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Spending in hard times?

When times turn bad they can be made worse by hesitation, halfway measures and panicky decisions.
The decision to slash or eliminate marketing is often the knee-jerk response to hard times. The fact is, companies that maintain or increase their marketing during recessions generally get ahead. A less crowded field allows messages to be seen more clearly, and that increased visibility results in higher sales both during and after hard times.
That said, marketing spending has to be done wisely. Look for less expensive channels, drop back to earlier effective spending levels, get creative, but don’t quit altogether.
Companies that do not eliminate marketing tend to have higher growth in sales and net income even during hard times.
A study by McGraw-Hill of both the 1974-75 and 1981-82 recessions reported that firms that cut marketing in both recessions increased sales by only 19% while those that continued to market saw 275% jump in sales.
Harvard Business Review found that airlines that increased their ad spending during 1974-75 increased sales and market share in both years while carriers that cut ad spending in both years lost sales and share in both.
The results of these studies are consistent, and unequivocal: companies that made the effort to continue to market themselves through  recessions maintain notably better sales and reputation than companies that don’t.
Questions?   Let’s talk!
Michele

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