Marketing strategies to battle the recession


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This Marketing Strategies helps firms to overcome recension problems.

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Marketing strategies to battle the recession

  2. 2. Introduction 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“ -Kotler1973
  3. 3. 8 Marketing Strategies in Economic Recession 1. Research the customer 2. Focus on family values 3. Maintain marketing spending 4. Adjust product portfolios 5. Support distributors 6. Adjust pricing tactics 7. Stress market share 8. Emphasize core values
  4. 4. Marketing strategies in an economic recession can be synthesized as follows (according to Ang, Leong,and Kotler 2000):Market mix strategies: Withdraw from weak markets Fortify in markets where brand is strong Acquire weak competitors Consider non-Asian and youth markets Consider resale market for durable products
  5. 5.  Product strategies: Prune weak products Avoid introducing new products to fill gaps Introduce fighter or second-line brands Adopt adaptive positioning Concentrate on simple and durable product Augment products with warranties
  6. 6.  Pricing strategies: Improve quality while maintaining price Reduce price while maintaining quality Avoid reducing quality and price Consider product life cycle pricing
  7. 7.  Promotion strategies: Maintain advertising budget Increase use of print media Provide assurances through rational appeal Use expert endorsements, traditionally respected figures and satisfied-customer testimonials Adopt an advisory tone Capitalize on public relations Use discounts and premiums, not contests and lucky draws Introduce customer loyalty programmes Train sales force to anticipate questions and handle objections
  8. 8.  Distribution strategies: Location is still important Sell in discount and wholesale center Prune marginal dealers Consider alternative channels
  9. 9. Conclusion The paper showed that the greatest adjustments in a crisis were price related. Consumers were found to be less wasteful, buy less of everything, delay purchases of durable products, and bargained for lower prices more often than they used to. More shopping in cheaper outlets such as discount and neighborhood stores was also observed. . These recession strategies wont turn the business around when used independently, but if we combine several of them, they can help to transform ones outlook for the future. This recession have turned down the growth process and have set the minds of many for finding out the real solution to sustain the economic growth and stability of the market which is desired for the smooth running of the economy.
  10. 10. THANKING YOU