Marketing in Adversity by Michael J. Baker PDF

By Michael J. Baker

ISBN-10: 1349029564

ISBN-13: 9781349029563

ISBN-10: 1349029580

ISBN-13: 9781349029587

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A long-term view of the history of price indices since the turn of the century shows that the rise of 16 per cent in the general index in 1974 was matched only 3·1 TABLE Changes in the UK price index r946-75 % 1946 +o·5 +1'4 1947 1948 +6·4 +2·8 1949 +2·6 1950 1951 +9·8 Korean war +8·3 1952 +3'1 1953 +1•8 1954 +4·6 1955 % 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 +5·o +3·7 +3·1 +o·5 +1•0 +3'4 +4'3 +2·0 +3·3 +4·8 +3'9 % 1967 1968 1969 1970 1971 1972 1973 1974 1975 +2·5 +4'7 +5·4 +6·4 +9'4 +7·1 +8·7 +16·o +2o·o (forecast) Source: Central Statistical Office.

Here too, however, it is necessary to rethink the entire mix of marketing actions. The number of firms competing for any one order will increase as total demand drops off. This can mean a decreased probability of success for a given markup included in a price and a decreased total volume of orders received. The firm may find that the best way out of such a dilemma is not to cut by reducing the sales force who bring in its inquiries, nor to decrease the 'unproductive' estimating and quantity surveying functions, but rather to increase them.

A period of difficulty should be a time in which more, not less, analysis, research and carefully monitored testing are carried out. If real improvements in efficiency can be obtained, it may then be reasonable to reduce expenditure (real expenditure) by an amount equivalent to the gain in efficiency. It would normally be better strategy to maintain spending and make the most of the gain. But what is effective advertising in today's conditions? How can advertising help? In a mass market advertising is the chief way in which a producer can talk to his customers about his product and what it can do for them.

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Marketing in Adversity by Michael J. Baker

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