UK finance heads still query value of brands

Finance directors often fail to fully recognise the true value of their company’s brands and their cautious attitude is holding back the UK economy, warns a new survey by the Institute of Practitioners in Advertising and CIA Media- network.

Finance directors often fail to fully recognise the true value of

their company’s brands and their cautious attitude is holding back the

UK economy, warns a new survey by the Institute of Practitioners in

Advertising and CIA Media- network.



The research follows a similar study in 1996 and has found little

improvement in the relationship between marketing directors and their

finance directors. There is still a lack of mutual understanding.



There has, however, been some progress in the approach to

accountability, which is now seen by finance directors as the most

important attribute for senior marketing personnel. By contrast, in 1996

it was seen as the least important, while financial literacy was the

most valued attribute.



But although the expectations of marketing accountability have been

raised in the financial community, the perceived delivery has not

improved.



Marketing measurement now appears to be moving away from the harder

’till ringing’ measures of sales volume and market share towards softer

measure such as awareness.



But the link to return on investment is either still not being made or

is not being effectively communicated.



David Fletcher, the head of CIA MediaLab, which co-ordinated the study,

said: ’Agencies are best placed to implement systems of accountability.

Obviously we have a vested interest in proving the value of what we and

our marketing clients do.’



However, the problems are exacerbated by the lack of marketing

representation at board level. In the majority of respondents’

companies, responsibility for reporting on marketing issues falls to a

non-marketing director.



Leading industry trade bodies have launched a joint manifesto to

encourage major companies to install a main board director with

responsibility for marketing by the end of 2001.



Topics

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus