By Will Waugh
In February, the ANA and Guideline polled the ANA’s Brand Marketer Leadership Community, an exclusive peer community of marketing and brand marketing professionals, to understand how companies view the warning signs of brand deterioration.
Brand equity was clearly viewed as important. On average, 75 percent of all respondents viewed brand equity as very important to their company’s success. Most of the respondents agreed that "brand equity is the intangible ingredient that differentiates them and set them apart in a highly competitive marketplace.
When discussing the channels that worked best for brand building, most of the respondents felt that more traditional media channels were the most effective in brand building, specifically television at 76 percent. On the other hand, the survey found that Internet advertising is emerging as a channel for brand building. Particularly effective for young and emerging or strong brands, Internet banner advertising, ranked third overall (56 percent).
What exactly indicates a brand may be deteriorating? The ANA/Guideline report delves deeper to find out the warning signs for waning brand equity. Most respondents agreed that when customer conversion or repeat rate versus the competitor slips, it is a clear warning sign that the brand is at risk. The top five warning signs that companies should be attentive to include:
1. Customer conversion or repeat versus competitor slips (70%)
2. The percent of customers who rate the brand as "excellent" slips (68%)
3. Net promoter score slips (67%)
4. Growing disparity between what customer’s rate highly about a company’s brand and its brand goals (62%)
5. The product in being sold on promotion, deal or at a price reduction (62%)
The trend report also highlighted the many strategies for combating brand deterioration. Of the 14 potential strategies for brand revitalization, the ANA/Guideline survey found that a majority of marketers agreed that product innovation could effectively combat brand deterioration. The top five actions for combating declines in brand health are:
1. Product Innovation (87%)
2. Exploring new targets (68%)
3. Conducting a root cause analysis (67%)
4. Deeper qualitative research such as focus groups on brand issues (66%)
5. Refocusing of marketing efforts (64%)
This survey was initiated by the ANA Brand Management Committee and led by Committee Chair Roger Adams, Senior Vice President, Marketing, The Home Depot, to provide the industry with key insights and best practices related to building brand equity and combating brand deterioration. Adams will be moderating a panel discussion on the results of the survey at Tuesday's Brand Innovation Forum. ANA Members can get the full report in our Marketing Insights Center.
TV commercials are another very good advertising strategy. Almost everybody spends at lest one hour per day watching TV. There are many programs, special events, channels, etc that give you wide range of options to decide and develop the best advertising strategy for your company. One can also use brand ambassadors like move stars, sports persons, etc for their TV ad campaign. TV commercials should be comedy as well as intellectual. The same stereotype commercial will irritate the viewer and you wan get the...
Posted by: | October 20, 2010 at 03:39 AM
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Posted by: The Official Net Promoter Blog Site | April 24, 2007 at 11:55 AM