There is much angst about the state of advertising. Various commentators in the industry and in the general media have bemoaned a creativity crisis, which is attributed to everything from short-termism to artificial intelligence to the fragmentation of media. There is some evidence that advertising’s persuasive power has declined in recent years. It is less clear that this decline is attributable to a lessening of creativity in advertising. If advertising fails to deliver results, the...
There is no shortage of criticism of marketing organizations. The declining length of tenure of Chief Marketing Officers (CMOs) and the absence of marketing on boards of directors are well-documented. Such facts seem odd when demand generation and management are the lifeblood of organizations, at least those with a high probability of long-term survival. While such a circumstance may suggest some problems with marketing organizations, it very clearly identifies a problem at the level of...
It is axiomatic that marketers should know their customers. In many firms, it is the role of marketing to speak for the customer – to represent the needs of and advocate for customers, and to build and maintain relationships with customers. These activities are essential to the long-term survival of the firm because customers are the ultimate source of revenue and other resources necessary for the firm. Without customers, a firm does not last long....
Branding is a business strategy. It can justify higher margin because customers trust the brand based on their prior experience or because the brand is the best match for their preferences with respect to one or more product characteristics. The value of the brand to the firm is the price premium it commands.
A recent study by McKinsey & Company documents the continuing decline in the influence of the marketing function and the growing frustration of CEOs with the contribution of marketing. Much of this frustration stems from marketers’ inability to clearly explain how marketing activities contribute to the firm’s financial performance and the continued use of metrics like brand awareness and brand equity as evidence of performance. There is, of course, nothing wrong with measures of brand health,...
