Forbes Magazine: The Kraft Heinz Mess Is A Warning To Advertisers: You Can't Cost-Cut Your Way To Growth
A fascinating look at how the economic recession of the early 2000s kicked off a changing mindset from seeing marketing and branding as an expense rather than an investment. Paired with the fact that technologies shift the focus from strategy to tactics, the result is that too many entrepreneurial business leaders mistakenly equate building buzz with building brand. In short, if you think that posting is marketing, then your business could be in big trouble down the road.
From Forbes magazine: "For much of the first decade of the 21st century American companies amassed significant debt and used it to support innovation and invest in their brands. That changed on September 15, 2008 with the collapse of Lehman Brothers and the ensuing Great Recession. Companies became risk averse, and growth agenda was replaced by cost cutting.
Nowhere was this changed frame of mind more noticeable than marketing. Advertising was quickly deteriorated from being regarded an “investment” to “expense.” Innovation vanished. Companies, and consumer packaged-goods in particular, reduced investment in brands at the same time that the ecosystem experienced digital disruption, zero-based budgeting and predatory active investors." Read more
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