Two notable pieces of economic news last week: Warren Buffet’s firm, Berkshire Hathaway, lost $11.5 billion last year in net worth, And the Dow Jones has slipped below 1997 levels.

Each year the “Oracle of Omaha” writes a much anticipated review of all things economic. In the letter to his shareholders just released this morning, Mr. Buffet warns, “the economy will be in shambles throughout 2009 – and for that matter, probably well beyond.

For clear-headed marketers, the news is good!

[To see the text of Warren Buffet's Letter to Berkshire Hathaway Shareholders - Click Here]

Thriving In Chaos

Stunningly bad economic headlines are reported by the news media with gusto. Nothing succeeds in the media like bad news. (Maybe they should worry about their own precarious financial positions instead.)

Despite the screaming headlines, business is still going on. Sales are being made. Success is still attainable.

Video game retailer Gamestop posted record sales in 2008 and expects to open 400 new stores in the next 12 months in spite of the recession.

[see article here]

You say, “of course video games are doing fine, the kids spend all their money on them.”

OK, how about tires?  The automakers are on life support and dealers are dropping like flies, but Capital Region business Adirondack Tire Centers is opening a new location in Queensbury.

What’s the secret? They don’t accept “Can’t.” They focus on building their own business, not on the river of negativity flowing from the media and, most importantly, their competition.

Your call to action

Commitments to marketing and advertising programs have nearly disappeared. Local cable TV ads can be had for a song. Direct mail statistics are showing a huge drop in numbers.

I did a quick hand count of the number of ads, not including real estate and business card ads, in two issues of The Capital District Business Review. Here’s what I found:

Feb 27 – Mar 5, 2009 - 32 pages and 21 ads

Dec 5 – Dec 11, 2008 – 40 pages and 41 ads (less than 90 days ago)

Competitors in every business are in lockdown. Associations and non-profits are in a panic. They are losing their visibility.

And that’s why you should get aggressive. You’ll have the playing field nearly to yourself.

A couple of guidelines to add to your marketing handbook:

1. Protect and defend your current customers.
2. Create a well defined target list of potential new customers and communicate why you’re especially relevant to them right now.
3. Communicate your message to them using multiple cost efficient tactics and make an attractive offer.
4. Don’t stop communicating to your growing sales pipeline, sales cycles are longer.
5. Stay focused.

Sure, overall times are tough.  Warren Buffet is right, 2009 is a bear. Don’t hibernate.

Posted by: Steve Banis