When the bad economic indicators in Canada were first reported in the summer/fall last year, two of my associates in marketing were immediately laid off by their companies. I was told that the entire marketing department went as it was considered a “non-essential” business activity.

In the small business sector, I’m also encountering a few business owners who are postponing their marketing initiatives. After all, in the slow times of international economic crisis, the gut instinct is to wait it out before spending any more money.

I am going to argue otherwise – this is actually the time to increase your marketing budget in order to stay in your customer’s face. When we’re in a recessionary environment, there’s actually an opportunity to gain market share when your competitors are cutting advertising like everyone else is. Savvy business owners will make marketing a priority and grab this opportunity to outperform their competitors. The question is, how do you get the most bang for your marketing buck?

Depending on the industry, the products and services you offer, and the price tier you’re in, there’re different advertising mediums you can effectively utilize. There are, however, two basic principals that ring true for almost all businesses: relationship marketing and internet marketing. Both can be cost effective.

Relationship marketing: Just as the name suggested, this is the time to expand (or solidify) your network of customers, suppliers, affiliates, as well as your employees. Educate your suppliers and associates about your business, provide incentives for your current customers so they know you value them, and keep your employees happy. They will be good advocates for your business.

Internet marketing: for many small businesses, this is still a realm that is not always tabbed into. If you already have a website, use it to its fullest potential. Consider Search Engine Optimization (SEO) and Pay-Per-Click as tools for increasing online exposure. If you don’t yet have a website, perhaps this is a good time to review your strategy. After all, almost 85% of Canadians are online nowadays.

In an economy like this, it’s even more important to keep your message out there, because when the economy does improve, you want to be top of mind.