Preparing for an economic recovery

A near total lack of visibility is about the only thing business people know for certain thus far in this recession. But Harvard professor John Quelch has a few thoughts about what business marketers need to do while we wait for an economic turn around. Here is a shaved down version of his “seven top recommendations for marketers looking to plan ahead.”

“Focus on high-potential customers.” In the B2B space, those are the ones “where pent-up demand is going to be unleashed once the economy turns.” On the consumer side, Quelch says, “focus on cash-rich or long-term-oriented consumers.”

“Don't assume a return to normal.” The longer and deeper the recession, the more the landscape and consumer behavior will change. What to do? Listen closely to your customers — obviously good advice in any economic cycle.

“Assess your target customers' trust in your brand.” Economic upheavals always tarnish some industries and brands; some may never regain their luster. This creates a need to “add service support and hold [the customer’s] hand more firmly.”

“Stay focused on costs.” Many manufacturers will be plagued by overcapacity and excess supply chain inventories; thus continued downward price pressure. Consequently, keep the pressure controlling costs and improving productivity.

“Know your lead indicators.” Every good marketer knows the specific indicators, macro or micro, that predict product demand. Use common sense: If the Wal-Mart parking lot looks less crowded, some consumers are probably migrating back to Target and vice versa.

“Develop scenarios.” Since recovery visibility will continue to be very foggy, Quelch suggests Peter Drucker’s advise: "A strategy is a sense of direction around which to improvise."

“Don't wait for permission.” Don’t wait for The Wall Street Journal to “declare the recovery underway.” Develop a recovery plan now, and “pull the trigger when your lead indicators say go.”

You can find Quelch’s whole article in the Harvard Business Review online here.