Smart marketers will be increasing their spending budget. This is because they know with economic disparity comes to the opportunity for growth. This is a classic Warren Buffet lesson. Sometimes you have to do what might seem intuitive. Sometimes you want to look at what everyone else is doing, so you can bet against the grain. Marketers are seeing opportunity in the fact that everyone else is dropping their budgets making room for more value in marketing dollars. Because of the virus, many eyes are focused on the internet or television. This is the time to make a name for your brand.
- Studies have shown that increasing budget in marketing while a recession is happening favored a positive return on investment.
- We can assume that most companies will be reducing their advertising budget, making opportunity for those who are willing to take risks.
- Target during the 2000 recession reduced operating costs but increased marketing costs setting it up for success when the market rebounded.
“Why is a recessionary period such a paradoxically fertile period to grow market share?”