The economic news of late hasn't been great and many companies are expecting a tough row to hoe ahead, but top consumer product marketers are increasing or maintaining ad budgets instead of seeking cuts, according to AdAge.com.
Colgate-Palmolive, Energizer Holdings, Kellogg Co., Kimberly-Clark, Kraft Foods and Procter & Gamble are among the companies that have recommitted to their marketing efforts even as they look to reign in costs elsewhere.
Some national brands are increasing spending in an attempt to hold back a push by private label offerings and maintain consumer equity until the economy picks up again.
Irene Rosenfeld, chairman and chief executive officer at Kraft Foods, told analysts last week that the company's marketing spending would be between eight and nine percent of sales by 2009. Ms. Rosenfeld is looking to the marketing investment to help the company build brand equity in categories such as cheese.
"The key to our future in cheese as it is in so many of our businesses is continuing to ensure that we have invested appropriately in quality, in marketing support and in innovation," she said.
Discussion Questions: Do you expect that most companies will look to increase or maintain marketing expenditures this year? Why? What will higher or lower marketing expenditures mean for companies/brands when the economy improves?