Advertising During Recessions
Please find below comments by advertising and marketing experts
on how to deal with advertising products and services during recessions:
In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies
from 1980-1985. The results showed that business-to-business firms that
maintained or increased their advertising expenditures during the 1981-1982
recession averaged significantly higher sales growth, both during the recession
and for the following three years, than those that eliminated or decreased
advertising. By 1985, sales of companies that were aggressive recession
advertisers had risen 256 percent over those that didn't keep up their
advertising. In addition, a series of six studies conducted by the research
firm of Meldrum & Fewsmith showed conclusively that advertising aggressively
during recessions not only increases sales but increases profits. This
fact has held true for all post-World War II recessions studied by The
American Business Press starting in 1949.
KIRBY HASSEMAN
Co-owner of Hasseman Marketing & Communications
It is well documented that brands that increase advertising
during a recession, when competitors are cutting back, can improve market
share, and return on investment at lower cost than during good economic
times.
JOHN A. QUELCH
Professor at the Harvard Business School
The most successful companies maximize long-term shareholder value by maintaining their advertising investment when the economy slows down and weaker competitors cut back.
PATRIC BARWISE
Professor at the London Business School
An overwhelming majority of American executives (86 percent) agreed that companies that advertise in a down economy stay more top-of-mind when purchase decisions are made, and create more positive impressions about the commitment to their products and services.
GUY CONSTERDINE
Independent Media Consultant
Promote what makes you different. Branding experts say customers perceive few businesses to be as unique or expert as the owners believe they are. Use the downtime to rethink your brand, adjust your market positioning and determine what your customers appreciate about you. Surveying customers' opinions has more benefits: It reminds them you're alive, you're interested in what they think and you're serious about serving them better. That can launch a whole new round of conversations.
RICK SPENCE
Writer, consultant and speaker specializing in entrepreneurship
"Recession," "downturn," "financial quagmire" and other negative words evoke even more panic among already cash-strapped consumers. Ads during a recession need a positive swing, linking them to performance, improvement and survival during hard times.
HEIDE B. MALHOTRA
Epoch Times Staff Writer
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