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Effects of recession on marketing - Essay Example

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Recessions occur during a decline in spending following a financial crisis and eternal trade shocks among other business activities that inhibit public spending. Recessions are unpredictable and may occur at different times of the financial year following the trends in different markets…
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Effects of recession on marketing
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Effects of recession on marketing

During such times, people show preference to the basic products and eliminate the secondary products most of which they can survive without. This stifles the operation of some manufacturers who operate on such secondary products. Knowing the reduced spending, the companies become more articulating in their expenditures since the market does not promise the effective returns as always. They therefore plan their spending trying to sell as much of their product in the uncertain times. Companies therefore engage in unorthodox marketing strategies with the aim of improving their product visibility and possibly sales. While the market is always compelled to use the basic products such as food products and clothing, the purchasing trend changes and becomes characterized by low rates of purchase and purchase in smaller quantities. The trends worsens for some specific products and services considered secondary by the markets. Such products include electronic and leisure services thereby hampering the productivity of the tourism sector. Leisure for example is a mode of relaxation in which people engage during specific times. Additionally, such leisure activities are costly and therefore require a lot of money. Most people therefore prefer to remain at home and spend three times with their families thereby saving on the additional and often unnecessary spending through the holidays. Additionally, recessions result in job losses thereby rendering the financial status of some families unpredictable. While they suffer shocks, they detest spending and therefore control their finances stringently often showing preference to the basic products. The reduced market activities require specific marketing strategies to ensure that products and services perform favorably enough to...
While this did not change much, the company relies on a number of production features to increase its marketing process thereby increasing its product visibility in the market at relatively lower costs. Among such is the diversification of its products among the different market segments (Bogomolova, 2011). The soft drinks manufacturer produces an assortment of other products under different names thereby increasing its market base. Among its most common products are coca cola from where it borrows the name, sprite and Fanta among other types of soft drinks and enriched waters. Besides the product diversification, the company sponsors a number of different sporting events through its different products thereby earning relevance and recognition among the lovers of such sports.
Looking at the activities of the two giant companies one of which is an electronic manufacturer while the other is a beverage manufacturer, it becomes evident that recessions require effective management including reduced spending. The companies understand the essence of advertisement and therefore spend fortunes on increasing their product visibility. During recessions, even the big corporations control their spending showing preference to more productive venture. One of the budgets that such business revise is their advertising budgets. This therefore validates the creative advertisement mechanisms that some of such corporations employ like the sponsorship deals. ... Read More
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