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Be Afraid Of The Marketing Gospel

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I recently gave his presentation. It dispels some of today's popular, but baseless marketing myths and provides a path forward to brand growth. We should all thank Professor Byron Sharp and his colleagues from the Ehrenberg Institute in Australia for keeping it real.

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Be Afraid Of The Marketing Gospel

  1. 1. BE  AFRAID  OF  THE     MARKETING  GOSPEL   By  Nigel  Rahimpour,  Planning  Director  
  2. 2. FOREWORD   This  Presenta=on  Dispels  Today's  Popular,   But  Baseless  Marke=ng  Myths     And  Provides  A  Path  Forward     To  Brand  Salience  And     Growth  Supported  By     Marke=ng  Science.  
  3. 3. MARKETING  GURUS  HAVE  BEEN  SAYING  FOR  YEARS:   “People  want  to  interact  with  brands”   “People  want  to  join  brands”   “People  seek  rela6onships  with  brands”  
  4. 4. HOWEVER,  A  RECENT  FORRESTER  STUDY  SUGGESTS:   Source:  Forrester  Q1  2014  US  Top  50  Brands  Social  WebTrack   “People  don’t  engage  with  branded     social  content  very  o;en”    
  5. 5. %  OF  BRAND  FANS  INTERACTING     WITH  BRAND  POSTS:   FACEBOOK          TWITTER     0.7%     0.3%     Source:  Forrester  Q1  2014  US  Top  50  Brands  Social  WebTrack  
  6. 6. AGAIN,  THESE  ARE  NOT  RANDOM  PEOPLE,     BUT  SO-­‐CALLED  BRAND  FANS    
  7. 7. =  %  of  Facebook  fans   who  interact  with  posts   of  the  brand  they  are   fans  of   THE  DISMAL  INTERACTION  RATES  ARE     CONFIRMED  BY  THE  EHRENBERG  INSTITUTE   0.5%     Source:  Facebook  fans:  A  fan  for  life?  Karen  Nelson  –  Field  and  Jennifer  Taylor  
  8. 8. PASSION  BRANDS  DON’T  FARE  MUCH  BETTER   Source:  Facebook  fans:  A  fan  for  life?  Karen  Nelson  –  Field  and  Jennifer  Taylor   Even  Facebook   fans  don’t  talk   much  about   Facebook  
  9. 9. PART  OF  THE  PROBLEM  IS  THAT  MARKETING  TREATS   SOCIAL  CHANNELS  LIKE  PAID  MEDIA  
  10. 10. This  app  shows  you  how  to  turn     a  Corona  Upside  Down  to     make  the  PERFECT  beer.   A  LOT  OF  WHAT  IS  CREATED  DOESN’T     MAP  BACK  TO  REAL  LIFE  
  11. 11.   “Almost  every  app  built  for  a  brand   on  Facebook  has  NO  usage.       Heavy,  immersive  experiences  are   NOT  how  people  engage  and   interact  with  brands.”     Paul  Adams,  Facebook’s  Ex-­‐Global   Head  Of  Brand  Design  
  12. 12. Source:  Google   PEOPLE  HAVE  BIGGER  INTERESTS  THAN  BRANDS   The  World’s  Top  10  Searches  Do  Not  Include  A  Single  Brand  
  13. 13. Source:  Meaningful  Brands,    Havas  Media  Group   IN  EUROPE  AND  THE  US,  PEOPLE  WOULD  NOT     CARE  IF  92%  OF  BRANDS  DISAPPEARED  
  14. 14. 77%  OF  CONSUMERS  ADMIT  THEY  HAVE     NO  RELATIONSHIP  WITH  A  BRAND     Source:  Corporate  Execu=ve  Board    
  15. 15. 77%  OF  CONSUMERS  ADMIT  THEY  HAVE     NO  RELATIONSHIP  WITH  A  BRAND     “MOST  OF  US  GO  THROUGH   LIFE  FINDING  IT  HARD   ENOUGH  TO  HAVE  GOOD   RELATIONSHIPS   WITH  THE  REAL  PEOPLE  IN   OUR  LIFE,  LET  ALONE  ALL  THE   BRANDS  WE  BUY.”   Bruce  McColl,  chief  marke=ng  officer  of  Mars    
  16. 16. Source:  Byron  Sharp  “How  Brands  Grow”   BRAND  LOYALTY  TENDS  TO  BE  POLYGAMOUS   “Buyers  typically  have  a  number  of   brands  they  rou6nely  buy”  
  17. 17. HALF  THE  PEOPLE  WHO  DESCRIBED  THEMSELVES  AS     BRAND  LOYAL  WERE  NOT  LOYAL  A  YEAR  LATER     Source:  NPD  Group  
  18. 18. Source:  Byron  Sharp  “How  Brands  Grow”  TNS  UK     72%  OF  PEPSI  USERS  ALSO  BUY  COKE    
  19. 19. Source:  TNS  UK     72%  OF  PEPSI  USERS  ALSO  BUY  COKE     Source:  Byron  Sharp  “How  Brands  Grow”  TNS  UK     37%  OF  HÄAGEN  DAZS  CUSTOMERS     ALSO  BUY  CARTE  D’OR  
  20. 20. WHAT  WE  LEARN  ARE  THREE  THINGS:     1.  Deep  brand  engagement  is  not  a  mass-­‐market   occurrence,  but  an  occupa=on  of  the  few.     2.  Heavy,  =me-­‐intensive  brand  experiences  have  liile  in   common  with  the  way  people  want  to  use  brands.     3.  Simply  assuming  that  people  want  to  engage  with   brands  is  a  recipe  for  failure.    
  21. 21. ACCEPTING  THAT  PEOPLE  DON’T  CARE  MUCH   ABOUT  BRANDS  MIGHT  SERVE  US  BETTER!    
  22. 22. IT  WILL  RAISE  THE  CREATIVE  BAR  
  23. 23. AS  THESE  BRANDS  HAVE  DONE  
  24. 24. THEY  SHOT  FOR     FAME  
  25. 25. SINCE  CAMPAIGNS  THAT  TARGET  FAME  ACHIEVE   LARGER  BUSINESS  EFFECTS   %  repor9ng  very     large  effects  on:     Sales     Market  share     Profit     Penetra=on     Loyalty     Price  sensi=vity     Campaigns  aiming  to   build  brand  fame     55%  (+)     40  (++)     28%     35%     16%  (+)     6%       Campaigns  aiming  to     build  brand  awareness     51%     34%     22%     31%      8%    (-­‐)     4%   Source:  Marke=ng  in  the  era  of  accountability,    2008  
  26. 26. THEY  TOOK  INTEREST  IN  WHAT     PEOPLE  ARE  INTERESTED  IN…   (As  opposed  to  the  other  way  around)  
  27. 27. DEVELOPED  HIGHLY  EMOTIVE  CONTENT,   (As  opposed  to  highly  func=onal)   Source:  Karen  Nelson-­‐Field  “Viral  Marke=ng  –  The  Science  Of  Sharing”  
  28. 28. BECAUSE  CREATIVE  THAT  ELICITS  HIGH  AROUSAL   EMOTIONS  GAINS  TWICE  AS  MUCH  SHARING   Source:  Karen  Nelson-­‐Field  “Viral  Marke=ng  –  The  Science  Of  Sharing”  
  29. 29. THEY  MADE  IT  EASY  TO  INTERACT  WITH…   (As  opposed  to  heavy  &  complicated)  
  30. 30. AS  MOST  PEOPLE’S  PARTICIPATION  IS  “EASY”   (i.e.  sharing  photos,  checking  news,  watching  video)   Source:  BBC  Online  Spring  Briefing  May  2012   Friends,  family  &  photos   TV,  Entertainment,  Lifestyle  
  31. 31. THEY  GAVE  IT  STRONG  PAID  MEDIA  SUPPORT   (As  opposed  to  hoping  it  will  be  discovered)  
  32. 32. BECAUSE  CONTENT  VIEWED  BY  FEW  PEOPLE     CAN’T  BE  SHARED  BY  MANY  
  33. 33. AFTER  ALL,  90%  OF  VIEWERS  DON’T  SHARE   Source:  Karen  Nelson-­‐Field  “Viral  Marke=ng  –  The  Science  Of  Sharing”  
  34. 34. Source:  Karen  Nelson-­‐Field  “Viral  Marke=ng  –  The  Science  Of  Sharing”   HITTING  THE  RIGHT  TARGET  IS  ESSENTIAL  
  35. 35. 20     16     12     8     4     0   1    2    3    4      .          .        .    .        .        .      .    .      .        .      .        .      .      .      .        .      .        .        .      .      .        .        .      .      .      .          50     Percentage  of  Coke  buyers  buying  Coke  X  =mes  in  the  U.S.   Number  of  purchases   Source:  Nielsen  USA  from  Karen  Nelson-­‐Field  “Viral  Marke=ng  –  The  Science  Of  Sharing”   LIGHT  BUYERS  MATTER  FOR  BRAND  GROWTH   Light  Buyers’   impact  on  sales  
  36. 36.     50     38     25     13     0   1    2    3    4    5    6    .        .        .        .          .    12    .      .        .      .        .      .      .      .        .      .    .   Percentage  of  Kellogg’s  Special  K  buyers  buying  Kellogg’s  Special  K  X  =mes  in  the  U.K.   Number  of  purchases   THIS  IS  PROVEN  ACROSS  CATEGORIES     Source:  Kantar  WorldPanel  UK  from  Karen  Nelson-­‐Field  “Viral  Marke=ng  –  The  Science  Of  Sharing”   Light  Buyers’   impact  on  sales  
  37. 37. 12.500     9.375     6.250     3.125     0   1      2      3      4      5      6    7  8    9   Number  (millions)  of  Pantene  buyers  buying  Pantene  X  =mes  in  the  U.S.   Number  of  purchases   EVEN  FOR  HAIR  CARE   -­‐  -­‐   -­‐  -­‐   -­‐  -­‐   Source:  John  Dawes  Panel  Data  provided  by  Mar=n  Weigel  Canalside     Light  Buyers’   impact  on  sales  
  38. 38. Source:  Karen  Nelson-­‐Field  “Viral  Marke=ng  –  The  Science  Of  Sharing”   LIGHT  BUYERS  ARE  LESS  LIKELY  TO  BE  FOUND  ON     BRAND  SITES,  WHICH  HEAVY  BUYERS  DOMINATE  
  39. 39. THIS  IS  WHY  SUCCESSFUL  BRANDS  ADVERTISE   BEYOND  OWNED  CHANNELS  
  40. 40. IN  CREATIVELY  POPULIST  WAYS…  
  41. 41. WITH  THE  GOAL  OF  BUILDING  NEW  AND   REINFORCING  OLD  MEMORY  STRUCTURES…  
  42. 42. IT’S  ALL  PART  OF  A  BIGGER  PLAN  TO  DRIVE     MENTAL  AVAILABILITY,  WHICH  IS  KEY  TO     GROWING  MARKET  SHARE  
  43. 43. THIS  IS  DONE  THROUGH  STRONG  INCREASES     IN  PENETRATION,  NOT  LOYALTY   Source:  Byron  Sharp  “How  Brands  Grow”,  TNS  UK   Detergent  Brands   Market  Share  %   Annual  Market   Penetra9on  %   Purchase   Frequency  (Avg.)   Persil   22   41   3.9   Ariel   14   26   3.9   Bold   10   19   3.8   Daz   9   17   3.7   Surf   8   17   3.4   Average   3.7   Purchase  frequency  does  not  vary  much  between  the  top  and  boiom   brand.  But  penetra=on  does,  which  is  what  drives  market  share!   Purchase  frequency  doesn’t  vary  much  Penetra=on  varies  a  lot  
  44. 44. Source:  Byron  Sharp  “How  Brands  Grow”,  TNS  UK,  Nielsen  USA   AS  SEEN  ACROSS  CATEGORIES     I.E.  SHAMPOO  U.S.   Purchase  frequency  does  not  vary  much  between  the  top  and  boiom   brand.  But  penetra=on  does,  which  is  what  drives  market  share!   Shampoo  Brands   Market  Share  %   Annual  Market   Penetra9on  %   Purchase   Frequency  (Avg)   Suave  Naturals   12   19   2.0   Pantene  Pro-­‐V   10   16   1.9   Alberto  VO5   6   11   1.6   Garnier  Fruc=s   5   9   1.7   Dove   4   8   1.5   Finesse   1   2   1.4   Average   1.7   Purchase  frequency  doesn’t  vary  much  Penetra=on  varies  a  lot  
  45. 45. Source:  Byron  Sharp  “How  Brands  Grow”,  TNS  UK,  Nielsen  USA   …AND  COUNTRIES  :  I.E.  SHAMPOO  U.K.   Purchase  frequency  does  not  vary  much  between  the  top  and  boiom   brand.  But  penetra=on  does,  which  is  what  drives  market  share!   Shampoo  Brands   Market  Share  %   Annual  Market   Penetra9on  %   Purchase   Frequency  (Avg)   Head  &  Shoulders   11   13   2.3   Pantene   9   11   2.3   Herbal  Essences   5   8   1.8   L’Oreal  Elvive   5   8   1.9   Dove   5   9   1.6   Sunsilk   5   8   1.7   Vosene   2   3   1.7   Average   1.9   Purchase  frequency  doesn’t  vary  much  Penetra=on  varies  a  lot  
  46. 46. BOTTOM  LINE:     YOUR  BRAND’S  HEALTH  DEPENDS  ON   LOTS  OF  PEOPLE     WHO  DON’T  KNOW  YOU  WELL,     DON’T  THINK  OF  YOU  MUCH   AND  DON’T  BUY  YOU  OFTEN,     IF  AT  ALL.   Mar6n  Weigel  
  47. 47. REACHING  ALL  BUYERS  IS  VITAL.       TO  INCREASE  AND  MAINTAIN  BRAND  GROWTH,   LIGHT  &  NON-­‐BUYERS  MATTER,  NOT  JUST  LOYALS.       SHOOT  FOR  FAME  AND  USE  HIGHLY  EMOTIVE     CONTENT  BASED  ON  PEOPLE’S  INTERESTS,     THAT  IS  EASY  TO  INTERACT  WITH,   BACKED  BY  A  STRONG  MEDIA-­‐BUY     AND  DISTRIBUTED  FAR  BEYOND     BRAND  COMMUNITIES.    
  48. 48. Nigel  Rahimpour   Planning  Director   Nigel.Rahimpour@gmail.com     THANK  YOU!  

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