All this talk of recession is starting to make businesses nervous to a point of pulling back on their operations.  And the first to go is always the marketing budget.  A few recent reports are supporting the argument that killing budgets during the times we are in is the last thing a brand should do.  General Mills – makers of Cheerios, Lucky Charms, Chex and countless other household names – recently announced that it has seen sales grow 11% in the first half of fiscal 2009, to $7.5 billion.  Their spending for the first half of the year saw an increase of 19%.  And they estimate that their consumer-marketing spending will be up by double digits for the entire year.  Their thinking is one where continued exposure during questionable times is key to success.  Maintain a relationship with the users of the brand is rewarding to the organizations bottom line.

Wal-Mart Stores falls into the same bucket.  They reported better than expected numbers of the full fiscal year with sales climbing 7.2% to $401 billion in sales.  At the same time awareness for their current campaign jumped 80% this quarter over last, leading to increased store traffic.  Company insiders said the increase in spending was a big pay off.

And these two stories aren’t the only one.  When competition fades, hold your ground.  Actually if a marketer maintains their spend they can gain ground because of the retreating competitive set.  And despite the dire situation we’re constantly reminded of in the media, people still purchase goods and services.  So be smart about marketing.  But market – it will pay off.

Eric