News
Marketing in a Recession
Taking a Bullish Approach in a Bearish Economy
While many businesses are tightening their belt due to the economic slowdown, those best placed to survive actually boost their marketing activities, according to research by Penn State and the University of Texas.
The report, "Turning adversity into advantage: Does proactive marketing during a recession pay off?" focused on the last recession. The academics found that companies with a strategic emphasis on marketing, and the ability to invest in it are in the best position to strengthen their competitive advantage. They suggest a slump should not result in marketing cutbacks. Instead there should be an aggressive increase in marketing spending to achieve superior business performance during the downturn and after it. They say firms with entrepreneurial culture push harder when things get bad.
Two recent polls bear out the bullish approach to marketing in a recession.
The 2009 marketing outlook survey by Strongmail Systems reports that 51% of businesses plan to increase their direct marketing budgets. It also suggests that 81% of companies plan to use information in customer databases to improve the relevance of their direct marketing messages.
Another poll focusing on SME's by Ad-ology, says 60% will maintain their previous marketing budget in 2009, while 25% expect to increase theirs.
According to Achieving Quality Leads Director Larry Miller, "It's not just about increasing expenditure, but making sure the marketing you do is highly targeted and followed up. Mass mail campaigns can be hit and miss, unless the list has been cleansed and validated, then followed up immediately after the emails or letters have gone out."
Miller cautions, "If you wait even a week, they will have been deleted, binned and forgotten. Your investment will have been wasted. Smart marketing is not passive marketing."
<other news stories
The report, "Turning adversity into advantage: Does proactive marketing during a recession pay off?" focused on the last recession. The academics found that companies with a strategic emphasis on marketing, and the ability to invest in it are in the best position to strengthen their competitive advantage. They suggest a slump should not result in marketing cutbacks. Instead there should be an aggressive increase in marketing spending to achieve superior business performance during the downturn and after it. They say firms with entrepreneurial culture push harder when things get bad.
Two recent polls bear out the bullish approach to marketing in a recession.
The 2009 marketing outlook survey by Strongmail Systems reports that 51% of businesses plan to increase their direct marketing budgets. It also suggests that 81% of companies plan to use information in customer databases to improve the relevance of their direct marketing messages.
Another poll focusing on SME's by Ad-ology, says 60% will maintain their previous marketing budget in 2009, while 25% expect to increase theirs.
According to Achieving Quality Leads Director Larry Miller, "It's not just about increasing expenditure, but making sure the marketing you do is highly targeted and followed up. Mass mail campaigns can be hit and miss, unless the list has been cleansed and validated, then followed up immediately after the emails or letters have gone out."
Miller cautions, "If you wait even a week, they will have been deleted, binned and forgotten. Your investment will have been wasted. Smart marketing is not passive marketing."
<other news stories
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