October 2009: In this issue...

Preparing for the Economic Recovery

By Ron Torch, CEO & Chief Marketing Officer - Torch Group Inc.

"The recession is very likely over at this point," Ben Bernanke, Chairman of the Federal Reserve, said last week.

Is it? What are you doing to prepare your business for the recovery?

You're probably too busy thinking about surviving to think about the recovery, but where will this approach leave you when the economy finally rebounds?

So, the recession is over. We always plan for bad news, but why aren't we prepared for good events? We know the economy is cyclical and it's not a question of if the economy will recover, but when. Economic indicators now suggest that this recovery has already started, and the companies that have a plan in place will be poised to take advantage of the economic growth.

While job growth, however, is predicted to be slower than the rate of economic recovery - and regardless of when the recovery will positively impact your business - here are five steps to consider today so that you are better prepared for an economic recovery:

• Reach out to clients you haven't heard from in a while.
  When business is soft, we rightfully turn to our best customers. It's the low-hanging fruit and these are the easiest sales calls to make and the best marketing targets to generate sales and repeat business. But have you called on past customers who you haven't heard from in a while or, worse, clients who haven't heard from you in a while? Even if this doesn't generate immediate business, this is a good time to invest in relationships that may net longer-term results as the economy recovers. Also, think about where you can offer value to jump start sales, even with slimmer margins to generate cash flow.
• Develop your marketing plan now.
  Proactively build your marketing plan and budget now for the recovery. Often we are asked to cut back our budgets when business is soft, so therefore it's equally important to be prepared to boost our budgets and plans for when business is on the upswing. When building this plan, it's important to consider emerging markets and new product/service opportunities. Failure to have this plan approved in advance may result in your business falling behind competitors. This is also a good time to freshen up your messages, literature and marketing collateral.
• Revisit your marketing mix.
  It's hard to believe that it's been a year since the economy started spiraling downhill, and a lot has changed in that time. While the idea of social media is not so new, there has been an explosion in the frequency and number of users of social media sites such LinkedIn, Twitter, and FaceBook. Companies are drastically shifting their marketing budgets toward social media and mobile marketing, as well as continuing to increase their budget allocations to other forms of digital marketing, such as search engine optimization, search engine marketing (pay per click), banner ads, and more. Re-evaluate your marketing mix to be sure your company's budgets, resources and messages are where your customers are.
• Explore new markets.
  Are your customers/clients prepared for an economic recovery? Some industries may be faster to recover than others, so your marketing efforts should reflect this. Target companies in industries that tend to recover faster and, similarly, discover and explore new markets that may be able to benefit from your products and services that may not have previously been on your radar screen.
• Have a hiring plan in place.
  In this unusually poor economy, there is outstanding talent in the marketplace that isn't ordinarily available. This won't last for long, however. The documented over-cutting during the past 12 months, coupled with a 25 million-person employment gap that is developing as baby boomers begin to retire, will soon result in an unprecedented demand for talent. Start panning for your talent needs now. And think about engaging them in creative ways; such as contracting, temp-to-perm hiring and using consultants to manage variable costs instead of hiring full-time employees that add fixed overhead. In short, more insightful companies are not waiting. The recession is over and they are beginning to make strategic and creative hiring plans to secure top talent now.

We would be delighted to discuss your talent needs for 2009 and 2010 and how Torch Group, with a significant number of senior marketing, sales and communications contractors and consultants, can help you achieve your goals with a timely and cost-efficient plan.

Contact us today to discuss your marketing talent needs.

Ronald S. Torch
President & CEO
Torch Group, Inc.
. . . your source for marketing talent