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Media prices are falling, so advertising becomes more profitable. The combination of low prices on media and weak competition gives companies the opportunity to cheaply grab market share.

Do not panic. Most marketers assume that during the crisis consumers have sharply cut their spendings. In fact, consumer spendings rarely really fall, they simply grow more slowly, not at the pace of inflation.

 

Cut the correct costs. To the right are the administrative costs and even reduction of volumes of manufacture. It is impossible to start saving on quality of a product or its promotion.

 

Reduce of advertising costs inevitably will reduce your income. This is the easiest and fastest way to cut costs, but the reckoning is inevitable. Studies have shown that firms that reduce advertising costs during a recession typically experience 20-30% decline in sales and earnings over the next two years.

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