We find that new products launched in recessions have higher long-term survival changes, but also that this benefit evaporates in severe recessions and when the new product is launched too early in recessions. Not included in this review is our study of launching new products for 60 years in the automobile industry, an acid test because vehicles are high-budget, often bought on credit (which runs low in recessions) and whose replacement is easily delayed. It is CORRECT, based on tens of studies as reviewed by Profs Marnik Dekimpe and Barbara Deleersnyder in this 2017 JAMS ( ), many of which use time series data and thus show that, for a given brand, it is typically better to maintain or increase marketing spending in a recession. This point is made by Byron Sharp, Mark Ritson, AdAge, Analytic Partners, Engagement Labs (for B-to-C brands) and B2B’s institute Peter Field (for B-to-B markets) but questioned by Robert van Ossenbruggen with the argument the evidence is mostly based on comparing across brands, which differ in many ways from each other. Is it true that cutting marketing spending costs you in the long run on average?.This week saw 7 posts on whether or not brands should maintain/increase marketing spending during the current recession in my newsfeed (see links at the bottom of this page), so I can think of no better topic for my blog than reviewing the evidence:
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