What Marketing Strategies Help Overcome the Existing Global Crisis? A case study of Indian Industry
The global financial system literally went into a cardiac arrest after the Lehman Brothers Holdings Inc. collapsed and a meltdown was barely avoided through very aggressive policy responses. Unfortunately, the worst is ahead. The entire global economy will contract in a severe and protracted U-shaped global recession that began sometime back. The recession in the US markets and the global meltdown termed as Global recession has engulfed complete world economy in its whirlpool. World over the impact has diversified and can be observed from the very fact of falling Stock market, recession in jobs availability and companies following downsizing in the existing available staff and cutting down of the perks and salary corrections. India is no exception to it. Perceptually, it might have suffered tremors with lesser intensity due to its stringent economic policies. The BFSI (Banking Financial Sector Insurance) has taken a hit with the financial sector getting affected in US. The textile sector has also been hit with the export of textiles coming down in the recent months. Several jobs are in danger of being lost. There has been decline in the automobile sector as well. The months of November & December saw bike & Car sales down. The present study is an attempt to understand the effects of global recession faced by India and highlights those sectors which will come to the rescue at times in future. It will also put a light on the Marketing strategies employed by these sectors to overcome the fever of recession. It will also focus on the opportunities and strategies that the marketers can adopt to sustain themselves. The rise and fall conditions in the market have to go on. But with this the economy has to follow. Business has to come out with answers. Solutions have to be identified out of the problem itself. The need of the day for the global recession is to employ robust marketing strategies for promising sectors. GLOBAL CRISIS: AN OVERVIEW
In today's arena the most common word we come across are recession and downturn. Recession or crisis is the part of the normal cycle of business. It is certain that they will sooner or later occur. Recessions are the result of reduction in the demand of products in the global market. Recession can also be associated with falling prices known as deflation due to lack of demand of products. Again, it could be the result of inflation or a combination of increasing prices and stagnant economic growth in the west. Recession has been defined in the marketing literature as a "process of decreasing demand for raw materials, products and services, including labor" (Shama 1978) or as a "state in which the demand for a product is less than its former level" (Kotler 1973). Recession is a phenomenon of decreasing demand for raw materials, products, and services. Technically, its beginning, progress, and ending depends on the operational measures used by different researchers and federal agencies. The worst ever financial crisis to have ravaged the United States since the Great Depression of 1930s, has taken a heavy toll on the world's largest economy. There is rise in the number of job layoffs and cost cutting. In fact, all the economies of the world are facing crisis to tackle this global meltdown. The meltdown has led to shock waves across the world, with economy after economy gasping for breath to survive this financial tsunami. Recession has been traced a long back in the 30's which took place in the United States , but as recession or crisis is a part of the normal cycle of business it again came back during 2008-09 taking its toll in the United States. Major recessions which led to the collapse of the world economy are: •
The Great Depression (1929-1939): Stock markets crashed worldwide, and a banking collapse took place in the United States. The recession and following downturn lasted 10...
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