When business becomes tough, it is the marketing that needs to support the company stability and growth, as a result of coronavirus consumers will be facing financial difficulty and this will mean that they will have to be cautious in their expenditures.
Reassuring the consumer, holding thier hands in a “we’re going to get through this together” manner is a vital ingredient of successful marketing during a recession.
Value brands with low cost structures and low priced brands advertising about price will retain their market share.
Companies targeting the middle segment of the market will face the most difficulties and this is where marketers need to be thinking outside the box. Fasten your seat belts for a long and difficult 2020 with pressure on everything and tightened expenditures.
It is vital now more than ever to research the customer and instead of cutting the market research budget, you need to know more than ever how consumers are redefining value and responding to the coronavirus impacts.
Maintain marketing spending because this is not the time to cut advertising and it is well documented that brands that increase advertising during difficult times and recession, when the competitors are cutting back on marketing spend will increase their market share and this will drive a return on investment.
Marketers must re-forecast demand for each item in their product lines as consumers trade down to models that stress good value. Gimmicks are out; reliability, durability, safety and performance are in.