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Marketing State of the Union June 2002
A SPECIAL REPORT by Interbrand
In the spring of 2002, Interbrand conducted an online survey whose purpose was to measuremarketers’ spending on marketing and branding-related initiatives, and to gauge theirperceptions on how to build strong brands. This was a follow-up to a survey we completed inOctober of 2001, whose results reflected early reactions to the economic downturn, but didnot reflect the impact of Sept. 11 on marketing spending. This report, Marketing State of theUnion 2002, is the compilation of the survey results.For this survey, Interbrand collected data from 280 marketers who have decision-makingresponsibility regarding the disposition of their marketing budgets. The good news is that themajority of total participants (52 percent) report that their marketing budgets have either notbeen impacted by the economic slowdown, or have in fact increased, thereby attesting to theimportance of brand-building for most organizations. And, for U.S. respondents, which makeup 52 percent of the total, exactly half report the same. In fact, only nine percent of totalrespondents (12 percent U.S.) report budget decreases out of proportion to other cuts madewithin their organizations. We also found that while advertising remains marketers’ single biggest expense, it isconsidered a less important component in building a strong brand, ranking second behindbrand strategy. However, only about a quarter of respondents’ budgets are allocated to areasthat are brand specific, such as corporate and product brand development, brand portfoliorestructuring, and the like.An area of significant change versus the 2001 survey is that internal branding is now rankedthird in importance, moving up from seventh. We believe this reflects a refocusing of brandpriorities that is substantiated by the respondents’ comments. Many say that recent economicand political events have underscored the need for an organization’s messages to reflect its values and culture. Employees are an integral part of this mix, with 80 percent of allrespondents viewing employees as either very or somewhat important to brand-building. Todate, however, our respondents indicate that very little investment is made in internalbranding initiatives. Those who have experienced a shift in the focus of their marketing efforts report anincreased emphasis on brand building for the long-term, strengthening existing brands intheir portfolio, (as opposed to building new ones), segmenting their audiences in a moresophisticated manner, and using softer communications messages. Many marketers are alsoputting renewed focus on customer service, emphasizing what is important to the consumer,particularly since personal values have been re-examined by many people. They advisehelping consumers identify product and services as fitting into their value system andpriorities.Perhaps most important, our respondents clearly indicate that branding ROI can bemeasured. There is also overwhelming agreement with the idea that proper investment inbrand-building can optimize a company’s future earnings (91 percent), and that the return onthis investment can be measured (82percent), despite some difficulty in quantifyingintangibles.Interbrand believes the results of the survey reflect an understanding on the part of marketers and their senior management brand champions that brands are a vital, measurableasset, and that resources allocated to marketing and branding is an investment that will yieldsignificant long-term benefits.
FOREWORD
Marketing State of theUnion
The information in thisreport is intended asgeneralinformation only.Copyright 2002 InterbrandCorporation. All rightsreserved. Additional copies of thisreport can be obtainedbycalling212/798-7513. www.interbrand.com www.brandchannel.com
Interbrand asked marketers what impact events of thepast year have had on their brand-building effortsin2002.The answer: Investment in your brand now will pay healthy dividends later.
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