Marketing in an Economic Downturn


In economic cycles, there will always be downturns, and knowing how to effectively deal with them is a crucial skill for every marketer. Here are the general guidelines to improve the odds of success  during an economic downturn:

  • Explore the upside of increasing investment.
Instead of trying to cut back costs, invest in marketing. Firms that have done so are often best able to exploit a market place advantages such as an appealing new product, a weakened rival, or development of a neglected market.
  • Get Close to Customers.
In tough times, customers may change what they want and can afford, where and how they shop, even what they want to see and hear from a firm. A downturn is an opportunity for marketers to learn even more about what consumers are thinking, feeling, and doing, especially the loyal base that yields so much of the brand's profitability.
  • Put Forth the Most Compelling Value Propositions. 
One mistake brands make during tough times is focusing heavily on price reductions and discounts which can harm long-term brand equity and price integrity. Marketers should increase-and clearly communicate- the value their brands offer, making sure consumers get to appreciate all the financial, logistical, and psychological benefit compared with the competition.

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