SMART MARKETING
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If the main brands in a category invest in advertising on an on-going basis, any brand that wants to compete will almost certainly also need to invest (see The Long and the Short of it). As a rule of thumb, a brand should invest enough so that its share of advertising spend is roughly in line with its share of market just to stand still (see this illustration).

If a brand stops spending on advertising, it is at risk of decline. Larger, well-established brands are likely to cope better when spending stops (especially if they were on a growth trajectory) but after a year or two without advertising, sales tend to start declining. Even just 12 months without advertising can be hard/expensive to recover from (see this illustration).

Small brands are less resilient still. Even up-and-coming small brands tend to suffer badly if advertising support is withdrawn.

You can learn more about this topic from this report by the Ehrenberg-Bass Institute. This discussion on LinkedIn also airs some useful debates.


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  • Home
  • Books
  • Illustrations
    • Marketing
    • Brand Development
    • Brand Experience
    • Innovation
    • Communications Strategy
    • Media Characteristics
    • Creative Content
    • Pricing & Sales Promotion
    • Measurement
    • Data and Analysis
    • Brand Review & Planning
    • Brand Extension
    • Mental Processes
    • Business
    • Case Examples
  • Articles
  • Media
  • Services
    • Consultancy
    • Speaking Engagements
    • Training for B2B Professionals
    • Market Research Training
    • Visualisations
  • Contact