Hard-sell advertising vs. Brand building advertising
Problem
Brand managers are often pressured to deliver short-term results. In consequence, they tend to choose hard-sell advertising, that overstimulates the market, over brand-building advertising. This generates sales in the short term but eventually erodes the equity of the brand in the long term. Since brand managers that successfully demonstrate short-term results get frequently promoted or move to other companies, they don’t get to experience the unintended consequences of their own actions. The new managers get to work with a brand that has eroded some of its brand equity, but this is probably attributed to more competitive efforts rather than the earlier over-stimulation of the brand. New managers feel compelled to deliver short-term results thus increase promotional efforts and start the erosion cycle again.
This behavioral pattern could easily destroy brands, and marketers need to be aware that there are always unintended consequences of their own actions and that the problems they face today may very well be the consequence of their past solutions.
Systems Thinking Analysis
A dynamic model of how advertising works was developed to illustrate the dangers of dedicating too much effort to hard-sell advertising and remind brand managers of the need for brand-building advertising to foster the long-term health of the brand vs. short-term profits.
Results
The model became a tool for brand managers and agency partners to defend brand-building efforts that tend to be deprioritized in the pursuit for short-term results and build a case for sustainable marketing strategies.