Recessions occur every 4-6 years and companies have different strategies for dealing with them. Research shows that companies who maintain or increase their advertising during recessions are likely to have stronger future earnings and gain market share, while those who cut back often can't regain what they lost. Case studies show that Kellogg's outperformed Post and Nike outperformed Reebok by increasing their advertising during recessions while their competitors cut back. Hyundai was the only automaker to increase sales in January 2009 by introducing a marketing campaign allowing buyers to return their car if they lost their job. The document provides tips for public relations strategies like press releases and concludes that effective marketing relationships are based on clear terms of engagement and knowing

1. Marketing on the Business Side

2. Recessions
Recessions are cyclical, occurring every 4–6
years. There have been 22 recessions since
1929. Utah is feeling this one so strongly
because we’ve been insulated from recent
recessions; this is the first recession in a
decade to really impact Utah.
The biggest names/brands in consumer
services have all maintained or expanded
advertising / marketing during recessions.

3. Oregon State...
conducted a survey of the five recessionary periods
since 1971, sampling 3,000 companies and discovered
that those who “are able to increase advertising during
recessions are likely to have stronger future earnings.”
Harvard Business School...
found that 75% of companies cut back during a
recession, but 25% are still in the game and therefore
have more opportunity to increase market share. Most
of the companies who choose not to advertise during
a recession lose momentum and can’t regain their
market share later.
Wharton School of Business...
found that it costs 4–5 times more to REGAIN market
share and momentum once lost.

4. A. cAse in Point
Kellogg’s vs. Post cereals (1930s)
Who won the battle?
The New Yorker Magazine
Hanging Tough, by James Surowiecki
April 20, 2009

5. A. cAse in Point
Kellogg’s vs. Post (1930s Depression)
Instead of cutting advertising and marketing
spend as arch-rival Post did, Kellogg’s
doubled their budget. The strategy paid off.
Kellogg’s business increased 30% during
some of the darkest times this country has
faced. And Post? To this day Kellogg’s is still
,
the leading company in the industry.
The New Yorker Magazine
Hanging Tough, by James Surowiecki
April 20, 2009

6. B. cAse in Point
Reebok vs. Nike (19 9 0–91 Recession)
Who won the battle?
The New Yorker Magazine
Hanging Tough, by James Surowiecki
April 20, 2009

7. B. cAse in Point
Reebok vs. nike (19 9 0 –91 Recession)
Nike tripled its advertising while Reebok cut
back. After that recession, Nike’s profits
rose by (9) times while Reebok never has
regained its previous top spot in shoe sales.
The New Yorker Magazine
Hanging Tough, by James Surowiecki
April 20, 2009

8. c. cAse in Point
Which was the only automotive maker to
increase sales in January 2009 ?
The New Yorker Magazine
Hanging Tough, by James Surowiecki
April 20, 2009

9. c. cAse in Point
In Jan. 2009, Hyundai introduced its new
campaign for car buyers, “Lose your
job, bring the car back — no questions
asked.” Sales went up 14% while all other
manufacturers’ sales went down 32%.
Proves the point that during recessions,
consumers want extra value, improved
services and familiar brands and purchases
that minimize risk.
The New Yorker Magazine
Hanging Tough, by James Surowiecki
April 20, 2009

10. Recessions
“When times are good, you should advertise.
When times are bad, you must.”
— Entrepreneur Magazine

11. Recessions
“When times are good, you should advertise.
When times are bad, you must.”
— Entrepreneur Magazine
We don’t recommend incurring debt to
advertise or market. When funds are simply
not available, rather than spending money,
spend the next available resource — sweat.
Beat the streets — network, attend events,
rub shoulders. Get out...be seen and heard.

12. PuBlic Rel Ations
The ongoing process of providing and
shaping both the raw information and
perception that the media and public have
about an individual, organization, product
and/or service.
Consider the following “Press Releases 101”
Tips and Advice:

13. 1. B e newswoRtHy
A press release is NOT an advertisement.
A new service, product, employee,
location, company anniversary etc. may be
,
newsworthy. Your annual sale is not. Think
of it from the perspective of the media’s
audience — why will they want to know this?
How will this help them?

14. 2. Get to tHe Point
Write a news release in an inverted “V.”
It needs a compelling headline that really
summarizes what the story is about. Write
from the most important to the least. Don’t
use flowery, pretentious language. Focus
on one or two features; don’t include the
“kitchen sink.” Most releases should be
400–500 words at most.

15. 3. Be PRoFessionAl
Check and double-check grammar, spelling,
etc. It will be hard for people to take you
seriously if you’re not professional in your
writing, demeanor, etc.

16. 4. looK FoR A HooK
Why should they care? Why would
the general public want to know this
information? How is it relevant to them? Why
would the media want to run the release?
What does it do for them? Media outlets
are bombarded with news releases and
information. You need a reason for your
story to rise to the top of the pile.

17. 5. contAct in Fo
An e-mail address is not good enough.
Provide a name, phone number, etc.
where someone can immediately contact
you if needed. Provide proper links or
website information.

18. 6. MAKe it eAsy
The more information you put at their finger
tips, the better: statistics, research, etc.
Offer interviews, pictures, whatever makes
sense. Realize they may be on a deadline.
Be committed to providing them with WHAT
they need in a TIMEL manner; you may not
Y
get a second chance.

19. 7. s e n d (e-MAil o R FA x )
Send your press release to the general news
e-mail address or the specific reporter who
handles that particular genre — or fax it.
Pick up the phone and call in an idea or
event. Most news agencies prefer not to
receive press releases in the mail.

20. 8. Be ReAlistic
Developing media relationships takes
consistent time and energy Don’t expect the
.
media to pick up everything you send out;
thank them when they do. Understand that
if even your press release is picked up, you
will not be able to control the overall content
of the piece. If you need/ want to control
everything — place an advertisement.

21. 9. MAxiMiZe Results
Regularly place press releases on your
company website. Post printed articles,
broadcast, etc. on your website, e-mails,
RSS feeds, etc. This provides legitimacy
for your company/products and can boost
traffic to your website as well.

22. Know yo uR Business
The business of marketing really starts with
knowing your own business. If you need
help, start with a business consultant or
advisor. But in the end, you have to know
your own turf. Otherwise, you’re always at
the mercy of uncertainty.

23. Know yo uR BRA nd
Brand is the essence of a business /
customer relationship — your promise, your
performance, and their loyalty Meaning, the
.
promise you make to your customer, your
ability to perform on that promise and the
loyalty your customer gives back to you.

24. Brands are active, not passive. An
effective brand creates motion, attracting
some while perhaps repelling others.
What’s important is that you attract your
target, then engage and hold them through
promise and performance.

25. wHAt to Avoid
PORRIDGE:
the absence of love and Hate
Anything warm, comfortable and bland.
COMMODITY:
Plain, white paper
We need it, we use it — and we don’t care
who makes it or where we buy it. We just
want it for the “best” price.
The Commodity Trap
Taken from “Nothing To Fear But Fear Itself”
by Curt Bailey, President of Sundberg-Ferar

26. BRAnd vs. M ARK etinG
Your brand is the ‘horse,’ your marketing
the ‘cart.’ Avoid placing the cart before
the horse. It’s amazing how much money
businesses seem willing to spend on
marketing and advertising, but how hesitant
we can be to spend dollars on brand
development and documentation.

27. BRAnd vs. M ARK etinG
A documented brand sets a qualifying
standard for integrated marketing and
communications. Integration in marketing
strategies creates synergy and is proven to
enhance brand performance, while potentially
reducing costs and improving results.

28. teRMs oF enGAGeMent
never put a marketing partner between
you and your business. We’re experts at
communication, you should be the expert
in your business.

29. teRMs oF enGAGeMent
Never put a marketing partner between
you and your business. We’re experts at
communication, you should be the expert in
your business.
this can and should apply to any
consultative or partnering relationships.

30. teRMs oF enGAGeMent
FORTHGEAR recommendations:
• don’t let yourself off the hook.
Provide clear direction and set clear expectations.

31. teRMs oF enGAGeMent
FORTHGEAR recommendations:
• don’t let yourself off the hook.
Provide clear direction and set clear expectations.
• do your due diligence.
Develop and maintain your own foundational
understanding to direct and measure progress.

32. teRMs oF enGAGeMent
FORTHGEAR recommendations:
• don’t let yourself off the hook.
Provide clear direction and set clear expectations.
• do your due diligence.
Develop and maintain your own foundational
understanding to direct and measure progress.
• don’t shelve your earned instinct or
the inherent knowledge that you have
about your business.

33. conclusion
Effective marketing relationships are
partnerships based on trust, which are best
achieved when the “terms of engagement”
are clearly established. But before too much
is done with regards to any marketing or
advertising, take the steps necessary to
“know your business” and “know your brand.”