After years of abundance, our economy has entered a situation of scarcity. A situation that we have not seen since the 1970s. 50 years ago we had to deal with a commodity crisis. Looking back at this period, what can companies learn from this? In the 1974 article Marketing during Periods of Shortage , Philip Kotler describes how companies at the time responded to the new reality of scarcity. With the recommendations from this Canada Phone Number article together with the knowledge of today, I describe in what we can learn today from the raw materials crisis of fifty years ago. What we can learn from the past Rapidly increasing fuel prices, shortages in raw materials and personnel and a growing order backlog. As now, in 1973 a long period of materialistic abundance suddenly came to an end.
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Unexpectedly, the oil crisis hit almost every industry with more demand than supply: from oil, chemicals, electricity, cement, aluminum, copper, paper, textiles, and furniture Canada Phone Number to toilet bowls. Markets in which until then people were still busy getting rid of surpluses with advanced marketing and sales techniques. Is marketing less important in times of shortages? The reactions to the new reality were different.
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As now, companies introduced purchase restrictions for their customers. Others cut the weak products from the range or increased prices to a maximum to maximize Canada Phone Number profits. Many stopped discounting promotions, cut advertising budgets and reduced the number of sellers. But was that the right response to the situation? Is the role of marketing, sales and advertising less important in times of shortages? ‘Of course not’, writes marketing strategist Kotler, but the market instruments must be used differently. Abundance in supermarkets, so no scarcity. Techniques to successfully overcome scarcity Time proved Kotler right. Companies that did not adapt sufficiently or even resisted the new laws of the scarcity economy, came back from Canada Phone Number a cold fair. Such as the American car industry, where it was realized much too late that motorists were switching en masse to cars from Japan.