How Brands Grow
Professor Byron Sharp
15 min
7 Key Points
4.6 RateWhat's inside?
Discover the science behind successful brands and learn the marketing strategies that most marketers overlook.
You'll learn
1. What makes a brand grow?2. Got brand loyalty?3. Why is market reach important?4. Does advertising really boost your brand?5. Is targeting specific markets a myth?6. Using availability to your brand's advantage.Key points
01You need more than just creativity to win at marketing. Think strategy, consumer understanding, and good communication
Many folks think of marketing as a wild west of creativity, where success is a matter of luck and trial and error. They see it as a field where you need to understand things like buyer psychology and the ins and outs of sales channels, and then just give it a whirl to see what sticks. But that's not the whole picture. This view misses the fact that marketing is also a science, not just an art. It's not some abstract, unpredictable field. It's a discipline with rules as solid and reliable as those in math or physics. Sure, creativity is important, but it's not the be-all and end-all. Knowing and applying the rules of marketing can lead to results you can bank on. These rules cover a lot of ground, from boosting sales and tracking brand growth to sizing up the competition. By getting a handle on these rules, marketers can forecast their results and up their odds of success. One of the big rules is the need for both physical and mental availability to build a strong brand. Brands that are easy to find and buy usually have a bigger piece of the market pie than lesser-known brands. So, marketers need to work on making their products stand out and be memorable to increase their physical and mental availability. This is just one of the many rules of marketing that show success isn't just about being creative, but also about knowing and using the rules of the game. So, while creativity is a key skill in marketing, it's not the only thing that matters. Knowing and using the rules of marketing can lead to results you can count on and boost your chances of success.
02Smart brands don't just sell more to the same people. They branch out to new markets and demographics
Let's talk about a key concept that successful brands use to grow - horizontal growth. What's that, you ask? Well, it's all about expanding your customer base. It's about reaching out to more people and turning them into buyers. This is different from vertical growth, which is about getting your current customers to buy more or more often. So why do successful brands focus on horizontal growth? The main reason is that it's a more sustainable and effective way to grow your market share. Think about it - the number of potential customers out there is usually much larger than the number of current customers you can convince to buy more. Let's use an example to make this clearer. Imagine two brands, let's call them Brand A and Brand B, both selling the same product. Brand A has 1000 customers who each buy the product 10 times a year, while Brand B has 500 customers who each buy the product 20 times a year. At first glance, it might seem like both brands are doing equally well since they both make 10,000 sales a year. But if you look closer, Brand A is actually in a better position. Why? Because Brand A has more customers. Even if each customer only buys the product 10 times a year, the sheer number of customers means that Brand A has a bigger market share and more potential for growth. Brand B, despite having customers who buy more often, has fewer customers and therefore less potential for growth. This example shows why successful brands focus on horizontal growth. By working on expanding their customer base, these brands can increase their market share and set themselves up for long-term success. Let's look at a real-world example to drive this point home. Coca-Cola, one of the most successful brands on the planet, has always focused on horizontal growth. Instead of trying to get current customers to drink more Coke, the company works on reaching out to new customers in different markets. This strategy has helped Coca-Cola become a global brand with a huge customer base. So, to wrap up, successful brands focus on horizontal growth because it's a more effective and sustainable way to grow market share. By working on expanding their customer base, these brands can ensure their long-term success. So, if you're looking to grow your brand, think about focusing on horizontal growth.
Continue reading with LeapAhead app
Full summary is waiting for you in the app
03Boosting sales isn't just about selling more. It's about understanding your market position and keeping your customers loyal
04Brands might seem like a necessary evil, but they're key. Everyone has a favorite brand they stick to
05Marketing is a breeze when your product fits the buyer's needs like a glove
06Brands don't become successful overnight. They go through several stages, each needing a different marketing approach
07Conclusion
About Professor Byron Sharp
Byron Sharp is a Professor of Marketing Science at the University of South Australia. He is also the Director of the Ehrenberg-Bass Institute, a world-renowned research institute focused on marketing. Sharp is known for his evidence-based approach to marketing and his influential book "How Brands Grow."
