Question: Imagine the recession situation like 2008 – 2009. What should companies do to cope with this situation?
Bearing in mind that an economic meltdown makes people cut down their luxuriant expenses and decreases their consumption rate, companies should take these issues into their business plans in order to modify their marketing strategies and keep their margins buoying.
Facing a recession period, companies are forced to adjust their strategies according to the way how customers and partners’ needs change. Starting this process, the first step to be called for is investing in marketing research so as to understand how customers are facing the recession and they redefine the response to specific brands. Customers, during this sort of situation, are characterized by looking for offers and better value, so companies must concentrate their efforts in designing better deals which are based on family values, therefore customers will feel the products nearer and more useful.
The advertising during tough economic times should be increased since competitors are likely to cut their advertising budget down in order to keep minimal margins. However, the advertising budget ought to be balanced between different channels and different techniques such as direct marketing and relational marketing, which gives more immediate impact on sales even though it is more difficult to implement it since the company has to focus on more specific target customers.
Companies’ marketing area must estimate new demand for each product within the product line, concentrating in those ones which are multi-purpose and gives more added value to customers. When economic hard times loom, customers tend to focus on those products which are reliable, durable, safe, and show a good performance, therefore companies must point their efforts to increased advertising and sales on those products or services.
Along with the budget’s... [continues]
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