Nov6_FrankSent - The Monday Morning Memo

“The effects of (sales) activation are fairly straightforward. You get an immediate behavioral response; you get an immediate sale. It tends to be very short term, short-term volume. The effects of brand building are also immediate. People don’t sometimes realize this. It is not a delayed effect, but they last a lot longer. They tend to be less dramatic in the short term, but they last a lot longer. So you get a continuing flow of sales for days, weeks, months, years.

I’ve seen an example in the last couple of months where you get a 15-year sales effect.

So that’s the first thing. And then the second thing that’s really important to understand is that you also affect the price that people are willing to pay.

If you engage people on a rational level, then you engage the rational brain, at which point people start doing value trade-offs in a very rational way. When you engage the emotional brain, as it were, not exactly as simple as that, but when you engage people emotionally and make people feel that they want a product in an irrational way, then you kind of de-fang the price pain. People are willing to pay more.

So short-term volume versus long-term sustained volume and price and margins, those are the key differences.”

- Les Binet, 2024

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