Sample Thesis Paper
The costs that come under the heading of good costs include the costs that are associated with marketing, quality and new product and services. Among these costs the importance of marketing is most highly rated. It’s a natural tendency that when businesses are facing hard times or financial crisis they cut the marketing budget and call them as expense. Indeed it is an expense but an expense which proves out to be quiet fruitful when the recession is over.
A research was conducted by PIMS (Profit impact of marketing strategy) which showed that those businesses that increased their marketing spending were not much profitable during recession but as the recession period was over and recovery started their profitability went up dramatically faster than it was before recession. Apart from that organizations that boosted their marketing spending during recession were able to gained market share three times quicker as compared to those businesses that decreased their marketing spending during recession.
One thing that should be kept in mind while developing marketing strategy in recession is the customers’ intention or customer preference. This would help the organization to get a better know how about the customers preference and what exactly they are looking for. Hence these organizations would develop themselves according to the perceived customer value.
“During a market recession improving customer perceived quality of your offering relative to competitors also pays off in better profits and growth (Roberts 2003, p. 35).”