Impressions

by Cochran

Should We Continue to Market During a Down Economy?

In a word: Yes.

Studies show that companies who continue to market during an economic downturn generally benefit during the downturn and in the uptick following.

McGraw-Hill Research studied 600 American companies in 16 different industries. Results showed that companies that maintained or increased their marketing spend during a recession averaged significantly higher sales growth both during the recession and for the following three years than companies that eliminated or decreased their marketing spend. Following the recession of the mid-1980s, sales by companies that continued to market during the recession rose 256 percent over those that did not.

What have you heard?

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March 3, 2009 - Posted by | Marketing | , , , ,

3 Comments »

  1. Here, here – Thanks for the research.

    Comment by web design chester | March 4, 2009 | Reply

  2. Absolutely the most important time to increase your marketing effort. Your competitors will be cutting back so your effort can command center stage with less clutter from other firms. Also, as typical in recessions, marketing firms may try to capture the limited business that does exist by offering improved pricing. Your company may have the opportunity to sign longterm contracts for an excellent, usually more costly, marketing program.

    Comment by Bill Knowles | March 4, 2009 | Reply

  3. Even in a poor economy, people still buy. They may be more cautious about their spending, they may have a longer buy cycle, they may focus more on needs vs. nice to have’s, but they will still purchase products and services. The question is, will they purchase yours? The answer to that depends on many things, but if your product or service isn’t on their radar screen when they need it or want it, the answer is no. Marketing helps keep your product or service on their radar screen, and it sends a very clear and confident message that you are still in business!

    Comment by Abby Donnelly | March 18, 2009 | Reply


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