To Advertise, or to not advertise?
Almost five months has passed since the irreversible change that the coronavirus pandemic has caused. Many businesses lost a huge amount of their customers due to the lockdown; consequently, a huge amount of profit was lost this year.
The world is currently suffering from a recession which is hitting bigger economies stronger than any other and is expected to last for a while, or until a vaccine is found.
Businesses from all over the world are trying to reduce the amount of their losses and gain as much advantage over the market as they possibility can. It has become apparent that many costs should be reduced, either costs of production, or employment, or even marketing. Many business owners already took the decision to reduce their employment base by either laying off a number of employees, or by giving their employees a long period of furlough. However, the decision of reducing production or marketing expenses isn’t as easy. Since the stock markets are largely hit, production costs are increasing due to the scarcity of stocks. In addition to that, this period of time requires innovation in products which asks for an increase in production and innovation costs, so cutting down production costs is currently out of question which only leaves marketing budget in question. Even though a huge amount of business owners have already taken the decision to cutdown their marketing budget, the effect of that decision is yet to be seen. A number of surveys were conducted since 2002 to test the actual effect of marketing during the period of a recession.
In this article we will discuss the effect of marketing during and after a period of recession
The statistical data provided by IMF shows that we’re living in a global recession that we haven’t seen ever since the great depression. The world is suffering from a -3.0 loss in GDP; however, the world economy is expected to expand again in 2021 due to growth in major economies like the US and China in 2021. Currently, advanced economies like the United States, Italy, and Japan are all suffering from a huge loss in GDP with Italy affected the most. The current loss that has impacted Europe during the past few months is said to last for at least two years to come because customers are still afraid to go our shopping even after the lifting of the lockdown.
To market, or not to market