Recently I was at an annual meeting for a professional group and the CEO, during a review of the past year's efforts, said, "Several years ago we made the decision, in a cost cutting move, to reduce and finally eliminate our marketing budget. The result has been a loss of recognition among consumers. Our bad!"
I get it. Times were tough. The recession hit us all and often the first, but the wrong, budget item to cut was...marketing.
Had this group been our client we would have told them what we told our clients during this time, "Whatever you do, please, do not reduce the amount of money you are spending on R&D or on marketing. Why? Because you will, and I promise, you will grow business and steal market share from others."
And, I was right. The clients who listened had eight to ten percent growth each of those rough three years.
For the companies who cut R&D and Marketing they now face an uphill battle. Their budget does not reflect a line item for marketing and now, just to "catch up" they are going to have to spend...plenty.
Sometimes "stay the course" isn't in the best interest of business. But, history has shown us, time after time, that during rough economic times those companies that continue to be agressive in their marketing...grow and yes, steal market share.
Just a reminder....