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Top1. Introduction
The economic conditions prevailing in the marketplace determine to a large extent whether a product will succeed or will fail in the market. Depending on the economic cycles, there might be tough times, such as 2008-2010, in many parts of the world. All firms and businesses are affected by recession and economic downturn. During such situations, both the economic environment and the business environment become uncertain. Economic downturn forces firms to cut down their budgets and to do reduced funding for marketing programs (Peers, Van Heerde, & Dekimpe, 2017). Companies need to justify spending on marketing ventures during times of economic downturn. However, some firms convert the challenges faced during such tough times into opportunities. They find opportunities during such tough times. They survive and even thrive in the recession (Weaven et al., 2021). Companies should formulate strategies and adopt initiatives to survive and also to thrive during times of recession.
Companies should always focus on their strengths and should look for opportunities in the market. They should match their strengths with the opportunities in the business environment. They should introduce effective marketing programs, innovative products and services, understand customer requirements, and should seek new advantages rather than relying only on past strengths. All these are especially true in the tough times of economic downturn (Rollins, Nickell, & Ennis, 2014). During such tough times, companies are held accountable for all activities. Returns on investment are expected from every marketing activity (Tang, Zhang, & Peng, 2021).
Based on the discussions done above, the importance of adopting appropriate and effective strategies and initiatives during recession and economic downturn cannot be overemphasized. The strategies and initiatives which should be adopted during these times differ from that in normal times. The topic is important and relevant in the present-day context due to the outbreak of Covid-19 and the long-term implications of the resulting pandemic. Although the topic is of importance, there are few research studies which address and analyze it. The present study aims to address this research gap.
The objective of the study is to conduct a conceptual analysis of the various aspects of recession and economic downturn and the effects and the implications on formulating marketing strategies and programs. The latest and relevant literature related to the topic is referred to conduct the analysis.
The methodology adopted is the conceptual analysis of the literature related to recession, economic downturn, and the strategies and initiatives adopted by companies and businesses during those tough times. Primary data is not collected and empirical analysis is not done.
The contributions and the novelty of the study lie in the fact that a conceptual analysis of the various aspects of recession, economic downturn, and the connections and inter-connections with marketing strategies, initiatives, and programs are discussed. The study aims at understanding the changes in the business environment, psychology of consumers during economic downturn, changing customer requirements, and the factors affecting consumption during economic downturn. Various strategies and initiatives which should be adopted during such tough times are discussed. These include review of budget allocations, increasing investment during economic downturn, communication of value proposition, fine-tuning of brand and product offerings, and a focus on pricing strategies. The discussions done in the study will sensitize both academicians and practicing managers about the importance of adopting appropriate and effective strategies and initiatives during economic downturn. The discussions will be relevant in the present-day context of the economic crisis. The discussions will allow academicians and practicing managers to appreciate the changing requirements of markets during economic downturn. The discussions will also help them realize that it is imperative to understand the changing customer and market requirements and to achieve business excellence during economic downturn.
The study is structured as follows: