HotelNewsResource.com recently published an article by Dr Rick Johnson entitled “Creating Success during a Downturn in the Economy” which discusses the roll of leadership and marketing during downturns and recessions.

Dr Johnson points out that, “most companies market share growth happens going into a recession or coming out of a recession, not at the top or the bottom of an economic cycle” and that, “those who react to cycle changes first will gain share over those who don’t.”While his article focuses on the role that CEOs must play in order to be successful during these times, stating that the favorable economic conditions in the last five years made it such that “it did not take a genius to be successful,” his argument also inherently suggests that current market conditions are cause to encourage marketing efforts rather than pull back.

As Dr Johnson points out, companies rise to the top and gain market share going into and coming out of recessions, and multiple case studies carried out during past recessions agree with him. While weeding out parts of management that were along for the ride is part of the strategy Dr Johnson suggests, cutting back blindly on spending certainly isn’t the solution.

It will be interesting to see how the economy plays out, and which chains take the challenge Dr Johnson suggests and continue to invest strongly in their advertising. Will we see new players rise to dominance over the next few years?

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