Tom Lewis wrote a post titled Are The Accountants Killing Your Brand?
“We know from Binet & Field‘s The Long and The Short of It that more sales promotion leads to higher price sensitivity so the end result of too much activation is a short-term focus on sales volume and not enough brand building.”
“For Finance, the only downside to sales promotion is the financial cost of running the promotion itself; the increased price sensitivity it engenders exists only as a behavioral economic concept in consumers minds, not in the P&L, and is therefore unmeasurable by traditional finance methods.”
“Can advertising reliably and universally point to the factors that lead to business success? No, it cannot.”
“Accountants are mostly score-keepers, not value creators; they are schooled in historic financial cost accounting rather than economic value creation. They approach trend analysis as extrapolation rather than econometric modelling. It does not matter how many times accountants measure a pile of money, they do not increase its value. I know all this because I am an accountant.”
“Accountants and accounting standards are not killing brands themselves, but they are part of a short-termist, rationalist, results-focused ecosphere that is hostile to brand-building.”