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Cincinnati Realtors< Thinking of cutting your marketing efforts? One expert argues that a faltering economy is a great excuse to expand them! Do your Customers know you or your company?

In a sputtering economy, small businesses are often quick to rein in their marketing budgets. But that may be a shortsighted strategy. Glum economic times can be an opportunity for small companies to make inroads on their competitors' turf and re-energize their marketing efforts.
The Wall Street Journal recently spoke with Stefan Tornquist, research director for MarketingSherpa Inc., a Warren, R.I., marketing-research firm and unit of MECLabs Inc., about how small businesses can improve their marketing in a shaky economy and take advantage of some underused marketing channels. Excerpts of the discussion follow.

SELL YOURSELF Stefan Tornquist of MarketingSherpa Inc.
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THE WALL STREET JOURNAL: Is the slowing economy affecting how businesses conduct marketing?

MR. TORNQUIST: Based on a survey we did in late February and early March, the largest group of small firms -- those with 100 or fewer employees -- surveyed are sitting and waiting to see what happens before changing their budgets. The second-largest said, "We think this is an opportunity," and the third-largest group is pulling in [marketing budgets].

The caveat is that people who see the down economy as an opportunity aren't spending their money in the same way. They're taking money out of traditional advertising and direct-marketing campaigns and putting it online. That was a movement that was already taking place, but the economy is accelerating the trend.

WSJ: What challenges does the current economy present?

MR. TORNQUIST: The challenge is one of resources, of course, and matching messaging for their customers. Companies that have sold around [the idea that their products deliver high quality for a somewhat higher price] have to figure out whether that message will work out with their customers now. Maybe a better message is the longevity of the product and long-term value rather than something that implies high cost. Smart companies take a downturn as a reason to look at current customers and re-evaluate how these relationships can be expanded.
businesses often can't afford the big-ticket security solutions big companies favor.

• The Way WSJ: What marketing strategies should small companies be looking at right now?

. TORNQUIST: I'm of the opinion that it's a good time to increase a brand imprint [by buying print or radio ads, or banner ads online, for instance]. A lot of small companies see branding activities as a waste of money. If I have a paid search ad, I see direct results. That's something about the Internet's effect on advertising -- if you don't get something immediately, you assume it's not working.

What we lose sight of is that brand activity makes us trust a company and buy when we see their ad later on. One of the greatest challenges for small companies is to make a name for themselves, and a downturn actually provides an opportunity to do that because it tends to suppress the branding activity. There's absolutely the opportunity to leapfrog competitors, especially if the local leader is using the downturn to curtail their activities