Return on Brand Investment

Jan Lindemann

Chapter Chapter 13 in The Economy of Brands, 2010, pp 125-148 from Palgrave Macmillan

Abstract: Abstract With brands being such important business assets that account for substantial corporate value the question of managing and measuring the investments a company makes into a brand arises. Marketing expenditures for most companies have grown exponentially over the past decade. In several industries, especially consumer goods, marketing represents more than half of total costs of goods sold (COGS). Brands as intangible assets account for between 30 percent and 80 percent of shareholder value. In most companies brands are the single most valuable asset. It is therefore not surprising that the pressure from senior management and the financial community has grown to make marketing and brand investment accountable and align their use of funds to the value-based management agenda. The days when companies accepted the view expressed by Lever Brothers founder Lord Leverhulme (among others) who reputedly said: “I know half my advertising budget is wasted. But I am not sure which half” have passed.1 In the post-Sarbanes-Oxley world of accountability and the need to boost corporate earnings following the 2008/9 recession, management require quantifiable proof that the resources being spent on marketing can be justified to shareholders. As brand-building requires substantial investments of both time and money companies are looking for a Return on Investment (ROI) framework that optimizes resources in order to achieve maximum value creation for shareholders.

Keywords: Price Promotion; Touch Point; Luxury Brand; Brand Building; Retail Space (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-27501-0_14

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230275010

DOI: 10.1057/9780230275010_14

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().