Saturday, April 26, 2008

Marketing During a Recession

Advertising Age posted an article regarding consumers' spending habits during a down economy. The author, Eric Spahr, encourages brands to continue to do several things, as the economy heads into a recession. Those things include the following:

1. Observe consumers' behavior
2. Understand the new competitive set
3. Find out emotions behind consumers' behaviors
4. Continue to build brand equity

Consumers will make decisions about which brands they will remain loyal to. Some consumers may give up their Starbucks coffee every morning while others may forgo using their summer vacations. Given this, the current state of the economy will mean that marketers will have to do a better job rewarding loyal consumers.

A recession should not be viewed as a inconvenience or a roadblock in a marketers way. Good marketers will seize the opportunity to be creative and find new ways to reach out to consumers. Now is the time for marketers to find creative ways to reach out to consumers (e.g. social media) and build consumer loyalty.

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