How does covid 19 influence marketing strategies, business priorities and understanding the economic shock on the global markets?
1.1 Research Background of the study
The outbreak of the pandemic Covid-19 is something that is visible everywhere. The news about the deadly coronavirus and the way it would be impacting the lives of each one was the talk of the town. But the biggest and most visible impact of it had on the economic background because of the inability of people to carry on with their jobs or means of livelihood because of the lockdown and travel restrictions (Fernandes, 2020). This has worsened the situation making it really important for one to truly understand the economic shock that the Covid-19 pandemic has laid on the global market.
The problem is that the economy is the base for the lives of each and every being. Hence the research problem for this study is to understand the way Covid-19 influenced the global market economic. Along with that, the way it has impacted business priorities and marketing strategies would also be included (Jones et al., 2021).
1.2 Aims and objectives
Aim – The research aims to identify the way the pandemic impacted the economic aspect across the world and the way it changed business and their area of focus.
Research objectives –
- To evaluate the outbreak of the pandemic and its impact on normal human life.
- To assess the true economic impact of Covid-19 on the global economy.
- To identify the shift in the business focus of companies because of Covid-19.
- To assess the sectors which are most affected by the pandemic.
- To understand the influence of Covid-19 on the marketing strategies of businesses.
1.3 Research question
- What is the significant and prominent effect of Covid-19 on economies of the world?
- What is the reason for the pandemic impacting human lives to such a level?
- What are the different businesses that were affected by the pandemic in great regard?
- What are the future implications that one can expect out of Covid-19 for the economy and businesses?
- What are the future measures that countries and businesses should undertake in regard to such a pandemic?
1.4 Hypothesis of the study
H1 – There is a close relationship between the outbreak of the pandemic and the performance of the business.
H2 – Covid-19 has made no change in the priorities and focus of businesses.
H3 – Covid-19 has impacted the way businesses and their marketing is done.
1.5 Significance of the study
Covid-19 is the only thing one can think and talk about. This has impacted our lives vastly. But the biggest significant impact of the same can be witnessed in the way people conduct their businesses and the economic standing of both an individual and the nation as a whole. By undertaking this research, it would be great to understand the different economic impact of the pandemic along with the influence it had on the marketing practices and business priorities (Pak et al., 2020).
1.6 Scope and limitation
The scope of this research is great as one can assess the economic impact along with the different sectors and businesses it impacts. It can be further researched based on the need and requirement of the researcher. Although there are a few limitations such as the limited time period of the occurrence of the pandemic making it difficult to assess the true impact. Also, the knowledge of understanding of the researcher may vary making it a topic of concern.
1.7 Structure of the thesis
In order to carry out the research, it has been divided into further sections with the first section being the introduction containing the aims and objectives and research questions. The second section would be of literature review undertaking by reviewing past work of literature. It would include topics such as the economic impact of Covid-19, businesses impacted by Covid-19. The third section would be that of the research methodology adopted for undertaking this study. It would contain research design, type, approach, data collection and analysis method along with ethical consideration. The fourth section would be data analysis based on the data collected following the methodology. The end section would be of the conclusion drawn from the research so that suitable recommendations can be suggested for the same.
2. Literature Review
The literature review section allows the researcher to gain knowledge about the research topic from different angles. It would be done through analysing different books and journals, online articles, publications and other such authentic and reliable source. The use of keywords such as Covid-19, the impact of Covid-19, the effect of Covid-19 on the global economy, business priorities amidst covid-19 would be used.
2.2 Covid-19 pandemic
Covid-19 pandemic also known as coronavirus is a disease that is caused because of a virus that attacks the respiratory system of a human being (Ozili and Arun, 2020). It was declared as a pandemic by World Health Organisation (WHO) in March 2020 and the situation has worsened since then. It has resulted in the world coming to a stop because of the lockdown impacting the lives of millions and millions of people.
2.3 Impact of Covid-19 on the global economy
Nobody predicted let alone assess the effect that such a pandemic can have on the world as a whole. But the true and biggest impact of the pandemic has been on the businesses and economy across the globe (Maital and Barzani, 2020). The economy of the different nations along with that of the world has taken a toll and is in a serious crisis position making it one of the most difficult times for all. The biggest impact of the pandemic can be witnessed in regard to the recession that the world is experiencing as a whole. Each region has suffered in different regards such as East Asia and a specific growth rate reducing to 0.5% in 2020 which is the lowest in the last 4 decades. American region would suffer a decline in the growth rate by 7.2% because of the effect of the pandemic on their economic activity. The situation with the Middle East and North Africa is not any better with the rate decreasing by 4.2% because of the pandemic (World Bank, 2021).
A lot of regions and businesses have suffered extremely because of the pandemic Covid-19. This includes small businesses to large businesses and from hospitality to entertainment to textile to other business sectors across the globe. As per the data and information gather, the major sectors that have suffered the impact of the pandemic the most includes aviation industries and tourism. It is stated to be one of the most promising sectors that contributes around 5.5% of the global GDP. But with covid-19 into action, the world came to a standstill. There was a stop on people travelling from one region or one country to another. In addition to this, there was no tourism of any kind. All of this impacted the sector along with the overall economy of the world. The total loss suffered by the sector was around the US $4.5 trillion and it would be increasing in the coming time (World Travel & Tourism Council, 2021). It states the true impact of Covid-19 on the economy as a whole.
2.4 Effect of Covid-19 on business priorities and marketing practices
Covid-19 has made businesses think about their priorities and focus on things that are really important. It is because it has changed business dynamics and the way customers and consumers interact with businesses. Rather than focusing on growth, the businesses majorly are focusing on sustainability and resilience before anything else (Kohlscheen et al., 2020). Another thing that businesses have realised holds true importance is to do actually do something about the ecological and economic impact of the environmental threats and working towards them judiciously. The impact of these can also be witnessed in terms of the change that have been brought in the marketing practices of companies. The major customer base has shifted from offline to the online medium making marketing medium also be more on the online front. Also, businesses are more focused on catering to the needs of the existing customers and invest in digital and online ads and marketing methods to reach out to customers (Vafainia, 2020). Along with this, offering better deals and discounts is another strategy that would be in focus while in and post-pandemic for businesses to help them grow back.
3. Research Methodology
Research methodology is the section of the study that helps in gaining a deep understanding through research trajectories used in the study (Kumar, 2018). It would involve elements such as research approach, design, data collection and analysis.
3.2 Research approach and philosophy
In order to carry out the research, the researcher would use the inductive approach. It would be based on certain observations and concepts that exist to develop new theories. In addition to this, the researcher would make use of research philosophy as this would different viewpoints and dimensions for the study. For the purpose of this research, the researcher would make use of interpretivism philosophy. It is because it would help in gathering the information from a different perspective which is very much required for this study.
3.3 Data collection and analysis
Data collection is one of the most crucial aspects of any research. There is two major source of data collection – primary and secondary data. In order to conduct this research study, the researcher would make use of the secondary form of data (Nayak and Singh, 2021). This would contain the information that is already collected and is available on a different medium. The aspect which suits the research would be selected from it. It would be used to collect suitable information from previous work of literature along with online books, journals, articles, publications and other verified and credible sources. Along with this, suitable websites and other such sources would be selected to gain all relevant information.
The data collected through the secondary source will contain both qualitative and quantitative data and information. It would include statistical data along with subjective understanding to make better sense of things. The reason for selecting the secondary source of data method is because it suits the purpose of the research appropriately. Along with that, it is more cost and time-effective and quite easily accessible makes it more convenient for the researcher (Nuworsoo, 2019). The data and information obtained would be analysed very carefully to make better sense of things. The right balance of reality and theories would be done to ensure the true understanding of the matter is presented.
3.4 Ethical consideration
There are many ethical issues in regard to a research study. In relation to this study, it would be ensured to offer adequate reference and credit to the authors and writers of the different piece of information that is being. Also, it would be seen that the data and information acquired is presented in its true form and no form of distorting of the information would be done.
3.5 Timeframe of the research
From the analysis done, it can be concluded that Covid-19 has hot the global economy pretty badly. It has impacted each and every sector and business irrespective of its size or nature. Tourism and aviation are the major sectors that has been impacted (Tanveer et al., 2020). All this has made businesses focusing on surviving and concentrating on having a more balanced economic upfront. In addition to this, changes such as switching to the online medium and offering better deals to the customers are the major marketing strategies that companies would be focusing on (Hoekstra and Leeflang, 2020). The research conducted in this regard with the help of data collected through the secondary form of data collection would help in gaining more information to draw a meaningful conclusion.
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