March 2009

Catapult your brand out of the Recession

"This is not the time to cut advertising. 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 of Business Administration
Harvard Business School

 

Take a Bigger Slice of the Pie

When the economy takes a turn for the worse, many businesses begin cutting costs, and media spending is often the first thing to go. But historically - based on research conducted over the last 80 years - maintaining or even increasing media spending can give businesses an advantage over the competition. These studies all point to a definitive relationship between ad spending and growth in long-term market share (S.O.M.) and profitability. 

An analysis of the 1990-91 recession by Penton Research Services, Coopers Lybrand, in conjunction with Business Science International, found that better performing businesses focused on a strong marketing program. This enabled them to solidify their customer base, take business away from less aggressive competitors, and position themselves for future growth during the recovery.

In a well-known study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. Results showed 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 next three years, compared to those that eliminated or decreased advertising. By 1985, sales revenues for companies that were aggressive recession advertisers had risen 256% over those that limited their advertising.  These results are consistent with studies going as far back as the recession of 1949.

 

Let Larter Help You to take Advantage of this Opportunity

We can show you how to maximize your marketing resources, grow your brand equity and derive long term growth from the current economic situation.

 

Click here to contact us.

 

 

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