Marketing in a recession:retrench or invest? /
O'Malley, Lisa
Marketing in a recession:retrench or invest? / Lisa O'Malley, Vicky Story and Vicky O' Sullivan. - Journal of Strategic Marketing Volume 19, number 3, .
The world is emerging from a deep economic recession. Despite extensive research indicating that reducing marketing efforts exacerbates the negative effects of recession, many firms have retrenched spending in this area. This paper uses a modified meta-analysis to review and evaluate extant research on marketing spending during recessions. The findings confirm that marketing can be significantly more important to the firm during a recession than at any other time. The paper argues that marketing budgets are cut because of a short-term focus by top management and the absence of a market orientation. The evidence also confirms that firms who curtail their marketing expenditure are likely to jeopardise future sales and profits. Ultimately, recession offers a rare opportunity for proactive firms to improve their competitive advantage through increased marketing efforts, as long as these are well considered and carefully tailored.
Recession--Marketing expenditure
Market orientation--Advertising
Competitive advantage--Meta- analysis
Marketing in a recession:retrench or invest? / Lisa O'Malley, Vicky Story and Vicky O' Sullivan. - Journal of Strategic Marketing Volume 19, number 3, .
The world is emerging from a deep economic recession. Despite extensive research indicating that reducing marketing efforts exacerbates the negative effects of recession, many firms have retrenched spending in this area. This paper uses a modified meta-analysis to review and evaluate extant research on marketing spending during recessions. The findings confirm that marketing can be significantly more important to the firm during a recession than at any other time. The paper argues that marketing budgets are cut because of a short-term focus by top management and the absence of a market orientation. The evidence also confirms that firms who curtail their marketing expenditure are likely to jeopardise future sales and profits. Ultimately, recession offers a rare opportunity for proactive firms to improve their competitive advantage through increased marketing efforts, as long as these are well considered and carefully tailored.
Recession--Marketing expenditure
Market orientation--Advertising
Competitive advantage--Meta- analysis