Thursday, June 09, 2005

Share Flippers Are Yet One More Barrier
to Effective Long-Term Marketing

I was reviewing a new ad campaign we are producing for Fortune Magazine with Cincom CEO Tom Nies ... and along the way the conversation veered off onto other topics.

Tom was lamenting the struggle public companies have in balancing the needs of shareholders with those of the customer. Shareholders, he noted, on average hold their shares in a company for just a bit over one year. Which is to say that that "share flippers" really don't have a vested interest in the companies they "own" and have even less interest in the customers.

What hit me about this observation was the impact that share flipping has on contextual marketing, which flat out is a long-term business strategy. The question that kept pounding through my head all day is: How can a CEO commit to a sound business strategy like contextual marketing if his/her only focus is on how shareholders will evaluate the next quarter's performance?

Maybe this is one of those fundamental reasons so many companies fail to take marketing seriously.

As marketers, this is one of those not-so-subtle barriers to achieving long-term marketing success, and is yet one more thing we have to get good at countering.


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