個案總覽

Most U.S. companies spend as much on advertising as they earn from their brand, and what do they get for it? Not nearly enough. Ineffective tests and overdelegation to lower-level staff guarantees mediocrity.

Many U.S. manufacturers, searching for growth in maturing consumer markets, have shifted their emphasis from advertising to sales promotions. But promotions actually mean price reductions. The loss of profits can be severe. Promotions bring volatile demand, whereas the producer seeks stable demand. Theme advertising that seeks to sustain a brand's image and build customer loyalty can actually help stabilize demand.

Accuracy in manufacturers' advertising budgeting is hampered by reliance on the case rate system. A better measure is a brand's market share compared with its share of voice (its share of the total value of the main media exposure in that product category). The interrelationship between market share and share of voice is not usually considered when determining ad budgets.