Marketing in a time of crisis

We need only look to the recent past to see that crises take on many forms, almost always occurring without warning and bringing about widespread repercussions on marketplace dynamics.

The global economic fallout from COVID-19 is testament to the unprecedented strain a crisis can place on the survival of organisations around the world. While every crisis is different, and the impacts vary across sectors and systems, strategic insights are drawn from past crises that can assist organisations amid the new market landscape shaped by the pandemic.

Market-orientation

The global marketplace is a dynamic environment in which market-oriented firms thrive by constantly monitoring changing market conditions and respond through improved product and service solutions valued by consumers. Market-orientation adaptability is crucial in situations where the uncertain environment is reflected in shifting consumption habits, priorities and consumer sentiment.

COVID-19 has forced consumers to reconfigure their lives, leading to a new consumption landscape where safety and security top consumer priorities and in response to these growing concerns brands have had to adapt. Leading food delivery services, Deliveroo and Uber Eats have been providing contactless food delivery services since the time lockdown took effect, adhering to social distancing safety measures with deliveries left on doorsteps.

Strategic flexibility

Strategic flexibility is a firm’s capacity to respond promptly to significant changes that take place in the external environment and is fundamental to its ability to manage organisational performance throughout a crisis. Firms must remain agile, diverting resources and modifying business strategies in response to rapidly evolving conditions as well as identify and capitalise on new market opportunities.

Unsurprisingly, self-isolation directives have seen a surge in demand for online streaming services. Netflix has expanded its library and fast-tracked many release dates while reducing streaming quality and speed rates to ease the strain on broadband networks.

Customer relationships

Now more than ever is it crucial to maintain customer relationships as doing so ensures a firm’s survival during and post-crisis. Businesses must continue engaging with their customers through regular communications, building trust through empathy and transparency as a way to maintain and grow brand loyalty.

Government directives led to the immediate closure of many brick-and-mortar storefronts which accelerated the transition of numerous brands to online platforms, with the fitness industry at the forefront of the digital community revolution. Many gyms, studios and wellness spaces have managed to stay connected with their customers by creating online communities and continuing virtual classes through social media and other streaming platforms with providers expecting to continue even after the crisis has passed.

Crisis management planning

Simply put, all organisations must have a crisis management plan (CMP) in place to safeguard their core business and withstand unexpected and unprecedented disasters. A comprehensive CMP that covers inventory management, supplier diversification and employee support, will enable organisations to be better equipped for unforeseen events and agile in mitigating ongoing adverse repercussions.

While we were largely caught off guard by the enduring fallout of this pandemic, the key takeaways from this experience highlight how vital agility and planning for the unprecedented is to a firm’s survival. Ultimately, it is not a question of if another pandemic, financial crisis or natural disaster, instead, when. The next crisis cannot be averted, however, at the core of surviving a crisis are strategies around market-orientation, strategic flexibility, maintaining customer relationships as well as crafting a comprehensive CMP.