Seizing the initiative : Brand building during a recession

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – It is only when the going gets tough that the tough apparently get going. With the global economic crisis showing few signs of relenting, things do not come much more testing than they are right now. Few organizations remain untouched by the severity of this current downturn. Such situations demand toughness by the bucket load. And bravery. And sound judgment. But many companies instead assume that defensive measures are the order of the day. That invariably means belts are tightened and budgets cut to the bone. Take, for instance, marketing. The norm here is to set the budget as a percentage of projected future income. When less revenue is expected, the figure drops accordingly. However, slashing the amount allocated to brand building will not suddenly make the product inferior. Neither will the decision harm imminent sales. Such a response is therefore understandable. It can seem even more logical when competitors reduce the frequency of their advertisements. That opens the door for the company to do likewise and save money while still preserving its share of exposure. High‐fives all round, then? Originality/value – The paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations.