At a renowned international creativity festival, a leading payment company’s chief marketing officer and chief financial officer discussed the apparent disconnect between marketing and finance at the top echelons of numerous businesses.
A study by a recognized research firm highlighted that just 37% of marketing leaders believe it’s crucial to maintain a healthy relationship with the finance chief. The finance executive emphasized the importance of improved collaboration and communication, while the marketing chief recognized the challenge many in his role face in linking long-term marketing actions with business results.
This perspective is consistent with the findings of a survey by a business-to-business marketing agency. The survey revealed that 72% of financial leaders believe that their marketing counterparts find it challenging to gauge the success of brand initiatives. Furthermore, 81% think that such evaluations can be completed within a year.
The primary issue, according to a strategy expert from a branding consultancy, is the undue emphasis on superficial metrics, like engagement levels on social platforms. These metrics don’t necessarily correlate with essential business goals, like enhancing market share and revenue. This misalignment can lead to short-lived growth spikes followed by stagnation.
There’s an overwhelming array of ways to assess advertising effectiveness in the digital age, and many of them are superficial metrics, which can set unrealistic expectations.
Given the economic climate, many marketing leaders face immense pressure to present short-term business justifications for what is inherently a long-term strategy. Thus, it’s their responsibility to ensure their executive peers have a grounded comprehension of their brand-building endeavors.
So, what should one expect from a brand-building process? Ideally, it spans three years.
After six months: There should be a focus on strategic conception. This phase should encompass preliminary analysis, research, and the creation of a clear direction for the brand. Investment should be balanced between the brand and its performance, but with a vision beyond short-term gains.
After 12 months: The focus should be on conveying the brand’s message and fostering connections. Although brand-related metrics might take a while to show progress, other early signs like search presence, public sentiment, and website visits should start to improve within this period.
After 18 months: This phase should emphasize consolidating the brand’s position and fully developing the brand experience across various platforms, using insights from consumer feedback and market performance.
By this point, a budding community of dedicated customers might begin forming, engaging actively with the brand on digital platforms and discussing its offerings.
After two years: The brand’s identity should be well-established, and this is the time to broaden its reach, either by entering new markets, targeting different demographics, or forming collaborations with like-minded entities.
Consistency is pivotal at this juncture to foster long-term growth.
After three years: The brand should be future-ready and poised for growth, safeguarding its equity while strengthening its bond with customers, and seeking newer avenues for expansion.
By the end of this period, the brand should have cemented its place in the market, laying the groundwork for sustained growth.
Achieving this stage demands transparent communication from the beginning. A robust strategic blueprint, tangible assessment of brand-building efficacy, and clear communication in executive discussions about each stage’s expectations are vital for long-term success.
In conclusion, an effective brand-building initiative should be seamlessly integrated with a company’s long-term strategy, viewing it as an investment in the future.
