By all accounts the world economy has entered uncharted waters. Governments are trying to spend as fast as they can, coporations are minimising losses and cutting costs, and newly minted and unemployed MBAs are carefully calculating how much they will earn from selling their blood plasma each month. Meanwhile, the world's finest policy minds are attempting to mitigate the crisis through massive spending stimuli, which one assumes will have second-order ramifications that are almost certainly unknown to anyone at this time.
Fortunately for marketing practitioners, two professors from our neighbours at INSEAD have attempted to offer some insight in a recent working paper, "When to push the panic button?" Therein, professors ‘Paddy’ V. Padmanabhan and Pushan Dutt offer guidance marketing activities during an economic downturn, stressing the need to know your consumer, the market, and avoiding the fallacy of price wars.
From INSEAD Knowledge:
"The bottom line: companies need to figure out how badly they’re going to be hit, both in terms of the sectors they’re operating in, and the local context in terms of the country they’re in. “If you look at the share of the wallet pattern in Hungary, it's going to look very different to the share of wallet pattern in, say, Vietnam or India,” Padmanabhan says
The rest of the paper discussion as well as an interview can be found at:
http://knowledge.insead.edu/contents/MarketingInDownturn090217.cfm?vid=186
Marketing Ninja
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