Is Down Twenty the New Up: A Strategic Marketing Inquiry

WEST PALM BEACH, FL--(Marketwire - July 28, 2009) - The current economy requires new standards for measuring success. For years, companies have measured against prior year levels. Today, companies have turned to measuring themselves against one another.

"Many say the market is down 30%; hence being down only 20% is, nowadays, considered being 'up'," said Terry Murphy, president of Strategic Marketing. "Times are changing, and because metrics are the base point of every business, we must keep abreast of the newest, latest and greatest way to measure metrics."

So how do you find the "new up?" Patric Barwise, a professor at the London School of Business, says, "The most successful companies maximize long-term shareholder value by maintaining their advertising investment when the economy slows down and weaker competitors cut back."

Economic times are tough in every industry; however it is no secret that advertising budgets are often the first ones cut. Advertising is a choice. Either advertise now to grow business in the future, or cut advertising and therefore current and future business. Like most things in life, if you give a little, you get a lot in return. This is true more than ever in the world of advertising today.

McGraw-Hill Research conducted a study of U.S. recessions from 1980 to 1985. Out of the 600 business-to-business companies analyzed, the ones that continued to advertise during the 1981 to 1982 recession achieved an average 256% growth by 1985 over their competitors that eliminated or decreased spending.

"An overwhelming majority of American executives (86%) agreed that companies that advertise in a down economy stay more top-of-mind when purchase decisions are made, and create more positive impressions about the commitment to their products and services," says Guy Conserdine, an independent media consultant.

Okay, we know, you get the point... you need to advertise. You may be down compared to last year, but down twenty is the new up. "If the pie is getting smaller, you need to grab a bigger piece of it," said Murphy. "The best way to do that is through aggressive and well-strategized marketing."

Strategic Marketing, Inc., founded in 1992, is a full-service advertising, marketing and public relations agency based in West Palm Beach, Florida. For more information on Strategic Marketing, visit http://thinkstrategic.com and follow us on Twitter http://twitter.com/thnkstrategic.

Contact Information: Media Contact: Terry Murphy tmurphy@thinkstrategic.com P: 561.688.8155