Think you’ve got marketing all figured out? Highly-targeted approach – check. A focus on brand loyalty and brand attitudes – check.If these are top of your list when planning an advertising and communications strategy, then you’re probably guilty of making 4 false assumptions that commonly mislead marketers. Bust these 4 marketing myths and start boosting your sales!
#1 Targeting is always the best idea
The common client brief that lands on our desks will usually specify the brand’s target market. And it’s usually a very narrow segment —think 25-40 years old, well-educated female hedonists…who wear yellow every second Friday. Great, so we have a target! BUT by determining such a narrow segment, marketers immediately limit the number of their potential buyers.
Why? Let’s say you’ve identified potential category buyers. According to the ABS 51% of them are female, and of this about 20% fall between 25-40 yrs. But how many of them can be considered well educated? 3%?
So once you’ve boiled it down, can 3% of the potential category buyers generate enough sales to grow a brand? Not really.
#2 The heaviest brand buyers contribute the most to sales
According to the 80:20 rule, the top 20% of brand buyers’ contribution to sales is 80%. But it may surprise you to know that empirical research shows that in most markets the heavy buyers’ and light buyers’ contribution to sales is actually exactly the same at 50%.
In fact, the light buyers (who have bought the brand once or twice before) represent a larger number in the customer base.
So to be able to achieve the most common client business objective (to generate sales), the marketing communications activities should aim for this significant group of people.
#3 So agencies should focus on building loyalty through campaigns…
Nope! Or at least loyalty building shouldn’t be the foremost goal of marketers if they want to grow their brands.
Why? Marketing activations focusing on loyalty building reach mainly the heavy buyers (who have already been loyal to the brand) —that’s why they have bought it 3-4+ times. But do these buyers have any more of a need to satisfy?
#4 …and of course promote positive brand attitudes
Brand attitudes are an evaluation of the brand; they can vary from very positive to negative. While all marketers want to encourage and promote positive brand attitudes – advertising that focuses solely on telling people how great the brand is often neglects to consider the customer!
The overarching goal of all marketers should be to get the customers to ultimately choose their brand when they are in a buying situation, right?
So instead of just focusing on strengthening the positive feelings of customers about a brand, campaigns should focus on implanting right links to critical consumption occasions.
Does your company need some help with marketing strategy? For more details on how to achieve your marketing objectives, contact us!