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SchmidPreissler Brand Equity+Performance©  Programm


Issue: 04/200

Next Issue: Week 24/2008



Excerpt of further issues topics: Brand Equity and Brand Strategy, Brand Equity and Brand Diffusion, Brand Equity and Company Success, Brand Equity and Sales and Acquisition of Brands or Companies, Brand Equity and Marketing Investment





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The Short Average Length of Stay of Heads of Marketing – Damages Running into the Millions Could be the Consequence

First shampoo then detergent, followed by energy and telecommunication – radical changes, even breaks in brand leadership often marks the beginning of a totally new marketing strategy.

Hardly any other corporate function has changed as much in the past few years as marketing. And hardly anybody in a different position had a shorter average length of stay in a business than the Chief Marketing Officer (CMO).

As the analysis of Booz Allen Hamilton from the year 2006 shows, the average length of stay for heads of marketing is only about 2 years nowadays. At least when it comes to the big consumer brands in the United States. Only about one fourth have been at their company for more than three years. These numbers prove impressively what a change the classic function of marketing is currently undergoing. And just how big the changes are that are demanded from executives in marketing.

On one hand, managers need to go beyond the scope of classic marketing in their own self-conception. On the other hand the functions of marketing need to be better integrated with other strategic departments which have a relevant influence on innovation and growth.

It is not only the globalization of the world economy and the speed and omnipresence leaving their mark, but also the fact that the contribution of marketing to sales growth, can only secure future successes through measurable marketing, especially when it comes to saturated markets.

Marketing used to be more of a campaign-oriented, event-oriented and sponsoring-oriented discipline. The future is more about developing marketing into a strategic function which integrates processes and systems as driving force across all corporate divisions.

As interface between product development, brand strategy, customer relationship management, controlling and corporate social responsibility the CMO is in demand on one side of day-to-day business as impulse generator and coordinator. On the other side he takes over more and more leadership responsibility.

The tasks to be solved in the future by those responsible for brands, namely to convey immaterial values which give a distinct identity to products and to accompany products with the own personality that offer a committed relationship between products and customers, can no longer be achieved with cutbacks in marketing budgets.

Only consequent brand marketing secures the value of a brand and offers the possibility of further developing brand advantages to leading brand enterprises.

It is no longer enough to speak of a certain percentage to be used for marketing. Funds for marketing should not be viewed as expenditures, but rather as investments, which are in accordance with the value of the item, just the same as it is with other corporate assets.

For a successful future, brand marketing has to be designed in a way that puts the value of the brand into the center and thus enables assessing the return-on-investment and attributing it to the brands.

A well developed and managed brand, whose value is exactly calculated, constitutes a value that has to be interest bearing and as such offers earning power to the company. At all times the value of a brand has to be kept track of and controllable as well as calculable reference parameters for the calculation of the brand equity have to be applied. 



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Editor: Dipl. Vw. Christina Schmid-Preissler - Assistant Editor: Regina Seago

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