Recession Marketing

It is obvious that we are in an economic recession, and it has been strikingly interesting to me how marketing campaigns are changing due to this downturn. There are so many examples of cheaper marketing ideas, new advertising slogans, special promotions, and more product introductions that have come about due to the current economic state.

One trend associated with the recession is that consumers seem afraid of purchasing high end products. This has had implications for many industries such as fashion, cars, jewelry, travel (hotels, airlines, cruises, etc.) These industries are associated with luxury and pleasure and they have to encourage weary consumers to continue to indulge in their offerings. This can be a tough endeavor and it will be interesting to see what tactics are used to keep companies in these industries afloat.

I have noticed that several companies have created new slogans and campaigns to show how their products are still necessary even during the recession. General Mills has aired several commercials showing a family eating dinner together and kind of using General Mills foods to show that the simple things are what matter in these hard times. McDonalds has also used the recession as a selling point for their cheap burgers.

In an article from Forbes.com, the author discusses how private label products have the potential to do well in this economic climate. These products are usually not heavily marketed and are outshone by their competitors. Companies that produce private label products could probably increase sales if they would use more proactive marketing strategies to leverage their price differential.

Some companies are launching new products that are recession specific or they are lowering their price points of existing products to appeal to recession cautious buyers. This can be a good tactic although product development is expensive and some customers might see through the recession targeted marketing.

Companies should look to the purchasing trends of consumers to gain insights about how buying habits are being affected by the economic slowdown. With job losses, diminishing stock portfolios, houses being difficult to sell, and lower disposable income, customer behavior must be different. Are these trends regional? Is the spending much less? Are people more price conscious? Are all industries suffering? Are consumer attitudes influencing decision making? All these questions would be very beneficial to know for marketers launching new products.

This economic recession seems to be a vicious cycle that involves consumers fearing spending and therefore creating more job losses and further recession. In this economic climate, marketing is more important than ever. Although some companies are cutting marketing budgets due to have more money for operational costs, I think that marketing is one thing that can help the economy back around. Unfortunately, the success of the US economy seems to be associated with excessive spending and credit purchases and if marketers can encourage people to spend again, this will be very beneficial.

http://www.youtube.com/watch?v=tvfSe8nHttA