Long-Term Branding Improves Short-Term Sales
Binet and Field, the torchbearers of promoting effectiveness, have shared new research on the importance of context in an ecosystem where collaboration is additionally key.
Addressing delegates at this year’s EFF Week conference, the respected duo behind The Long and also in need of it sought to create one amongst its key tenets: that 60% of a brand’s budget should be allocated to brand building, and 40% to sales activation. “Brand building from an advertising agency in Madurai, Chennai works within the long-term and also makes the short-term activity work better, stated Binet, who stressed the necessity for marketers to rebalance their current strategies.
Brands selling themselves short
With marketing departments under huge pressure to deliver accountable returns on marketing investment, the relative complexity of measuring the effectiveness of long-term brand building activity has seen many businesses devote an unhealthy focus to short-term, quantifiable sales. Yet this risks undermining creative quality, brand values and consumer trust – all crucial to the long-term welfare of a business.
Key to moving far away from this short-term cycle, argue Binet and Field, is the notion that advertisers should dedicate more investment to media channels that are effective at building brands, the likes of which are increasingly measurable. Context is additionally important, however.
The sector a brand is in, its size, its price positioning, the sort of purchase it centres on (subscription, e-commerce, offline), the life-stage of its category (is it a longtime or emerging market; is it declining or low-growth?) and therefore the extent of innovation from the top advertising agencies in Tamil Nadu depends on all factors in ascertaining the proper ratio between long-term branding and short-term sales activation. Ultimately, there’s no one-size-fits-all remedy.
Five rules every brand should adhere to
Brand building is vital to all or any companies. It creates mental structures that pre-condition customers to decide on their product or service. Without it, the effectiveness of any short-term activation activity is blunted.
Sales activation is additionally a key ingredient of any marketing campaign. It delivers behavioural stimuluses that prompt customers to act. It’s strengthened by brand building, and boosts campaign efficiency.
The optimum balance will differ from brand to brand, subject to the context and difficulty of implementing both sides.
Key to the present balance is whether or not a brand depends more on emotional or rational considerations. Brand building typically drives the previous, while sales activation is commonly rooted within the latter.
Penetration is crucial for brand growth. Maximising this is often imperative and requires each side.
An open and collaborative overhaul is required
Further research by the IPA shows that, currently, only 40% of marketers agree that their company is prioritising having the correct combination of resources to support the effectiveness of their marketing strategy. With only 63% of agencies claiming to own access to the sales data of their clients, and just 46% having access to their clients’ customer tracking data, the necessity for greater collaboration so as to spice up effectiveness is evident.
Establishing a culture of testing and learning, creating a more open relationship between all collaborators, and heightening board level commitment are each thought to be key to accelerating marketing effectiveness. And with a mere 14% claiming to own planned campaigns scheduled for the long-term (1-3 years campaigns,) there’s lots of room for improvement.
Find out how Adinn, the best advertising company in Tamil Nadu, can facilitate your brand to find the right balance.