"When times are good, you should advertise. When times are bad, you must."
— Entrepreneur Magazine, Jan. 2009
Recessions are cyclical, occurring every 4-6 years. There have been 22 recessions since 1929. The biggest names/brands in consumer services have all maintained or expanded advertising/marketing during recessions. Oregon State conducted a survey of the 5 recessionary periods since 1971, sampling 3,000 firms, and discovered that "firms that are able to increase advertising during recessions are likely to have stronger future earnings."
Harvard Business School found out that while 75 percent of companies cut back on marketing/advertising during a recession, 25 percent are still in the game — and therefore have more opportunity to increase their market share. Most of the companies who choose not to advertise/market during a recession lose momentum and can't regain their market share later. In fact, the Wharton School of Business found that it costs companies 4-5 times more to REGAIN the market share and momentum they had previously.
One case in point: Kellogg vs. Post. Both companies dominated the new market for breakfast cereals in the late 1920s, but Post chose to greatly cut its advertising budget during the Great Depression. Kellogg doubled their ad budget, picked up market share, and today they still reign over the breakfast cereal industry. Another case in point: during the 1990-1991 recession, Nike tripled its advertising while Reebok cut back. After that recession, Nike's profits rose by 9 times while Reebok never has regained its previous top spot in shoe sales.
In Jan. 2009, Hyundai introduced its new campaign for car buyers, "You lose your job, bring the car back — no questions asked." Their sales went up 14 percent while all other manufacturers' sales went down 32 percent. Proves the point that during recessions, consumers want extra value, improved services and familiar brands and purchases that minimize risk.
Just to put our money where our mouth is, FORTHGEAR has spent more money, time and energy in marketing, advertising, networking and business development over the last 18 months than at any time prior.
Harvard Business School found out that while 75 percent of companies cut back on marketing/advertising during a recession, 25 percent are still in the game — and therefore have more opportunity to increase their market share. Most of the companies who choose not to advertise/market during a recession lose momentum and can't regain their market share later. In fact, the Wharton School of Business found that it costs companies 4-5 times more to REGAIN the market share and momentum they had previously.
One case in point: Kellogg vs. Post. Both companies dominated the new market for breakfast cereals in the late 1920s, but Post chose to greatly cut its advertising budget during the Great Depression. Kellogg doubled their ad budget, picked up market share, and today they still reign over the breakfast cereal industry. Another case in point: during the 1990-1991 recession, Nike tripled its advertising while Reebok cut back. After that recession, Nike's profits rose by 9 times while Reebok never has regained its previous top spot in shoe sales.
In Jan. 2009, Hyundai introduced its new campaign for car buyers, "You lose your job, bring the car back — no questions asked." Their sales went up 14 percent while all other manufacturers' sales went down 32 percent. Proves the point that during recessions, consumers want extra value, improved services and familiar brands and purchases that minimize risk.
Just to put our money where our mouth is, FORTHGEAR has spent more money, time and energy in marketing, advertising, networking and business development over the last 18 months than at any time prior.
