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Evaluate the consequences of short-term marketing practices on brand equity and overall business strategy.

April 18, 2026California Management Review0 citations

Is Short-termism Undermining Your Brand Equity?

Key Points

Evaluate the consequences of short-term marketing practices on brand equity and overall business strategy.
Historical analysis of marketing trends from the 1980s
Assessment of current marketing practices influenced by big data and AI
Recommendations for integrating demand and brand marketing
Short-termism led to profit erosion and compromised brand integrity.
Customers shifted focus to price over loyalty, impacting brand stability.
Successful brand equity requires partnership between demand and brand marketing

Abstract

Short-termism in marketing has resurfaced, fueled by big data, analytics, digital, AI, and labels such as demand marketing. Looking back at the 1980s, a short-termism decade, that era provided permission for “sales now” programs that failed to deliver growth. That approach contributed to profit erosion, turned customers’ priority to prices, encouraged ill-advised extensions, damaged brands and profits, and led to the emergence of brand equity. To avoid a repeat, CMOs need to convince others that brand equity is critical to the business strategy. To succeed, demand and brand marketing need to be partners, creating and exploiting their synergies.

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