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In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that business-to-business Firms that Maintained or Increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. By 1985, sales of companies that were aggressive recession advertisers had risen 256% over those that didn't keep up their advertising.
In addition, a series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that advertising aggressively during Recessions not only increases sales but increases profits. This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949.

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Comment by Stacey Gallagher on May 13, 2009 at 1:58pm
Interesting article from today's Ad Age newsletter: Why Burt's Bees CMO Won't Cut Spending in Recession
We've made a decision not to cut back. In a bad economy is when people's value equations change, and it's important for us to really make sure consumers understand the value that comes from buying Burt's. It's not about playing a price game.

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