Is online networking the new marketing?

When the Chartered Institute of Marketing’s Construction Interest Group gathered in London’s Building Centre last month to discuss marketing in the recession, the sense of gloom was visible on the faces of all in attendance. Many marketing professionals had already experienced the hard end of the downturn as companies slash marketing spend and staff in an attempt to salvage short-term profits.

But the conference acknowledged that recoveries are as predictable as the recessions they follow, and that companies can use the downturn as an opportunity to build up trust with their clients and improve communications with them using new methods, such as online networking sites.

Tim Hazlehurst, chairman of IAS B2B Marketing, argued that recessions are an inevitable side-effect of being human – because we are ambitious, we always take risks. ‘But when a recession hits the reaction can be a lack of trust as society becomes more conservative. So my basic message is we need to increase our interaction with people and potential clients as a means of building trust,’ he said.

Davis Langdon senior partner Simon Rawlinson also argued that marketing teams needed to prioritise maintaining old relationships and building new ones. ‘Think about being a trusted adviser, rather than selling your advice as a commodity,’ he said.

Another speaker, Andy Cassie of marketing specialist CIB Communications, stressed that firms should see their marketing spend as an investment rather than a cost. He said contractors should maintain a visible presence in the market rather than retreating from view, as had been the case in past recessions.

Instead of drastically reducing marketing activities firms should reassess their ‘marketing mix’ by cutting out old-fashioned, wasteful marketing practices, he added. ‘Contractors have until now been very inflexible when it comes to marketing, and have stuck with outdated techniques of winning business, such as corporate hospitality events, local corporate support and awards ceremonies. But they should now look at cheaper more efficient ways of maintaining visibility,’ he said.

He suggested that contractors switch to online networking sites such as LinkedIn or Plaxo.com, which are a low-cost means of developing business relationships. E-newsletters are also a cheaper means of contacting customers than the post, said Cassie, as long as there is ‘content’ to fill them.

Contractors should look at cheaper more efficient methods

‘Most importantly, contractors should do market research on their own markets and reassess how they position themselves,’ said Cassie. ’You might end up spending the same amount on marketing, but you’ll be working in a more streamlined, effective way.’

As for future priorities, Cassie believes that sustainability will remain high on clients’ and end users’ agendas during the recession, so an eco-marketing strategy that differentiates you from the competition will help.

Davis Langdon’s Rawlinson also endorsed the eco-approach. ‘Clients will be looking for companies that take waste management and corporate social responsibility into account,’ he said.

Ross Sturley, principal at marketing consultant Chart Lane said that contractors should look at other areas before cutting marketing budgets, which have traditionally been seen as a soft target. ‘Consider the time and money spent on meetings. My motto is fast, lean and uncomfortable,’ said Sturley.

‘Ultimately businesses should see the recession an opportunity for a spring clean.

It’s a chance to sit down and see exactly what money is being spent on and whether it’s important to the business,’ added Sturley.

And for those responsible for marketing he had some advice too: ‘Now’s your chance to prove you can make a difference, I’ve heard marketing people referred to as the “colouring in department”, but hopefully that view will change.’