Let’s try a different take on this question, and cite some examples of what happens to companies that continue to market and push forward during uncertain times, vs. those that use uncertainty as an excuse to cut budgets and pull back.
Circa 1929, the Great Depression was beginning. Bank failures made today’s same failures seem relatively innocuous. Unemployment loomed at 25%, and every sector in the U.S. economy was adversely affected. But people still needed to eat. And the breakfast of choice for most Americans was “flakes and milk”. The two largest manufacturers of breakfast cereal were Kellogg’s and Post, and both had been “neck and neck” with U.S. market share, each vying for dominance in the cereal market.
Any idea who won? Kellogg’s did. The reason: They, unlike their rival, Post, that decided to “cut back” on marketing expenditures, Kellogg’s opted to increase spending, from the Great Depression’s outset through to its end. Kellogg’s made a calculated marketing decision to advertise and promote their products aggressively-namely Corn Flakes, their hallmark brand-despite, and actually the economic downturn. Their rationale was simple: In knee jerk fashion, their competitors had scaled back their marketing efforts significantly, thus opening the door for Kellogg’s to blitz the market with a strong ad campaign designed to persuade consumers to Kelloggs’ touted superior quality, thereby gaining them significant market share that positioned Kellogg’s as the industry leader-which endures to this day.
Am I advocating unbridled spending? NO! But I AM advocating a strategic plan that continues to market, promote and advertise YOUR products and services– new, exciting tactics, while your competitors bury their heads in the sand.
This is the classic example that is referenced in business schools , marketing/advertising seminars and nearly everywhere else all the time. But how many other examples can you cite? In the following posts I will offer at least four more that you may or may not know… and in the meantime, send YOUR examples to me. I will research and verify them and pass them along as well!