Recession 101: Marketing Dos and Don'ts
It's been well-documented that companies that increase or maintain their marketing level during periods of recession end up in a better position in the end, so cutting the marketing budget should be avoided at all costs even if it means cutting into the profits in the short run. When a company cuts its ad spending, the advertising share of its competitors goes up while prices for print and broadcast ads go down. That leads to a cycle where the competitor gets its message out more and spends less to do it. Those competitors who maintained awareness will fare better.