Seems we can't get through the day lately without hearing all about how the American economy is goin' to hell in a hand basket. I'm certainly no economist so I can't address whether it is or not, but in light of the current headlines I thought it important to reiterate a simple truth: when business slows down, it's not a good idea to cut activity that drives sales - like marketing.
As support, I offer this excerpt from Jay Lipe's "10 Commandments of Marketing."
"Thou Shalt Not Cut Marketing Spending During Slow TimesFrom 1980 to 1985, McGraw-Hill Research analyzed 600 companies and their marketing spending. After 1985, McGraw-Hill concluded that those firms which had maintained or increased their advertising during the recession in 1981-82 boasted an average sales growth of 275% over the next five years. But those companies who cut their advertising saw paltry sales growth over the next five years of just 19%. When is the right time to market your business? All the time."
And here's a piece from Advertising Age on how Kraft and Kellog's are responding to lower 4th quarter earnings.
