Marketing Adaptation During a Recession

Companies need to adapt their marketing strategies during a recession to keep consumers' interest. Having an efficient and productive marketing plan is essential to all businesses, but during a recession the need becomes even more important if companies are planning on surviving. Before you adjust your marketing plan it is important to look at the type of product you are trying to market. Is the product a shopping, specialty or luxury good? As a marketer you also might need to change the focus of your product’s attributes in order to keep the consumer’s attention.

Marketers need to look at companies that are surviving successfully during an economic downturn. What ways have they adapted to keep their customers happy? One example is McDonalds. Instead of advertising their specialty burgers, they are promoting their value menu and are still getting people to “eat out”. Companies also need to consider offering free shipping or other discounts to attract consumers. Consumer good products such as grocery or health and beauty aids also need to adapt how they utilize sales promotions. Redemption of coupons is usually around 2 percent, so in recent years companies have moved away from issuing coupons. The latest numbers though show an increase in consumer interest. In a recent Brand week article, “72% of consumers are using more coupons than they did six months ago. Three-quarters of those respondents claimed the economy made them do it”. Smart companies are now offering online or traditional coupons with a shorter expiration date, which causes the consumer to make a purchase in the short term.

When corporate tightens marketing’s budget, the need to look elsewhere to advertise and promote your product or service becomes even more critical. Many companies such as Dunkin Donuts have embraced social media websites such as Twitter.com. Twitter.com is a social media website which allows individuals or even companies to follow or be followed by individuals. In short “Tweets” companies can update loyal customers about new promotions, new products and even ask for feedback. Most of the individuals on Twitter.com are innovators or the opinion leaders that companies long to reach anyway. The best is that the entire idea doesn’t cost Dunkin Donuts much except for the time of an employee to handle the media sites. Dunkin Donuts recent "Tweets" have consisted of free coffee giveaways near local colleges, and also reminding customers about D&D holiday gift ideas.

Is it possible to still sell a luxury item during a time when consumers are cutting back on their purchases? One way marketers can try to promote their more expensive products is to move away from focusing on status or image benefits and instead focus on quality or safety. An example would be to try and convince a consumer to pay more for a luxury vehicle by showing them that in the long run the repair bills will be less. Promote the idea of safety so that the consumer will feel that spending more brings them some type of cognitive reward and not just a feeling of status.

Understanding consumer demand and being able to rapidly adapt to changes is another important criteria. The American car manufacturers ignored the consumer trend of small and more fuel efficient cars. Missed opportunities are even more financially damaging during a recession. Marketers need to constantly reevaluate their marketing strategies and adapt wherever possible to the challenge of the financial landscape. By not keeping track of their consumer’s financial struggles will lead to a company facing a huge drop in demand and eventually obsolescence.