Essey

The role of advertising in a recession economy

Advertising is a big and important strategy used for many years in business and politics all over the world. Nowadays advertising has become very common and no one can imagine a world without it. It has become a way of communication used to encourage people to purchase a product and also influence them on how they think and act, establishing new trends. In difficult times business is affected the most so companies must think of strategies for staying in the business, so that is when advertising differs depends of each company. In recession economy people start to think about what products do they really need and what not. Is the time when companies start to analyses if they should cut off from advertising in order to keep the business off of bankruptcy. Some small companies do not have the sufficient funds to keep the same advertising in difficult times so they cut off and hope people will still buy from them. Companies that sell necessary products in everyday life have no problems because people still have to eat and wash so all they need to do is to low their prices and they also can reduce the advertising budget. But during an economic downturn some brands think in the long term so they consider the best way to keep the company of falling down is to keep the advertising going. A lot of specialists say that is the best way. Because even if companies do not purchase products in that moment, on the long term they will increase their sales because they will make sure people become aware of that product and they will remember it later when they have the means to buy non-essential products. What is more, some major brands think that they are too big to cut down on advertising and they have to keep up with the competition. Some of them have an old history and important clientele (clothes brands) and they need to keep up the trend and the statute. For example the president of marketing at Hyundai Motors has