19 December 2008
	BRAND VALUES Dare to win By David Furlonger

Most senior marketers don't understand brand value within their organisations, according to a US survey. As a result, many companies miss the opportunity to translate the strength of their brands into sales and profits. The survey, by the US Association of National Advertisers and the Interbrand branding consultancy, says two-thirds of companies give no consideration to brand values when making business decisions. Strong brands create positive consumer awareness and therefore competitive market advantage, particularly in times of economic uncertainty like the present when marketing budgets are being cut. Companies like Coca Cola and Procter & Gamble often increase product brand spending during consumer slumps. Brand Union SA MD Anthony Swart says: "Companies brave enough to invest in their brand when everyone else is cutting back will almost certainly come out stronger when the market recovers. You can understand accountants counting the cents, but short-term savings may undermine the company and the brand." Interbrand Sampson chairman Jeremy Sampson says marketers should be more "savvy, careful and focused" in the way they spend their budgets in consumer downturns. He says the poor brand-value awareness identified in the US is mirrored in SA. The good news is that younger executives are more awake to brand potential. "They recognise it can translate into profit and equity."