.  The question becomes: “Where do I spend my precious marketing dollars to attract more customers?”  Women influence 85 percent of all purchases and 73 percent of all services. Taking this data into account, you may consider focusing at least 50 percent of your marketing resources on women buyers.

• Adopt social networking strategies. Female Internet use has risen 12.4 percent since 2000, compared with 3.2 percent for males.  By the beginning 2011, an estimated 109.7 million U.S. females are projected to be online.  This represents nearly 60 percent of the entire U.S. online population! Engaging in online social networking strategies such as blogs, social networks, and online communities are more important now than ever. 

• Develop “green” initiatives. You may want to also think about developing a meaningful green initiative.  More and more women are choosing to shop at businesses who have adopted green initiatives.  Women comprise 51.4 percent of the U.S. population and are the main purchasers of ALL products and services.  In recent years, women have demonstrated a willingness to do business with those companies working to make the planet a cleaner, safer place for future generations.

If history is any indication, gaining market share by launching an effective marketing campaign geared towards women will increase sales now and put your business in a leadership position once the economy improves.

Jas Jackson is Director of HVAC for CallSource.