Final Closeout on Market Share

Here’s some interesting research:

A McGraw-Hill Research study of 600 businesses found that companies that maintained or increased their marketing efforts during the 1981-82 recession averaged higher sales growth during the recession and in the following 3 years. By 1985, these companies’ sales rose 256% more than those that had reduced their advertising.  The increased sales translated into higher market share.forsaleshirt

Another study showed that companies that marketed aggressively during a recession increased their market share by 2.5 times more than the average for all businesses post-recession.

On the other hand, a 2002 research study conducted by the Strategic Planning Institute showed that, while 80% of companies increased their marketing investment when times were good, most saw no improvement in market share because all of their competitors were increasing their advertising as well.

What does this mean?

The experts have all but declared the end of the recession is near.

Most companies haven’t started increasing their marketing investment yet.

Hungry media is still in the mood to negotiate.

Bottom line:  If market share was a big old pulled pork BBQ sandwich from Jethro’s restaurant here in Des Moines, today you could get it with fries and a cold beverage of choice for a buck!  Wait another week?  It’ll cost you ten bucks.

Author: Tom Flynn III

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