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?