Overcoming Common Brand Problems – 33

We’re revealing brand management’s 40 Most Common Brand Problems. Have you seen or experienced this problem?

Common Brand Problem Number 33: Spending too much money on trade deals and sales promotion at the expense of brand building

Analysis: Brands shift some leverage back to the manufacturer from the retailer. (This is one relationship the manufacturer can own with the consumer.) Brands also combat category commoditization and the resulting downward pressure on price. Is your sales organization bigger and more powerful than your brand management and marketing organization? Do you know how much you are spending on trade deals and price promotions?

Key Point: Is it more than you are spending on brand building? It is difficult, but essential, to move from a sales “push” to a marketing “pull” organization if you are to maintain a competitive differential and a price premium.

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