Recession IQ Test

See how you are doing in the four areas most important to surviving and succeeding in slower economic times.

Below is a quick and easy self-assessment test to see how your company will fare in a slower economy. Score yourself from 0 to 5 points on each question, with 5 being the highest score. Subtotal each section, then add up the subtotals for your overall score.

Adapting to External Factors Score (0-5)

1. Does your industry typically lead or lag in recessionary cycles?

2. How well are you able to gain a long-term advantage by committing to technological developments or emphasizing R & D during recessionary periods to break through with a new offer post-recession?

3. Can you rapidly respond to likely actions of competitors?

4. Do you understand how your customers are likely to change their purchasing behavior during economic downturns?

5. Do you know which target market segments are apt to be more profitable during slower economies than are other segments?

6. Do you know how your customers define “value” and in what ways may value be enhanced without increasing costs or jeopardizing your company image?

Subtotal

Controlling Internal Factors Score (0-5)

7. Rate your firm’s financial strength from 0 to 5.

8. How well can you leverage financial resources to gain market share?
(e.g., advertise to build market share while competitors slash their advertising budgets)

9. What is the impact of bringing marketing functions in house? Weigh the cost of training, errors due to lack of experience and skills, and loss of output while diverted to marketing tasks.

10. How difficult would it be to expand or contract the company’s operations, if such is necessary? For example, if a strategy such as “build market share” is selected, will the firm’s plant and equipment be adequate to fill the demand both during and after a slow period?

11. How well recognized is your brand or product line within your target market?

12. How would you rank the company’s image and reputation among customers?

13. Do you understand how to leverage these strengths and weaknesses during an
economy downturn?

Subtotal

Strategy Determination Score (0-5)

14. Will your business take an offensive stance to exploit opportunities and take advantage of competitors’ vulnerability?

15. Are you able to rapidly adapt your products and services to meet changing demand?

16. Are additional target market segments an opportunity to exploit?

17. Are you able to diversify product offerings?

18. Will you be forced to meet your firm’s short-term survival goals by way of price cutting to maintain volume or cost cutting to maintain margins?

Subtotal

Review and Control Score (0-5)

19. How strong are your business relationships with customers, employees, and suppliers?

20. Is your marketing plan able to be quickly modified to meet short-term objectives or are your marketing funds tied up in retainers and contracts?

21. Will your current marketing plan meet both short-term and long-term objectives to position the company for growth and prosperity post-recession?

22. Do you have measurements in place to determine the success or failure of your company’s marketing plan?

Subtotal

Total Score (out of a possible 110)

Interpreting Your Score

Over 90 points You’ve got a great Recession IQ! Keep doing what you’re doing well and pay some attention to weaker areas to realize even greater success.

70 to 90 points Although tough times may be ahead for your company, you can still implement some changes to your marketing to improve overall outcomes.

50 to 69 points You need to focus on gaining a better understanding of your client’s needs and work on developing a sound value proposition. Your marketing plan will need to adjusted to communicate your new position.

Under 49 points Your business may soon face crisis. You will need help—and fast—to start turning things around. Call in some experts before it’s too late!

Get more information on recession-proofing your company’s marketing plans

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