As Economy Falters, Where’s the Innovation?

For the second month in a row, China reported a decline in exports--This time, by nearly three percent and hundreds of workers are losing their jobs. This is a major decline for the cheap producer of global products and just the beginning of the ripple that the country is beginning to feel since the financial crisis began.

Adding insult to injury, Sony is reporting its first loss since 1995 and it will be a major $1.1 billion. Due in part to heavy spending during the holiday season that didn’t produce the results the electronics giant was looking for.

Even in this crisis, companies dabbled in social media and search marketing but continued to spend the majority of their budgets on traditional efforts while ignoring opportunities to slash costs and speak to their best buyer profiles, directly.

Some of the blame lies with the agencies that keep pushing high cost tactics and are reluctant to understand and fully embrace more strategic methods--Working their way towards a pink slip at the very same time.

I was interviewed by a reporter recently that asked me why these tactics are so important and it kind of just rolled off my tongue.

“It’s no longer about casting the widest net and hoping the 10% you need will respond, but rather speaking to that 10% directly and trimming the waste.”

Recessions often generate innovation but fresh ideas among the biggest marketers seem to be slim. Wouldn’t it be nice to see the bailout conditions include revising marketing plans to include more cost saving innovation?