How to Answer “Are We in a Recession?” for your marketing team [2022 Expert Insights]

As we begin the new year, Marketing Managers and Project Leads will determine their strategy for the first quarter based on the big question, “Are we in a recession?”,

Marketing managers answering questions from the team about whether we are in a recession and how it affects their jobs

Typically, a recession is considered two consecutive quarters of negative gross domestic product (GDP). US to enter recession in summer of 2022, but according to bureau of economic analysisGDP actually grew a little bit in Q3 at 2.6%.

So while we can’t absolutely confirm that we’re going to be reuniting, we do know that your marketing team is looking to you for answers. In this article, we’ll provide industry insight into the current state of the economy and best practices for marketing leaders to better address employee concerns.

Download Now: 2022 State of US Consumer Trends Report

Are We in a Recession?: Marketing Leaders and Data Weigh In

To see what brands are thinking about the current economy, we used Glimpse To survey 300+ US marketers to ask them whether they think we’ve entered a recession by extension.

1. Do you think the US economy is in recession?

Glimpse Recession Survey Question: Do you think the US economy is in a recession

Marketers overwhelmingly (78%) say the US is currently in a recession. This comes as no surprise as many marketers are already adopting strategies in response to the change. consumer spending habits, Let’s take a look at some of the emotions behind their answers.

Reasons Why We May Be in a Recession

  • Consumers are spending less and are exercising more caution and prudence.

People are cutting back on spending because they don’t know how long the recession will last. As a result, they pay less for the products or services. They are focusing on using their money for stability over risks and spending less on unnecessary items.

  • Inflation has made everything costlier for marketers and consumers.

Simply put, high prices make it hard to make ends meet. Instead of shopping for the latest, innovative technology, many people procrastinate paying, shopping, and planning. After all, no one wants to spend money when the cost of gas and food is so high.

  • Marketers are struggling with their budgets—and 37% have already seen budget cuts.

Consumers aren’t spending as much, and in response, many businesses are shrinking marketing budgets. This limits the projects that marketers can conduct and affects how much and what types of marketing activities they can do. One survey respondent even said, “We need to spend more to get the same results as six months ago.”

2. Do you expect the US economy to enter a recession in the next three to six months?

Glimpse Recession Survey Question: Do you expect the US economy to be in recession in the next 3-6 months?  Yes

A majority (67%) of marketers expect the recession to last more than six months, and if we break down the statistics further, one-third expect it to last more than a year.

glimspe recession survey question: how long do you expect the recession to last?  more than six months

One of the respondents made a great statement summarizing this prediction, which we couldn’t keep ourselves from. “Amidst Covid-19 uncertainty, high prices due to inflation, supply chain and venue availability issues, people are hesitant to plan big events for the next 12 months. Market stability.”

the first year of the pandemic was lowest recorded recession On the record. Many people wonder what our economic path might look like, so we also asked how they think the recession will compare now.

Marketers expect the impact of the recession to be equal to or worse than that of COVID.

One-third of marketers say the recession will have a more significant impact than COVID, while another-third expect a similar impact. This is an ongoing debate that only the Federal Reserve can speak to. Nevertheless, according to recent financial news, the economic growth trend in the first quarter of 2023 is projected to be negative.

financial data such as Jamie DimonJPMorgan Chase’s chief executive shared in a interview with CNBC that consumers and companies are on good terms, but this trend “May not last much longer as the economy slows and inflation erodes consumer spending power.”

How to navigate uncertainty as a marketing manager or project lead

1. Take steps to protect your business from recession.

how to learn recession proof Your organization takes time. It requires leaders to take a step back and think creatively about how they approach business. Some of the actions you can take include forecasting sales, fostering stronger business relationships, or diversifying your revenue streams.

2. Lead with transparency.

Your team may already be aware of economic uncertainties, but it’s your job to make sure they know how it could affect their jobs. In the midst of uncertainty, the best thing you can do as a leader is to openly share information and manage expectations—so that none of your employees panic or blindside.

business.com has also identified a link between transparency and morale, citing that increased transparency can improve employee morale, promote retention, and create a better bottom line for your company. .

3. Cut down on expenses where you can, but not to your detriment.

It’s smart to reconsider your budget, but you still want to empower your marketing team to do impactful work. Look at your systems and processes and determine which ones add the most value to your team’s objectives. You can also identify redundancies and save time and expense.

4. Put the benefits your employees count on the most.

Cutting down on frivolous employee perks and benefits is an agreeable — if uncomfortable — course for leadership in times of uncertainty. Retention benefits should be essential to your company’s compensation philosophy. And don’t take too much off like healthcare or time off – you don’t want to risk losing talent because their priorities are no longer being met.

Are we heading for a recession?

As marketers, we are not experts on the financial markets and should not be a source for investment, human resources and legal advice.

It’s not our call, but for 2023—even though we’re officially in a recession—we recommend that marketing managers and project leaders remain vigilant and expect the unexpected. Create a game plan to introduce your team and prepare for uncertainty.

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