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Common Brand Problems

Overcoming Common Brand Problems – 4

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Overcoming Common Brand Problems

We are analyzing The 40 Most Common Brand Problems and how to overcome them.

Common Brand Problem Number 4: Loss of brand equity because of reduced or eliminated brand advertising

Analysis: When it is time to “tighten the organizational belt,” advertising is always a tempting source of savings. The ad budget is usually big enough to significantly contribute to cost savings, it is often difficult to validate advertising’s return on investment, and any ill effects won’t be immediate, or so goes the common wisdom. But recent studies have shown a positive correlation between advertising spending and revenues, earnings, market share and stock price. Tod Johnson of the NPD Group (which has studied customer purchase behavior since 1978) indicates that one of the main causes behind a decline in brand loyalty is erratic advertising or advertising that does not keep pace with the competition. (The other is cannibalization caused by brand extensions.) ( Source: Be the Brand by David N. Martin, New Marketplace, Richmond, VA, 2000, page 44.)

Key Point: Set specific objectives for your advertising and track results against those objectives. Copy test all of your ads to make sure they are effective. Constantly and vigilantly sell the importance of advertising to key internal decision-makers.

The Blake Project Can Help: The Brand Positioning Workshop

Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Licensing and Brand Education

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