Posted on
January 22nd, 2012

Increase Marketing Spend in Lean Times

It is a well known fact that “companies that invest in marketing during a recession” are more likely to survive, and those that do are also more likely to win market share when the good years return. A great deal of evidence suggests that it’s not a good idea to reduce marketing spend during a recession in order to hit financial targets. Doing so may leave your brand in a less competitive position when the economy recovers.

Over the years, research studies have confirmed that the best strategy in terms of long-term ROI is to increase marketing expenditure during an economic slowdown. An analysis of the Profit Impact of Marketing Strategies (PIMS) database, presented at an IPA conference, provides the latest evidence. “During the recovery, the spenders achieved significantly higher return on capital employed and gained an additional 1.3 percentage points of market share.” Proving that spending is the best strategy to adopt.

This is supported by the latest IPA Bellwether survey published in January 2012 which reveals that marketing budgets were revised up in Q4 for a second successive quarter, as companies sought to protect market share against competitors. With 20% of companies reporting an upward revision compared to 19% that reported a reduction.

Is it time to think long term about your marketing strategies, contact us today and let us help you on the road to maximum profitability?

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