Marketing in an Economic Downturn – Challenges and Opportunities: Marketing in an Economic Downturn

Marketing in an Economic Downturn – Challenges and Opportunities: Marketing in an Economic Downturn

Copyright: © 2020 |Pages: 11
DOI: 10.4018/IJBSA.2020010104
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Abstract

The business environment is uncertain. It becomes even more turbulent during recession. This uncertainty directly affects the investments made by firms. Firms hesitate to invest during a recession because of the belief that the returns will not be commensurate with the investment made. Nevertheless, there are firms which develop strategies and invest during recession. The article discusses various strategies which firms may adopt to survive and also excel during recession. The advantages and the disadvantages of the following those strategies are discussed. The article also focuses on firms which implemented strategies to overcome recession and established themselves in the minds of customers. This article might help firms and practitioners in identifying the most effective strategies to be adopted for excellence during an economic downturn.
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2. Strategies In Times Of Economic Downturn

Companies need to rethink about the best practices of management. Some experts (Hamm, 2008; Haluk Köksal & Özgül, 2007) see management entering a new age of turbulence in which chaos, risk, and uncertainty characterize many industries, markets, and companies. Experts (Hamm, 2008; Martin, 2008) believe that turbulence caused by economic downturn and recession should be considered as normal. There may be periodic and intermittent spurts of prosperity. However, companies should be equipped well enough to sustain and prosper during recession or even depression (Williamson & Zeng, 2009). Experts foresee many challenges for the future. There may be no assurance that a return to past management practices would ever be successful again.

According to Kotler and Caslione (2009), marketers should always be ready to face tough and challenging situations. Companies should be ready with automatic responses when there are turbulence and chaos in the environment. They suggest different chaotic marketing strategies to sustain in the environment.

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