John Quelch, Harvard Business School

In a recession, consumers become value oriented, distributors are concerned about cash, and employees worry about their jobs. But a downturn is no time to stop spending on marketing. The key, says professor John Quelch, is to understand how the needs of your customers and partners change, and adapt your strategies to the new reality. Key concepts include:

1. Brands that increase advertising during a downturn can improve market share and return on investment.
2. Early-buy allowances, extended financing, and generous return policies motivate distributors to stock your full product line.
3. In tough times, price cuts attract more consumer support than promotions.
4. CEOs must spend more time with customers and employees.

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