During a strong economy, when consumers are spending more freely, having an unclear brand position, while not optimum, is not as risky as during a recession. The brand’s weakness in the marketplace is less obvious, as consumers tend to be more forgiving when they’re not so worried about money. This is because, to the right consumers, there can be something appealing about any brand, even if the people marketing it haven’t taken the time or spent the money to zero in on a compelling brand position (or even if a compelling position is poorly articulated).

But when times get tough, consumer spending habits change. This is when the dynamic of trading up and trading down is most prevalent. Consumers have a more intensified motivation as the amygdala begins to trigger the fight or flight response that says to the consumer, “curb your spending now, or else!” Consumers not only spend less overall, but they also become far more selective in how they spend. They gravitate away from brands that fail to provide a clear, meaningful, relevant and emotional connections. They are far more likely to abandon “middle market brands”, while purchasing upmarket brands they have strong emotional connections with and down market brands when no emotional connection exists.

The bottom line: if a brand’s position is unclear, not differentiating, not compelling, or irrelevant during a recession and it’s not the one of the cheapest and/or easiest to purchase, big trouble is on the horizon.