Impact of Political and Economic Uncertainty 1

Impact of Political and Economic Uncertainty

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Impact of Political and Economic Uncertainty 2

Executive summary

Since the global financial crisis, uncertainty has been a recurring issue that has kept the

majority of companies very busy. The purpose of this article is to conduct an introspective and

reflective report on the GSSE Group. The paper presents a report on the impact of political and

economic uncertainty using a case of the Russia and Ukraine War on marketing strategies of the

firm; and the buyer behaviour of consumers of its products and services. The consumer

behaviour theories that were used include post-feminism, Marxism, and the psychology of

consumer decision making. The case study that was used was Russia and Ukraine War. In

addition to this, there is a consideration of the company's ethical attitude to marketing

communications and the manner in which it is used to influence customer behaviour. In order to

investigate risk and uncertainty, this study will concentrate on risk and uncertainty via the

theoretical lenses of post-feminism theory and marxism. In addition to this, the paper will

analyse the strategies that were used in the process of gathering information about the company

and the customer groups that it services.

Impact of Political and Economic Uncertainty 3

TABLE OF CONTENTS

Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
A Case of GSSE Group...................................................................................................................5
Overview of Consumer Behavior....................................................................................................6
Impacts of Political and Economic Uncertainty: A case of Russia and Ukraine War.....................8
Sanctions......................................................................................................................................9
Gas...............................................................................................................................................9
Grain Export...............................................................................................................................11
The Euro-Dollar Exchange........................................................................................................12
Impact of the Ukrain-Russia war on the marketing strategies.......................................................20
Adjusting Ad Strategies & Demographic Targeting..................................................................20
Shoring Up a Crisis Marketing Plan..........................................................................................21
Conclusion.....................................................................................................................................23
Bibliography..................................................................................................................................24
Impact of Political and Economic Uncertainty 4

Impact of Political and Economic Uncertainty

Introduction

Political and economic uncertainty can have a significant impact on the marketing

strategies of firms. In times of uncertainty, consumers may become more cautious about their

spending, and firms may need to adapt their marketing strategies to focus on value and

affordability. Political and economic uncertainty can also lead to changes in the regulatory

environment, which can impact a firm's ability to operate and sell its products and services. In

addition, uncertainty can impact a firm's access to resources and finance, requiring them to be

more strategic in allocating its resources. Consumer behaviour theories, such as post-feminism

and Marxism, can provide insight into how firms can adapt their marketing strategies to navigate

these uncertain times. The psychology of consumer decision-making can also provide insight

into how firms can influence consumer behaviour during times of uncertainty by framing their

marketing messages in a way that resonates with the mental shortcuts consumers use to make

decisions. This report will explore how political and economic uncertainty can impact marketing

strategies and how firms can navigate these uncertain times.

According to the data, there has been a discernible rise in the overall degree of

unpredictability around the globe since the year 2012. The most current numbers for the fourth

quarter of 2019 indicate that, despite a drop in the aggregate index during the third quarter of

2019, it has now hit an all-time high. This was revealed despite the fact that the most recent

statistics are for the fourth quarter of 2019. The overall index is calculated by taking the GDP-

weighted average of 143 countries (Musial et al., 2022). When seen within the context of history,

the levels of uncertainty that now exist on a global scale might be said to be unparalleled. When

we go back over the past 60 years, we discover that there have been very few times in which the
Impact of Political and Economic Uncertainty 5

degree of uncertainty has been anything like as high as it has been during the most recent decade.

This is something that we uncover when we do some research on the topic. Other notable events

that took place throughout history include the assassination of former United States President

John F. Kennedy, the Vietnam War, the gold crisis that happened in the late 1960s, and the oil

crises that took place in the 1970s. These are just some of the instances. The emergence of these

global events does not, however, indicate that all countries in the world are currently suffering

levels of uncertainty that are at an all-time high. They are, to a great extent, a reflection of the

increased role that global factors are playing in causing uncertainty all over the globe. [Case in

point:] For instance, the degree of unpredictability in China at the time is considerably lower

than the level that was recorded during the cultural revolution in the late 1960s. During this era,

China had far less connections with the rest of the world than it has now (Musial et al., 2022).

The growth in uncertainty is more uniformly dispersed throughout industrialized nations, in

contrast to emerging market economies and countries with low incomes, which both have

relatively modest levels of economic development.

A Case of GSSE Group

GSSE Group Ukraine is a Ukrainian company that provides a range of services including

logistics, transportation, and warehousing. In this analysis, we will discuss the potential impacts

of political and economic uncertainty, such as the war in Ukraine, on the marketing strategies

and buyer behavior of GSSE Group Ukraine.

One potential impact on GSSE Group Ukraine's marketing strategies could be a shift in

focus towards more stable markets. In times of uncertainty, businesses may be more cautious

about investing in markets that are affected by the political and economic turmoil and may

instead choose to expand into markets that are more stable. This could involve redirecting
Impact of Political and Economic Uncertainty 6

marketing efforts and resources towards these markets or increasing marketing efforts in existing

stable markets to take advantage of any increased demand for services.

Another potential impact on marketing strategies could be a change in messaging or

positioning. In times of uncertainty, consumers may be more cautious about making purchases

and may be more likely to prioritize safety and security. As a result, GSSE Group Ukraine may

need to adjust its marketing messages to address these concerns and reassure consumers about

the safety and reliability of its services. This could involve highlighting the company's

experience and track record, as well as any measures it has taken to ensure the safety and

security of its operations.

In terms of the impact on buyer behavior, it is likely that consumers in Ukraine and

surrounding regions would be more cautious about making purchases during times of political

and economic uncertainty. This could result in a decrease in overall demand for logistics and

transportation services, as consumers may be more hesitant to make non-essential purchases or

may opt for cheaper alternatives. This could also lead to a shift in buying patterns, with

consumers opting for more practical or essential services rather than luxury or discretionary

items. It is important to note that the specific impact on GSSE Group Ukraine will depend on the

nature of its services, as well as the markets in which it operates. For example, the company may

be less affected by the political and economic uncertainty if it provides essential services, such as

the transportation of goods, that are necessary for the functioning of the economy.

Overview of Consumer Behavior

Post-feminism, which emphasizes the agency and autonomy of individual consumers,

suggests that firms should focus on empowering and supporting consumers in their decision-
Impact of Political and Economic Uncertainty 7

making processes (Topic & Cunha, 2022, p.4). This can involve providing transparent and

accurate information about products and services and giving consumers the tools and resources

they need to make informed decisions.

Conversely, Marxism emphasizes the role of economic and social systems in shaping

consumer behaviour (Astratova, 2018). From this perspective, GSSE Group may need to

consider the broader social and economic context in which they operate and how this impacts

their marketing strategies. For example, during economic uncertainty, GSSE Group may need to

consider how their marketing strategies align with broader societal goals and values, such as

sustainability and social justice.

Finally, the psychology of consumer decision-making can provide insight into how GSSE

Group can influence consumer behaviour during political and economic uncertainty. For

example, research on heuristics, or mental shortcuts that consumers use to make decisions,

suggests that consumers may rely more on these shortcuts during times of uncertainty as they try

to simplify complex decision-making processes. GSSE Group can take advantage of this by

framing their marketing messages in a way that resonates with these mental shortcuts, such as

highlighting the benefits of their products and services clearly and concisely. Political and

economic uncertainty can significantly impact GSSE Group’s marketing strategies. GSSE Group

may need to adapt their marketing strategies to changes in consumer behaviour, the regulatory

environment, and access to resources and finance. Consumer behaviour theories, such as post-

feminism, Marxism, and the psychology of consumer decision-making, can provide insights into

how it can navigate these uncertain times and influence consumer behaviour.
Impact of Political and Economic Uncertainty 8

Impacts of Political and Economic Uncertainty: A case of Russia and Ukraine War

The crisis between Russia and Ukraine is hurting the economy. Russia and Ukraine suffer

significant financial and human losses as a residue list. The international community strongly

condemns and denounces the attack, and penalties have been imposed as a deterrent against

further action. The conflict between Ukraine and Russia has negatively impacted the economies

of both nations and other countries across the world due to sanctions, fluctuations in the euro-

dollar exchange rate, difficulties with grain exports in Ukraine, and gas shortages.

The picture below shows some of the economic effects that the war has caused, which

include the destruction of property;

Impact of Political and Economic Uncertainty 9

Source: Berner (2022)

Sanctions

The European Union, the United States of America, Canada, and the United Kingdom are

among the nations that have placed prohibitions on banking with Russian institutions (Berner et

al., 2022). The participation of some banks in SWIFT was revoked. SWIFT is a payment system

that helps expedite transactions in over eleven thousand banks across two hundred countries

(Lin, 2022). Injunctions have been issued against Russia by Australia, Japan, Taiwan,

Switzerland, the United Kingdom, the United States of America, and the European Union.

People responsible for the invasion, the technology, and the increasing financial and diplomatic

consequences were given travel restrictions by the United States government. During the same

period, Australia implemented travel and economic penalties against eight members of the

Russian Federation Security Council (Lin., 2022). According to Lin (2020)’s research, New

Zealand does not allow the shipment of items to the Russian armed forces or security forces.

According to Musial et al. (2022), the economic sanctions have had severe impacts on Russia,

which will hurt Russian civilians in the not-too-distant future. According to Musial et al. (2022),

unpredictably, the country's economic situation might suffer a thirty-year setback. The Institute

for International Economics forecasts a fifteen per cent reduction in GDP (gross domestic

product) this year. Girish (2022) posits that the sanctions negatively impacted Russia as its Gross

Domestic Product was reduced by 0.2% per year, while the drop in oil prices had a much larger

impact of 0.7% per year.

Gas

The conflict is having an impact on gas costs and availability all across the world.

Through Ukraine, Russia exports natural gas to several other nations. According to Duho (2022),
Impact of Political and Economic Uncertainty 10

Russia is responsible for supplying forty per cent of the natural gas used in the EU and delivering

fifty per cent of Germany's gas. Germany decided not to participate in the Nord Stream 2

pipeline project that was supposed to connect Germany and Russia earlier. After that, both the

US announced that they would cut their dependence on Russian fuel. Because of the significant

dependence on Russia for gas supplies, there has been a decline in supply even as the demand for

gas elsewhere in the globe has climbed, which has led to an increase in the price of gas (Struckell

et al., 2022). It is the second-largest natural gas-producing country in the world. According to

Struckell (2022), J.P. Morgan believes that Russia is responsible for supplying twelve per cent of

the world's oil supply. The average price of petrol in Eastern Europe was $3.41 per gallon in

December, but it increased to $3.75 per day following the initial attack on Ukraine (Struckell et

al., 2022). The conflict has caused a domino effect, which has led to an increase in the price of

gasoline all over the world. This hurts the economy as a whole.

The graph below shows how energy prices have skyrocketed dramatically as a result of

the war;
Impact of Political and Economic Uncertainty 11

Source: (Duho, 2022)

Because of a large number of shortages and increased costs for steel, the crisis is

unquestionably impacting the already troubled car industry. The production at some of these

enterprises has been halted, while other companies have already begun preparing for power

shortages. Ukrainian manufacturers provide parts and components to significant automakers

based in Western Europe. The arbiter, the most significant way, the bombardment of Ukrainian

villages and cities has, in the shipment of goods. Additionally, businesses that carry their

products by ship and plane would be negatively affected by rising fuel prices due to sanctions

imposed on Russia. Companies that move their products by flight would be particularly

vulnerable to this issue. It is predicted that the gasoline expense will account for around one-third

of their overall costs. If the decline in revenues caused by the pandemic continues, airlines will

soon have little flexibility for further price increases. Likely, the rise in the price of natural gas

on the fertilizer markets will also negatively influence the entire agri-food business, leading to

shortages and driving up the cost of petrochemical feedstock.

Grain Export

The disturbance to the food supply that the conflict has created has yet to earn a

substantial amount of recognition. The Black Sea Grain Initiative, which was signed by Russia,

Ukraine, Turkey, and the United Nations, aims to revive the supply of fertilizer and grain to

disadvantaged populations all over the world (Benton et al., 2022). According to Benton (2022),

these nations that are currently at war have in the past been a critical source of food supply for

Europe and the rest of the globe because of the pleasant climate, generating one-third of the

world's cereals. These grains are a food source, particularly for nations with less conventional

agriculture. Some examples of these grains are sunflowers, corn, and wheat (Benton e al, 2022).
Impact of Political and Economic Uncertainty 12

According to Benton (2022), an estimated forty-seven million people may be at risk of severe

famine due to the conflict. If the arrangement had gone through, grain shipments from Ukraine

totaling around six million metric tonnes per month would have been transported. The supply is

currently just two million yearly, a significant decrease (Benton et al., 2022). It is predicted that

there will be a grain backlog of around twenty-two million metric tonnes at the ports in Ukraine,

with an additional sixty-five million tonnes anticipated post-harvest (Benton et al., 2022). The

conflict has affected the availability of grain in Ukraine.

The Euro-Dollar Exchange

The conflict has generated an economic struggle, notably in the currency market

exchange rate, brought on by the impending conflict. As a result of the crisis in Ukraine and

Russia, the dollar's value has surged (Valente, 2022). According to Valente (2022), there has

been an appreciation of the dollar over the Euro of 5.6% from February to May. The value of the

Euro decreased as the impending crisis loomed over the two countries. Concerns about the

impending war caused a decline in the value of the Euro before it even started. One of the

reasons for this is that the rise in global costs for food and energy has had a more severe impact

in Europe than in the United States. Amid the present market turmoil, a haven may be found in

treasury bonds and other US assets. The strengthening of the dollar will reduce imports while

simultaneously driving up the price of exports (Valente, 2020). The dispute has put the Euro

through its paces, but it is still considerably more durable than other currencies. As a result of the

falling value of the Euro compared to the dollar, the prices of several goods in Europe are going

up.
Impact of Political and Economic Uncertainty 13

The graph below also shows the results of the International Monetary Fund on how prices

of energy, grains and metals went up since Russia invaded Ukraine, indicating that inflation rates

are expected to go a notch higher;

Fig 1.0: Prices for energy, grains, and metals soared since the invasion of Ukraine:

signaling that inflation rates are poised to accelerate

Impact of Political and Economic Uncertainty 14

Source: (Valente, 2020)

The economic situation in Europe and other countries worldwide has worsened as a direct

result of the war between the countries. As a result of the invasion, prominent nations, including

the United States, the European Union, Canada, and the United Kingdom, imposed sanctions on

Russia. The individuals inside the Russian government involved in the assaults were the focus of

these financial, diplomatic, technological, travel, and trading sanctions. The battle caused a

decrease in the global supply of gas, which led to a rise in the price of gas. It also impeded the

shipment of grains from Ukraine, which resulted in a backlog, and contributed to a weakening of

the value of the Euro relative to the dollar.

Effects on the rate of unemployment

The results of the conflict between Ukraine and Russia may prove to be dire, so much so

that the GSSE GROUP’s labour market may be adversely affected, and its recovery may be hard

to realize, especially post-COVID pandemic (International Monetary Fund, 2022d). Because the

European region's economic condition will be affected by increased prices, coupled with the

imposition of economic sanctions on Russia and supply chains being disrupted since there will

be low employment rates in the region (Prohorovs, 2022, p.295). Research finding proved that

since Russia declared war on Ukraine, the employment rate has plummeted and suffered a major

blow. This was mostly experienced in the countries which were economically dependent on

Russia for its imports. This adverse economic situation could extend to other areas of the

economy if the high prices of goods and services continue to adversely affect the consumer

spending and behaviour of consumers in the region (Prohorovs, 2022, p.295).

Impact of Political and Economic Uncertainty 15

It is noteworthy to note that the war in Ukraine greatly affected the course of business

around the EU bloc and, as such, affected the labour flow and market in the region, leading to

high rates of unemployment in the region (Prohorovs, 2022, p. 295)

Inflation of prices

One of the major factors that have led to the insane increase in the prices of goods is the

increased natural resources demand in the region, a move triggered by the commencement of

economic recovery in 2021(Elbahnasawy et al., 2022). A staggered supply chain will lead to a

decrease in the prosperity rate and in turn lead to an increase in the inflation rate of prices at a

painful period when the increase in prices of goods is already a menace (Roubini, 2022). The

Ukrainian war has seen central banks in the Atlantic region struggle to tighten the adverse

financial situations swiftly and aggressively in an era of price inflations that are seen as long-

term and irreversible (Canuto, 2022). It is also to be considered that per the World Bank data

report prediction (World Bank, 2022b), the gas prices in the European Region in 2022 will

double the levels witnessed in 2021.

On the other hand, the prices of coal will go higher by a hooping 80%, and the situation

will remain the same for the next three years (World Bank, 2022b). The high inflation rates seen

in the year 2022 are due to the increased demands for goods and services resulting from the

economic adversities of the Russia and Ukraine war. This is because due to the war, there have

been adverse supply chain trends on basic commodities, and as such, leading to an increased

demand for these goods. Consequently, the law on business dealings suggests that increased

demand leads to an increase in the prices of goods and services (Prohorovs, 2022, p.295).

Supply and supply chain shocks

Impact of Political and Economic Uncertainty 16

It is to be noted that the war in Ukraine has resulted in uneven and staggered supply and

supply chains of goods and services, with no promising short-term effects (Prohorovs, 2022,

p.295). The war has resulted in countries adopting more self-preservation measures, such as a

change in the consumption and manufacturing of goods, as they adopt means that will create

room for new suppliers to sustain them. The war is proving to be expensive, especially on the

trading trends. As such, the availability of markets for goods will depend on whether or not the

war and the adversities it poses to the supply chain are long-lived (World Bank, 2022a).

Research has shown that the Ukrainian war will result in an immense shock to the supply

chain, which will have catastrophic effects on the international economic plane (Roubini, 2022).

It is also to be noted that the economic sanctions that have been placed on Russia will lead to

major negative impacts on the prices of commodities, beginning with energy prices and later on,

spilling over to other sectors of the economy until the whole global economy is marred with

inflated prices (Prohorovs, 2022, p.295). Therefore, this implies that the areas dependent on

energy supplies will face the greatest strains as the war will, as already elucidated, lead to a high

projection of the chain of supply problems and inflate prices a great deal. An analysis from

Rystad Energy, which is the number one global oil refining organization, the worldwide oil

demand in 2022 is projected at four hundred and thirty-six million tonnes, and this is against the

supply projection, which is estimated at four hundred and ten million tonnes of oil (Prohorovs,

2022, p.295). This implies that the demand and supply chain is uneven since the demand is

higher than the supply by 6.3%, and as such, there needs to be more oil to meet the demand of

the global realm. It is, therefore, to be concluded that as a result of the war, the economic

situation will continue to plummet as the inconsistencies in the demand and supply ratio will lead

to a negative blow in the chain of supply (Prohorovs, 202, p.295).

Impact of Political and Economic Uncertainty 17

Effects of the war on consumer behavior globally

The Russia-Ukraine war has immensely affected consumer behavior on an international

plane. Toby Clark (2022) elucidates how consumers' spending habits will be affected due to the

war. He states that some areas where consumers will greatly reprioritize and cut spending rates

include leisure and recreation activities. He states that as per the Great Recession, where incomes

are affected, certain areas of spending have to be protected for the sake of economizing (Toby,

2022). He elucidates that the war between Russia and Ukraine will lead to price inflations, and as

such, this will undoubtedly lead to a change in the behavior of consumers across the globe.

According to Mintel Research, Polish consumers, for instance, prefer shifting towards lower-cost

retail goods to economize. This is due to the obvious fact that the war has increased the prices of

goods in all consumer markets. As such, these Polish consumers prefer diverting to low-retailer

goods who are more affordable and pocket friendly to save on costs and economize for the long

run, as long as the war subsists (Toby, 2022).

A survey conducted by the 5W Public Relations Company helps us better understand

how the war between Russia and Ukraine has impacted the spending habits of consumers

(5WPR, 2022). According to the Survey report, about 73% of American consumers are

sacrificing when it comes to their spending trends due to inflation, and even though this is so, a

significant amount of people is taking things a little bit far, stating that they would be down for

boycotts on goods that have been manufactured in Russia. The survey also indicated that even

though the prices are high and consumers are fidgeting when it comes to spending, their minds

are made up when prioritizing their worth over prices, which is evident in their spending (5WPR,

2022). Most consumers have taken it upon themselves to promote Ukrainian products by buying

them, as they feel the need to make a difference for the better. This shows that even in as much
Impact of Political and Economic Uncertainty 18

as the Russia-Ukraine war has led to price inflations, American consumers are intentional about

promoting Ukrainian products and would go the extra mile, even if it means increased spending,

to promote Ukrainian brands while at the same time boycotting Russian products.

It is also worth noting that in Europe, the confidence of consumers has plummeted a great

deal. Generally, consumers in the European market are sceptical and saddened by the current

situation in their national economic platforms (World Economic Forum, 2022). A survey showed

that about 45% of European consumers had expressed their turmoil regarding the high prices that

have resulted from the war between Russia and Ukraine. As if that is not enough, they are

enraged by the chaos evidenced by the war over the last couple of years. In the survey report,

nine out of ten respondents are enraged by the consistent price inflations. Also, the spending of

most families has been shifted towards the direction of necessities, with over 60% of respondents

stating that they now prioritize more on energy, transport utilities and food (World Economic

Forum, 2022). Also, about half of the respondents have cut down on the amount of money they

saved. This clearly shows a transition from the previous spending habits, into a more

conservative and economic spending style for most consumers.

Also, a survey conducted by the Conference Board showed that consumer confidence in

Europe deteriorated significantly, but not uniformly across the globe. The survey report showed

that in a country like Poland which has taken in many refugees from Ukraine, consumer

confidence was not affected much in April compared to February. The report showed that

countries close to the conflict did not show a significant change in confidence as compared to

countries with far proximity to the war and it was unclear why this was so.

Statistically, the prices of oil and gas, which are Russia's two most important exports,

have dramatically increased. Since the beginning of the battle, the price of gasoline has more
Impact of Political and Economic Uncertainty 19

than doubled, and the price of a barrel of oil has risen to US$125 (Prohorovs, 2022). If gas prices

remain at their present levels, it is probable that consumers will see an increase in their energy

expenditures in the near future. This will make the strain on consumer earnings even more

severe. In the United Kingdom (UK), the cap on gas prices for households was scheduled to

increase by approximately 50% once more in October, following the scheduled 54% increase the

following month (Prohorovs, 2022). However, the introduction of the Treasury-backed £200

discount on bills was expected to partially offset the increase in October.

Fig 2.0: Energy prices before and after the invasion of Ukraine

Sources: Refinitiv, Bloomberg and ECB staff calculations.

Impact of Political and Economic Uncertainty 20

Notes: The prices shown are for Brent crude oil, Dutch Title Transfer Facility day-ahead

pricing for gasoline, and Rotterdam Coal Futures prices for coal. Oil prices are listed as Brent

crude oil prices. The wholesale prices of energy for the European Union were determined by

taking a weighted average (with the amount of net power production serving as the weight) of

the prices seen in the five most important markets. The beginning of Russia's invasion of

Ukraine is shown by the horizontal line in this diagram. The most up-to-date observations are for

June 7th, 2022.

Impact of the Ukrain-Russia war on the marketing strategies

Adjusting Ad Strategies & Demographic Targeting

As soon as war broke out in Ukraine, a number of companies moved swiftly to modify

their marketing strategies and shift their emphasis to different population subsets. In point of

fact, it grew into one of the routes through which firms could communicate their opposition to

the war via the use of this particular channel. One of the most heartfelt ways to react, as well as

one of the most straightforward, was for businesses to adapt their logos so that they reflected the

vibrant blue and yellow colours of the Ukrainian flag. One of the most straightforward methods

to show solidarity with Ukraine was to do as such (Canuto, 2022). The yellow and blue hues that

are seen on the Ukrainian flag have been incorporated into the newly created logos of a wide

variety of various organisations. However, in order to avoid coming off as insensitive in the

middle of a global crisis, a few of businesses have opted to totally suspend their attempts to

advertise their products and services.

As a direct result of the new age of warfare, it has become abundantly evident how

important digital advertising may be as a means of disseminating accurate information in the

Impact of Political and Economic Uncertainty 21

context of the conflict raging against disinformation. While Putin has blocked access to

information sources such as Facebook, Instagram, and Twitter, some marketing agencies have

purchased digital ads on other platforms in an effort to disseminate accurate information

regarding the conflict to demographic groups that are losing the ability to obtain information

from outside sources. Specifically, these marketing agencies are targeting people who are

younger and less likely to have access to the internet.

Rob Blackie, a British digital strategist, began purchasing digital advertising with the

assistance of a team of volunteers in order to get through government censors by use neutral

headlines (Canuto, 2022). The adverts were seen two million times in a surprisingly short period

of time, and they encouraged viewers to objective news sources such as the BBC (Canuto, 2022).

If you are sincere in your pursuit of the truth, the customers who make up your target

demographic will be able to recognise the qualities that your brand stands for and will have a

strong feeling of devotion to the true nature of your business. During times of crisis, each firm

has the chance to work to deliver trustworthy information into a world of disinformation and

increase awareness about the issue. They may also fight to bring about change.

Shoring Up a Crisis Marketing Plan

Even though most companies have a marketing plan for the next year that has been

carefully considered, there are times when it is essential to make major alterations to that strategy

in order to respond to a worldwide crisis. As the world keeps looking for new ways to help

Ukraine, now is the moment to put a rapid response marketing strategy into action in order to

promote your company's views to your clientele. This is especially important given the current

political climate in Ukraine. Right now is the crucial time. A marketing tactic known as "rapid
Impact of Political and Economic Uncertainty 22

response marketing" is one that makes use of breaking news from all over the world in order to

give businesses the opportunity to react to current events with content, message, and public

relations that are relevant to the circumstances. This strategy was developed in order to provide

businesses with the opportunity to do so (Struckell et al., 2022). It functions differently from

traditional marketing campaigns in that responses are sped up, narrowed in scope, and do not

need a substantial amount of planning or effort on a technical level. This is because: In the

middle of significant events, using quick response marketing is a great way to demonstrate your

brand's authenticity while also ensuring that you remain relevant to your target audience.

The reason for this is because consumers have a propensity to establish an emotional

connection to rapid-response marketing, which is the reason why this is the case. Everyone feels

compassion for the people of Ukraine, as well as for the refugees and the military who are

fighting for their country. This sorrow is felt by people all around the world. At this moment in

time, these are the kinds of experiences that may be related to on a humanitarian level by each

and every one of our customers. It is a painless way to communicate with other individuals and

businesses who are going through the same types of thoughts and feelings that you are. When it

comes to quick response marketing, some of the most realistic options accessible are the swift

deployment of bulk email, SMS messaging, and social posts. These methods are all considered to

be among the most practical. These might be used to ensure that each and every one of your

customers hears what it is that you have to communicate.

In spite of the fact that some companies may feel the pressure to cut back on the amount of

money they spend on marketing in the midst of a global crisis that may have an effect on their

bottom line, the current moment is one of the very best times to make financial investments in
Impact of Political and Economic Uncertainty 23

your marketing budget. According to the findings of certain studies, the level of a company's

profitability during a period of economic downturn was not significantly affected if the company

kept its marketing expenditure at the same level. The most dramatic changes in profitability, on

the other hand, did not occur until the economy started to recover and go back to normal

(Struckell et al., 2022). When things started to go back to normal, businesses who increased their

spending during the time of crisis gained significant gains, which positioned them significantly

farther ahead of their competition.

Conclusion

It is important to note that the war between Ukraine and Russia has had catastrophic

effects both on the economic and political planes globally. The war has seen economies plummet

due to inflations, resulting in Political instability in national jurisdictions. Furthermore, the war

has had a major impact on consumer behavior in global markets. Consumers have opted to adopt

more conservative and economic spending patterns to ensure that they can balance their

necessities and sustain themselves. Further, this paper has critically analyzed the economic

impacts of the Russia-Ukraine war on national economies around the world and how the supply

chain has been affected by the inflation of prices witnessed as a result of the war.
Impact of Political and Economic Uncertainty 24

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