How to Market in a Downturn
Elizabeth De La Rosa MKTG 6130
October 1st, 2013 Dr. Mushtaq Luqmani
Article: How to Market in a Downturn by Quelch and Jocz
This article focuses on how companies should market in a downturn. The authors suggest that for tailoring a company’s marketing strategies to consumer’s recession psychology they need to asses opportunities, plan for the long term and balance their communication budget in order to get the biggest returns from their marketing budgets. Moreover, the authors indicate in the article that to market in this downturn, firms must resegment consumers according to their emotional responses to the recession. Therefore, there are four different types of segments that businesses need to look at such as slam-on-the-brakes, pained-but-patients, comfortably well-offs and live-for-today to determine where their core customers belong to. In addition, Quelch and Jocz recommend that firms should identify how member within each segment categorize their purchases such as essentials, treats, postponables or expendables.
Furthermore, when it comes to budget changes companies typically pull their advertising and marketing budget. Truth is by doing this and reducing communication they are only affecting short term sales, which in return negatively affects profit. While this may give short-term relief they will risk losing market share once the economy begins to stabilize and recovery begins. Consider learning to be more cost efficient rather than reducing budgets, in the long run it will save them money. We all know that consumer behavior changes during a recession and in return this affects a company’s bottom line. Their audience will spend less and delay major purchases and even trade down to cheaper alternatives. However, not all consumers stop
October 1st, 2013 Dr. Mushtaq Luqmani
Article: How to Market in a Downturn by Quelch and Jocz
This article focuses on how companies should market in a downturn. The authors suggest that for tailoring a company’s marketing strategies to consumer’s recession psychology they need to asses opportunities, plan for the long term and balance their communication budget in order to get the biggest returns from their marketing budgets. Moreover, the authors indicate in the article that to market in this downturn, firms must resegment consumers according to their emotional responses to the recession. Therefore, there are four different types of segments that businesses need to look at such as slam-on-the-brakes, pained-but-patients, comfortably well-offs and live-for-today to determine where their core customers belong to. In addition, Quelch and Jocz recommend that firms should identify how member within each segment categorize their purchases such as essentials, treats, postponables or expendables.
Furthermore, when it comes to budget changes companies typically pull their advertising and marketing budget. Truth is by doing this and reducing communication they are only affecting short term sales, which in return negatively affects profit. While this may give short-term relief they will risk losing market share once the economy begins to stabilize and recovery begins. Consider learning to be more cost efficient rather than reducing budgets, in the long run it will save them money. We all know that consumer behavior changes during a recession and in return this affects a company’s bottom line. Their audience will spend less and delay major purchases and even trade down to cheaper alternatives. However, not all consumers stop