Naturally we assume that organizations should cut back as well, particularly if they can no longer afford to keep all of their employees. When the economy is in trouble, we will all be adversely affected on some level. Therefore the only reasonable thing to do is to eliminate unnecessary spending and preserve resources.
Well, this may not necessarily be the best advice for marketing professionals. Several industry experts argue that marketing budgets should not be slashed in an effort to deal with an economic downturn. In fact, according to Marketing Your Way Through A Recession, by John Quelch at the Harvard Business School, “Brands that increase advertising during a downturn can improve market share and return on investment.” There are also several ways to increase brand awareness and sales during a recession which include, focusing on core values, adjusting price tactics, and researching the customer.
So before you start cutting your marketing budget in dutiful response to the economic climate, you may want to re-examine your marketing activities and simply make some smart and strategic revisions.
So before you start cutting your marketing budget in dutiful response to the economic climate, you may want to re-examine your marketing activities and simply make some smart and strategic revisions.
Keri Glover
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1 comment:
This has been proven repeatedly over several past 'recession' periods. Some companies do, and some do not, have the resources to continue marketing in a down cycle (it takes money to make money). So the sample is skewed towards companies that have already proven their marketing mettle and saved for the rainy day. It's also a demonstration of their 'marketing courage' to spend those resources when the returns are uncertain, and likely less than during a growing market. Good marketers will anticipate market slowdowns, save money to spend during those times, and have a strategy to market when weaker competitors are forced to reduce their marketing efforts.
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