Should You Increase Small Business Marketing in a Recession?

Does it make sense to invest in marketing in a recession?

The title of this post is a reasonable question that a good number of people are asking themselves right now.

Let me share with you some very interesting content I found while researching this issue a few weeks ago. Grant it…I’m a marketing professional, so I think marketing is a year round sport. (Ok…I got that out of the way ). Now…never mind what I think. It’s more important to take an objective look at the pros and cons of increasing your marketing spend in the current economic climate.

This post is going to summarize a research paper that was published back in 2005. The paper deals with how to turning adversity into advantage in a down economy.

In the abstract (a.k.a. executive summary), the writers state that some businesses see recessions as opportunities to invest aggressively and establish their advantage over weaker competitors, whereas others cut back, waiting for the recession to pass. How do you think most business owners view the recession? How do you view it? Are you cutting back, or investing wisely in order to take the lead?

In short, the research points out that firms that have a proactive marketing response in a recession achieve superior business performance even during the recession.

Let me offer you a few examples from history.

Brands such as Camel cigarettes and Chevrolet, seized top market positions from their competitors during the Great Depression during the 1930’s.

Proctor and Gamble, a company noted for consistent spending during periods of recession, heavily promoted some of its best-known brands (E.g. Camay, Ivory, and Crisco) at that time.

Darren Hardy, publisher of Success Magazine made an interesting observation back in October. He says,

“In 1990 and 1991 Wal-Mart, Sears and the SNP 500 share prices were in a dead heat. Wal-Mart chose to take an aggressive posture, investing in physical assets to strengthen their growth foundation and in intangible assets to assertively promote their brand and offerings. Sears, on the other hand, decided to cut investments without a cursory examination of the ramifications. The result: within only two years Wal-Mart’s share price TRIPLED while those of Sears and the SNP remained flat. And as you know, no competitor has recovered to catch Wal-Mart since.”

Research shows that this is not the time to sit back and wait it out. I want to encourage you to download a copy of my free report that outlines the biggest mistake that small business owners make with their marketing strategy. If you do, there’s a link to the complete research paper inside and you can take a look at their findings. If you are a independent professional or small business owner of any kind, this is the kind of information that will provide you will substantive answers based on principle and historical precedent. No matter how you choose to promote your business (with a do-it-yourself approach, or with a marketing professional), you should always make principle-centered decisions.

Also, if you’re interested in a proven system that has been helping small business owners (for the last 20 years) to see increases of sales and revenue ranging from 25-100% in as few as 48-90 days without having to spend money in traditional advertising, you will also benefit by downloading my free report located at www.48DaysMarketingSolutions.com. This system is the sales and marketing system Dell Computer and the U.S. Department of Commerce makes available to their small business clients who need marketing help.

Do you have an opinion on marketing in a down economy? I would love for you to share. Feel free to leave a comment, and make it a great day!