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Effects of recession on marketing - Essay Example
Pages 9 (2259 words)
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…
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. ...