Linking advertising to brand and market-based assets

Tasadduq Shervani, Liam Fahey and Ravjendra Srivastava

Brand advertising can be shown to enhance shareholder value and justify the budget. Marketing initiatives led to market-based assets, with considerable value in and of themselves, which is recognised by the stock market and reflected in market-to-book value ratios.

Linking Advertising to Brand and Market-Based Assets

Rajendra Sriavastava, Liam Fahey and Tasadduq Shervani show how brand advertising can be shown to enhance shareholder value, and so justify the budget

What is the role of marketing and advertising in most companies? Is it to:

  • reduce fixed and variable costs?
  • enhance shareholder value?
  • drive sales and revenue?
  • reduce risks/vulnerability?
  • accelerate market acceptance?

If your answer is drive sales and revenue, you are not alone. The success of marketing and advertising initiatives, and their outcomes for brands and other market-based assets, is typically measured via metrics such...

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