Well, it has been a while since my last blog, which (a) is completely against the spirit of blogging and (b) completely against the advice we publish within B2B Marketing, that is, if you are going to blog keep it up, otherwise lose momentum. Well, I have scored a double own goal.

So where have I been? … on holiday, getting over being on holiday, planning in 2009 (already!) and spending a great deal of energy avoiding our cousins the National Press. Doom-and-gloom. Day-in, day-out. They really have been gunning for a recession and now it seems likely they will get what they wanted! Talk about own goals.

So what does it mean for us in the B2B sector? Well, first off (I have been reliably informed) that the good news is that recessions hit B2B later with a lag to consumer markets; and the dip is never as severe. Secondly, and the bad news, B2B firms are more susceptible to cutting marketing spend first. I am sure none of this is new to you.

The debate then is, is cutting spend logical when markets go a little south? Well, on the surface yes! Sorry. Well of course it makes sense, cutting marketing spend is an easy cost saving. However, on a deeper, far more strategic note it is certainly not that clear. I had thought it a bit of a myth, but firms, which continue to spend on marketing throughout a recession, come out winners. Paul Cash, makes the ‘researched’ argument for this, within the September issue of B2B Marketing. In the 90s Motorola, Marriott and GE actually increased spend during the last recession and saw B2B profit soar! Research by Roland Vaile and Buchen Advertising showed imperial evidence that throughout all recessions between 1927 (if anybody can remember that far back) and the 1990s showed that all firms who increased marketing spend showed an average growth of 132%. Conclusive, maybe not, but it tells a very different story.

What about you though? Has spend already been cut? What then? The fact is that reducing marketing spend will reduce sales even further. However, if demand has evaporated, it will not matter how much marketing you do spend – your business is doomed anyway. However, business is never that cut-and-dry, and demand never truly dries up – it moves and morphs, seeking more tailored solutions.

The key message to the market is that product and positioning need to change, in line with market conditions, not marketing spend. In fact, spend should at least remain the same, if not grow, as a company informs the market on repositioned products, offers and developments. Those that do, will give their businesses the best chance to stay on top of a difficult market.

So, my initial own goal now seems rather small compared to companies looking to save pounds in short-term marketing budget cuts, just to lose greater sales in the mid/long run.

Good luck anyway, I do not think it will be that bad at the end anyway… Gordon said so!