Hanging Tough During Tough Economic Times: McKinley Says Don’t Miss The Boat
Last Monday, The New Yorker wrote a fantastic piece on companies “hanging tough” during major recessions over the past 80 years. The article highlighted the success of companies who continue their advertising and marketing spending even when economic adversity strikes. They continue to launch new products and increase their market presence despite the apparent risks. As such, these companies benefited from their recession investments, often reaping long term gains and emerging as industry leaders. Shouldn’t companies today be adhering to this wisdom? It seems that many companies are at a cross-road. Do they cut spending in an attempt to save in the short term? Or do they jump in and take advantage when others are doing the opposite?
“…numerous studies have shown that companies that keep spending on acquisition, advertising, and R. & D. during recessions do significantly better than those which make big cuts. 1”
As we mentioned in last week’s blog, now is the time to assess your company’s strengths and weakness and shore up your marketing efforts to prepare for the recovery.
What do you think?
1 James Surowiecki, Hanging Tough, 2009, http://www.newyorker.com/talk/financial/2009/04/20/090420ta_talk_surowiecki (May 2009)