If you already have a thriving business and possess the fundamental knowledge that marketing is not an expense but an investment, you already have an excellent head for business and will not learn anything new from this article. For those of you who don’t―LISTEN UP.

As soon as the word “recession” is said aloud, a lot of people immediately start to panic, creating a ripple effect that seems to instantaneously resurrect the antiquated tradition of wanting to stuff all of one’s money into one’s mattress. That phenomenon may be bad news for some, but not for the keen entrepreneurial business person. The dreadful “R” word everyone is whispering out of inherent fear, reminiscent of Lord Voldemort’s He-Who-Shall-Not-Be-Named moniker, is not entirely a negative entity. Yes, some industries will take a hit. It’s inevitable. But, it is also a huge opportunity for business warriors who know how to take advantage of a sluggish market.

“It’s been proven that an increase in marketing spend during a recession can gain a long-term advantage for a brand ... Over the years, research studies have confirmed that the best strategy in terms of long-term ROI is to increase marketing expenditure during an economic slowdown ... [Reducing your spending] may leave your brand in a less competitive position when the economy recovers.” – Nigel Hollis, Chief Global Analyst for Millward Brown

The key is to promote, promote & promote. Whether it’s through marketing, advertising, or networking, you need to take advantage of the increasing gaps in the marketplace as others stop spending. Every time an organization halts its marketing and advertising initiatives, they create a hole for others to dominate, ultimately giving those companies more exposure. With more visibility and less competition in the market, how can you lose? You can’t.

Marketing must always remain consistent and fluid. Think about this. How much lead time do you need before you actually land a client? One month? Three? More? If you stop marketing during a recession, you lose the valuable momentum it took years to build. Once that momentum is lost, you have to start all over again, and it could literally take months and months to rebuild.

“It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.” – Professor John Quelch, Harvard University

There is a reason English Billionaire Richard Branson is so successful. He spends one third of his time promoting and marketing. He knows the value of it. Proctor & Gamble advertised heavily during the Great Depression, so did Intel in the 1990 fiscal slowdown, and Wal-Mart in 2000 when the economy was barely moving.

So keep marketing, keep advertising, and keep networking. Do not stop promoting your business, not unless you enjoy learning lessons the hard way. There are copious numbers of studies that prove people who continue, if not increase, marketing and promotional spending during fiscal deceleration (better than using the “R” word, isn’t it?) have been able to weather economic uncertainties with far greater success in the short and long term than those who do not. If you need any other proof, look to the leaders of industry over the next few months and watch what they do.

“Canada is relatively well placed to weather the current economic climate.” – The Honourable Tony Clement, Minister of Industry, 2008 Business Roundtable with the Federal Government.

Be bold, lead with confidence, and listen to your common sense, not the fear mongering of others. And when the market takes an upswing, as we all know it will, you can say cheers from your posh new condo in the Mediterranean and thank the heavens you didn’t listen to them.

Casey A. Johnson
CEO, StoneCastle Communications
www.stonecastlecommunications.com