How Marketing Works During Recessions:
General marketing theory typically dictates that marketers must balance efforts to trim costs and keep short-term sales high to support long-term ROI during a recession.
This normally happens by prioritizing which products to market, finding new and innovative ways to drive affordability and relying heavily on brand loyalty.
However, it's important to note that research into marketing during recessions typically happens during or just after an economic downturn.
For example, not long after the early 1990s oil price shock recession, MarketSense conducted a study that found that companies who ramp up marketing during recessions can grow short-term sales by up to 57%.
Following the dot com recession in 2002, McKinsley found that companies who make strategic marketing choices during downturns tend to increase their stock market valuations relative to their former peers post-recession.
In the midst of the subprime mortgage crisis in 2008, the Wharton School of Business demonstrated that companies that consistently advertise during recessions had a better chance of survival.
What's more, a 2013 study conducted by the Journal of Business & Industrial Marketing found that companies that emerged from the 2007 to 2010 recession more successful than they entered had invested heavily in building an online inbound marketing funnel.
In the most recent battery of marketing recession research during the COVID pandemic, the