Marketers Preparation For Recession
To gain an understanding of how well marketers were prepared for the recession in 2008 as compared to today so as to write a whitepaper on how brands can "recession-proof" their businesses in today's economy.
- In the United States, the partial shutdown of the federal government that was witnessed recently put the economy at risk and for the first time since the Great Recession, marketers are expected to see significant budget cuts in 2019.
- In 2008 when the stock market crashed, a negative ripple effect was experienced in the marketing sector with advertising spend in the United States falling by 27% - newspapers, 22% - radio, 18% - magazine, 11% - outdoor, 5% - TV, and 2% - online.
- As a whole, the entire ad-market declined by 13%.
- According to Investopedia, the effects of a recession on business include a decline in sales revenue and profit, a reduction of new employee hiring, a reduction in the purchase of new equipment, reduced research and development, and a stop in new product rollouts. The expenditure on marketing and advertising may also be reduced by businesses.
- All the cost-cutting effects of one business usually affect other businesses that directly relate to it.
- In 2009 (the last year of the Great Recession), U.S. ad spending reduced by 12% while global spending reduced by 9%.
- According to an article on the Harvard Business Review, eight factors that companies had to keep in mind when they were making their marketing plans for 2008 and 2009 were - research the customer, focus on family values, maintain marketing spending, adjust product portfolios, support distributors, adjust pricing tactics, stress market share, and emphasize core values.
Proposed next steps:
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From our initial research, information on the effect of the 2008 recession on marketing is available. Consequently, we recommend focusing the next part of research on 1. marketing strategies that marketers and marketing firms can use to recession-proof their businesses, 2. case studies on the effects of the 2008 to the marketing industry, 3. analysis of the marketing industry's preparation for a recession now vs in 2008 i.e. how are marketers feeling now vs in 2008 and how has technology helped marketers prepare for the effects of recessions now vs in 2008.
Alternatively, we can focus research on creating 2-3 case studies on the preparation of the marketing industry to a recession in 2008 vs today as a potential recession is looming in late 2019/early 2020.