Which of the following strategies should be adopted by marketers during a recession?
A) increase investment on marketing existing products
B) focus on expanding the customer base and not on the retention of existing customers
C) focus primarily on price reductions and discounts
D) concentrate on communicating the brand value
E) stick to the budget allocations adopted during the preceding years

Question

Quizplus · Accepted Answer

During a recession, consumers are more price-sensitive and tend to cut down on their expenses. Therefore, it is important for marketers to communicate the value of their brand to consumers. This will help them differentiate their products from those of competitors and maintain customer loyalty. Focusing on price reductions and discounts (C) may attract short-term customers, but it may not be sustainable in the long run. Increasing investment on marketing existing products (A) may be difficult in a recession when companies may be facing financial constraints. Focusing on expanding the customer base (B) may not be cost-effective as it is more expensive to acquire new customers than to retain existing ones. Sticking to the budget allocations (E) adopted during the preceding years may not be feasible during a recession when the company's financial situation may have changed.

Which of the Following Strategies Should Be Adopted by Marketers