Marketing & A Global Recession
With a pandemic such as 2020's COVID-19 affecting the market, businesses, and professional interactions between customers, clients, and companies, the entire economy is put in a vulnerable position on a global scale. Slowly, small businesses such as bars, restaurants, and cafe's shut down, while grocery stores and vegetable vendors continue to supply goods to the public. Each business industry is affected in a variety of ways through such catastrophes, whether on a small or large scale. As it causes a negative surge in the economic flow of income, some continue to benefit.
For businesses and companies to reassure their customers that the hard times will not last is a vital element to successful marketing during a recession period. Valued brands with low-cost structures may do well and brands supported by minimal advertising, competing on price to retain their market shares is said to play a greater role. It is believed that companies that target the middle market would face the most complications in times of economic recessions
During such times, the cost for advertising and marketing is at a low, this lower rate created a 'buyers market' for brands. Mail advertising, however, has been shown to provide greater short term sales. The way it works is highlighted around a single point, the rise and fall of economic growth and flow during a recession. With some companies losing business and minimising income, they cut don expenses in advertising and marketing strategies that potentially leads to losing current and future sales.
As such events can be unpredictable business and company need to continue an innovative advertising and marketing strategy to maintain the growth of sales, to strategise customers satisfaction at a long term rate, and to maintain the efficient allocation of company resources. By engaging in constant marketing, consumers are reminded that they are all in this together, and that helps maintain a healthy company to customer relationship.
Another positive factor of online marketing during recession periods is to continue the flow of goods from business to consumer, maintaining a healthy flow of income can assist in the prevention of a further economic collapse. During an event such as COVID-19, that initiated a global quarantine, it has become difficult for some to get access to certain consumable daily goods but as online marketing continues, that task becomes convenient.