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The Cyclical Economy

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Events that are cyclical happen on a periodic basis. Many economist subscribe to the theory that business is cyclical — a period of growth is followed by a period of recession. Because the last period of economic growth lasted so long, many business owners had never experienced a period of decline. In hindsight, they now realize how important it is to plan for a downturn. Optimizing inventory, staff and marketing are key elements in long term strategic planning.

Not only can economic trends be cyclical, but particular industries can be cyclical, as well. Quite a few businesses can be viewed as seasonal. For instance, the sale of seeds revolves around growing seasons. Burpee Seeds and The Victory Seed Company both see a sharp rise in sales during the spring. In the summer, sales fall flat and enter a downturn during the winter. Deck builders in the Northern United States are another example of a yearly business cycle. In the spring, new sales come easily. During the winter, there is little activity.

A company that experiences seasonal sales has the double whammy of planning for the cyclical nature of their seasonal sales, as well as, the cyclical nature of general economic growth. During the current economic climate, deck builders have found the extra need to scrutinize their marketing activities. Planning in advance is key to their success. The type of advertising medium combined with the timing of the advertising delivery involves having a preemptive plan. A cost effective Internet marketing plan that is rolled out prior to the building season will not only save money, but it will also help maximize the return on investment (ROI).

Costume sales is another good example of an industry that is familiar with seasonal sales. Though there might be some mild increases in business around holidays like Valentines Day and Christmas, the bulk of activity leads up to Halloween. The time for a costume company to undertake a marketing plan is not October, 31.

Moon Costumes is a company that understands the importance of a seasonal marketing plan. A family owned business in operation since 1969, Moon Costumes is well seasoned in seasonal sales. In 1969, the world wide web had not yet been conceived; however, Moon Costumes has stayed current with the times. They have implemented a strong on-line presence. Also, they understand the importance of gearing up their marketing campaign prior to the seasonal rush. A key component for their Halloween costume marketing was embarked upon in June.

Given the worldwide economic crisis, you might think a 50-year-old company would eliminate or cutback on web-based advertising. No. Quite the contrary. Optimizing the marketing budget is more important than ever.

“We are seeing an ongoing secular shift from traditional to online media as marketers recognize that ad dollars invested in interactive media are effective at influencing consumers and delivering measurable results,” said Randall Rothenberg, president and CEO of the Interactive Advertising Bureau (IAB) . “In this uncertain economy, where marketers know they need to do more with less, interactive advertising provides the tools for them to build deep, engaging relationships with consumers—the experience marketers gain from this will deliver dividends especially after the economy turns around.”

Erik Aronesty, spokesperson for Moon Costumes, said, “We had to dig a little deeper this year for our ad budget, but I think it’s worth it!”

Visit Moon Costumes at mooncostumes.com.

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