Here are some historical facts of marketing during previous recessions. Although it is usually the first to go in some non marketing-centric companies, do not cut yourl marketing!
If anything, stay the course or increase marketing in areas where you can track results like online marketing and focus on your most successful markets. By doing so, you will gain more visibility and get more exposure for your money while your competition scales back.
Also, make sure your customers are taken care of and that you have established clear communication and feedback with them. Listen and engage customers using social media especially if they are complaining about your company.
Focus on your most successful markets and target those niches through industry associations and trade magazines with case studies and integrated marketing campaigns.
Industry Fast Fact
Historical Perspective of Marketing Expenditures During a Recession
· 1974-1975 recession years –
“Companies which did not cut marketing expenditures experienced higher sales and net income during those two years and the two years following than those companies which cut in either or both recession years.” – American Business Press, Inc., ABP/Meldrum & Fewsmith study, 1979
· 1981-1982 recession years –
“Business-to-business firms that maintained or increased their marketing expenditures during the 1981-1982 recession averaged significantly higher sales growth both during the recession and for the following three years than those which eliminated or decreased marketing.” – McGraw-Hill Research. Laboratory of Advertising Performance Report 5262 New York: McGraw-Hill, 1986
· 1990-1991 recession years –
“Firms that increased their budgets and took on new people were twice as likely to pick up market share.” – Greenburg, Eric Rolfe. “Fortune Follows the Brave,” Management Review, January 1993
“According to research by professors at Penn State’s Smeal College of Business and the University of Texas, for well-positioned companies experienced in successful marketing, an economic recession should not prompt marketing cutbacks, but rather an aggressive increase in marketing spending to achieve superior business performance both in the short and long term.”
Research: Companies Strong In Marketing Should Increase Efforts During Recession – Penn State Smeal College of Business