By Al Ries
This time, the Rieses shift their concentration to the advanced dating among advertising and administration. Pulling away the 'velvet curtain' that divides the 2, they demonstrate not just the fight that's endemic in companies internationally, yet the way it harms businesses' backside strains, and why, particularly, administration must know the way to imagine like advertising and marketing - and vice versa. on the center of this strife lies management's notion that their judgements are according to sound enterprise perform and learn whereas advertising and marketing judgements are easily in keeping with logic. This ends up in essentially various methods to making manufacturers and items - specifically that administration overvalues cost-cutting and 'creating a greater product' once they may still relatively be being concerned approximately greater branding. a few of their observations, culled from years at the entrance traces contain: administration bargains in truth; advertising offers in belief; administration thinks model first; advertising thinks class first; administration desires to construct higher items; advertising and marketing desires to construct assorted items; administration desires an entire line; advertising desires a slim line; administration goals the guts of the industry; and, advertising goals the ends.
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Additional resources for War in the Boardroom: Why Left-Brain Management and Right-Brain Marketing Don't See Eye-to-Eye--and What to Do About It
Amazon sold its books on the Internet instead of through retail stores. Enterprise didn’t become the leading car-rental company by being better than Hertz. Enterprise became the leading car-rental company by being different. Enterprise started in the suburbs instead of in airport terminals. Meanwhile, Avis was busy trying to be better than Hertz. “We try harder” is their approach, but the company never came close to surpassing Hertz. “We try harder” is the management mantra of many companies in many different countries of the world.
Because the cola iceberg is melting. Since the millennium, per capita consumption of carbonated soft drinks in the United States has fallen 1 or 2 percent each year. This slow decline has been happening in spite of the more than $300 million spent annually on Coca-Cola advertising. As an iceberg melts, so does its brand. In 1993, according to Interbrand, Marlboro was the world’s most valuable brand, worth $47 billion. In 2008, the brand was worth only $21 billion. 26 War in the Boardroom As the smoking iceberg melts, the Marlboro brand is someday going to be essentially worthless.
Their emphasis is on perception. ” The “everybody knows” problem. This is what makes marketing doubly difficult. ” Those buyers may not have any experience with American cars at all, but they will still believe that Japanese vehicles are superior. Even if the buyers have had some experience with both American and Japanese vehicles, they still might cling to their original perceptions. ” Perception wins again. But that’s not left-brain management’s point of view. 7 In a 2007 survey of “predicted reliability,” Consumer Reports ranked Mercedes-Benz dead last among 36 major automobile brands.