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Sawyer Riley Compton surveyed a cross section of B2B and consumer companies, with the help of Sevista eMarketing Technology, to examine the role branding will play this decade. They found that branding will play an even greater role than it did in the 90’s. According to SRC, we’ll be hearing branding even more in the 00’s. But the messaging will be different. We can expect advertising to uphold more traditional values and reflect good, old fashioned virtues.
Nine out of ten executives surveyed said that despite a sluggish economy, their company is focused on building long term equity of their respective brands, balancing that long term vision with short term sales goals. Forty five percent of the respondents believed that their established brands will bolster their business performance and competitive position, findings that suggest an unwavering faith in the value of brand equity and consistent messaging.
"During an economic downturn, history proves that those businesses that invest in their brands gain notable market share and a significant return on their investment," said SRC Executive VP and Director of Strategic Planning, Louis Sawyer. "Integrity, balance, authenticity, and security are also high on the list of values consumers now desire from products and businesses they choose."
A wide range of industries, both consumer and B2B, were surveyed – from advertising and PR agencies, to Mohawk Flooring, Home Depot, and Verizon. How much of the findings were in response to recent events is hard to determine.
Other findings:
53% of B2B companies and 37% of consumer companies plan to adjust or revamp their brand positioning based on the heavy emphasis consumers are placing on fundamental values.
16% of the executives for consumer businesses say they will change their messages to focus on family and community; 11% said superior quality will be their position; 21% of the B2B companies said their communications messages will change to reflect an emphasis on superior quality.
16% of consumer businesses and 18% of B2B companies indicated their message strategy would focus more on price and value.
94% of consumer companies and 83% of B2B companies will maintain or increase their spending on advertising and marketing in 2002.
Less than 1/3 of companies expect business to slow further during the fourth quarter of 2001. But only 21% of consumer business and 29% of B2B companies are anticipating business to climb to pre-Sept. 11 levels during the fourth quarter.
More than half of the executives in B2B environments anticipate the economy will recover in the first half of 2002 while executives in the consumer business environment think recovery will come during the second half of next year.