A Marketing Lesson from Walmart.
In her Feb 8, Mediaweek article, “The Marketing Grades for 2009: The recession was a brutal test for brands last year. A recap of a few who managed to get an A“, Lerzan Aksoy, Marketing Professor at Fordham U. reveals the strategy behind Walmart’s success:
“…the company that led the pack was Walmart, and it did so with strategy that was counterintuitive for these times. The Bentonville behemoth increased its advertising spending this year by $300 million, which added to its success as a low-cost leader and disproved the axiom that the first thing that should go during a recession is advertising. Walmart demonstrated that increasing advertising during lean times — even, or perhaps especially, when the competition is cutting back — can improve market share and return on investment.”