Investment in The Coconut Industry by Nancy Cheruiyot
Marketing strategies to battle the recession
1. MARKETING
STRATEGIES TO
BATTLE THE
RECESSION
B.VEERA BRAMHAM
Research Scholar,
.
SKIM,S.K. University, Anantapur
2. Introduction
Recession has been defined in the marketing literature
as a "process of decreasing demand for raw
materials, products and services, including labor"
-Shama 1978
or
as a "state in which the demand for a product is less
than its former level“
-Kotler1973
3. 8 Marketing Strategies in Economic Recession
1. Research the customer
2. Focus on family values
3. Maintain marketing spending
4. Adjust product portfolios
5. Support distributors
6. Adjust pricing tactics
7. Stress market share
8. Emphasize core values
4. Marketing strategies in an economic recession can
be synthesized as follows (according to Ang,
Leong,and Kotler 2000):
Market mix strategies:
Withdraw from weak markets
Fortify in markets where brand is strong
Acquire weak competitors
Consider non-Asian and youth markets
Consider resale market for durable products
5. Product strategies:
Prune weak products
Avoid introducing new products to fill gaps
Introduce fighter or second-line brands
Adopt adaptive positioning
Concentrate on simple and durable product
Augment products with warranties
6. Pricing strategies:
Improve quality while maintaining price
Reduce price while maintaining quality
Avoid reducing quality and price
Consider product life cycle pricing
7. Promotion strategies:
Maintain advertising budget
Increase use of print media
Provide assurances through rational appeal
Use expert endorsements, traditionally respected figures
and satisfied-customer testimonials
Adopt an advisory tone
Capitalize on public relations
Use discounts and premiums, not contests and lucky
draws
Introduce customer loyalty programmes
Train sales force to anticipate questions and handle
objections
8. Distribution strategies:
Location is still important
Sell in discount and wholesale center
Prune marginal dealers
Consider alternative channels
9. Conclusion
The paper showed that the greatest adjustments in a crisis
were price related. Consumers were found to be less
wasteful, buy less of everything, delay purchases of
durable products, and bargained for lower prices more
often than they used to. More shopping in cheaper outlets
such as discount and neighborhood stores was also
observed. . These recession strategies won't turn the
business around when used independently, but if we
combine several of them, they can help to transform one's
outlook for the future. This recession have turned down the
growth process and have set the minds of many for finding
out the real solution to sustain the economic growth and
stability of the market which is desired for the smooth
running of the economy.