Published on: 30 November -0001
The IRG often talks about purpose as a crucial component of humanizing growth, but as inflation rises around the world, we recommend you to read this piece by Chris Burggraeve about the importance of the P of Price. Chris is the former Global CMO of AB InBev, future space traveler (no joke), and nowadays on a mission to upgrade the financial acumen of marketing leaders. As such, Chris is a regular contributor to the IRG100 program in which he shares the essentials of his two books.
Inflation is an acid test for how excellent a company really is in terms of marketing. The more a brand can demonstrate sustainable pricing power underpinning cash flows, the stronger it will be perceived. Pricing power is defined as the ability of a brand to systematically raise its prices at or above inflation (CPI) over time as a reflection of its growing brand equity, at constant or growing volume.
Chris makes the case that although purpose is essential as you enter the water, pricing power is your swimsuit. To have a transformational impact for all stakeholders, both price and purpose are at the core of how marketing contributes to society. Sometimes, hard choices involve saying “or,” but in this case, the hard choice may actually be to say “and.”
Inspired by Chris Burggraeve, the former global CMO of AB InBev, former president of the World Federation of Advertisers (WFA) and regular contributor to the IRG programs. Read his full article here.