While the causes of inflation aren’t one dimensional, neither are the solutions available to managers concerned about higher prices for labour, energy and components, shortages in the talent pool, disruption in freight logistics and a lack of mobilisation in the supply chain.
Rather than passing on the cumulative higher prices to customers, companies can renegotiate contracts with suppliers and end users, and redefine business models so enterprises can take advantage of an economc cycle not experienced for three decades.
Visibility reinforces viability
For business to reap any benefits, the fundamentals of being seen and marketing to customers is critical. For clients, existing and potential, to consume goods and services, they need to know they exist.
Marketing is about being seen, about brand promotion, and cutting back on advertising during a period of inflation may be counterintuitive. Once a business cancels the brochures and neglects the company website, the enterprise may be exposed to the misconception that business is in distress.
In an economic downturn it’s prime time to be visible, to be heard and reinforce the ‘business as normal’ corporate stability messaging. It not only maintains presence but presents opportunities to increase market share when competitors are retrenching.
Proactivity and assumption
On equal footing with maintained marketing presence, is market research and data analysis.
For that sustained marketing budget to be justified it needs to deliver tangible results. John Regan, chief executive of data intelligence firm Electric Guitar says companies need to adopt a 360-degree experience for consumers in terms of brand promotion blending data insights, pertinent advertising with privacy protection.
He references the lifelong relationships Tesla is creating with its customers and argues that regardless of economic challenges, the data curated on customers can be monetised. Analysis of proprietary customer intelligence and holistic exploration of client preferences is fundamental to the company’s growth.