How should marketers adjust their strategies and tactics for an economic downturn or recession?

Competitive dynamics

How should marketers adjust their strategies and tactics for an economic downturn or recession

Tough time

never lasts but

tough people do

Strategies to adopt during economic

downturn

Strategy 1

40 years of evidence suggests,

Those willing to invest during a recession have, on average improved their fortunes when compared with those that cut back

Increased marketing expenditure by 16% in 2009

Revenue increased by 8%

Net Profit increased by 4%

Strategy 2

Learn more about what customers are thinking, feeling and doing

Strategy 3

Eliminate approaches that no longer provide sufficient revenue benefits

Weed out underperforming distributors Provide Incentives to motivate effective Product Sellers

Strategy 4

Price reduction and discounts

should be avoided

Strategy 5

Ensure to sell the right products to right people at right times and places

Value driven companies are likely to benefit most

Luxury Brands can benefit from lower priced sub-brands in their portfolios

Created by Dipanshu Sehjal, IIIT Allahabad

During a Marketing internship under

Prof. Sameer Mathur, IIM Lucknow

(See www.IIMInternship.com)