How Do We Value Brand Marketing?
The Marketing Accountability Standards Board (MASB) may have found the answer. This trade group, which is made up of market researchers, marketers, and experts from academia, has found a very high correlation between market share (a quantitative metric) and a self-reported survey question (a qualitative metric). The survey question was simple. They asked 500 people what brand they would prefer to receive, among several competitors in a product category, if they won a prize drawing. Interestingly, they found a 0.88 correlation (one being the highest and zero being the lowest) to market share. Once the researchers accounted for variables like price difference and distribution access, the correlation became an amazing 0.94. This wasn't some fly-by-night study either. They investigated 100 packaged goods and automotive brands over 18 months.
This is great news for brands, market researchers, and marketing professionals. We all now have a simple metric to bring to bear that not only provides valuable feedback to our campaigns but can help non-marketing executives see the value in what has always been a nebulous part of the budget.
These findings were reported on in AdAge if you'd like to learn more.
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