Our economy is in the rough and, while most are slashing expenses, people and marketing budgets, some leaders are using this pre-recovery time to increase investments in marketing. In a recent BtoB Magazine survey, “2010 Outlook: Marketing Priorities and Plans Survey results, 11-16-09, 71% of those surveyed are investing more in their website in 2010 than they did in 2009.

In a separate study from Bain covering over 2500 companies, about 24 percent more firms were shown to “move from the back of the pack to the front of the pack,” with regards to sales and profits, during recessions than do during non-recessionary times. Do significant marketing investments during a recession make sense?

It did for Southwest Airlines and Wal-Mart (see Monday’s post). Both were noted in the Bain study for their vision and results but other companies have made smart pre-recovery investments as well. For example, the “Intel Inside” campaign was launched during a recession in the 1990’s. Before that, Proctor & Gamble invested heavily in Ivory Soap during the Great Depression and achieved spectacular results that lasted for decades. What is it that Southwest, Wal-Mart, Intel, Proctor & Gamble, great companies all, knows that other companies seem to miss?

It’s this, marketing investments that are consistent and aligned with your customers’ needs and aspirations are always wise investments. Now is the time to assess your customers’ needs, as well as your own strengths and goals, and invest.

Slashing marketing to survive in 2008-2009 may have been necessary but now you have to play the ball were it lies. What’s your plan for 2010 and 2011? Do you know what your competitors are doing? Who was weakened by the recession and who became stronger is important marketing intelligence. As the dust settles, where do you stand or do you even know?

A return to the pre-recession competitive landscape in 2010 is unlikely. The mammoth adjustments necessary for survival changed the playing field. You and your competitors were not affected equally and new options, most likely driven by technology and the web, are available to your customers and prospects. In every segment of the economy customers are beginning to look at products and services through a new, post-recession lens. How visible are you?

John Donahoe is CEO of eBay and to summarize what he said,

“It’s not about battening down the hatches and waiting for the storm to pass anymore than it is about betting big in the vague hope your hunches will pay off. Instead, it’s about executing what you do well better than ever before, making improvements, seeing the potential in new opportunities and, most importantly, having the vision to see beyond the immediate situation and taking action…“There is more market-share shift in turbulent times than there is in good times — more of an opportunity for a strong company to gain ground.”

Donahoe is right. You can’t stand over the ball forever. At some point you have to pick a club, commit to the shot and make an aggressive best swing. Are you going to play another round defensively, trying not to shoot over 100? Or are you going to play aggressively in hopes of breaking 90? It’s your choice. Take the shot.

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