Adapting to Economic Uncertainty: Revisit Your Segmentation, Partners, Pricing & Supply Chain Strategies

Included Research:

Introduction

In today’s rapidly changing economic environment, uncertainty significantly influences investor sentiments and drives substantial shifts in how industries manage pricing and supply chain operations. Global events – from fluctuating stock markets to evolving geopolitical dynamics – are forcing the private and public sectors to rethink traditional product and marketing strategies.

The global economy has demonstrated considerable resilience, with steady growth and downward inflation. However, some signs of weakness have emerged, driven by heightened policy uncertainty. … Increasing trade restrictions will lead to higher costs for both production and consumption. It is essential to ensure a well-functioning, rules-based international trading system and keep markets open.

–Mathias Cormann qtd. in “Global Economic Outlook Uncertain as Growth Slows, Inflationary Pressures Persist and Trade Policies Cloud Outlook,” OECD, 2025.

The Expectations Index – based on consumers’ short-term outlook for income, business, and labor market conditions – dropped 9.6 points to 65.2, the lowest level in 12 years and well below the threshold of 80 that usually signals a recession ahead. As consumer outlook for Business Conditions worsened in March 2025.

• 17.1% of consumers expected business conditions to improve, down from 20.8% in February
• 27.3% expected business conditions to worsen, up from 25.5 %.

–“US Consumer Confidence Tumbled Again in March,” The Conference Board, March 25, 2025.

Economic uncertainty compels all sectors, including government, banking and finance, manufacturing, and other industries, to continually adapt their product roadmaps, industry and channel opportunities, pricing strategies, and supply chain management. For governments, the focus lies in maintaining fiscal stability and ensuring the smooth operation of public procurement despite shifting political and economic landscapes. In banking and finance, dynamic pricing adjustments are paired with strategies to safeguard the flow of capital and information, ensuring that disruptions in financial “supply chains” do not compromise market stability.

In periods of heightened economic uncertainty, firms diversify their supplier networks and adjust pricing strategies to manage risk better and protect margins.

–“Equity Prices, Market Power, and Optimal Corporate Tax Policy,” NBER, March 2025.

Understanding these nuanced impacts, stakeholders across these sectors can better design risk management and contingency strategies that accommodate the challenges posed by economic uncertainty, thereby protecting their operations and maintaining service continuity.

Top 5 Global Challenges for Product and Marketing Managers for 2025

• Inflationary, GDP, and Currency Shifts – Rising costs are prompting governments and businesses to reassess their supply chains and pricing strategies.
• Supply Chain Disruptions – Geopolitical conflicts, logistics constraints, and changes in raw material sources due to tariffs and other trade restrictions.
• AI & Automation in Pricing – Dynamic pricing models using AI for real-time adjustments: How do you build the model with dated data? Forecasts change.
• Customer Demand Shifts – Changes in spending behaviors resulting from economic uncertainty.
• Regulatory Changes – New government policies affect trade and labor, and there is confusion about where other risks and regulations impact their companies' bottom line.

Recognize that markets are moving downward faster than we have ever experienced before, including adjustments for the COVID-19 pandemic and the global crash of 2007-2010.

You should prepare your product portfolios for an inevitable market correction or recession likely to last several years. We have just begun this transition; we still have a way to go. But it is coming. Why?

Global markets are shifting to a more competitive planning environment, and aggressive competition and increasingly savvy customers make finding the right strategy challenging.

• The pace of changes in market forces necessitates constantly updating strategies, without time to do proper analysis and impact assessments.
• Supplier costs and inflation are expected to rise again, eroding product margins and impacting business, government, and consumer budgets.
• Navigating competing priorities among product, sales, and finance.
• Product price and sourcing strategies fail because the discovery process lacks an understanding of costs, the price-value equation, and competitive pressures.
• Customer demand slows due to poorly priced and positioned offerings.

Widen Your Focus:

Your short- and long-term plans might leave you unprepared for what is happening. Companies must actively reassess and refine their strategies to maintain a competitive edge in today's dynamic business landscape.

Begin by asking yourself: Do you need a product or portfolio adjustment? Evaluate whether expanding, consolidating, partnering, or discontinuing specific offerings is necessary to achieve optimal results.

Next, scrutinize your channel sales and sourcing partnerships to determine if enhancing, repurposing, or replacing them can better support your needs.

Finally, explore new market segments by analyzing your market reach to identify products for development, acquisition, or elimination. This focus lays the groundwork for tactical and strategic decisions that drive operational excellence and market relevance.

Take decisive action by systematically reviewing every facet of your business operations. Prioritize initiatives that optimize operational costs and efficiency, such as restructuring financial liabilities, outsourcing non-core functions, or eliminating underperforming product lines.

Empower your stakeholders to implement risk management and contingency plans that navigate economic uncertainty and enhance market agility. This proactive approach ensures your company is well-positioned to capitalize on opportunities and sustain growth in a rapidly evolving marketplace.

Markets are constantly shifting. Economic slowdowns will (eventually) turn around. Companies that strategically navigate these downturns by ruthlessly prioritizing their projects, products, and focusing on the most worthwhile segments are the ones that tend to rebound swiftly and stronger than they were before. Avoid treating these down periods as a time to panic; instead, treat them as an opportunity to focus your go-to-market strategies. This is the mindset that successful companies take to sustain and grow, even in challenging times like these.

Info-Tech Product Marketing Related Research

Info-Tech Marketing Research Center

• Build, Buy, or Shut It Down: Assess the viability of expanding or consolidating your product lineup through strategic alliances or discontinuations.
• Choose the Right Sales Partner: Evaluate and decide whether to enhance, repurpose, or phase out existing partnerships or explore new ones focused on areas that are not under stress.
• The Power of Segmentation: Analyze market segmentation to pinpoint growth opportunities. Review your portfolio to determine which products to develop, acquire, or discontinue for enhanced productivity and market potential.
• Pick Your Price Model: Methodically analyze and decide whether to share, restructure, or eliminate financial liabilities to enhance, outsource, or eliminate non-value-adding operations.
• Build CI to Improve Sales Win Rates: Assess competitive and market opportunities to enhance or streamline the portfolio for improved agility, including discontinuing unprofitable lines to minimize opportunity costs.

Resources for 2025 to understand economic challenges

Government & economic forecasts:

• World Economic Forum (WEF) – Economic trends, supply chain risks, and inflation challenges for 2025. Read their Global Risks Report 2025.
• IMF (International Monetary Fund) – Projections on global trade, supply chain disruptions, and pricing challenges. Check the World Economic Outlook.
• OECD (Organization for Economic Co-operation and Development) – Data on inflation, supply chains, and economic policies affecting pricing. Search for Supply Chain and Economic Trends 2025.