March 21, 2009

Summarizing some of the established benefits of marketing in a recession, James Surowiecki asks in a recent New Yorker column why the knee-jerk reaction is to cut spending, given that “the benefits from recession investment are often surprisingly long-lived.” He finds an answer in economist Frank Knight’s distinction between risk (“a situation where you have a sense of the range and likelihood of possible outcomes”) and uncertainty (“a situation where it’s not even clear what might happen, let alone how likely the possible outcomes are”). Since a recession is characterized by rampant uncertainty, marketers naturally try to control what they can by slashing costs in a bid to shore up short-term results. And while opportunities abound as the status quo gets shaken up, it’s also true that recessions have humbled many a risk-taker.

For our own report on historical thinking about why marketers should continue to spend during down times—an audit of material published by ad organizations, research organizations, marketers, journalists and consultants.

To download report CLICK on link below:
http://anxietyindex.com/anxietyindex/wp-content/themes/k2/cgi/blogdownlo...>

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