Marketing, Innovation and the Branding Disasters of 2010

The power of a ubiquitous commanding brand is undeniable. It gets our attention. We find them irresistible. Large companies invest millions into building and protecting their brand. But in the “everything you do sends a message” department, the higher you climb the bigger the potential fall.

24/7 Wall St. published a list of top ten name brands that have appear to have lost over $100 billion, (yes that’s a “b” not a typo) since the beginning of the year. The selection criteria was based on evaluations from top branding companies: Interbrand and Brand Z’s brand valuation methodology and a whole host of other market and financial criteria.

There are the obvious reputation management disasters: the oil spill of BP (BP), Toyota’s (TM) vehicular debacle, the SEC investigation of Goldman Sachs (GS) and Johnson & Johnson (JNJ) recall calamities.

But then there are brands that have lost their way – companies once known for their innovation: Sony (SNE), Adobe (ADBE), Dell (DELL), Research in Motion (RIMM), Nokia (NOK). The lessons to their fall are a reminder to all of us, (in Peter Drucker’s words): “Business has only two functions – marketing and innovation.”

It is interesting that Drucker chose to put marketing ahead of innovation. After all, a decent product that is well marketed will always outperform a great product that has only modest marketing. A lesson for all of us. Pay attention to your marketing, especially your reputation. And never lose your streak of innovation.

Click here for the full article “The 10 Biggest Brand Disasters of 2010” in Daily Finance.

“Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
Peter Drucker, The Practice of Management

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