Brand Building vs. Sales Activation: Finding the Right Mix for Long-Term ROI
Brand Building vs. Sales Activation: Finding the Right Mix for Long-Term ROI
Striking the right balance in your marketing strategy isn’t just smart; it’s survival. With budgets under siege and average marketing spend down to 7.7% of company revenue (Gartner, 2024), it’s no longer about “what sounds good” or “what feels right.” It’s about knowing—with precision—how to allocate resources to create both immediate impact and long-term value.
So what is the magic formula? How does it change as your brand matures? And how does your marketing strategy stack up?
The “Era of Less”: Budget Cuts & Short-Termism
In what Gartner calls an “era of less”, brands must do more with fewer resources. That means finding ways to drive measurable impact without sacrificing long-term brand health—you know the drill. For CEOs expecting results, there’s little room for error.
But it’s easy to fall for “short-termism”—investing heavily in immediate sales activation (think discounts, promotions and “buy now” tactics) while neglecting brand building (creating trust, loyalty and connection), which yields compound value over time. So if all you’re doing is milking performance ads and slashing brand budgets, you’re creating the marketing equivalent of a sugar high. Sure, it feels great today, but there could be a crash coming.
So what is the right “less”?
Balancing Brand Building vs. Sales Activation
The challenge is clear: too much focus on sales activation, and your brand may sprint on quicksand. You’ll feel the momentum but stay stuck in place.
But an over-emphasis on brand building without short-term wins can leave your bottom line struggling and your stakeholders unhappy.
So what’s the golden ratio?
The Best Marketing Strategy for Your Stage of Growth
Les Binet and Peter Field’s research suggests that the sweet spot is roughly 60/40—60% of your marketing budget for brand building, 40% for sales activation.
But it’s not a one-size-fits-all. It heavily depends on the context of your brand and its stage of growth.
Effectively, brands start with a high growth, high sales focused strategy to gain market share, then once the novelty wears off and customers become harder to find, they switch to building loyalty and increasing profit margins once they have gained a dominant position.
Here’s a guide that was illustrated by Dan White using some of the insights drawn from Les Binet and Peter Field’s effectiveness studies, but again, the take home message is: for marketing effectiveness, you need both.
1. Startup (35% Brand / 65% Activation)
You’re new, hungry, and out to prove yourself. Right now, the focus is on getting sales and visibility. Focus on activation to bring in customers, gain market share, validate your offering and get enough brand recognition to build momentum.
2. Growth Phase (57% Brand / 43% Activation)
You’re gaining traction. This is the time to turn initial curiosity into loyalty. Dial up the brand investment as your recognition grows, and let activation keep new interest converting into actual sales.
3. Maturity Stage (62% Brand / 38% Activation)
Now, your brand’s reputation precedes it, the novelty has worn off a little and new customers are harder to find. It’s time to shift focus to deepening loyalty and maintaining relevance, investing more in brand to build credibility and resilience. Activation plays a role, but it’s the understudy, not the star.
4. Market Leader (72% Brand / 28% Activation)
You’re established, and now the goal is to stay at the top. Brand building should take the lion’s share to sustain your position, justify premium pricing, and keep you indispensable to your audience.
How Does Your Marketing Stack Up?
The right ratio isn’t a guess—it’s grounded in understanding your market position, your growth objectives, and the dynamics of your category.
Are you building awareness or cultivating loyalty? Are you fueling rapid growth or reinforcing a legacy? Recognising this will let you calibrate your strategy for maximum impact.
At MarketingMayd, we live and breathe this balance. We work with growing brands to navigate the complexities of balancing brand building and sales activation so they can maximise every penny of their budget.
We’ll help you understand not just what to do but when to do it, ensuring that your brand doesn’t just perform—it endures.
Learn more about our unique offering and get in touch.
Key Takeaways
Effective marketing balances both brand building and sales activation.
Brands require less sales activation and more brand building as they mature.
MarketingMayd offers tailored strategies for growing brands, ensuring your approach is sustainable, stage-appropriate, and impactful.
Sources
Binet, L. & Field, P. (2023). Effectiveness in context: A manual for brand building. IPA. https://downloads.ctfassets.net/ptzdhtf6t0jg/7hlC0oHJIdCqATrkrKINKT/246b2755a78a7872b8e75389aab5203f/Effectiveness_In_Context.pdf
Gartner. (2024, May 13) Gartner CMO Survey Reveals Marketing Budgets Have Dropped to 7.7% of Overall Company Revenue in 2024 [Press release]. https://www.gartner.com/en/newsroom/press-releases/2024-05-13-gartner-cmo-survey-reveals-marketing-budgets-have-dropped-to-seven-point-seven-percent-of-overall-company-revenue-in-2024
Martin, R.L., Schwarz, J. & Turner, M. (2024). The right way to build a brand. Harvard Business Review. https://hbr.org/2024/01/the-right-way-to-build-your-brand