In the business case for marketing balance – Nielsen – Social Media Explorer

The U.S. military flew 70,000 pounds of infant formula into the U.S. at the end of May each month to address the country’s current deficit.

This was another problematic development that turned into a national supply-chain crisis that is still affecting everything from cars to semiconductors to wood. And that’s a problem for marketers who focus on low-funnel ventures when products may not be available anytime soon. If they can continue with conversion-based strategies when supply is low, they run the risk of losing credibility when customers realize that the brand cannot deliver what is advertised.

This problem is likely to end. However, it does offer a lesson that no matter what the applicable global supply chain looks like: focusing on long-term brand building is just as important as short-term sales.

In difficult economic times it tempts to double-down on immediate revenue gains. This may not sound familiar, but now is the time to invest in top-of-the-line advertising.

As the Ehrenberg-Bass Institute has long argued, awareness (or “emotional availability”) is the best way to acquire a customer. After all, who is going to purchase your product when they haven’t heard about it in the first place? And with more people shopping online, and the virtual shelf being infinitely longer than your local grocery store, there’s more competition to beat.

The importance of brand awareness is vital. According to SME research, an average 1-point gain in brand metrics like awareness and consideration increases future sales by 1%.

Americans are open to new products, which is a plus. U.S. consumers say 12.1% of their online purchases involve a brand they haven’t purchased before. And, even if you don’t have any inventory to sell at the moment, you can slightly modify your low-funnel activities to further strengthen your brand awareness and consideration.

For example, consider replacing the “Buy Now” call to action button with “Sign up for the waitlist”. By adding customers to an email database, marketers can automatically provide updates when sought-after products return to stock, target them with other brand-building messages, or even generate their interest in another set of products.

That way, the two parts of your funnel shouldn’t be seen as disagreements. Even when you’re focusing on the long-term health of your brand, both methods work together to ultimately drive revenue.

Of course, creating a strategy that effectively addresses both objectives is not always straightforward. Some channels are ideal for creating brand equity, others can drive sales. In order for marketers to achieve optimal balance, they must evaluate the impact of both goals.

Of course, creating a strategy that effectively addresses both objectives is not always straightforward. Some channels are ideal for creating brand equity, others can drive sales. In order for marketers to achieve optimal balance, they must evaluate the impact of both goals.

For more insights on how brands and sales can grow together, see SME’s Full Funnel Hub.