January - February 2003 The International Reference for Chip-Scale Electronics, Flip-Chip Technology, Optoelectronic Interconnection and Wafer-Level Packaging Email the editor

Gene Selven Publisher

In my last column, I bid farewell to 2002 and said, "glad it's over!" Since this is our first issue of 2003, I think a hello is in order, rather than a welcome or a forecast of what the year may bring.

We all hope the worst is now behind us, and that we can get on with building our businesses again with a solid market growth pushing us.

It's time now for us to get in position to capitalize on the recovery, no matter how small it may be initially. Part of getting ready for new business is getting your marketing "ducks" in line.

American Business Media [americanbusinessmedia.com], a key association for business-to-business information providers, recently published an article entitled, "The Value of Advertising During an Economic Downturn."

With ABM's permission, I would like to share the substance of their message with you: "History has proven companies that maintain or increase their advertising investments in periods of economic downturns increase their sales and share of market, both during and after the downturn."

ABM also notes the following:

• Maintaining or increasing budget levels during economic downturns may be necessary in terms of protecting market position vis-à-vis forward-looking competitors.

• If a company fails to maintain its "Share of Mind" during an economic downturn, current and future sales are jeopardized. Maintaining "Share of Mind" costs much less than rebuilding it later on.

• Advertising in an economic downturn should be regarded not as a drain on profits, but as a contributor to profits.

• Advertising through both boom and downtimes sustains the necessary brand recognition.

• Maintaining a company's advertising during an economic downturn will give the image of corporate stability within a chaotic business environment and give the advertiser the chance to dominate the advertising media.

• Economic downturns reward the aggressive advertiser and penalize the timid one.

• During an economic downturn, a strong advertising/marketing effort enables a firm to solidify its customer base, take business away from less aggressive competitors and position itself for future growth during the recovery.

• When times are good, you should advertise; when times are bad, you must advertise.

Chip Scale Review stays in business with the revenue it receives from advertisers. You stay in business from the increase in sales and share of market you receive by advertising. Smart companies that kept new product development alive have no other cost-effective way to introduce these products. Let's make 2003 a "win/win" year for all of us!