Business and Management
Foundation of Business
Word Count: 895
'It is not the strong, nor the intelligent who survive, but those who are quickest to adapt'. Charles Darwin
In recent years the UK economy has experienced a recession. In this period the UK has changed from prosperous, overheated economy to an economy in crisis. In a fast-developing environment, ways in which retailers can change their marketing activities is more critical than ever. While a variety of definitions of the term 'Recession' have been put forward, this paper will use the definition suggested by Hall et. al. (2001) who defined it as a significant decline in economic activity spread across the country, lasting more than a few months, normally visible in real GDP growth, real personal income, employment, industrial production, and wholesale-retail trade. An important issue for experts in economics and indeed for trade companies is how can retailers change their marketing activities in a recession. Only the recession occurring between 2007 and 2009 will be dealt with in this paper. This assignment begins by highlighting the two most available ways of changing marketing activities in a recession. It will then go on to evaluate chosen strategies. One way of modifying marketing activities is more spending of the retailers on advertising and promotions and thereby supporting a more aggressive marketing campaign (Broadbent et. al., 2008). On the one hand the natural reaction of many businesses experiencing a downturn in their revenue is to cut 'good costs' in areas such as advertising and promotion. 'Good costs' during recession are those associated with marketing, quality and new products and services (Hillier, 1999). However, as Hillier (1999) states businesses should do exactly the opposite if they are to survive the recession and thrive...