MarketingProfs’ own Roy Young recently asked Barry Judge (CMO of Best Buy) and Jessie Paul (CMO of Wipro) how they planned to stay up in a down economy. An article at MarketingProfs details their responses, including this helpful tip from Judge: “Seek out pockets of demand, and invest.” Here’s how:

Start by focusing your highest-value customers. They’re easy to segment, and their enthusiasm for your product or service means they’re more likely to continue as a reliable source of revenue. “At Best Buy,” says Judge, “we can identify them through our database and loyalty programs, so we can target offers, communication, and investment directly to them.”

Then zero in on segments to which you can offer a strong value proposition for must-have items. “[I]n our industry,” he explains, “some products have become consumer necessities (e.g., cell phones, PCs) and therefore may be more resilient during times when consumers pull back their spending on more discretionary items.”

Finally, invest your efforts in areas with genuine growth potential. Says Judge, “For example, unemployed workers tend to startup small businesses during a recession and create demand for small business IT products and support.”

“Leading companies do not subscribe to the common misconception that marketing is a discretionary expense,” says Young. “They know that there is business opportunity during economic downturns, and marketing can lead the way: With smart marketing they stay on top and often capture more market share during a recession.”

Source: MarketingProfs.