Point of view: Revisiting elasticity

This article examines what marketers can learn from the principles of elasticity that govern much of a brand's potential - a less elastic brand can usually charge greater price premiums, making it a goal for marketers, but elasticity also helps brands drive line extensions.

Point of view: Revisiting elasticity

Gareth KayChapter SF

Elasticity is the yin and yang that can unlock the potential of a brand. On the one hand, the more price inelastic your brand is, the greater the price premium you can charge. Decreasing price elasticity is one of the most fundamental objectives for marketing. As Jill Avery, a senior lecturer at Harvard Business School, states: "A marketer's goal is to move his or her products from relatively elastic to relatively inelastic by creating something that is differentiated and meaningful to customers." On the other hand, brands themselves need to become...

Not a subscriber?

Schedule your live demo with our team today

WARC helps you to plan, create and deliver more effective marketing

  • Prove your case and back-up your idea

  • Get expert guidance on strategic challenges

  • Tackle current and emerging marketing themes

We’re long-term subscribers to WARC and it’s a tool we use extensively. We use it to source case studies and best practice for the purposes of internal training, as well as for putting persuasive cases to clients. In compiling a recent case for long-term, sustained investment in brand, we were able to support key marketing principles with numerous case studies sourced from WARC. It helped bring what could have been a relatively dry deck to life with recognisable brand successes from across a broad number of categories. It’s incredibly efficient to have such a wealth of insight in one place.

Insights Team
Bray Leino

You’re in good company

We work with 80% of Forbes' most valuable brands* and 80% of the world's top top-of-the-class agencies.

* Top 10 brands