Don’t Cut Your Marketing Budget in a Recession

Now, more than ever, I feel the necessity to strongly reiterate this message: In a recession, do not to cut your marketing, R&D, and communications budgets. Historically, companies that have bounced back most strongly from previous recessions did not cut their marketing, R&D, and communications spend, and in many cases actually increased them. However, they did change what they were spending their budgets on. You may be surprised by some of the facts presented in this article. Products launched during a recession have both higher long-term survival chances and higher sales revenues. Advertising dollars count—a firm’s share of voice increases if it can maintain or increase its advertising budget. Price strategies should not be either up or down, but rather dependent on supply chains, brand equity, local tastes, and customer behaviors. Companies need to do whatever it takes to cement loyalties and gain new customers. This is not a time to stop spending money, but rather a time to change how you spend it.