When a company is streamlining its operations during an economic downturn, it should consider maintaining and increasing its marketing and branding budgets, McGuireWoods Partner Jack White Told Sales and Marketing Management in a August 10, 2022, article.
The publication explored how businesses are likely to react during a recession – or when a recession might be imminent. Historically, many are reallocating resources and drastically cutting budgets for what they believe to be non-essential operations. But if a company eliminates its marketing budget, the article notes, its brand can disappear from the minds of target customers and it could reduce sales and profits.
White discussed the example set by some companies during the pandemic-induced recession. Those who were most successful during the recession had an interesting marketing perspective, he said. “Rather than dwell on the risk of increasing their marketing budgets, they viewed it as riskier not do this. The downturn would end at some point, and they wanted to be in the best position to expand their footprint afterward.
A member of the firm’s nationally ranked Government Investigations and White Collar Litigation Practice in Tysons, Virginia, and Washington, D.C., White focuses his practice on civil litigation, regulatory enforcement and lawsuits. Congressional investigations for defense, technology and federal contracting clients.