Advertising during good times?

Many companies, particularly fast moving consumer goods (FMCG) marketers would tend to compromise their advertising budgets when there is high season or strong reputation that rolls their product smoothly out to the market. Why should I advertise and spend money on promotion when everybody knows what I am doing, and what my brand stands for?

Excuse me, think otherwise. The first problem is, we might be thinking “advertising” as an expense, whereas it should be treated as an investment that has tangible and intangible returns. While it might not be plausible during good times to keep your promotion budget high based on expected “tangible” return, it might be plausible from the viewpoint of “intangible” return. In this era of intense competition, staying out of sight may throw you out of customers’ minds. Once your mind share falls, the market share falls as well. The second problem is, your competitors may be spending more when you are lean on promotion just because they thought they need to build their names alongside a strong competitor like you. How many punches do you need to take on your face before you think it is time to save yourself and return a punch back?

It turns out that, promotion budget should not be compromised both in good and bad times. After all, it is the customers’ sights and minds that matter most at the end.

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About 1mmarketing

Working as Associate Professor, School of Business, United International University, Bangladesh; a North-American graduate, with doctoral studies from UUM, Malaysia; cherishing a wide-view of the world, with multiple interests in culture, people, traveling, and specifically marketing science. I have a colorful and diversified background with a blend of corporate experience, research, consulting, training, public speaking and teaching. I love to write about marketing issues that affect our lives, and talk about its direction that would promote the greatest human welfare.
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One Response to Advertising during good times?

  1. Audity Roy says:

    While it is generally correct that seasonality would influence the lvel of advertising spending, I would also recommend that reducing advertisement expenditure in low season should compensate with sales promotion (like discounts or bonuses) during that time. In anyway, I would say that, while advertising budget may be reduced, promotion budget would not be reduced. May be, a brand may lower above the line promotion, and increase below the line promotion during low season??

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