CIM Urges Brand Investment In Times Of Crisis
The Chartered Institute Of Marketing (CIM) is urging companies of all shapes and sizes to invest in brand development in order to sustain business performance during tough times.
According to Laurie Young, a Trustee of CIM and marketing partner at PriceWaterhouse Coopers brand management is a powerful performance driver in the face of falling consumer confidence. Young claims that during a downturn customers need a stronger reason to purchase, and reassurance with their choice making branding ever important.
CIM claim branding is one of the most important drivers of business results, and valuation techniques now make it possible to estimate the likely success of different brand strategies.
Peter Fisk, chief executive officer of the Chartered Institute of Marketing, comments: “Brands give customers an anchor, something to hang onto in turbulent times. Brands sustain loyalty when customers are more inclined to shop around, and they sustain a price premium when margins are under pressure.”
Young added: “Companies have ignored, to their detriment, the precious role that brands can play in the life of both companies and customers. It is therefore possible that British industry might miss a powerful, proven source of profit.”
According to CIM, investment in branding shows real value over time, guarding against the ravages of the marketplace. The group, which obviously has a vested increase in increasing brand investment, will be hoping that companies which have been focusing on the bottom line at the expense of marketing budgets in response to the economic downturn will re-assess their spend.
News from the Advertising Association that UK advertising expenditure rose by 4.9% year on year during the fourth quarter of 2002 to £3.7 billion, suggest the advertising downturn may finally be turning a corner (see Outdoor Growth Boosts UK Adspend During 2002).
Chartered Institute Of Marketing: 01628 427 500 www.cim.co.uk
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