The article “Marketing to Succeed in Difficult Economic Times” mentions how Wharton Professors recommend increasing advertising to build share and revenue in recessionary times. (see previous post)
Walmart is obviously a believer in this strategy. According to AdAge Magazine:
“The retail behemoth, long known for its penny-pinching prowess, has gone on a massive media-spending spree in the past year, hiking measured media outlays some $300 million while much of the market pulled back.”
This is obviously an extreme example, but shows how aggressively one marketer is approaching this recession. But is it working?
Let’s see. The fourth quarter of 2008 was one of the worst for the retail industry in over 20 years with many companies experiencing double-digit declines. Walmart, on the other hand, has seen same-store-sales grow in recent months by 2% to 3%.
It’s not easy being in hospitality marketing these days. The need to reduce spending is omnipresent – but, if you’re thinking of cutting back on your marketing budget, you might want to think again. Consider listening the professors at Wharton or following the example of Walmart and be a much more aggressive advertiser.
The Wharton profs also point out the more aggressive marketers in the severe 1981-82 recession fared much better during the recession, but also emerged from it much quicker than their timid competitors.
What do you think? Safe Travels – Madigan Pratt