In talking with entrepreneurs and small business owners over the last few months it seems that the one topic that surfaces more frequently than others is how to best respond to the current economic pressures facing most businesses. Whether referred as a; slow down, self correction, or recession - the outcome is the same for business owners. Customers and clients are pulling back on discretionary spending in an effort to reduce their own risk of being over-extended should the economy continue to spiral downward. At the same time, expenses related to oil or fuel consumption continue to rise further squeezing margin out of sales. While the average business owner has no control over the geopolitical energy crisis currently underway, there are actions that can be taken within the control of the business owner to proactively respond to the situation that far surpass the benefit of hand-wringing and mumbling to oneself.

Now Is The Time For Marketing

Contrary to what many businesses choose to do when the economy heads downward, a troubled economy is the time to market. While competitors will be pulling their marketing off the table as non-essential expenditures, and looking to cut costs themselves, this is the opportunity for business owners to act boldly.

On the one hand, the marketing landscape will be less crowded so the company marketing services will have a greater chance to connect with the targeted consumer. Additionally, because so many companies that

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ordinarily market their services are either cutting back or even eliminating their marketing spending, the outlets that commonly provide marketing outlets like; radio, newspapers, television, internet sites, etc. have to reduce their charges to entice marketers to use them. This leads to a reduced expense on top of less competition, a double win for the marketer.

Efficiency and Effectiveness

While it may be easy to say to market more aggressively now, the question of how to do it efficiently and effectively is even more important when there are fewer dollars to apportion to marketing.

In short, the key to marketing is always the same - send the right message to the right market at the right time. When times are flush, it is easier to forgive some inefficiency as revenue and increasing sales seem to cover for sloppiness or poor targeting. However, when money is tight, the pressure is increased to get it laser point perfect.

Suspect, Prospect, Customer

For a business to succeed it needs to constantly replenish the sales pipeline with four distinct classifications or groupings of people:

Suspect - these are people or businesses having characteristics similar to existing customers. They have not expressed an interest in the product or service offered to date, and the company looking to convert them to customers has to focus on building awareness. The awareness campaign or marketing effort has to convince the suspect that there is a potential solution or a need of theirs that can be met and that the company marketing to them is the preferred provider of that solution.

Prospect - a prospect has expressed interest in the product or service and is perhaps weighing options before making a choice. The marketing message to these people needs to be more focused on "proof" of claims, references, testimonials, and providing information necessary for the prospect to choose appropriately.

Customer - a customer has already purchased from the business. Far too many businesses neglect to go back to existing customers and try to sell them again. Assuming that the experience was a positive one, there is already a relationship that can be leveraged and exploited. Much of the awareness building, and proving of capabilities and competencies will have taken place. All that remains is to identify additional needs that can be met, or expand upon the initial order with a re-order opportunity.

Tire-Kickers - there are those out there that want information but have no intention of buying. The quicker these businesses or individuals can be sorted out and removed from consideration the better off the business will fair. One key determinant in sniffing these people out is asking them, "if all questions are answered to your satisfaction, how do we get to move forward with a purchase?" Invariably the answer will come back that they do not have authority to make a purchase. Every sales person knows no matter how hard you try, you can't sell to someone who can't buy. Don't waste your time, money, energy, and effort working to prove that wrong.

Understanding those four distinct groups and how to best meet their needs will help focus efforts to maximize success with each. Expecting a suspect to respond to a friendly email letter from the business owner when there has been no prior relationship is going to be received as poorly as an existing customer receiving an automated phone message with the greeting, "Dear Decision-maker" or "Dear Business Person." The message has to be tailored for each group differently based on where they are in the sales process and the message itself has to reflect the points that are related to the interests of that group.

The timing of marketing is also important. Timing can be viewed in two ways, and both are important:

1. When to provide the messaging
2. How quickly to send follow up messages

In determining when to provide the message, the best advice is to send it when the business is most likely to be considering making the purchase. Send it too early, and it won't get time or attention as the receiver of the message is not thinking of addressing that issue currently or may not view it as critical at that time. Send it too late, and the decision may have been reached before the message reached the intended audience.

Therefore, consider what factors are likely to facilitate the purchase of the product or service; change of seasons, tax filing or tax rebate mailings, start of new business year, etc. Then plan to have the message in the hands of the decision-makers just prior to that time.

In terms of how quickly to send follow up messages, the counsel is to send them often and vary the message. For example, upon completion of a sale, send a written thank you for the business through the U.S. Mail within a week or less. Within a month, contact the customer by telephone and ask how the purchase is performing and if there are any problems that can be resolved. Perhaps two weeks after that (and after any identified problems have been resolved), send an email request out for the customer to complete an online survey with a discount for future services for completing the survey, two months after the purchase have a sales person contact the customer to suggest additional products or services, etc.

When the economy slows and competitors begin to duck for cover is exactly the time for smart business owners to get out and market their companies and products or services. This is not to suggest that it be done without much forethought and planning. Errors cannot be easily hidden when every expenditure is scrutinized, but the recession does not eliminate the fact that customers still need products and services and suspects and prospects are eager to make smart decisions themselves. Offer what they seek, and the economy will work in your favor no matter what.

David Zahn is a serial entrepreneur and consultant to Fortune 100 businesses (www.zahnconsulting.com) as well as entrepreneurial startups (www.startupbuilder.com).

The opinions expressed are the author's and not necessarily those of connpost.com. Please direct comments to cdauber@ctpost.com.