Though usually seen as a long- term option, marketing can also increase profits in the short-term. It is much more than just selling.

Marketing has evolved into a sophisticated, scientific tool to achieve business growth, a powerful weapon to have in your arsenal in the war for profits.

Business professionals should resist the temptation to rely solely on impulse, intuition or subjective opinions when charting their marketing strategy. Comments garnered from the sales team or members of your distribution chain is not sufficient market research.

good strategy

As Bruce Henderson, founder of Boston Consulting Group states: "Good strategy must be based primarily on logic, not on experience derived from intuition".

There are some important things to remember in a declining market.

Profit will primarily be driven by taking market share from competitors. In tough times, most businesses get more aggressive so expect intense rivalry. In the corporate jungle, only the fittest will survive.

In a contracting customer pool, your primary modes should be defensive of your own customer base and aggressive in terms of getting new customers. Remember that the vast majority of marketers in your industry may not be using anything other than ideas thought up off the cuff to try to put their products to market.

To get a competitive edge requires more than just thinking outside of the box, but also using tested and proven niche marketing and research techniques to reduce mistakes. Slashing marketing spend or engaging in price wars should not be your first options.

Know your firm's competitive advantages: those unique assets your company has that can be used to get an edge on the competition. Determine what you can do much better or more efficiently than your competitors can that will allow your customers to feel that your product or service is providing greater value for money.

Be flexible, since the business environment is changing at the speed of light, sticking religiously to that marketing plan you slaved over for months may not be an option.

Do your homework

Use research to give you a competitive edge

In addition to commissioning a formal market survey to be carried out by a reputable market research company, below are potential ways to acquire information:

Past sales - use information from the company database, or point of sale data to spot trends and areas of opportunity

Research industry and demographic information from government institutions like Statin or from industry associations.

Develop and implement a continuous formal programme of market research - not just anecdotal information from staff or friends, using current and potential clients as sources of information.

Tools to use for quick returns

1. Again, research, research research. Know your customers better than your competition. Group customers into segments according to what their needs are and the benefits sought from your product or service. For example, a retailer or restaurant would offer upscale amenities for wealthier clientele if they are located in an area with a high income demographic. The business would not be successful if they decided to lower the standards and thus the price if that is not what is important to their market segment.

2. Offer what your segment wants at the price they are willing to pay for the product or service.

3. Get as much detailed information as possible, like what your customers listen to and watch, where they hang out and relax, what their lifestyle needs are, as this is where you will get maximum exposure for your brand at minimum cost. The investment in research time and resources will be rewarded!

4. After deciding the market segments you want to target, limit marketing spend to these segments only.

5. Customers will do more business with the company or the brand they remember, trust and identify with the most. Ensure that your brand is constantly 'in their face'.

6. With a limited budget, you cannot get to everybody so focus on customer segments that produce the best return: either those that present the lowest cost to market to, or those that produce the highest rate of return (in terms of your profit margin).

7. Get buy-in from your organisation. If the staff is not aware or on board with the plans, it can derail the marketing effort. Every employee is potentially the face of the company.

Get ahead of the pack

Collaborate with other businesses to cut costs.

Develop a system for customer referrals (perhaps a seasonal promotion geared at this objective)

Keep customers involved and excited about your brand (regular competitions, give-aways, incentives)

Have in place contingency plans for competitor reaction.

Get attention

If you use media advertising, ensure that you are reaching the right demographic segments. Check the latest All-Media Survey for more precise information.

Focus your strategy- ensure your image, advertising and message relate closely to your customers.

Use technology to both manage customer information and feedback, as well as for market testing and online marketing.

Get help

Get in touch with marketing professionals who use statistical tools for market analysis and who understand how to market in a highly competitive environment. The returns will significantly exceed the investment.

Feona Wisdom-Smith is a freelance brand marketing consultant.

feona.smith@ilc-consulting.com