To Market or Not To Market? In a recession, that is the question!

In 1979, Meldrum & Fewsmith conducted a series of studies analyzing the way companies marketed themselves during the two year recession from 1974 to 1975.

The studies concluded that “companies which did not cut advertising expenditures during the recession years (1974-1975) experienced higher sales and net income during those two years and the two years following than companies which cut ad budgets in either or both recession years."

In addition, the Senior Vice President of Meldrum & Fewsmith said, “I have yet to see any study that proves timidity is the route to success. Studies consistently have proven that companies that have the intelligence and guts to maintain or increase their overall marketing and advertising efforts in times of business downturns will get the edge on their timid competitors.”

MarketSense studied the recession from 1989 to 1991. They surveyed 101 name brands. Kraft salad dressings and Jiff peanut butter both raised marketing budgets during this recession and increased sales by 70% and 57%, respectively. With increased budgets, Pizza Hut increased sales by 61% and Taco Bell increased sales by 40%.

Outsourcing

If you are inexperienced in marketing, if you are looking to reduce fixed expenses, or if you've already downsized and now need immediate bottom line results, it is best to outsource marketing to someone who is strategic, creative, and has proven results.

By outsourcing you are changing a fixed expense into a variable expense. You also gain the outside knowledge of a specialist.