Marketing in a Recession...

Q: What begins with recess but isn't any fun? A: Recession.

Fear of a recession is in the air. I'm not an economist, so I'm not sure if it's warranted. But I can tell you the best marketing investment if an economic downturn happens: Advertising. Research indicates it's best to maintain or increase your ad spending. Really.

McGraw-Hill studied 1980-85 advertising by 600 companies in 16 SIC codes. The results? B-to-B firms that maintain or increased advertising in the '81-82 recession averaged higher sales growth both during and after the recession than those who reduced or eliminated advertising. By 1985, sales of recession advertisers jumped 256% over those that didn't keep up advertising. Since 1949, aggressive advertising in a recession has increased both sales and profits says a study by Meldrum & Fewsmith. And a Coopers & Lybrand study of the 1990-91 recession shows better performing businesses seeking new customers, exploring new markets and running more ads.

Strategically advertising during an downturn can help you capture customers your non-advertising competition will lose. And it will allow you to maintain profits while others are forced to rely on price-cuts. As the old adage goes: "In good times, you should advertise. In bad times, you MUST advertise."

- Phil Sasso