What pigs got to do with your marketing
Harmonizing marketing with economic cycles
The ‘pork cycle‘ has become a regular term in economic science. It has been characterized by Arthur Hanau in his dissertation in agricultural science in 1927. It essentially describes that high market prices in a robust economy lead to increased investments. In animal breeding this effect is delayed because of breeding time. This delay leeds to oversupply and price erosion. Therefore, suppliers cut their production (also affected by the above mentioned delay) which, in turn, leads to relative surplus in demand and increasing prices.
Smutty cycle (not)
The cyclic fluctation of offering, demand and price can be observed in many industries. Europe is currently at the end of a prosperity cycle and economic growth is slowing noticable. Many companies are still busy working on their full order books, especially companies with long lead times and long product cycles (e.g. industrial engineering, mechanical engineering etc.).
Provisioning for difficult times
The current economic outlook strongly hints to a decline. In times when order books are full, the production is running at full blast and the staff is working at capacity, there is little time to worry about difficult times. Everyone is busy coping with the ‘good times problems’.
When a company has long acquisition times for projects or the production requires a long supply chain with long lead times, it may have a false sense of security. The pork cycle – in a figurative sense – shows how demand, prices and utilization decline and with it, turn-over. Better chances for those, who provisioned for difficult times!
Increasing your marketing budget. But not at all cost!
It is useful to worry about marketing in a timely manner, harmonized with the processes, to compensate for expected decline. The ‘flight forward’ is one of the better options by increasing marketing and sales efforts. This must happen strategically, sustainably and timely. While one might be used to experience the own business as a ‘sure-fire success’ in good economic times, many companies suddenly find themselves exposed to the situation that they need to generate new customer leads and acquisitions. This requires rethinking in all levels and ties up ressources. Costs are rising.
It would be obvious to increase the marketing budget and scale advertising up. Conventional advertising is outbound lead marketing, it is originated by the company. This makes it difficult to target your potential clients precisely. Wouldn’t it be more useful to take appropriate measures to precisely and directly target the potential new customers?
Outbound marketing costs 61 percent more than inbound marketing
While outbound lead marketing is virtually pouring the watering pot over a target group, inbound lead marketing on the other hand picks up the potential new customer directly when he they have your company on the radar and while they are receptive during research. Studies have shown that inbound marketing costs 61 percent less than outbound marketing.
To do that, you need to be able to know your potential new customers. With Eko Data Intelligence you can identify and target new potential customers quickly, resource-saving and easy. Thus your conversion rate can increase by up to 73 percent.
Eko Data Intelligence: Lead generation with artificial intelligence, pattern recognition and long-standing consulting experience
Contact us! We will be happy to discuss how we can assist also your company to generate new quality sales leads.