Fortune favours the brave

It's easy to cut back on marketing spend during economical turmoil. There are 3 well known practices for deciding marketing budgets:

• The Economist's view - Supply & Demand. If demand is low, cut back.
• The Accountant's view - Spend as a % of sales/revenue. If revenue is dipping, cut back.
• The Marketers's view - Objective & Task, decide how to increase sales and work backwards.

Why focus on cutting costs, when you can focus on increasing sales?

Much empirical research by PIMS (profit impact of marketing strategy), based on thousands of companies over many years, suggests that companies who invest in marketing an innovation in a recession, come out better. Companies who increase their marketing spend whilst in a recession, whilst competitors are cutting down, are far more likely to be remembered and noticed by consumers when the recovery starts.

You have a company. You are manager. You are a consultant. Whatever you are, you have a database of customers who trust you. Increase your contact with these customers (but don't overdo it!), and remind them of your brand values and why they can shop with you in a recession, perhaps give them a reason, some sort of promotion spend or competition. Keep them happy and pull them through on the other side.

Fortune favours the brave, and those you don't cut the marketing spend await glory.