HOW TO MARKET IN A DOWNTURN
The article has been written by John A. Quelch (Senior Associate Dean and the Lincoln Filane Professor of Business Administration at Harvard Business School) and Katherine E. Jocz, a research associate at Harvard Business School in the April 2009 editions of Harvard Business Review
Name: KAPIL KALRA
Roll No: N-32 (North Campus) Class: MBA PT 2009-12 II Semester
Sub: Marketing Management
In this article, the author (refers to Prof. John A. Quelch and Katherine E. Jocz) has intended to prescribe marketing strategies that should be adopted by companies during recessions, after understanding consumer psychology and the concomitant behavior.
The author postulates that when companies are faced by a recession, they always find themselves in unforeseen circumstances because no two downturns are alike. The author has identified patterns in consumers’ behavior and firms’ strategies that either propel or undermine performance by studying the marketing successes and failures of companies as they’ve navigated through recessions, and suggests the following strategies during recessions.
Understanding Recession Psychology:
The author claims that the rising sales during booming economies are not just a derivative of clever advertising or appealing products alone, but an outcome of higher disposable incomes, consumers’ confidence about future, embracing lifestyles and values that encourage consumption etc, and the same factors would derive consumers spending patterns during recessions too. And therefore, companies need to understand consumer psychology and accordingly, formulate strategies.
During recessions, the companies need to do a psychological segmentation of consumers...