New age marketing science calls for a clear outcome - How it has transformed in ehancing the share holder value? Yes share holder value goes beyond the balance sheet of the company and the real enhancement of the brand value should delight shareholders through enhancing the overall valuation of the company. Time has come now to seriously to look at shareholder value enhancement through brand management to any business leader. Thanks to the scenario of consumer soverignty, digital revolution and overcrowded category choices amongst consumers to satisfy a need!
Of course consumer measures such as awareness,image and other measures of “brand health” play crucial roles in the share holder value enhancement but as some practitioner rightly mentioned "Marketing can only improve business performance if it changes the pattern of thoughts, feelings, associations and habits by a brand"!
What is crucial is to assess the changes that resulted from the various strategy points deployed and used to examine the impact of market factors as well as marketing practices.
So how do we get there? To really measure the share holder value through effective brand management one need to carefiully manage the following pillars-
1. "Controllable taps" - These are like taps that need to be turned on and off! examples being price, communication, distribution,product innovation, and consumer promo/CRM. These are normal "taps" the marketer controls but in this case as well they are base "taps" for share holder value outcome
2. Analysis on "means to reach" - Through this pillar we get to know the intermediate effect of "controllable taps" on brand health measures like familiarity, consideration, preference, delivery etc
3. Monitor matrices - The "controllable taps" effect do not stop at the brand health parameters but has an impact through health matrices, on customer equity, brand equity, profit, sales and market share. The key challenge is to measure the impact of "taps" on these matrices and the impact of brand health parameters on these matrices.
End benefit is shareholder value estimation. Using analytics estimate the efect of each of the above mentioned matrices on enhancing the shareholder value! Or in other words measure the impact of "controllable taps" on each of the matrices and examine the elasticity of these on shareholder value
Once the ingrediants of the shareholder value are derived then the key task is to manage the "taps" to get an enhanced "share holder value...
Analytics is in the heart of the process of estimating and managing the share holder value. The success lies in not only in sound analytics but a thorough knowledge on the marketing dynamics!
Welcome New age Marketing!!!
V. Balu
15th October 2009
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