Managements may be taking a wild bet on a course of action that might not work. Formula wisdom of this kind is not always the best thinking, and no company can afford to gamble during a recession. The risks are too many. Good market research can help such companies in testing the underlying assumptions and identifying valid ones. This may be self-defeating because it deprives companies of the most crucial information needed for planning effectively during heavy competition.
Some markets dry up while new ones prop up.
Marketeers who understood their customers last year may not understand them now. Ad appeal that worked last year may become a fiasco this year. Most marketeers do not associate recessions with opportunity. But opportunities do exist despite a business downturn. In this age of media exaggeration, it is hard to remember that a recession does not mean a cessation of all business activities.