There are a lot of companies out there who are battening down the hatches and reining in the costs - and this includes decreasing their spend on marketing.

However, studies show that companies who continue to spend on advertising and marketing during a recession hold up significantly better and do better overall than companies who do not.

In the late 1920's, Kellogg and Post dominated the ready-to-eat cereal market.  When the depression hit, no one knew what the impact would be on these convenience foods.  Post did the predictable thing: it reined in expenses and cut back on advertising. But Kellogg doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies. (Snap, Crackle, and Pop first appeared in the thirties.) By 1933, even as the economy cratered, Kellogg’s profits had risen almost thirty per cent and it had become what it remains today: the industry’s dominant player.

Check out this article: Hanging Tough by James Surowiecki  
http://tinyurl.com/keepmarketing

It becomes even more important during a downturn to really understand how your competitor’s customers perceive their and your value propositions.  This is key to building competitive advantage and share shifting.

Do you focus on promotions?  Or price cuts and extended financing?  The latter tends to work more favourably during a downturn, while the former is perceived better during strong times.

Make sure that you are really focused on your customers and that your sales and marketing team understand how to work within the new parameters created by an economic downturn.