In the book, Darroch spells out ways marketers need to think differently when money is tight. They need to think of their customers in a new light, she says. Customer service needs a new focus.
Darroch’s research of previous downturns noted that those companies who made marketing increases during recessions, on average, resulted in a larger return on assets and a larger market value five years later.
“This means cutting marketing budgets during a recession means jeopardizing the long-term value of the firm,” Darroch said.
Return on investment needs a new focus:
“A lot of managers get spooked and lose track of Marketing 101,” Darroch notes. “In trying times, companies need good leaders/managers who are in control, not people who think short term. It’s not just about sales, its branding and awareness, just like always.”
Examples of successes: Hyundai’s Assurance Plan, which offers 90 days of payment relief in case of a job loss and Denny’s free breakfast promotion. Both empathized with customers, who have been hit hard during this current recession.
“Marketing managers need to say, ‘We understand your pain. We know what you are going through. We’re on your side.’” Darroch said.
About Claremont Graduate University
Founded in 1925,Claremont Graduate University is one of the top graduate schools in the United States. Our nine academic schools conduct leading-edge research and award masters and doctoral degrees in 22 disciplines. Because the world’s problems are not simple nor easily defined, diverse faculty and students research and study across the traditional discipline boundaries to create new and practical solutions for the major problems plaguing our world. A Southern California-based graduate school devoted entirely to graduate research and study, CGU boasts a low student-to-faculty ratio.
About Jenny Darroch
Jenny is a thought leader in marketing strategy with a special emphasis on marketing strategies that generate growth. She advises, coaches, teaches and challenges managers and Board members who want to learn more about strategic marketing want their marketing strategies revisited, questioned and affirmed.
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About The Drucker School of Management
With a strong commitment to research, values orientation, and an intimate graduate-only curriculum, Princeton Review recently ranked the school fifth in the nation in faculty quality. The Drucker School offers a variety of professional and doctoral degrees, including MBA, EMBA, MSFE (jointly with CGU’s School of Math), MA in Arts Management (jointly with CGU’s School of Arts and Humanities), and MA in Politics, Business, and Economics (jointly with CGU’s School of Politics and Economics). Named for both a pioneering thinker (Peter Drucker) and an accomplished doer (Masatoshi Ito), the school produces graduates who have a strong sense of social responsibility and a deep desire to make a difference by doing well while also doing good.