mgt111-2ndexecutive

mgt111-2ndexecutive - 3. When a recession occurs, some...

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October 12, 2008 From: Claire Saltzman Subject: Best Global Brands To: Professor Ron Schloemer 1. When a recession occurs, blue-chip companies such as Coca-Cola cut back spending in marketing costs. Cutting down on the marketing budget for a period of time is a way for companies to save money. It is seen that spending less money would help the company in a recession. 2. However, other companies like Louis Vuitton react differently than Coca- Cola and Visa. See recession as opportunity to advertise more. When economy rises again they will potentially have more business because they did not cut back during the recession. Brands like Kellogs believe its critical, when the economy gets tougher, that consumers see the value of brands constantly. Strives to maintain name-product correlation. “In other words: What recession?”
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Unformatted text preview: 3. When a recession occurs, some companies resort to changing product quality. • When a product is different, it can appear better. o However, consumers can consider the generic product over the personalized product due to price. o Companies strive to make their product more personal so consumers still buy from them. Ex: Kleenex turned to “extra soft tissues” to sway their consumers. The name was more appealing. Want to make product a commodity, not an unnecessary good. Companies like Louis Vuitton still attract to high end because money is still out there and consumers of their product are still willing to buy. Their quality is word-wide known and see lowering prices anything but an option. Companies contemplat lowering price or raising quality. Always a sacrifice....
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This note was uploaded on 05/17/2011 for the course BUS 111 taught by Professor Schlommer during the Spring '11 term at Miami University.

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mgt111-2ndexecutive - 3. When a recession occurs, some...

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