Articles

Is Marketing the
First Thing to Go?

As more and more businesses contemplate the current economic crisis, marketers and marketing trade publications are dispensing advice, "don't cut your marketing budgets ... recessions offer an opportunity to stand out, as others in your industry will be cutting back." This message is perceived as self-serving, but it is the message that the marketing industry has always recommended, and most importantly it is true. However in all of history, very few businesses have heeded this advice...advertising and marketing expenditures are always the first thing to go!

There are some specific situations and industries where it would be good advice to increase marketing budgets in a downturn. Obviously there are industries for whom bad times constitute boom times, such as outplacement firms, debt consolidators, true discounters, both on and off line, and private labels. During tough times, economic or otherwise, consumers become "nesters" they seek more and better entertainment at home, they eat out less and get back to the basics with family and friends. All businesses can and should think of ways to reframe or redefine their value proposition statements, offering not only bargains and economic value, but environmental and lifestyle value as well.

There are no rules of thumb for marketing in a recession, except don't gamble! It is an excellent time to cut the waste from your marketing budget, evaluate the most efficient target audiences and the most effective marketing tools. To stay strong during these times, it is also wise to maintain your brand awareness and image levels, don't risk diminishing the strength and visibility of your business or products. Cutting marketing budgets to the point of losing name recognition and product awareness can cause your competitors to gain strength and gain market share when the economic picture begins to brighten.

- Cindy Cook