Spend and Shine
"You will never get a second chance to make a first impression: But what about a lasting impression?
Most companies take one of two positions during tough economic times, slash spending or spend, and how you behave in the short term predicts long-term success. If indeed the worst is over and our economy is moving into recovery mode you have to ask yourself a key question: Is your brand ready?
Studies show that reducing marketing spending during difficult economic times can leave your brand in a vulnerable position when the economy recovers. Research confirms the best strategy for weathering an economic storm and boosting long-term ROI is to increase marketing expenditures.
Granted, it may be difficult to convince management and those in the C-suite that this is the way to go. After all, studies also show that the first thing consumers do during times of economic uncertainty is reign in spending. If consumers are spending less on your product you're spending more on promotion, this doesn't do much for your bottom line. But that's short-term thinking and few successful business people get ahead with that kind of attitude.
Consider this: A comprehensive analysis by the Profit Impact of Marketing Strategies (PIMS) database compared results generated by companies that reduced, maintained, and increased marketing spend during recessionary times. The study looked specifically at Return On Capital Employed (ROCA) during the recession and during the first two years of recovery. It then compared changes in market share for the same period and discovered that companies that cut marketing spend reported better return during the recession, but struggled after the recession ended. In turn, spenders achieved significantly higher return on capital employed and won on average an additional 1.3 percentage points of market share. 
Bottom line, you've got to spend money to make money.
This of course is just one of hundreds if not thousands of studies that convey this powerful message: Increasing marketing spend during less certain times is a smart business strategy for those who want to be at the forefront of the economic recovery.
And all signs indicate that economy recovery, while slow, is imminent. A key component from a marketer's perspective is consumer confidence. A Harris/Decima poll in June Showed Canadian consumer confidence at it's highest level in 15 Months, with an increasing number of Canadians optimistic that better times are ahead. Is your company positioned to take advantage of the looming recovery?
It's not too late: so get ready and get spending. The end is in sight.
*article quoted from Trimark Sportswear