Marketing management in an Age of Turbulence

Marketing in an Age
of Turbulence
The severe economic recession of 2008–2009 caused marketers to rethink
best practices of management. Philip Kotler and John Caslione
see management entering a new Age of Turbulence in which chaos,
risk, and uncertainty characterize many industries, markets, and companies.
According to them, turbulence is the new normal, punctuated by
periodic and intermittent spurts of prosperity and downturn—including
extended downturns amounting to recession, or even depression. They
see many new challenges in the foreseeable future, and unlike past recessions,
there may be no assurance that a return to past management
practices would ever be successful again.
According to Kotler and Caslione, marketers should always be
ready to activate automatic responses when turbulence whips up and
chaos reigns in. They recommend marketers keep these eight factors in
mind as they create “chaotics marketing strategies.”
1. Secure your market share from core customer segments. This
is not a time to get greedy, so get your core customer segments
firmly secured, and be prepared to ward off attacks from competitors
seeking your most profitable and loyal customers.
2. Push aggressively for greater market share from competitors. All
companies fight for market share, and in turbulent and chaotic times,
many have been weakened. Slashing marketing budgets and sales
travel expenses is a sure sign a competitor is buckling under pressure.
Push aggressively to add to your core customer segments at the
expense of your weakened competitors.
3. Research customers more now, because their needs and
wants are in flux. Everyone is under pressure during times of turbulence
and chaos, and all customers—even those in your core
segments whom you know so well—are changing. Stay close to
them as never before. Research them more than ever. Don’t find
yourself using old, tried-and-true marketing messages that no
longer resonate with them.
4. Minimally maintain, but seek to increase, your marketing
budget. With your competitors aggressively marketing to your
core customers, this is the worst time to think about cutting anything
in your marketing budget that targets them. In fact, you need
to add to it, or take money away from forays into totally new customer
segments. It’s time to secure the home front.
5. Focus on all that’s safe and emphasize core values. When turbulence
is scaring everyone in the market, most customers flee to
higher ground. They need to feel the safety and security of your
company and your products and services. Do everything possible
to tell them that continuing to do business with you is safe, and to
sell them products and services that keep making them feel safe.
6. Drop programs that aren’t working for you quickly. Your marketing
budgets will always be scrutinized, in good times and bad
times. If anyone is to cut one of your programs, let it be you, before
anyone else spots any ineffective ones. If you’re not watching, rest
assured someone else is, including your peers whose budgets
couldn’t be protected from the axe.
7. Don’t discount your best brands. Discounting your established
and most successful brands tells the market two things: your
prices were too high before, and your products won’t be worth the
price in the future once the discounts are gone. If you want to appeal
to more frugal customers, create a new brand with lower
prices. This lets value-conscious customers stay close to you, without
alienating those still willing to pay for your higher-priced
brands. Once the turbulence subsides, you may consider discontinuing
the value product line—or not.
8. Save the strong; lose the weak. In turbulent markets, your
strongest brands and products must become even stronger. There’s
no time or money to be wasted on marginal brands or products that
lack strong value propositions and a solid customer base. Appeal to
safety and value to reinforce strong brands and product and service
offerings. Remember, your brands can never be strong enough, especially
against the waves of a turbulent economy.