Stimulus is to economists what marketing is to brands

The same applies for marketers. The fore-thinker will start to “stimulate” their existing and potential customers to get them spending again.

Stimulus marketing strategies

Economic stimulation is the new buzz-term out there. The truth is, marketers have been using stimulus interventions since the term “marketing” was first used. The trick is being prudent and innovative when conceiving and implementing your interventions.

According to Gullan&Gullan Advertising's Creative Director, Desiree Gullan, “smart brand stimulus strategies do more than just create short-term leads and sales, they support long-term strategic objectives, such as enhanced systems, resource conservation, increased customer benefits and improved service. Most importantly, they take into consideration the long-term economic, consumer and environmental trends.”

So what stimulus marketing strategies are recommended?

The following is a shortlist of generic strategies. Obviously you will drill down and be more specific depending on your product sector, challenges and objectives and you will roll these out in a brand-centric™ manner. There is no one solution fits all.

Stimulus marketing strategies
_Eliminate poor performing brand extensions and focus on the top performers
_Simplify your brand's offering
_Offer your customers more value
_Incentivise your customers to trade-in or upgrade
_Encourage feedback and implement important findings
_Hearten multiple calls to action
_Communicate your brand's long-term commitment
_Devise methods to tip consumers over the edge to take action during a time of buyers inertia
_Provide reinforcement after the sale is made
_Enhance your service and CRM and build relationships with your customers
_Re-engage with past customers

“Do not to turn into an over-cautious, un-ambitious scaredy-cat. This economic environment is just another challenge to marketers. Think differently about your business and your brands. Remember that one brand's demise is another's birth. And always remain brand-centric™ and true to the heart of your brand in everything you do,” suggests Gullan.

Stimulus branding

It's not prudent to go changing your branding in response to every environmental change. So how do you stimulate consumer behaviour with your branding?

How many times have you heard your financial guys say “times are tough and we need to come out with a cheaper version of our product”?

While many brands have used this strategy with some good short-term results, the longer-term impact on your brand can be detrimental and far too many marketing strategies get pushed aside for a short-term sales boost.

Research has proved time and again that a strong brand will compete in a narrow segment of the market and then dominate that narrow segment. The most valuable thing you own is your brand position in the consumer's mind. When you tamper with this position, you're teetering on the edge of brand damage. And remember, it takes a while to damage a strong brand so you may not notice it straight away.

So what stimulus strategies can you apply to your branding?

In the long run, the only thing that counts is the perception of your brand in the consumer's mind. That's what smart marketers should focus on. Not short-term sales boost. The following are some generalised suggestions. With more info on your brand and its objectives the team at Gullan&Gullan can prepare more tailored stimulus strategies.

Brand-centric™ stimuli,
_Do not discount your brand
_Rather add more value
_Collaborating with other compatible brands and incentivise action
_Remain true to the heart of your brand
_Communicate your brand essence at all outputs in a consistent tone and manner
_Trust your long-term brand equity to see you through the short-term tough times.

Gullan gives the following advice to brand ambassadors: “Do not discount your brand in order to reap additional sales in the short-term as this could result in serious long-term damage that may only be evident years from now. Rather continue to build your brand and when the economy improves, so will your sales.”

Creating stimulus via the media

While many FMCG brands seemed to be a recession-resistant, they are starting to cut back on above the line ad spend. To the
financial guys this is necessary to boost short-term profitability, however in the long-term it could be potentially damaging for your brands.

Research presented by University of North Carolina indicates that companies that maintained or even increased there above the line spend - specifically TV - lost limited market share in recessions between 1985 and 2005. Brands that cut ad spent according to the economic climate tended to lose more share both immediately and over the longer-term.

Companies that are able to turn a recession into an advantage are going against economic trends. Ultimately, it takes courage. But it pays off in long-term market share. And it's important to note that about half the market share lost in past recessions are never recovered.

Plus there are some excellent value added media rates on offer at the moment. So brands that previously could not afford the luxury mediums such as television, national press and other above the line mediums have a window of opportunity. Last year the SABC cut its advertising rates by an average of 15%.

Above the line communications are like the luxury mediums for any brand. They are expensive to run and expensive to produce. But if planned, produced and executed correctly they can be highly effective in creating stimulus that results in consumer action.

There are wonderful opportunities out there for brands that have budgets for the traditional above the line mediums as media owners are offering some very enticing deals.

Stimulating coupons

One area where consumers aren't cutting back is coupon usage. And coupons do not devalue your brand. Coupons.com reported a 192% increase in the value of coupons printed from its site in March, compared with a year ago. Coupons have been the second-most-visited category on the Internet - behind jobs - for about a year.

“Remember you can package the concept of coupons in a variety of ways depending on your brand essence. A luxury brand would not give coupons but gift certificates. A bakery might offer vouchers. Baby products will give their customer's coupons,” says Gullan.

Stats show that consumers are redeeming “coupons”. Which makes them an excellent below the line strategy for stimulating your existing customers and tipping potential customers over the edge.

Research conducted in the US proves that ready-to-eat cereal was the most popular category for coupon usage, followed by baby products and baking ingredients. Diet aids and yogurt rounded out the top five. Laundry supplies and personal care entered the top 10. South African marketers can take some learnings from US consumer behaviours.

Online coupon usage has grown dramatically in the past year and in direct opposition to the faltering economy. It's a great way to get people to your website where you can grow your database, provide brand information, feedback opportunities and engagement all as a buy-product to coupon, certificate, voucher and gift redemptions.

Use your database to stimulate action

Highly targeted electronic communications are a highly effective consumer stimulus medium. However list targeting for online and email requires additional thought. Especially when it comes to your customer's past behaviours and how they have responded to online offers.

With constant change in the email landscape and fierce competition for attention, the relevance of your offer is essential to success and taking into account how your audience has responded to previous emails, how they are interacting with your website and what buttons they have clicked. Scrutinise these metrics. They are key to understanding what your consumers want and how you can stimulate their buying behaviours.

Research conducted by the Direct Marketing Association of South Africa proved that databases selected by demographic criteria performed substantially worse than a database selected on their previous consumption of similar information.

Important. One irrelevant message to an individual can trigger an opt out. Research conducted by international direct marketers proves that 53% of people opt out as a result of irrelevant content. The more relevant your content, the more the recipient sees you as a valuable source of information, and the more the likelihood of stimulating consumer action.

“Stimulus targeting is not only relevant to individual campaigns, but should be used in the long-term. Remember that your target market will not value your brand if they believe you do not respect their time by sending them irrelevant messages and offers. Considering the challenges of obtaining permission-based lists and maintaining healthy and profitable databases makes the effort to better understand your audience well worth the while. And is an important way to keep them stimulated and responding for longer,” adds Gullan.

Stimulate long-term relationships with PR

As marketers pull back ad spend in above the line print, billboards and more, smart marketers are sweating their budgets by placing more spend in PR. PR is a reliable, cost effective way to create awareness that your brand is alive and well in these difficult times.

More than that, PR can have the effect of providing highly effective stimulus effects.

PR offers an excellent way to demonstrate what is going on with your brand and what you have planned for the future. This newsworthy info will remind consumers that your brand is here to stay and can be trusted in the long-term.

Also, remember to use PR in conjunction with your website. Keep the press releases and news updated on your site, if only to show a recent posted date. These are important cues so your customers know that your brands are moving and shaking.

“For brands that have begun social networking efforts, don't throw it all away by going dark for a few quarters. Use your social marketing programs to focus on those customers who are closest to you. Caring about and staying in contact with your loyal base will result in a brand ambassadors willing to help you grow when your budgets return and allow you to do more,” concludes Gullan.

Everyday the news is filled with reports of companies retrenching - or worse - going under. Keep your news upbeat and fresh and show your clients that your organisation and your brands are thriving for the long haul.

If you are in need of assistance with your stimulus strategies, contact Gullan&Gullan Advertising on 011 887 6591 or visit www.gullanandgullan.com.