Investment Wisdom in Marketing

What is the impact of the sun Xudong/Wen recession on the value of stock investment? This is probably what a lot of investors want to know.　　In fact, efforts to find the answers to these questions have begun long before people realise that the financial crisis will have a negative impact on the Chinese economy. However, it is not easy to get positive solutions.　　At first, for example, people thought the consumer industry would be unaffected or less affected, only to find that the idea was overly optimistic, and some thought that high-end products would be less affected than middle and low-end products, but it now seems unlikely. Finding answers to these questions in marketing is a good solution, with two Harvard business researchers-John Quelch and Catherine Jockers's near-recession marketing changes giving me a lot of inspiration.　　They have studied the dozens of companies that have experienced every recession since the 1970s, and by analyzing their success or failure in marketing, they have not only summed up the behavior patterns of consumers, but also found several marketing strategies to improve or reduce the company's performance. Quelch and jockers the winners and losers in their view of the recession, but I have little interest in the list, which may have some value when the recession is coming or just around the corner. For value investors, it is more meaningful to look for companies that can maintain or even enhance long-term competitive advantage in recessions.　　What are the characteristics of such an enterprise? First, do not succumb to short-term performance pressures (even cash-flow pressures) and blindly reduce spending. "It would be wrong to slash costs without any choice," he said. While it is wise to control costs, in the long run it is not possible to provide support for the brand or to consider the changing needs of core consumers, which can reduce the company's performance. "Quelch and Jockers found that in the past recession, consumer-goods companies that have increased advertising coverage by maintaining or increasing advertising spending have seized market share from weaker rivals."　　And their marketing costs are lower than during the boom. Second, stick to the brand's fundamental proposition or positioning. For example, companies facing middle and high income consumers may have ideas and actions to enter the low-income consumer market.　　This would confuse the company's loyal consumers and cause a loss of heart, as well as competition resistance-a resistance that is strong because they are adept at low-cost strategies and are very familiar with price-sensitive consumers. While top brand market leaders should not turn their brands into low-end markets, they can launch "flanking products"-a low-cost version of high-end products, with a new brand name and a minimum cost to promote.　　After the recession is over, the "flanking brand" can retreat quietly or continue to exist as a cost-effective product across the entire product line. Finally, make good preparations for the economic recovery. Good companies must understand how consumer behavior changes after the recession to provide products based on the needs of new consumer groupsand convey information. Problem easier, according to the above criteria to judge the listed companies need to understand the relevant information, and some information is not readily available. In the case of advertising fees, the annual reports of some listed companies do not disclose the amount of advertising fees paid. And more difficult than advertising fees are listed companies to introduce new products.　　However, as long as we usually stroll around the commodity market, pay more attention to a variety of media advertising, more in the periphery for small surveys, or can get a lot of information. It is worthwhile for value investors to pay some hard work to get information about the listed companies. Sir John Tampton The Mexican telephone company's unreliable numbers, and then counted the number of calls in Mexico, multiplied by the rates paid per person, and ultimately determined that the company's stock was priced far below its real value. If we envy the achievements of Templeton, we may as well learn the basic philosophy of his diligent work.