Valuing a for-profit brand is a significant challenge. This is despite the fact that there exists a stream of profits you can use as the basis for the valuation. Valuing not-for-profit brands takes the challenge to a whole new level. As such it is not surprising that most people might instinctively reject putting a financial…
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Trying To Understand Market Share Theory
I really enjoyed Richard Miniter’s The Myth of Market Share. His first book criticizes market share goals. I would say there is a lot of value in trying to understand market share theory. (To be clear I use the term ‘theory’ quite broadly. I just mean a theory as something that provides a reason for…
Value of a Like
Valuing social media likes is an enormous challenge. We should be somewhat forgiving of problems in the methods. It is surely better to be addressing difficult challenges than ignoring them entirely. It is, however, also important to be explicit about what we are claiming and not claiming. This is a problem with Value of a…
Marketing ROI, Heartbeats And Breaths
Clarity is important to effective language use. If our words all mean different things it is hard to communicate. It is often surprising that marketers, who often claim to be communication experts, are sometimes terribly imprecise about what they mean. We need to be clear about marketing ROI, heartbeats, and breaths. Marketing ROI James Lenskold…
Revenue And Valuing Likes
Dan Zarrella, from HubSpot, has given a formula for valuing social media “likes”. There are several interesting parts. For instance, he has tried to incorporate churn. Compared to most pieces of advice in the social media marketing world it is transparent. You can see what he was trying to do. His formula (although it looks…
The Top and Bottom Line
Preparing for class recently I came across a media report which illustrates the confusion and sloppiness that surrounds marketing metrics. I realized the problem we often have talking about the top and bottom line. Impact Of Social Media An important question is the bottom line impact of social media. How can you persuade the CFO…
Accounting For Profits And Decisions
Marketers, and business people more broadly, often use accounting profit to measure success. This isn’t too surprising. Often firms claim to be profit maximizing. Report something as profit and this sounds like something that should be maximized. That said, profits using in accounting and managerial decision-making are not really the same thing. Decisions taken to…
Market-Based Assets: An Important Idea
The concept of Market-Based Assets was introduced to tackle a major marketing (indeed business) problem. Many managers too often see marketing simply as an expense. By this logic marketing does not deliver, or at least is not expected to deliver, any long terms benefits. Being treated as an expense makes marketing a prime candidate to…
Spock And Kirk And Marketing
Rutherford and Knowles (2008) highlight the tensions between finance and marketing. Their book goes by the title of “Vulcans, Earthlings and Marketing ROI”. The central thesis being that finance people are steady and logical, Vulcan in Star Trek, while marketers exciting and emotional, Earthlings. What can they tell us about Spock and Kirk and Marketing?…
Academics And Managers
The application of research is a big topic in marketing and academics and managers would be well served by acting together more. Is Useful Important? We debate whether we are useful or relevant. And then we debate whether we should care about whether we are useful or relevant. I think of myself as an academic…