When a business streamlines its operations amid an economic downturn, it should consider maintaining and expanding its marketing and branding budgets, McGuireWoods partner Jack White told Sales & Marketing Management in an Aug. 10, 2022, article.
The publication explored how companies are prone to respond during a recession — or when a recession could be around the corner. Historically, many reallocate resources and slash budgets for what they believe to be non-essential operations. But if a company eliminates its marketing budget, the article noted, its brand may disappear from the minds of target customers and it could cut off sales and profits.
White discussed the example set by some companies during the pandemic-induced recession. Those that saw the greatest success through the downturn had an interesting marketing perspective, he said. “Rather than dwelling on the risk of expanding their marketing budgets, they viewed it as more risky note to do so. The downturn would conclude at some point, and they wanted to be best positioned to expand their footprints afterward.”
A member of the firm’s nationally ranked government investigations and white collar litigation practice in Tysons, Virginia, and Washington, DC, White focuses on his practice on civil litigation, regulatory enforcement and congressional investigations for clients in the defense, technology and federal contracting sectors.