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Management article
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Reference no. R2401K
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 2024

Abstract

More than a century ago the merchant John Wanamaker wryly complained, 'Half the money I spend on advertising is wasted. The trouble is, I don't know which half'. In this article the authors present a solution to Wanamaker's famous quandary. Drawing on a large database supplied by the World Advertising Research Council to empirically identify what kinds of brand advertising are most effective - both for attracting new customers and for converting them into loyal repeaters - they show that the key to successful brand building is offering a memorable, valuable, and deliverable promise to the customer. What's more, a well-designed customer promise not only translates directly into sales but also provides an effective framework around which to organize a company's activities.

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Abstract

More than a century ago the merchant John Wanamaker wryly complained, 'Half the money I spend on advertising is wasted. The trouble is, I don't know which half'. In this article the authors present a solution to Wanamaker's famous quandary. Drawing on a large database supplied by the World Advertising Research Council to empirically identify what kinds of brand advertising are most effective - both for attracting new customers and for converting them into loyal repeaters - they show that the key to successful brand building is offering a memorable, valuable, and deliverable promise to the customer. What's more, a well-designed customer promise not only translates directly into sales but also provides an effective framework around which to organize a company's activities.

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