Kraft’s first quarter profits were up 10%. Hershey’s rose nearly 3%. Kellogg’s earnings have risen as well, up 2% over 2008. All in a rotten economy.

Why? Price increases. Yep, price increases.

These companies understand what too few marketers do–they don’t have to succumb to the natural loss of nerve that results from economic uncertainty. While raising prices in a contracting economy can be risky, so can lowering them–or doing nothing. And when the additional margin is reinvested to protect or grow market share, the result is a win on all counts.

Chipotle Mexican Grill, which recently raised its prices 8.5%, understands that. The company will be launching a new marketing program later this month because, says Chipotle spokesman Chris Arnold, “we’re still focused on the long term vision for growth.”

So is Dr Pepper. The company already spends upwards of $350 million on marketing, and will be increasing that amount throughout 2009. Jim Trebilcock, executive VP of marketing at Dr Pepper, said in an Ad Age interview that the company went back in time to study what happened during the deep recession of the 1980s and found that the packaged goods brands that were most successful coming out of the downturn were those that invested in their brands throughout.

Says Trebilcock, “We have, in our portfolio, a host of brands that are very trusted, high-quality brands. And at times like these, we believe if we invest in them … we can make a pretty significant impact on our business moving forward and actually strengthen and position ourselves for consistent growth when we come out of this economic downturn.”

Unfortunately, companies like Kraft, Hershey, Kellogg, Chipotle and Dr Pepper are in the minority. In Spencer Stuart’s annual survey of some 300 senior marketing execs, more than half of them said that they were neglecting long-term strategy in order to focus on short term goals.

As When Growth Stalls demonstrates, it takes a stable head and steady hand to overcome a natural loss of nerve (and the three other internal dynamics) that threaten stalled companies.