How Important are ads for brands?

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


7 Responses to “How Important are ads for brands?”

  1. 1 netbooster July 18, 2013 at 4:19 pm

    I needed to thank you for this great read!! I certainly loved every little bit of it.

    I have got you book-marked to look at new things you post…

  2. 2 gry hazardowe kasyno za darmo July 25, 2013 at 3:52 am

    What i do not realize is if truth be told how you are not actually
    a lot more smartly-liked than you might be now.
    You are so intelligent. You recognize therefore significantly relating to this subject,
    made me in my opinion consider it from so many various angles.
    Its like women and men don’t seem to be interested until it’s one thing to accomplish with Woman gaga!
    Your personal stuffs nice. At all times care for it up!

  3. 3 automaty hazardowe za darmo online July 26, 2013 at 9:34 pm

    Hi there would you mind sharing which blog platform you’re using? I’m going to start my own blog in the
    near future but I’m having a hard time making a decision between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design and style seems different then most blogs and I’m looking for something completely unique.

    P.S My apologies for being off-topic but I had to ask!

  4. 4 wow gold November 8, 2013 at 5:46 am

    Good day! Do you use Twitter? I’d like to follow you if that
    would be okay. I’m undoubtedly enjoying your blog and look forward to new updates.

  5. 5 NFL snapbacks hat June 22, 2014 at 8:27 am

    Hi there! I know this is kind of off topic but I was wondering if you knew where I could get
    a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having problems finding one?
    Thanks a lot!

  6. 6 slot machine September 13, 2014 at 10:00 pm

    I love what you guys tend to be up too. This type of clever
    work and coverage! Keep up the fantastic works guys I’ve included you guys to our blogroll.

  7. 7 M字ハゲ以外にも効くプランテル August 12, 2017 at 10:00 am


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: