engleski

The Impact of Crisis on Marketing Strategy Components - An Overviw of Empirical Evidence

Still present global crisis is neither the first, nor the last one that has struck the business world. However the causes of crises may be different, their consequences (GDP, demand, investment and employment decline) are the same, each time challenging the companies’ survival, their performance and growth. Thus, to establish what companies can or should do in such an environment is always a relevant issue. One of the essential requirements for companies to compete successfully in the times of crises is (re)definition of their marketing strategy components (targeting, positioning and marketing mix). This paper provides an overview of the empirical evidence on the subject. The existing researches indicate that companies differ in how they are impacted by the crisis, as well as in how they respond to it. This is conditioned by the type of crisis, country’s political and cultural determinants, market characteristics and range, respective industry and the company’s size. The researches also indicate basic guidelines for successful “survival” such as: focusing on the core business, networking and alliances, speed and flexibility, planning, cost reduction, but at the same time maintaining or even increasing the level of marketing activity and budget, particularly in research & development and promotion. Specific changes in companies’ marketing strategy are also recommended: for target markets – orientation to loyal customers and markets/segments where they have or may take up strong position ; for product – range rationalization with introduction of new products, technologies and additional services aiming to improve product economy and value ; for price – maintaining the same price level while increasing product value and strengthening discount policy ; for distribution – shortening channels, eliminating unnecessary and inefficient channels and intermediaries ; and for promotion – emphasizing rational motives, retaining/intensifying advertising, personal selling, sales promotion, public relations and publicity. During the crises, companies are required to adapt their marketing strategy and tactics to the changes conditioned by the crises in order to continue to be successful, bearing in mind the post crisis period, i.e. doing business after the crisis. Considering that most of the recommended changes are desirable regardless of the crisis, it can be said that crisis itself is often an opportunity for companies to refine/improve their marketing strategy aiming to increase its effectiveness and efficiency.

Crisis (Recession); Impact; Marketing Strategy; Response (Adaptation); Performance

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