Soaring fuel prices rising hand in hand with the cost of essential goods have been one outcome of the current economic recession and its effect on American businesses. Even the entertainment industry, which traditionally sees no decline during a recession, has been seriously impacted. Clear Channel alone lost a $20 billion privatization deal due to their financial institutions’ reluctance to finance.
   Many large corporations response to the current economy has been to have products assembled out of country, outsource customer service and raise prices. This course of action has led to massive a pool of upset consumers, and outsourcing is not an option for most small and medium businesses that can only raise prices and trim their expenditure as their costs continue to rise.
   The current economy has left a massive footprint in the path of many small and medium businesses. High cost of goods, consumers with less disposable income and competition from larger businesses with greater resources have all combined to force all businesses to rethink, and retool their marketing and operation strategy to weather the storm.
      By: Flory Frank Toto IV



   Customers are emotional people. They will display brand loyalty to a fault but, their faith in that brand can be shattered by a perceived betrayal. Anyone who remembers New Coke™ and Coca-Cola’s™ rebound in the market back in the 80’s can testify the importance of a customer base who trusts where they buy.
   The relationship businesses have with their customers is, in many ways, similar to a personal relationship. It is a framework based on trust. By being truthful, reliable, and have genuine care for their client base, a business creates loyal customers. The majority of income comes from repeat customers and, a business cannot afford to isolate itself from its customer base. Consumers will pay more for better service and knowing where they frequent cares about them as an individual.
   Servers who know the regulars’ usual order, café’s with reward cards for cups of free coffee after purchasing five or ten will keep customers satisfied and returning. Business owners pay more by pushing a larger sale on a one-time customer than by giving a little to those who return time and time again.
      By: Flory Frank Toto IV



   The Internet has grown exponentially since its use by the public started in the early 1990’s. With the most recent generations embracing the World Wide Web for everything from ordering books, clothes and even pizza, consumers are demanding more interactivity from their media than ever before.
   Traditional media: flyers; newspaper advertisements; television and radio have been steadily declining in their impact on consumers. Television commercials are opportunities for ‘channel surfing’, Yellow Page books are more commonly employed as door stops than sources of information. Consumers are turning their attention to newer media and businesses have been following them.
   VOIP and IPTV, voice over internet protocol and internet protocol television respectively has changed telephone and cable companies into telecommunication companies hoping to provide all of these services via the Internet. With a traditional television hooked up to the Internet, businesses have marketing strategies opening up for them. Televisions that can monitor what programs consumers watch and place banner ads around the video feed can advertise to the exact demographic that is interested in their product without interrupting the TV program. Without interruption consumers have no opportunity to channel surf and, with relevant ads businesses will have no wasted effort on reaching the correct demographic.
   New media is not limited to the Internet alone. Video games and other interactive software packages offer marketing opportunities. With 132 million gamers as potential consumers, companies spent $56 million last year in product placement. The trend is expected to continue and in 2010 it is estimated $730 million will be spent by companies to product place in video games.
   With media continuing to evolve and traditional and print advertising playing a more subordinate and supporting role to newer interactive media, companies that do not take advantage of the newest media trends now will find there may not be room for them in the future. As Bill Gates, owner of Microsoft said. “There will be two kinds of businesses; those that are on the Internet and, those that are out of business.”
      By: Flory Frank Toto IV



   In today’s information media oriented market, a clearly defined internet marketing strategy cannot be overlooked or done as an aside. A good storefront is only half the equation. The consumer base must know where you are located and be encouraged to visit and return.
   Many business owners create a simple website without any thought to the powerful tool the Internet is. The website is static and looks boring; it looks more like a menu than anything else. Today’s consumer does not have time for anything that does not interest them. Even if the website’s content is relevant, if the website bores them they will not stay on the site and will not visit your business.
   Another key area where many businesses falter is not taking the time to properly build a plan is the most important aspect of any business decision. Marketing plans, business plans and developing recruitment and customer retention strategies are essential stages in developing your business to its full potential. It costs less in the long run to have a professional service compile all the budgeting and marketing plans if the owner is unable to. The old adage “If you fail to plan, you plan to fail.” is no less true in today’s market.
      By: Flory Frank Toto IV



   With consumers saturated with news stories about intrusive spam e-mail, the negative impact of unsolicited advertising. Living in a world where people are continuing to lose their patience with what isn’t relevant to their needs; businesses must adapt their strategies to reach only those that genuinely want their product. It’s not only about income. It costs businesses money for every advertisement they mail, or e-mail out. Businesses, just like consumers, do not have time to waste advertising to consumers who will have no interest in their product.
   Permissive Advertising, or opt-in advertising, is a strategy where a potential consumer gives his or her permission to receive advertising from a particular company. Usually done by a consumer at a time of purchase or inquiry the business now can send advertising about their products to a lead who has already expressed interest. The advertising is relevant to the receiver, making them more likely to buy. By targeting their marketing to only those who want their products, businesses can maximize their advertising dollars for maximum gain.
      By: Flory Frank Toto IV



   Advertising is an essential part to the health of any business. Advertising and marketing are what links your business with the consumer base. Despite this the first course of action most business owners take when faced with economic hardship is to cut down their advertising budget. This can have disastrous results and lead to a quickly inward spiral. The less marketing a business produces, the fewer customers will come, and the less customers that come will lead to less money which prompts further trimming of the business’s budget.
   How then are businesses supposed to continue when they have to conserve their funds, but they cannot cut from their marketing? The key is not to eliminate advertising but to restructure it. Investing in good marketing is the lifeblood of any business. A quality website, permissive based advertising and targeted marketing are all tools that a business owner can use to ensure their marketing dollars are giving the maximum amount of return. During the great depression Coca-Cola™ continued to spend money on marketing while Pepsi-Cola™ did not. During World War II Coca-Cola™ sent bottles of soda to the front lines for soldiers. Their marketing presence has been so successful that most people when asking for any cola product ask for Coke. Businesses cannot afford to ignore spending on marketing during a recession, but must focus that spending for optimum gain.
      By: Flory Frank Toto IV