Marketing from the heart for growth
Building on Binet and Field's work, John Kearon argues that long-term profit requires excess heart and voice from brands. He suggests a 'share of voice to brand share growth' model as an alternative to ROI.
Marketing works in two ways
Through meta-analysis of the IPA Effectiveness Awards Databank, Les Binet and Peter Field have demonstrated that marketing works in two different ways: it can achieve both long-term and short-term effects. Marketing can be broadly categorised into brand-building and sales activation. These two marketing activities work differently over time (Figure 1).
The effect of brand-building campaigns is cumulative and takes time to establish, whereas sales activation effects are episodic and immediate. The big payback comes from long-term profit effects, which are more than twice as large as short-term ones. Binet and Field show that emotional brand-building activity is key to long-term profit gain.