In down economies, the typical reaction for many companies is to hunker down and ride out the storm until things turn around. This may include hiring freezes, reduction in staff, as well as cut-backs in new product development, capital improvements, and investments in new innovative ideas. Marketing budgets are sometimes also targeted for reduction.

Maintaining your investment in advertising and marketing can help minimize declines in sales during a recession and better position your company when the economy begins to improve. Business statistics reveal that companies that maintain their marketing activities tend to report better performance during economic turnarounds than their competitors that cut marketing budgets. By keeping your message out there, you will have better brand recognition and greater awareness among consumers when they decide to increase their purchase behaviors.

What may be more important than monitoring your bottom line marketing budget may be how to make the most of your marketing budget. That is where market research can help. Spending part of that marketing budget on research to better understand your current customers and marketplace can help you focus your marketing strategy on those segments that are more profitable and more likely to drive increased sales (through cross-selling or referrals). Some research strategies may include segmentation research, customer loyalty and satisfaction, and purchase behavior. Market research can act as your light guiding you through the dark passage of a recession.