Bold marketers know this: an economic downturn is the perfect time to gain market share. Spending marketing money during tough times seems counterintuitive, but time and again it has paid off for some of the best known brands. During the 1970s Revlon and Phillip Morris turned up the advertising heat to gain market share. Further, MediaPost reports that,
A McGraw-Hill Research analysis three years after the 1981-82 recession found that companies maintaining or increasing ad spending during that period enjoyed 256% higher sales than companies that had decreased their budgets.
There is no better time than a recession to brand yourself as an industry leader and survivor. Consumers avoid lesser known brands during tough times. They want the comfort of knowing they have purchased something from a brand that will weather the storm.
Weak competitors throw in the towel, giving smart, strong competitors an opportunity that should not be passed up. Also, media companies are struggling so the canny marketer can negotiate deals on advertising. Thus, fewer marketing dollars are needed to make the same impact. It becomes easier to reach your audience with less competitive clutter. Your aggressive marketing message now tells consumers that you are stable and strong, perfectly positioning you for a surge in better times.
However, it appears most of the big boys have forgotten those lessons learned in past recessions. General Mills should be the poster child of every marketer, increasing its consumer marketing spending by 19 percent recently. So, get out there and take the market share that rightfully belongs to you.