Strong brand, high spend
Tracking relationships between the marketing mix and brand values
Alexander L Biel
Strong brands have recognised properties contributing to asset value: trade leverage, extendibility, endurance, and higher prices and margins for their owners; time-saving, dependability, and intrinsic as well as functional benefits for their consumers. How do they acquire these strengths? Analysis of the performance of a large sample of US and European businesses shows a clear relationship between relative advertising expenditure relative to sales, and three key indicators: market share, perceived quality and return on investment (ROI).
A second analysis, of 314 fmcg...