Marketing in Recession
“Business confidence among UK marketing executives has slumped to its lowest level in three years, as wary companies cut spending on TV, press and radio advertising in favor of price discounting and the internet” according to the latest Bellwether survey.
Companies always cut their marketing expenses, a crucial thing on which their sales depends, during recessions, even though there sales are already falling. What prompt companies to take such a step????
There is one aspects of this behavior of the firms is lack of accountability in marketing. One of the argument with which many of the scholars agree is that CEO get accountability for their investment in finance, production, IT etc. but they don’t know what their market spending is achieving.
There are many other aspects of such behavior….. It’s a topic of research; it’s a hot topic for discussion especially when we are living in a time of recession.
“Business confidence among UK marketing executives has slumped to its lowest level in three years, as wary companies cut spending on TV, press and radio advertising in favor of price discounting and the internet” according to the latest Bellwether survey.
Companies always cut their marketing expenses, a crucial thing on which their sales depends, during recessions, even though there sales are already falling. What prompt companies to take such a step????
There is one aspects of this behavior of the firms is lack of accountability in marketing. One of the argument with which many of the scholars agree is that CEO get accountability for their investment in finance, production, IT etc. but they don’t know what their market spending is achieving.
There are many other aspects of such behavior….. It’s a topic of research; it’s a hot topic for discussion especially when we are living in a time of recession.
Rohit Goyal
Team Mercatus
It would require a lot of research on the part of the company to establish a correlation between their specific marketing activities and their corresponding effects on sales.. I have no Idea about how that is done by companies but I suppose some companies would be having such research processes in place.
ReplyDeleteAs far as spending on Marketing is concerned, there are specific patterns of spending during recession and that differs in every segment of consumers hence marketeers have to understand such spending shifts and cuts a recession has on the products of their company and act accordingly. There should be Differential policy with cuts as well appraisals depending on the product and market we are in.
http://hbr.org/hbr-main/resources/pdfs/comm/fmglobal/how-to-market-in-downturn.pdf
http://onpointcoaching.typepad.com/files/in-a-downturn-provoke-your-customers.pdf
read these two for further details
Absolutely true. Companies must not undervalue the importance of adopting appropriate marketing strategies in times of recession. The links posted in the comment above throw more light on the concepts, giving us a better platform to analyze the topic.
ReplyDelete