The Homa Files

Excerpted from BusinessWeek “The Case for Brand Accretion”, by Steve McKee, September 12, 2008

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Brand accretion. With respect to branding, accretion is the simple principle that the more you invest—and the more consistently you invest—the better your long-term returns will be.

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In a branding context, accretion means that none of your marketing efforts exist in a vacuum. Sure, you want them to have an impact today, but they also add to, and are interpreted within, the context of your past and future efforts.

Think of branding as a process, not a static point in time; if your message is steady and consistent, you can build significant brand equity. If, however, you continually change your approach, carelessly cut your budget, or seek only short-term benefits, you’ll be compromising your own long-term interests.

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James Gregory’s marketing firm, CoreBrand, has conducted years of research about the long-term effects of marketing investments. He says it’s rare for even a one-year surge in advertising spending to generate measurable results in image development; it’s usually at least three years before you see real change. That’s a long time if you’re starting from zero, but if your efforts are continuous, the power of accretion will continually work on your behalf.

Edit by DAF

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Full article:
http://www.businessweek.com/print/smallbiz/content/sep2008/sb20080912_752256.htm

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