While the US Congress dithers, the rest of the world waits anxiously. Australians in particular, who until recent months had enjoyed unprecedented economic prosperity are left wondering what's behind it all. Undoubtedly the US loans crisis has been a major contributor to our current climate of uncertainty, but how much are our politicians manipulating these circumstances for their own end? Some suggest a recession would suit the Ruddy government's strategy, enabling them to orchestrate an economic downturn they could then blame on the previous government so when the inevitable recovery occurs it would permit them to lay claim to being the saviors of the nation.

While this may sound a little like a conspiracy theory, political blundering and sheer incompetence have previously caused incalculable damage to Australian businesses. Politics isn't about the welfare of the people, it's about retaining power - irrespective of one's political colour.

Those of us who remember the times of Paul Keating's "recession we had to have..." tend to be a little skeptical about the current doom and gloom predictions currently circulating. We've seen it all before, and economic downturns tend to be a little like "MASH" reruns - they are always playing in a country somewhere around the world.

However, there's no doubt that conditions are shaping up for trying times ahead and all of us who are running a business should pause to examine how we're traveling in light of the latest news from the USA.

Paul Keating The Architect behind the 1991-2 Recession we Had to Have

So what does the future hold? Good question. The only thing that's certain about the future is that the future is uncertain. We do know there's going to be a period of economic downturn ahead - it's just the extent of the downturn that can't be quantified. Some economists predict Armageddon, others suggest it's merely a correction. The problem is that in eco-speak, a correction often equates to a disaster and then it's usually small to medium sized businesses that suffer the most.

Preparing for Survival. For business to survive often the first reaction is to cut operating costs by slashing staff. However, the worst thing any of us could do is to embark on a needless job slashing campaign - our people are our business and without them we have nothing. Yet this seems to be the acceptable norm for many large organizations the moment hard times loom ahead. Recently TELSTRA announced it was cutting 800 jobs as part of an ongoing efficiency campaign that has seen thousands of jobs cut since 2005.

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To survive we need to be running at peak efficiency!

Easy to say but not so easy to do

So what can we do? Of course being in the Web Design business we'd love to suggest that everyone immediately rush out and get themselves a website or upgrade their existing site - preferably using us. While that would be great for our business, we'd be less than honest by claiming a website is the cure for economic hard-times. For some businesses the most extravagant website will be of no help, but for others a simple website could make a difference - the amount of that difference is up to you. So here are a few pointers.

Market Your Business more effectively. Instead of cutting back your marketing efforts, now is the time to increase them. Increasing doesn't necessarily mean spending more - it means increasing your marketing efficiency. Make a quick audit of what you're spending on marketing and sales. Like most businesses you will be (or should be) running a computer accounting package such as MYOB, Quickbooks or similar. It's a simple matter of checking what your total expenditure on all sales and marketing activities is, by using the "Reports" function.

This total should include all legitimate items such as advertising - be it TV, radio, print, yellow pages, website - whatever - plus any other form of promotional, marketing and sales efforts. Use these figures to gauge the effectiveness of your sales effort by trying to link actual sales to your marketing effort to assess what activities are actually generating sales for you.

Once you've learned what is your most effective promotional activity, see if you can improve on it by moving funds from another area that's of lesser effectiveness. For example many companies are now rethinking their yellow pages advertising costs and going instead for increased on-line advertising such as websites and paid entries into major business directories. We're not suggesting dropping phone book advertising completely, but look at the cost of a half page advertisement in your local yellow pages and compare it with the cost of a page on a website. Maybe you'd be better off with a simpler advertisement in the yellow pages that includes your website address and invest the funds in a website - that way potential clients can see what you're about before making contact.

In some areas the cost of yellow page advertising has become excessive and surveys now indicate that in some areas over 50% of yellow pages issued are going direct from the doorstep after delivery into the recycling bin while others end up under computer monitors.

Get your website address out and about among potential clients. This is one area where many companies fail. Just having a website doesn't guarantee that you will drag in new customers - you have to work at getting your site exposure by using every means short of tattooing the URL on your forehead and backside and parading naked in the main street. Some web design companies will tell you they'll get you high rankings in the search engines - while this is desirable it can also be expensive and it can take time to achieve depending on a large number of variables. Search Engine Optimization (SEO) has become an industry to itself, and unfortunately has also spawned a new breed of online charlatans who'll take your money in return for performing voodoo on your web pages to get you up the search rankings.

Some of these SEO companies are very skilled - others are frauds, so be wary of anyone who promised you page one rankings on Google overnight. Remember with thousands of companies scrambling for high rankings, and with Google displaying about ten entries per page, your chances of making Number One quickly or even Page One - for the correct search description - are low at best.

Page Rankings are important, but will soon be replaced by more sophisticated context searches - a system where your browser "learns" what your search preferences are and biases your search query to steer you towards web pages more suited to your personality. A little spooky perhaps, but it's happening now with Google and Yahoo. We'll explore this topic further at a later date.

In the meantime if you have a website, perform some self help and get your web address out to your target market by using the tried and proven techniques of prospecting, that is letting people know how to find you on the web. Make sure your URL (web address) is displayed on every piece of literature, business card, email etc you distribute. Write it in the sky if you have money to spare...but make it visible.

Web Statistics Modules. Website owners are now using web statistics modules to analyze their website's performance and plan on-line marketing campaigns. These can be very useful if you know what you're doing and a little research on the internet will reveal exactly what you should be looking for.

Retail On Line. Retail stores are going on-line to cater for the swing to on-line purchasing and to supplement "live" sales. On-line purchases have increased exponentially with customers overcoming their earlier fears of funds transfer via the internet and this trend will continue. So if you have a retail outlet, check around the web to see how others who are in the same retail businesses are doing it, then assess whether you'd benefit by installing an online store-front system.

Again we stress, on-line marketing is not the total answer, but it should be a major component of your marketing effort whether it be direct sales or using the web to promote your business. If you have a marketing department, ensure your marketing manager is fully conversant with the latest web marketing techniques.

If you haven't a marketing department and are doing it all yourself - as many small business are, put the web to work for you by going on-line and seeking out articles about effective on-line marketing techniques. There's plenty of good information on the internet - but there's also plenty of garbage, so check around and decide for yourself. Below is just one of thousands of articles on how to market yourself via the web.

http://www.wilsonweb.com/wmt5/viral-principles.htm

 

Flatulence Sells!

In our September newsletter, we listed four examples of video on the web being used for viral marketing. We've had dozens of emails asking us how to go about creating a viral marketing video, many of them quoting the Budweiser Beer Horse Fart commercial as an example. The Budweiser commercial was made by a US agency whom we suspect didn't come cheaply and for many, such productions are simply way beyond a modest budget. Our associates at John Hunter Media can advise you on creating a wide range of video productions and we suggest you check out their website and give them a call if you're considering creating a corporate video.

It is possible, however, to create viral marketing videos for yourself using good quality cameras, inexpensive computer editing software and maybe a little sound manipulation. We see examples of this on those home video shows where humorous situations are captured accidentally - or staged. They'll always have a somewhat amateur touch to them but occasionally they do succeed.

The secret of any successful viral marketing video is coming up with a clever concept and then capturing it on video in a way that gives it that certain something that appeals to a wide audience and persuades them to pass it on.

"Keep the rabbits out..."

Another good example of this is the Telstra Broadband commercial featuring the dull witted father explaining to his eager eyed son that the Great Wall of China was built by Emperor Nasi Goreng to "keep the rabbits out." This was a wonderful concept that evokes imagery we can all relate to and it hit the target right in the bulls eye. Telstra gained huge mileage from this commercial and the son and father team became icons almost overnight. A recent follow up commercial, however, designed by the same advertising team based around an Australia Day school essay written by the son - totally bombed.

Often it's just a matter of luck - hitting the creative G-spot is elusive for even the most experienced creative team as witnessed by the Telstra follow on. The lesson here is that you can spend a bundle with the best advertising company in the world and still fail to come up with a winner. There's nothing to stop you from giving it a go - if you haven't a video camera, most still cameras these days are capable of recording video suitable for the web, and Windows XP comes complete with a user friendly video editor named Windows Movie Maker. While it's limited in what it can do, it's adequate for simply editing and sound dubbing. No harm experimenting and maybe you'll hit the jackpot. Upload your creation to You Tube then email a small segment of your clientele the link and see if it spreads. You never know, you may be a budding Spielberg.

But, a word of warning - take a look around the web to see what works and what doesn't. You Tube has a wealth of would-be directors trying for fame and there's plenty of material there - good and bad. Certain topics are still taboo, even the Budweiser Advertisement has offended some people - after all a horse breaking wind in a woman's face is somewhat repulsive, yet when the concept is worked on by a skilled creative team we get one of the most successful commercials produced in years.