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Economic Crisis and Marketing

The economic crisis affects consistently the marketing performance of many companies. In such a situation, companies have to use different strategies to attract customers and to stimulate them to buy more products and services. However, often strategies used by companies to accelerate sale rates are ineffective because the low buying power of customers prevents them from buying products and services, which are not vitally important for them. Therefore, such companies as Adidas, which could introduce new products in the time of economic recession, should develop strategies to attract customers and to increase sale rates taking into consideration the competitive environment, policies of their rivals and differentiation to make their strategies unique and attractive to customers.

In fact, gaining a competitive advantage in the time of the economic crisis is one of the primary tasks of any company operating in the market. In this regard, strategies they use in the time of the economic crisis are also tools, which companies can use to take an advantageous position in the market. To put it more precisely, the more effective the strategy they use is the better their competitive position will be. Companies need to attract customers but they need to make it better than their competitors (Masterson and Picton 2004). What is meant here is the fact that companies can use discounts to attract customers but their rivals are likely to do the same. In such a situation, companies with a larger volume of products and services delivered to customers are in an advantageous position because they can offer higher discounts to customers compared to companies offering a smaller number of products or services. As a result, companies with smaller sale rates are vulnerable to more substantial losses compared to companies selling a larger amount of products and services. Therefore, the letter can offer higher discounts because they can cover financial losses from discounts at costs of the large volume of products and services being sold to customers.

At the same time, companies should remember about the differentiation of their strategy in the time of the economic recession. For instance, discounts are widely-used in the time of the economic crisis, when the consumption drops consistently. As a result, companies will not attract a lot of customers, if they use the discount strategy solely because their rivals are likely to do the same. Instead, they should use different strategies depending on specificities of their business (Gwynn, 2004). For instance, company operating online can offer their customers free shipping or faster shipping compared to their rivals. This move can attract customers, especially if they want to buy a product or service from the company but are choosing the best product or service. In this regard, Adidas can expand its business online and provide customers with free return and refund policies that will attract customers.

In this regard, the company should also remember about the quality of its products and services. The high quality of products and services is an essential condition of survival in the time of the economic crisis because customers will never buy products or services of the poor quality, if they have large options to choose from.

Thus, taking into account all above mentioned, it is important to place emphasis on the fact that companies should choose effective strategies to attract customers in the time of the economic crisis. However, companies should be able to offer strategies different from those of their rivals to attract more customers and to minimize their financial losses. In such a situation, they should always stay focused on the quality of their products and services.

 

REFERENCES:

Gwynn, T. (2004). The Sweet Spot: The Story of the San Diego Padres Petro Park. New York: Routledge.
Masterson, R. and D. Picton. (2004). Marketing: An Introduction. New York: McGraw Hill.