While it seems instinctual to cut back on the marketing budget during tough times, recent events seem to prove that the opposite may in fact be true. For example, several companies that have dialed back their marketing spend are now headed for bankruptcy - never a strong business indicator.

Last July, department-store chain Mervyn's and S&A Restaurant Corp., which owns Bennigan's, Steak & Ale and Tavern restaurants, became the latest to file for bankruptcy. Both Mervyn's and Bennigan's dramatically cut marketing spending in the past 12 months.

According to TNS Media Intelligence, Mervyn's measured media spending dropped approximately 25% in 2007. The Bennigan's chain cut spending 75% in 2007 to well under one-half million dollars. Sharper Image, another company in bankruptcy, slashed its budget 82% in the two years before it filed for bankruptcy last February. Baker's Square restaurants cut spending 19% in 2007 and filed for bankruptcy in May.

Naturally, the one does not beget the other. However, cutting back on marketing during tough times inevitably weakens your brand and market position - exactly the wrong position to take when in a down market. Instead of following the crowd, why not work harder to position your company at the top of the peer group and add market share? Then when the market does return to normal, the company is in a strong growth position.

While cutting marketing costs may look good on the balance sheet in the short run, executives should look at marketing as an investment instead of a cost. In many cases, long-term damage can result, leading to larger problems down the road.