Question

Topic: Advertising/PR

应该一个组织处理快速消费品的减少,Sustain Or Even Increase Adex In A Recession?

Posted by Anonymous on6/9/2004 at 6:02 AM ET 250 Points
How does one deal with this chicken and egg situation- can more advertising dollars increase the sales of a product post-recession? Or should the company conserve the ad money and go BTL?
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RESPONSES

  • Posted byBlaine Wilkersonon6/9/2004 at 7:20 AM Member
    Vikrant is right. Even in a DEPRESSION, people still drink soda, coffee, and need toilet paper, etc. If your brand is solid enough to (i.e. Coca-Cola, Protor and Gamble) one may be able to afford a reduction in ATL efforts.

    This is just my "second notion" on vkrant's answer. Great advice.
  • Posted byPeter (henna gaijin)on6/9/2004 at 12:59 PM Accepted
    I am going to take the other direction on this. There have been studies that show that those companies that maintain or increase ad spending during a recession come out of the recesion in much better place than their competitors who reduce their ad spending. And they continue to do better for a few years after the recession ahs ended. There is a MarketingProfs article at//www.369da.com/2/greymatter1.aspwhich supports this.

    Of course, if the recession is hitting hard and money is tight, you likely would have to reduce costs. But this is something to keep in mind as you are choosing what costs to reduce.
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