Should Advertisement Expenditure be minimized During Recession?

The financial turmoil is the most interesting and an alarming issue of the keen global economist. Throughout this crisis that has so consumed the attention of the world in recent months, we have watched with grave concern as it cascaded outwards from the sectors originally affected. Alan Greenspan recently called it a “once-in-a-century credit tsunami”, born of a collapse deep inside the US housing sector. Instability has surged from sector to sector, first from housing into banking and other financial markets, and then on into all parts of the real economy. The crisis has surged across the public-private boundary, as the hit to private firms’ balance sheets has now imposed heavy new demands on the public sector’s finances. And now there are reasons to fear that the crisis will swamp emerging markets and other developing countries, cutting into the considerable economic progress of recent years. The paper of our tries to understand the marketing strategies under the recession period based on the research of the past marketing and advertising strategies during the recession period. Thus our paper is a short audit of existing thinking on the topic of marketing during a recession — is a synthesis of historical and current material published by advertisement agencies and organizations, marketers, journalists and research and consulting companies based on findings from past recessions. It highlights key recurring ideas about why marketers should continue to spend during down times and strategies for how best to go about it. And should the advertisement expenditure be curtailed during recession?