| There was a certain point in the American economy | | | | basis, affect consumption. This becomes a trap and |
| when there was this general feeling of elation as | | | | soon, the economy enters into the vicious cycle of |
| most businesses rode in a wave of unabated growth. | | | | recession. |
| Businesses expanded and profits soared to levels | | | | The ultimate question in both consumers' and the |
| that were beyond imagination. However, this bull of | | | | industries' mind is how they can get out of this trap? |
| an economy suddenly stopped because of the | | | | How can people and businesses survive the difficult |
| recession that every major industry is confronted | | | | times? |
| with. | | | | One, business owners must evaluate their customers' |
| The United States-based National Bureau of Economic | | | | ability to defy the economic downturn. In more |
| Research (NBER), a research organization dedicated | | | | simplistic terms, business owners must find ways to |
| to promoting a greater understanding of how the | | | | monitor and analyze their clients' spending patterns. |
| economy works, defines economic recession as: "a | | | | They must try to understand the decision making |
| significant decline in [the] economic activity spread | | | | process in each of their customers' minds. By |
| across the country, lasting more than a few months, | | | | knowing this, it would give business owners an |
| normally visible in real GDP growth, real personal | | | | indication of how they can convince consumers to |
| income, employment (non-farm payrolls), industrial | | | | start spending. |
| production, and wholesale-retail sales." We are told of | | | | Based on this assessment, business owners can then |
| stories about factories shutting down, companies | | | | proceed to the second step which is to redesign |
| downsizing, personal income shrinking, and the worst | | | | customer offerings. These offerings must be able to |
| is, there are no immediate signs of recovery. | | | | encourage customers to spend amidst the difficult |
| Take the example of the ubiquitous corner stores | | | | times. |
| that was once part of a thriving industry. The big | | | | Along with the redesigned customer offering is a |
| grocery chains as well as smaller independent chains | | | | rethinking of marketing collaterals like print posters, |
| are both going through a period of very low client | | | | brochures, catalogs. These marketing collaterals must |
| turn-out. Despite aggressive marketing campaigns | | | | be convincing enough to stimulate consumer spending |
| made obvious by the volume of orders from poster | | | | even on items which are less likely to be bought |
| printing companies, people are just not going to part | | | | during these times like non essential items. The value |
| with their hard earned dollars. Or if they are, they | | | | of these collaterals lie on their ability to not only |
| become more practical in the sense that they lean | | | | attract customers back to the shops but also to |
| towards the most essential household items such as | | | | persuade them that this situation is temporary and |
| food items. Because people are not buying, sales fell | | | | that in the long run, everything will be alright. This |
| to a historical low while inventories piled up in | | | | message is indeed very difficult considering that you |
| stockrooms. Unable to sustain its target profit margin, | | | | are working on a very limited space as that of the |
| these groceries, big and small, resorted to measures | | | | print posters. |
| to quickly fix the problem. However myopic the | | | | Finally, companies must be able to recalibrate their |
| strategies may seem, these groceries just have to | | | | efforts to create artificial demand to stimulate |
| cut its losses by laying off some of its personnel. | | | | spending. Companies can do this by refocusing and |
| Retrenchment has always been the quick and dirty | | | | looking at the people who consume it rather than be |
| option. This strategy however, compounds the | | | | oriented on the product itself. The main point here is |
| problem because as workers are laid off, | | | | that people buy the product and not the other way |
| unemployment rose to levels that would, on a longer | | | | around. |