Recessions, they come and go and once again we seem to be facing the recession. How you come out of a recession as an entrepreneur is particularly dependent on your choices regarding marketing and innovation in the time of crisis, Prof. Dr. Barbara Deleersnyder researched. Barbara is a professor of Marketing Analytics at Tilburg University.
Barbara Deleersnyder started as a researcher with everything related to economic crises. She is currently looking primarily at impacts on consumers and more recently on retailing.
Her research includes studies in retailing and innovations, the impact of general economic conditions on consumer and business behavior, measuring market (and) performance and managing change, and the demand for durable goods.
Effective Choices
In times of recession, people in business make choices. A logical reaction, but certainly not an effective one. Just as consumers start saving, businesses start saving in all sorts of ways. Business owners see their revenues decrease while costs remain the same. "You can't lay off a lot of employees in the short term. What we see then is that businesses are going to cut back on a cost or expense that you can easily reduce in the short term. Marketing is a very quick candidate of that," said Barbara Deleersnyder.
Promotion
Every week the regular round through the supermarket. At the end of your tour of the supermarket, take a look at your shopping cart. How many automatic purchases are now in your shopping cart. You don't even realize it anymore. But then comes the recession. Saving on groceries is an easy step. Instead of the A brand, this time choose a house brand.
Promotions by themselves are not actually a good marketing tool, according to Barbara. It gives a temporary boost, but then sales will drop. Still, in times of recession, promotions are productive. "Don't overuse promotion when there is no recession. Cut back on promotion to be able to use it during recession though."
In times of recession, make sure you remain worthy of purchase by consumers. Curious about more tips? Then listen to the latest episode of the Work Professor.
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