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It is better to not be on the
web than to be on and not know why John Sumser
Reality is more complex
than it seems. John Gall
It's better to do a few things
really well than than to do a lot of things badly. If
you can't make the necessary commitments of time and energy
to your electronic marketing efforts scale back
your plan. John Sumser
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Downturn Navigation
(March 12, 2001) What do you do in a downturn? Silly managers with
limited experience fire people and cut back on marketing, sales and
recruiting. Meanwhile, the economy appears to be absorbing the laid off
folks as fast as the silly managers can produce them.
Of all of the things we have witnessed during the
dawn of the internet and the growth of the cable industry, the current
media-induced recession is the most egregious. With unemployment rates holding steady and job growth remaining
positive, the notion that we are in a downturn
is suspect. While there is certainly a price to be paid for the NASDAQ
bubble, recession, as we have known it, is not possible in the current
demographic environment.
In addition to the oft-cited skills imbalances,
labor shortages are a reality that goes well beyond traditional
definitions of economic health or sickness. The simplest fact in our
current reality is that national birth rates are below the replacement
level. Combined with a pronounced shortage of managerial aged employees
and a lack of info tech training in the blue collar segment, the labor
shortage makes it extremely unlikely that current economic conditions will
ever produce a full recession.
Media sensitive
employers and advertisers are cutting back as the result of the way this
story is being reported. With no OJ, no Clinton and no Princess Di, the
cable stations must find some drama to attract viewership. The snide
coverage of last week's employment figures often included statements like
"The unemployment rate is steady, so far", as if we were headed with
certainty to a recession of old school magnitude.
From our perspective, it's a market making
opportunity. The best advice when there is a hint of an economic downturn
is to increase sales and marketing budgets. The correct response to a
decline in response rates is to make more calls. The correct response to
layoffs is to hurry over and pick the best available talent.
- John
Sumser
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