Tuesday, February 24, 2009

Economic Stimulus, Brands, and the Social Contract

Our economic woes and the ongoing efforts to stimulate the economy strike me as having some comparisons and learning for corporate brand marketers. The private sector is experiencing major balance sheet issues with tight credit markets freezing the system. While political diffferences about the form exist, nearly all economists agree that some form of governmental stimulus is necessary. In essence, the government is forming a social contract with the private sector that says that government will take a balance sheet hit (increased deficit) to feed the private sector needs for this year and beyond. In return, following the end of the recession the private sector will need to help the government improve its balance sheet by reducing the deficit.

For corporate brands, this is in some ways like brands seeking corporate marketing investment to fund brand revitalization with the promise of generating future profits for the organization. As a brand leader, think about the nature of the organizational contract that your brand is making with the company. Show the company the long term return on investment proposition that you are advocating for the brand.

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