MARKETING becomes ever more crucial in an economic downturn, so why do so many businesses cut their marketing spend to the bone as soon as the economy takes a serious dip? The answer can be found in a single word: fear.

MARKETING becomes ever more crucial in an economic downturn, so why do so many businesses cut their marketing spend to the bone as soon as the economy takes a serious dip? The answer can be found in a single word: fear.

The fear that there are insufficient funds to sustain any significant marketing budget.

The fear that redundancies will be the result if the marketing budget is maintained at pre-recession levels.

And the fear marketing will have no impact because "people simply do not spend in a downturn".

Recession provides greater bang for marketing buck_While this fear is not quite irrational, it is most certainly illogical, because the evidence shows when a company cuts its marketing spend in a downturn it cuts its chances of surviving, and of thriving once conditions ease.

But why is this? Because many of your competing companies will recognize that recession presents an ideal chance to market bullishly, and take customers and clients from rivals firms who do not have the stomach for this. Dollar for dollar, marketing in a downturn provides a much greater return on your investment.

Europe's largest budget airline Ryanair provides the template for how approach marketing when the proverbial hits the fan.

It was only in the months after the New York terrorist attack that Ryanair managed to elevate itself to this position. It did so, because it bucked the prevailing marketing trend across the global airline industry at the time.

As a result, most airlines froze their marketing spends. Ryanair, however, saw that by following this course, it would run the risk of dropping off their customers' radar.

Unlike its rivals, Ryanair embarked on a vigorous marketing campaign, encouraging passengers back to air travel. The company's significant growth during this time proves that a bold marketing strategy can see you through tough times.

Learning hard recession marketing lessons_Today, it seems the airline industry has learned its lesson, because results from a recent survey by Airline Business shows that most carriers believe marketing spend should not be slashed during difficult times.

Just under 50 per cent of those quizzed about 2009 spends, said they plan to spend 'about the same'; 30 per cent said their marketing outlay would be 'higher than the previous year', while a further 10 per cent said marketing budgets would be 'significantly greater.' Only 15 per cent said they would be cutting their marketing budget.

'We are planning to spend up to 20 per cent more on marketing this year," says Birkir Holm Gudnason, who is chief executive of Icelandair. Iceland's economy, remember, suffered more than most in the wake of the Credit Crunch.

"We have seen since October that as soon as we stop promotions the inflow of bookings slows down. If we are visible, the number of visitors to Iceland increases."

As the Chartered Institute of Marketing warns in its white paper on recession marketing, 'Keep calm and carry on Marketing': The bottom line is that if you are not in the game, your competitors certainly will be, giving them an edge you don't want them to have.