Times are tough that means it's time to FINE TUNE your advertising and marketing program. Look, we are not blowing smoke here. What we're about to share with you are factual events looking at past recession markets and how the smart companies used the recession to IMPROVE their market share.
In other words...now is not the time to cut your marketing budget.
Each day this week we'll bring you up to speed on what companies have done in the past as they faced the very same decisions you are looking at today. We'll tell you what they did...and what happened. Let's get started:
From "How Advertising in Recession Periods Affects Sales" (ABP, Inc. 1979): You might not remember, but 1970 was a Recession Year. In a study by American Business Press and Meldrum & Fewsmith we learned that, "sales and profits can be maintained and even increased in recession years and in the years immediately following, by those who are willing to maintain an aggressive market posture. Those who adopt the philosophy of cutting back on promotional efforts tend to see sales harder to get."
Or, this from the same study focusing on the recession years of 1974 - 1975: "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."
Look we're not in the advertising business to talk you into something you SHOULD NOT DO. We're here to help you survive and thrive. And give you solid information on what YOU SHOULD DO. That's our job. Your job should be to continue to build market share by innovative marketing and advertising that impacts your core consumer.
Let's do this thing.
Tomorrow we'll look at the recession years 1981 - 1982.
Michael P. Libbie - Insight Advertising, Marketing & Communications - Where we help our clients succeed in good times and bad.