By Mahnavaz Rad
What are the reasons behind a recession?
When recession strikes, it is crucial to question if each element in a marketing plan is achieving its objectives. Does it encourage brand loyalty? What barrier to purchase does it address? Does it make the brand seem worth paying more for?
The most important key to success during an economic downturn is to stay focused on the brand, competition, customers, and communications. Analyzing the company and the brand health by using annual reports, tracking studies, media data, sales force intelligence, and feedback from consumers are some of the recession survival tactics.
Anticipating competitors’ actions becomes a critical factor during recession. Marketers should consider the ways competitors might respond to an action.
Recession may force a triage strategy, thus, marketers need to concentrate on the core brands and products that are most likely to survive, and let the others to sink.
Supporting the core proposition and emphasizing its value secures the brand’s image.
Price-cutting move may not be rational when doubting the competitor’s response. On the other hand, a high price may not be a problem as long as consumers believe that the brand is providing value for the money they pay.
A reduction in quality may remain unnoticed for a while, but it will lead the brand fails later. A successful brand is built on the great brand experiences; therefore jeopardizing the brand image would not be an intelligent decision to make during a recession.
A brand’s biggest asset during a recession is its existing customer, thus being in touch with them and providing a variety of services to keep them satisfied play an important role to maintain the customer equity.
Marketers need to minimize risks by monitoring consumer’s behavior and changes in their consumption patters and habitual spending.
Focusing on internal environment plays an important role not just during a recession but economic expansion. The motivation level of employees is essential to a company’s success; thus, they need to be reminded that they make a difference.