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Vulcans, Earthlings and Marketing ROI [Continued from the Back Cover]

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Vulcans, Earthlings and Marketing ROI [Continued from the Back Cover] “Superb! A must read for anyone who aspires to be a great marketer and every CEO who wants to be truly successful. The book illustrates how brand building investment can drive both short-term results and superior long-term shareholder returns.” – Stephen Graham, EVP Corporate Marketing & Convergence Ocer, Rogers Communication (#1-ranked global marketer by Advertising Age) “This is a refreshing, often witty, and bang up-to-date review of what could have been a very dull subject! It breaks the key issues into bite-sized chunks so that you can open this book at any page and learn something. The authors draw from a broad range of highly respected sources—and skillfully blend academic substance with good marketing common sense.” – Leslie Buttereld, founder of BDDH, a leading UK advertising agency; author/editor of AdValue and Excellence in Advertising “A book for thought leaders. Marketer-friendly and Finance-credible (a very rare combination) with signicant managerial implications for marketing, customer value and shareholder value. The logic is strong and compelling. And the writing is a breath of fresh air.” – Richard Ettenson, Professor of Global Marketing, Thunderbird School of Global Management Marketing Accountability has become a hot topic in the boardroom. This book explains how marketers and their agencies can communicate the value of marketing and advertising to a business audience—in part by exposing the fallacy that customer behaviour is the product of pure Vulcan-like rationality. In Part 1 the authors establish that nance, marketing and advertising share common ground in the value of brands. Part 2 reviews the evidence for the business impact of marketing and advertising, summarizing key research and practical experience. Part 3 outlines what it takes to build an accountability culture and proles some techniques that are useful for framing and measuring the business impact of marketing and advertising investment. Jonathan Knowles and David Rutherford Jonathan Knowles is the CEO of the brand consulting rms Type 2 Consulting (based in New York) and Structured Intuition (based in Toronto). He is co-author of the ICA report “Measuring and Valuing Brand Equity.” His articles on the role of brand in business have appeared in the Harvard Business Review, Sloan Management Review and The Wall Street Journal. David Rutherford is a former President and Vice Chairman of Ogilvy & Mather Toronto. He is the long-standing editor for the Cassies, the annual awards show for advertising eectiveness, and author of the ICA guide to Client–Agency Evaluation, and editor and contributing author for the ICA book Excellence in Brand Communication. Getting Finance, Marketing and Advertising onto the Same Planet ISBN 978-1-55458-031-6 Jonathan Knowles and David Rutherford In collaboration with the Institute of Communication Agencies “Superb! A must read for anyone who aspires to be a great marketer and every CEO who wants to be truly successful. The book illustrates how brand building investment can drive both short-term results and superior long-term shareholder returns.” – Stephen Graham, EVP Corporate Marketing & Convergence Ocer, Rogers Communication (#1-ranked global marketer by Advertising Age) “This is a refreshing, often witty, and bang up-to-date review of what could have been a very dull subject! It breaks the key issues into bite-sized chunks so that you can open this book at any page and learn something. The authors draw from a broad range of highly respected sources—and skillfully blend academic substance with good marketing common sense.” – Leslie Buttereld, founder of BDDH, a leading UK advertising agency; author/editor of AdValue and Excellence in Advertising “A book for thought leaders. Marketer-friendly and Finance-credible (a very rare combination) with signicant managerial implications for marketing, customer value and shareholder value. The logic is strong and compelling. And the writing is a breath of fresh air.” – Richard Ettenson, Professor of Global Marketing, Thunderbird School of Global Management Marketing Accountability has become a hot topic in the boardroom. This book explains how marketers and their agencies can communicate the value of marketing and advertising to a business audience—in part by exposing the fallacy that customer behaviour is the product of pure Vulcan-like rationality. In Part 1 the authors establish that nance, marketing and advertising share common ground in the value of brands. Part 2 reviews the evidence for the business impact of marketing and advertising, summarizing key research and practical experience. Part 3 outlines what it takes to build an accountability culture and proles some techniques that are useful for framing and measuring the business impact of marketing and advertising investment. Jonathan Knowles and David Rutherford Jonathan Knowles is the CEO of the brand consulting rms Type 2 Consulting (based in New York) and Structured Intuition (based in Toronto). He is co-author of the ICA report “Measuring and Valuing Brand Equity.” His articles on the role of brand in business have appeared in the Harvard Business Review, Sloan Management Review and The Wall Street Journal. David Rutherford is a former President and Vice Chairman of Ogilvy & Mather Toronto. He is the long-standing editor for the Cassies, the annual awards show for advertising eectiveness, and author of the ICA guide to Client–Agency Evaluation, and editor and contributing author for the ICA book Excellence in Brand Communication. Getting Finance, Marketing and Advertising onto the Same Planet ISBN 978-1-55458-031-6 Jonathan Knowles and David Rutherford In collaboration with the Institute of Communication Agencies Reviews of Vulcans, Earthlings and Marketing ROI [Continued from the back cover] This is a breakthrough book. It gives Marketing and Advertising people the big picture. And it reminds Finance people, without getting starry-eyed, why brands are so important. The Vulcan-Earthling theme is wonderful. Ralph Thornicroft – Former Head of Research at Procter & Gamble, Canada Much-needed clarity on Marketing ROI, and the fact that people in all disciplines can learn from each other’s strengths. I don’t know of any other book with such a comprehensive view of the subject. Richard Burjaw – VP Marketing, Pepsi Cola Canada (Formerly in Finance) It may seem that Finance, Marketing and Advertising people are from different planets, but this book is a starmap for them to discover the business benefits of common ground. O. Burtch Drake – President-CEO, American Association of Advertising Agencies Smart thinking about the financial value of long-term brand equity. Dr. Joe Plummer – Chief Research Officer, The Advertising Research Foundation Read on and prosper. How can Marketing and Advertising escape the crossfire between Vulcans and Earthlings? First, make your marketing model explicit. Second, measure and test your assumptions. Third, adjust the model to reflect learn- ing. Finally, repeat the process—always keeping the key players on the same planet. William Ratcliffe PhD – Former President of Millward Brown Canada Mission accomplished! Dr. J. Brad Davis – Associate Professor, Marketing, Wilfrid Laurier University Stupid title. Intelligent book! Tim Ambler – Senior Fellow, London Business School. Author of Marketing and the Bottom Line. [Tim dislikes the title because it uses “ROI” as a catch-all term— something he hates! Ironically, we share his view. See Chapter 1.1] ii iii VULCANS EARTHLINGS and Marketing ROI iv VULCANS EARTHLINGS and Marketing ROI Getting Finance, Marketing and Advertising onto the Same Planet Jonathan Knowles and David Rutherford Wilfrid Laurier University Press vi We acknowledge the financial support of the Government of Canada through the Book Contents Publishing Industry Development Program for our publishing activities. Foreword from the ICA ix Preface xi Introduction xiii Library and Archives Canada Cataloguing in Publication Part 1. Finding Common Ground 1.1 Accountability and ROI 2 Rutherford, David Vulcans, earthlings and marketing ROI : getting finance, marketing and advertising 1.2 A Trilingual Story 4 onto the same planet / David Rutherford and Jonathan Knowles. 1.3 No Simple Answer 5 1.4 What Business Are You In? 6 Co-published by the Institute of Communication Agencies. 1.5 Words, Words, Words 7 Includes bibliographical references and index. 1.6 The Two Meanings of Value 8 ISBN 978-1-55458-031-6 1.7 Vulcans and Earthlings 9 1. Marketing—Finance. 2. Advertising—Rate of return. 3. Brand name products— 1.8 Agreeing What Brands Are 11 Valuation. 4. Rate of return. I. Knowles, Jonathan. II. Institute of Communication 1.9 Agreeing That Brands Are Valuable 14 Agencies. III. Title. 1.10 Brand Equity—Marketing and Advertising Version 17 1.11 Brand Equity—Finance Version 18 HF5415.R87 2007 658.8 C2007-906928-2 1.12 The Idea of Utility—Removing Some Myths 19 1.13 The Idea of Intangible Assets 21 © 2008 Institute of Communication Agencies and Wilfrid Laurier University Press 1.14 Profit, Growth and Risk 25 Cover and text design by Sean Lynde. Part 2. Winning Hearts and Minds Every reasonable effort has been made to acquire permission for copyright material 2.1 What Would Emerson Say? 28 used in this text, and to acknowledge all such indebtedness accurately. Any errors and 2.2 The Marketing Mindset 29 omissions called to the publisher’s attention will be corrected in future printings. 2.3 The Brand Mindset 32 2.4 Short- and Long-Term Roles 38 This book is printed on Ancient Forest Friendly paper (100% post-consumer recycled). 2.5 Choosing amongst the Possibilities 45 Printed in Canada 2.6 Advertising as Investment 48 2.7 Advertising’s Impact on Profitability 51 No part of this publication may be reproduced, stored in a retrieval system or 2.8 Advertising’s Long-Term Effect 55 transmitted, in any form or by any means, without the prior written consent of the 2.9 The Long Term, from Another Perspective 57 publisher or a licence from The Canadian Copyright Licensing Agency (Access Copyright).
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