Yesterday's Ad Age carried a very interesting article,
Unilever, Walmart, P&G Buck the Short-Term Trend
As Recession Forces Cuts, Leaders Build for Future With Marketing, R&D
If you have the time to look at the article tell me if you agree with me on this point.
Many, many companies that made the mistake of taking too many risks before the 4th quarter 2008 financial meltdown, are now making the same mistake in reverse, i.e. being soooooo conservative they are now literally sawing off the branch of the tree their own market shares are sitting on like the coyote in a Road Runner cartoon.
They have thrown the marketers out, fired promotion people, and slashed their advertising and marketing budgets to the point where they will now suffer long-term market share losses, while the leaders as described in the article at P&G, Unilever, and Wal-Mart are eating not only their lunches, but also their dinners!
The article also makes some important points about the arrogance of Wall Street. For example, Unilever's CEO completely scrapped "earnings guidance," when he realized the nano-second, by nano-second scrutiny from Wall Street was creating an impediment to the long-term growth of the company!
Yes marketing sports fans - you heard that right. Wall Street itself in its short-term obsessed constant analysis is the cause of the lack of economic growth and is something more than unhelpful, and for all that Wall Street analysis prior to the current recession how many of the Wall Street geniuses actually predicted a problem? Answer: VERY FEW. They were all busy following each other off the cliff like lemmings.
So if you're in marketing and reading this perhaps your CEO, CFO, and others that want continual blow by blow revenue projections might benefit by your sending them the Ad Age article. Of course, we all know the adage "the people that need the help the most are often the same that are deaf, dumb, and blind when it comes to accepting the help they need."
Jim Bilello
US Marketing, Inc.
Chicago
Office: (312) 637-9796
Mobile: (847) 951-1819
www.hispanicmusicmarketing.com
http://www.usmarketingchicago.blogspot.com
US Marketing is an integrated marketing communications company representing national media, promotions and consulting in important and emerging segment markets. Specialties include: youth, young adult, college, Gen X, Y, and Millennial marketing. Multicultural segments include Hispanic, African-American, and Asian
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