What’s happening with brands? Customers are price sensitive; more products are failing; more trips to discount outlets
Changes in promotion spending – it’s up - advertising has shrunk at the expense of trade promotions.
A longer-term view: looks at “quantity premium” – how much more a brand sells compared to similar brands, and “margin premium” – Brand marketers want to see a high quantity premium and a high margin premium
Advertising and distribution increases quantity premium; discounting hurts (finding from study that looked at poor performers and good performers).
Strategy and price premiums: distribution and discounting reduce price premium; advertising increases it.
Sum – many brands are flailing, short-term orientation favors discounting, long-term metrics favor advertising
0 Responses to “How Important are ads for brands?”