Marketing in the World of Cheap Oil

In our current world of cheap oil, many companies may be looking to cut costs in an effort to stay afloat. In many cases, Marketing and Advertising are the first go, but it is very important to understand that while many see marketing as a luxury and an overhead cost, it can also be a tremendous asset and revenue generator if utilized correctly and efficiently in a down market. 

It’s no secret that in the current oil and gas downturn, service companies have had to bear the brunt of the pain and losses. According to Bloomberg, Schlumberger and Halliburton, the two largest service providers in the industry, have each fallen by more than 65% since crude prices have fallen. Weatherford Intl has also felt the pain as they recently had to restructure debt through bankruptcy.

So what does this mean for your marketing and advertising. What should you do? Most experts say that during tough economic times or market downturns, companies should actually increase their marketing spend to help strengthen their brand awareness and position in the marketplace. This is a smart way to move past competition that chooses to tuck away and wait it out until the market improves.

STAY IN THE GAME

The truth is that even in market downturns, people are still buying. While the buying may slow down some, the buyers are still out there. Most of the time, they have just changed the way they buy, so marketers have the tough task of restructuring their message to reach the buyers in a new way.

Understanding your customers’ buying process is key but staying in the game is a bigger key!

"You miss 100 percent of the shots you never take." - Wayne Gretzky

Maintain or increase your marketing. With fewer competitors in the advertising market, you will have a huge advantage. You will likely be able to take advantage of improved placements in your advertising, or even better rates. Media companies (at least good ones) will reward marketers that remain loyal and consistent through downturns. Use this time to create an increased market presence and launch your brand to new levels and with previously unreachable customers. 

It is important to remember the significance and value of marketing and advertising in tough times. Do not look at your advertising as an expense but rather an investment into the future of your company. If competitors stop investing in their brands, take advantage of their downtime and use the opportunity to blow past them. 

Maintain your edge while the competition is sleeping on their marketing. Improve your brand recognition and demonstrate your stability and consistency to the market. By doing this, not only will your current customers see you as more stable, but you will build your pipeline with new customers that your competitors are neglecting. 

TRY SOMETHING NEW

Many times as marketers we tend to find something that works, or at least that we are comfortable with, and we turn on the cruise control. We fail to re-evaluate our efforts consistently until a change is absolutely necessary or forced upon us. A market downturn can many times be that catalyst for that change.

Do not be afraid to step out of the box and try something new. Marketing is an ever-changing world with endless opportunities. Continue to explore your options.

Consider reallocating spend. For example, from trade shows and exhibitions to webcasts. Webcasts not only allow you to reach a more targeted and interested market, but they eliminate travel and entertainment expenses that are normally overlooked in the budgeting process for events. You will look like a hero when you generate more leads while cutting expenses.

Another helpful tip is to try working with media partners on packages rather than one-off placements. This will typically allow you to get better rates and more value. Again, good media partners will reward you for commitment and consistency. 

TAKE YOUR SHARE OF MARKET

Use downturns to your advantage. Do not look at it as a time to go into a bunker to ride out a storm, but instead an opportunity to take market share away from your competitors. Use this time to move past your competitors.

• Implement sophisticated and well thought out marketing strategies that will improve your brand and demonstrate consistency and stability to your potential customers. 
• Work with media partners to take advantage of the positions that will inevitably be abandoned by companies that run for the hills when markets decline.
• Take advantage of lead generation programs to fill your sales pipeline with your competitors’ customers. 

At the end of every downturn, companies that played their cards right emerge victorious and poised for future success. Those who “play it safe” by simply cutting costs never fair well. 

Brett Stephen - Regional Sales Manager - World Oil

#Advertising #Oilfield #B2BMarketing #MarketingStrategy #Upstream