Businesses that cut spending on marketing during a recession, specifically, those that reduce advertising dollars, do worse after the economy picks up than companies that don't cut their ad budgets. By 1977, net income more than tripled for companies that had not cut advertising, while income only doubled for those that had cut their ad budgets during the recession. I think its principles apply to any business, any where.
Advertising is essential.
Businesses that cut spending on marketing during a recession, specifically, those that reduce advertising dollars, do worse after the economy picks up than companies that don't cut their ad budgets. By 1977, net income more than tripled for companies that had not cut advertising, while income only doubled for those that had cut their ad budgets during the recession. Advertising is essential.