Question

Although marketing theory supports the contrary, it is more probable that marketing budgets will be cut during periods of economica) recoveryb) prosperityc) recessiond) uncertaintye) expansion

Answer 1

Answer:

Letter c is correct. Recession.

Explanation:

A recession corresponds to a contraction in the economy over a period of time, there is a drop in production and consumption, rising unemployment, falling profitability, falling family income and others. It can be measured by levels of productivity, employment, consumption and other variables.

However, when there is a recession in a country, it is normal for spending to be cut, including a reduction in the marketing budget, because the period is not favorable for consumption, so companies cut spending in various areas because there is a risk of falling revenues.

Although recession marketing is common, studies show that companies that maintain or increase advertising ensure increased sales and participation during and after the recession. This can occur for a variety of reasons, as brands can provide consumers with an image of stability in the midst of crisis, which improves brand reliability. There is also a decrease in advertising costs, and the possibility of the company winning market, because it is important that the company has an active voice in making ads regardless of the economic situation.