Recession, it's a hot topic everywhere. How bad is it and where is it headed and what does it mean for marketing?
After two decades of strong growth for marketers, a recession is completely unexpected. So one thing that most companies do, under the direction of the finance department, is cut spending. That makes marketing departments and their agencies nervous. They should be spending more to maintain their brands, and they need to find stronger solutions to reassure customers. It is also a good time to market more widely, because competitors are cutting back. But whether or not they make savings, the question that marketers are concerned about is what activities should be done to maintain their brands during a recession.
What does the recession really mean for people? So far, people have seen their wealth plummet, jobs cut, and business opportunities limited. But that is only the material impact of the recession. The psychological impact has a much stronger impact on consumer attitudes and behavior. Every day we read negative news in the newspapers. When we come home from work, our spouses are dejected and complain about the bleak future. As a result, people’s attitudes during a recession are generally negative.
People feel disappointed, distrustful and cynical. They become more introverted and focus on the smaller things in life, emphasizing traditional values and family activities. They do not think optimistically about what is going to happen. Instead, they reminisce about the good times that have passed. People’s thinking often shifts from “living is about enjoying now” to “need to adjust living expenses”. This leads to more thoughtful spending, not because there is no more money to spend (which may be the case in some cases), but because they think it is the right thing to do during these difficult times.
So what can marketers do when people are so cautious about spending? Eye on Asia, an exclusive study by the Grey Group, found: According to Eye on Asia, which surveyed more than 7,500 people in 16 Asian countries, marketers can highlight the enjoyment of life’s little pleasures. There is a growing trend of people wanting more life experiences than they want to own things. 83% of Asians want to enjoy themselves regularly (highest in Japan at 97% and lowest in Indonesia at 55%). In contrast, 82% of the region’s population feel stressed by modern life.
Therefore, brand promotion companies can apply retrospective campaigns to help people remember the good old days. Or create an optimistic atmosphere to help people forget the negative things in their current lives through fun campaign programs and focus on investing to ensure long-term quality. Because 97% Asians consider high quality as a basic factor for brands when they buy durable products; 59% Asians are willing to pay more for new or unique products. This figure for Vietnamese is 92%, Thai is 38% and Japanese is 30%.
So what should marketing companies not do during a recession? Well, one thing they shouldn’t do is talk about how bad the recession is because enough has been said everywhere!!!
Saigon Investment and Finance Newspaper
