Most firms, and the managers who operate them, seek to grow. Indeed, a review of most CEO letters associated with annual reports, finds growth to be one of the two most frequently identified objectives (the other is cash flow). Growth, or at least well-managed, profitable growth, is important for many reasons. It makes the firm more valuable to shareholders. It makes the firm a more exciting place to work, which makes it easier to hire...
Many marketers seek to obtain financial benefits from their brands by using the awareness, attitudes, affection, and loyalty associated with these brands by “extending” the brand to new and different products and product categories. Procter and Gamble used its Tide brand, which was associated for many years with a single powdered detergent, to expand into an array of more than 60 related cleaning products, including specialty powdered products, liquid detergents, antibacterial fabric spray, and instant...
Two functions in the firm are customer-facing and responsible for revenue generation: sales and marketing. Despite this shared perspective and common objective, in many organizations, there is tension between the marketing organization and the sales organization. In some cases, this tension may be healthy, but in other cases it is dysfunctional. The role of senior management is to manage this tension and ensure that it works to the advantage of the firm. Managing this organizational...
Two functions within the firm, research and development and marketing, should be natural allies in facilitating the growth of the firm. Indeed, Peter Drucker stated that: “Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.” It is the role of Research and Development (R&D) to create long-term sources of cash flow by developing innovative,...
Much has been written about the recent Bud Light influencer campaign, and more will be written over time. My colleagues at MASB make a compelling argument that the “boycott” in response to the campaign is unlike other boycotts and is likely to persist well into the future. They argue that brand preferences have changed in response to the campaign. Regardless of the specific product and advertising messages involved, there are several general lessons about the...
