The Economy has slowed, but it has not (completely) stalled. Even as we plough through the unemployment statistics and wait for what most believe will be a long climb out of the “Great Recession,” as long as there are companies and people doing business, things will continue to be bought and sold. That’s why for many smart businesses, now is the time to grab this opportunity to increase customer loyalty, solidify market position, and get new customers.

The evidence is in, and supported by studies of every major slowdown since 1970: Marketing wins market share in recessionary times.

Studies conducted by organizations ranging from Business Week and Harvard Business Review to The Wall Street Journal support this contention, underlining the importance – and value – of marketing in an economic downturn.

In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980 to 1985 and concluded that at the end of 1985, “…firms that had maintained or increased their advertising during the 1981-1982 recession could boast an average sales growth of 275% over the preceding five years. Those who cut advertising realized a paltry increase of only 19%.”

Management Review asked AMA member firms about spending during the 1990-1991 recession. “Fortune follows the brave,” it announced, noting that the data showed that most firms that raised their marketing budgets enjoyed gains in market share.

And Harvard Business Review chimes in with this: “The rationale that a company can afford a cutback in advertising because everybody else is cutting back [is fallacious]. Rather than wait for business to return to normal, top executives should cash in on the opportunity that the rival companies are creating for them. The company courageous enough to stay in the fight when everyone else is playing safe can bring about a dramatic change in market position.”

The tipping point: where fear and opportunity collide

In spite of this overwhelming evidence, many companies are still tightening their belts, and the marketing budget is typically an early casualty. This is a mistake for two primary reasons. First, if you reduce spending on marketing, you will reduce the number of new customers. Direct marketing drives direct sales. And consistent brand presence is critical to keeping – and increasing – customer loyalty and prospect awareness. Second, (a direct result of the first reason) it is much easier to gain ground against competitors who have cut back on marketing. Why? It’s easier to drop below buyer radar as a result of decreased market presence.

This said, we recognize costs do need to be cut. So marketing smarter is more important than ever. From strategically leveraging social media tools to doing a better job of tracking brand, marketing and customer experience ROI, there are many ways to scale back dollars without dropping off the radar.

What’s the worst that can happen if you don’t step up your customer acquisition and recession activities?

You slowly leak customers and profits, and can’t keep the doors open long enough to participate in the recovery. It’s happened to plenty of companies already and there are many more to follow before we’re through. Or maybe you and your current competitor’s scale back your marketing, only to find a competitor you didn’t know existed come from behind to take over your market.

Today, the phrase “for every loser, there is a winner” has particular relevance. Your organization may be staying the course, cutting back or (let’s hope!) using this opportunity to aggressively dominate its market. No matter which direction you’re headed at the moment, it’s not too late to take steps to make sure you’re one of the winners. But don’t leave it too long…

Author: David Meerman Scott

Summary: World Wide Rave: Creating triggers that get millions of people to spread your ideas and share your stories is an exploration of the new methodology for marketing your products and services. Scott urges us to stop hyping our products and services. He suggests that we harness the viral power of the Web as a platform for creating and sharing content and solutions. Each chapter contains a succinct action item entitled “Your Challenge” – so you can start implementing the ideas right away.

You’ll love this book if: You realize that traditional marketing and advertising methods are increasingly ineffective, and you are ready to lose control, share ideas, and connect with your buyers, colleagues – whoever.

You’ll hate this book if: You are sticking with what worked decades ago: Yellow page ads, direct mail, image advertising, trade shows. You think that because you don’t use social media, your company doesn’t need to, either.

Words of Wisdom:

Think about the last few products you purchased. Did you answer a direct-mail ad? Go to a tradeshow to learn more? Turn to the Yellow Pages? As I mentioned earlier, if you’re like most people, you didn’t do any of those things – you went online. So why are we marketing in the same old ways? If we’re really honest, we must realize that buying access with expensive advertising and communicating exclusively through the media and analysts is not an effective online strategy.

Why we think this book is important: It’s a new world out there for marketers. People no longer respond (favorably) to the same old corporate messages: Authenticity and creativity are the new rules of the game. Are you up to the challenge?

Book: The Knowing-Doing Gap: How Smart Companies Turn Knowledge into Action

Author: Jeffrey Pfeffer and Robert I. Sutton

Summary: The Knowing-Doing Gap: How Smart Companies Turn Knowledge into Action is not just another strategy book about “what to do.” Pfeffer and Sutton convincingly argue that management already knows what to do. The gap that exists between “knowing” and “doing” actually resides within the unique culture of an organization. Yes, we are talking about execution.

You’ll love this book if: You are willing to take an honest appraisal of your organization’s culture, and the roles that fear vs. collaboration play in execution.

You’ll hate this book if: You are comfortable with building your business using a hierarchical management structure laced with fear.

Words of Wisdom:

Fear starts, or stops, at the top. It is unfortunate, but true, that a formal hierarchy give people at the top power to fire or harm the careers of people at lower levels … Organizations that are successful in turning knowledge into action are frequently characterized by leaders who inspire respect, affection, or admiration, but not fear.

Why we think this book is important: An environment of action, which values employee collaboration and cooperation, is far more likely to result in satisfied, motivated employees. People who feel good about their jobs - the impact of their work-related activities – create positive customer touchpoints along the way.

I’ve heard executives talk about the importance strategic planning is given within an organization, and I’ve seen much of the impressive output from expensive consultants.

And while it’s easy to bash these 100-plus page PowerPoint “paper bricks” that often end up gathering dust when some other consulting firm produces them, my tune changes pretty quickly when it’s our recommendations sitting neglected on the shelf.

The fact is, great strategy – whether brand, marketing or business management oriented (in our case, often all three) – can only succeed if it’s actually implemented. When something goes wrong or nothing happens, it can leave the organization unchanged or (even worse) only partway through a critical process.

A recent engagement with a growing financial services firm drove this point home … again. Where does it go wrong? While we see our job as the planners and champions of change, it takes internal leadership and motivation to drive it. Great leadership is about implementing change as well as developing the strategies to create change. You can’t have one without the other.

But not all leaders are naturally equipped, or empowered, to deal with the challenges that this role will throw at them. Whatever their “official” role (whether you’re leading from the top or the middle), leaders need to be able to drive strategic change in their organizations, and motivate others to join them.

I’m thinking we need to add a role to our toolbox: just call me Coach!

Book: Tribes: We Need You To Lead Us

Author: Seth Godin

Summary: Tribes: We Need You to Lead Us explores the idea that humans have always joined tribes, and the Internet now makes tribe assembly easier than ever. The business application here is that by providing opportunities for your customers to engage with your product or service, while giving employees the freedom to accomplish amazing things, you potentially set up a platform for a conversation – even a tribe – to form around your organization.

You’ll love this book if: You are open to encouraging employees and customers to openly and passionately dialogue about your organization – and learning from this experience.

You’ll hate this book if: You are not interested in creating a customer experience worth talking about, and you think it’s OK for your employees to be bored with their jobs.

Words of Wisdom:

The business world has a long history of conservatives tribes, of groups of people who relish the status quo. The big news is that this has changes. People yearn for change, they relish being part of a movement, and they talk about things that are remarkable, not boring.

Why we think this book is important: Engaged employees translate into engaged (and profitable) customers.