Figures released by the government today confirm that the UK is officially in recession. In the 4th quarter of 2008, the economy shrank at the fastest rate in almost 30 years. We haven’t been in an economic climate like this for almost two decades.

To anyone living or working in the UK, this isn’t exactly news. Times have been hard for a while and not a day goes by without another well known business making mass redundancies or calling in the receivers. What may come as a surprise is the fact that the current situation might offer you the best opportunity to grow your business that you’ve ever had.

As Harvard Business School’s John Quelch famously stated “It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at a lower cost than during good economic times.”

Godfather of Advertising, David Ogilvy, agreed by saying "Studies over the last six recessions have demonstrated that companies which do not cut back their advertising budgets achieve greater increase in profit than those which do cut back.”

It takes real guts to increase marketing spend during a recession. Many of your competitors will pull back on their advertising, which gives your messages a greater chance of being noticed. Customers will be more likely to build a relationship with your brand and less likely to return to previous suppliers that no longer engage with them.

So, you need to market your way through this recession, but just how do you do that with every penny you earn being used to survive?

A couple of pointers to get you started:

- Analyse everything. Do you know where your customers are coming from? How much does it cost you to acquire a customer from each source? Does the amount these people spend differ depending on how they came onboard? With these figures in place, you will know your most profitable marketing activities as well as ones that could be operating at a loss.

- Make more of your existing customers. Some marketers will tell you that it’s seven times cheaper to convert an existing customer than it is a new prospect. Other marketers will tell you it’s ten times cheaper, and some say fifteen times. Whatever the correct figure, it’s certainly reason enough to start directing money at your customer database. Perhaps you could send a newsletter, or some promotional materials, to your existing customers with the aim of cross selling, i.e. getting them to purchase additional products/services from your company. Even if they are not ready to buy right now, you’ll be at the forefront of their mind when they are.

- Use the internet to your advantage. If you aren’t selling via the internet then it’s time to start. Businesses are often surprised with just how cost effective online marketing can be. As you are selling your products or services online, your door is always open and there are no geographical limitations. Test out search engine optimisation methods and Pay Per Click advertising campaigns to see what brings in the most revenue.

Marketing your way through the recession doesn’t have to cost a fortune. By working smarter and making every penny count, you could see your business come out the other side of the downturn in a much stronger position than it is in now. Good luck.

Marketing is probably the most important activity that a business can perform. Good marketing will bring increased loyalty from existing customers, as well as attracting and retaining new ones. For your business to grow, it has to communicate with its market and build relationships with customers. Unfortunately though, most people consider marketing to be an expensive exercise, and are reluctant to spend money on trying out new marketing activities. This doesn’t have to be the case. Here are some tips for new and small businesses that have a small marketing budget.

- Have you tried direct marketing? Posting letters, making telephone calls and sending emails can be some of the most cost effective ways of getting your message out there. For this to work though there are rules that have to be followed: make sure you are marketing to your key target market; make sure the data is accurate; make sure you have a good offer that is relevant to that market; and make sure the marketing material discusses the benefits of using your service or purchasing your product. You'll also need to include a strong call to action. Using direct marketing to keep in touch with existing clients (company newsletters and e-bulletins) is also a great way of increasing sales activity.
 
- Make the most of the Internet. The internet can connect your business to most people on the planet, so you should be able to find some new customers through it. Use it as a medium for making yourself known as well as a way to study your customers and your competitors. Write new content, news articles and/or blog posts and place them on your website. These are the type of thing that search engines love and will help improve your website ranking.
 
- Encourage word-of-mouth marketing. You could provide your current customers with incentives, offers and special deals if they help to promote your business to their friends and colleagues. A word-of-mouth referral strategy is not only cheap to implement, but it often generates the best type of business, as most companies find referred enquiries are the easiest to convert into new customers.

- Show off some testimonials. People are cynical and used to businesses providing a poor service. Build confidence in the marketplace by broadcasting what your satisfied customers have said about your business. Stick these in your brochures, on your sales letters, in your newsletters and on your website for everyone to see. The bigger and more well-known the client, the better. Just make sure that they are happy with you quoting them.

- Get out there and network. Making friends and acquaintances in the business world can be very beneficial. A lot of businesses are just waiting to be a supplier or customer for your business. Sign up to breakfast meetings and get to know other businesspeople in your area, you could build strong strategic alliances that are valuable for years to come.

- Try Public Relations. Taken on a new members of staff? Won an award? Launching a new product? Write a story about it and send it in to newspapers and magazines. Readers often consider editorial as more important than adverts, and are more likely to trust what is being said. If however you do not know how to write a story well, or do not have the confidence to contact journalists, then it will be worth investing in the services of a PR firm.