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Short-term pressures

Discuss Short-term pressures within the Mass Media Research forums, part of the BMM Paradise for Bachelors in Mass Media Forum category; Pressures for short-term results generally undermine investments in brands. There are several reasons for this: There is wide acceptance that ...

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Abhijeet S
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Short-term pressures - October 11th, 2010

Pressures for short-term results generally undermine investments in brands. There are several reasons for this:

There is wide acceptance that maximization of stockholder value should be the overriding objective of the firm.
Management style itself is dominated by a short-term orientation. Annual budgeting systems usually emphasize short-term sales, costs and profits. As a result brand-building programs are often sacrificed in order to meet those targets.


Short-term focus is created by performance measures available. Measurements of intangible assets such as brand equity, information technology or people are elusive at best. Also long term value of activities that will enhance or erode brand equity is difficult to demonstrate whereas short-term performances like impact of promotions can be tabulated easily. This results in debilitating bias towards short-term results.



It is true that that building brands is difficult. But it is doable as is evident by those who have done so. The greatest examples of this are brands like TITAN, COCA COLA, CADBURY’S etc. We can thus see that it is possible to build strong brands by building, managing and maintaining the four assets that underlie brand equity-awareness, perceived quality, brand loyalty and brand association.
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