SlideShare a Scribd company logo
How Brands Grow
A summary.
Introduction
Upon hearing ‘How Brands Grow’ referenced & adhered to by several
of my clients, I decided to pull together this summary on Byron Sharp’s
ground-breaking and controversial book. The thoughts presented on the
following slides are his – I have my own thoughts and interpretations
which I will share separately.
What I will say is this. It is hard to disagree with science but it is easy to
over-simplify something as complex as human behaviour. What Byron
Sharp may not have accounted for and what science cannot yet study
is a fundamental change, driven by technology, in how people are
consuming media & shopping for / purchasing products.
Who is Byron Sharp?
Byron Sharp is a professor of Marketing
Sciences. A lot of what he challenges in his
ground-breaking book suggests that much
of what is learned in ‘traditional’ marketing
degrees is just theory. Mr Sharp however
applies rigorous scientific methodology
across a number of categories and verticals
(including but not limited to FMCG, finance
/ banking, airlines & loyalty programs) and
simplifies marketing principles down to 7
simple rules & 3 new marketing laws.
Mr. Sharp simplifies the real challenge of growing a
brand down to one thing: AVAILABILITY.
MENTAL AVAILABILITY PHYSICAL AVAILABILITY
‘How Brands Grow’ suggests that
brand consideration is not so much
‘considered’ as it is emotional which
means that being mentally available
when a consumer is shopping your
vertical is key but perhaps not as
complex as some marketers have
thought it in the past.
PSYCHOLOGY OF SHOPPING
Rational (Neo-mammalian)
Emotional (Mammalian)
Survival (Reptilian)
As marketers we like to think that
people put more thought into the
purchasing of a product than they
actually do. Byron Sharp suggests that
exercises in segmentation, brand
differentiation and personality are
mostly wasted effort. Because most
purchase decisions are made with
the emotional brain, Mr. Sharp
believes a marketer’s focus should be
on simple & consistent brand assets
that are easy to remember & when
seen, trigger instinctual responses.
No need for DIFFERENTIATION
Positioning determines the place a brand should occupy in the
consumer’s mind compared to the competition & “which functional
benefit in a given category is most valued by consumers & least
dominated by other brands”*.
The issue is, potentially because most consumers favour their emotional
brains in purchase decisions, most buyers don’t perceive brands as
having a difference OR that the difference actually matters when
buying them.
So what instead?
BE DISTINCT
Instead of focusing on differentiation and
creating ‘meaning’ in their consumers lives,
Mr. Sharp believes the key to success is
creating consistent & constantly used, easy-
to-remember brand assets which will over
time create distinctive memory structures
which bring the brand front-of-mind when a
consumer is shopping that category (mental
availability).
Distinctive brand assets are ones that are
memorable & attractive and provide sensory
& semantic cues. Examples include: logo,
tagline, jingle, colour & packaging.
DISTINCTIVE BRAND ASSETS
WHO BUYS YOUR BRAND?
It stands to reason that if brand
differentiation assumes customers
are more considered in their
purchase choices than they
actually are, that the same may
apply to segmentation. Sharp
confirms that in spite of their best
efforts to segment and target
different audiences to their
competitors, brands more often
than not, end up sharing
customer bases.
MARKET TO THE MASSES
How Brands Grow demonstrates
that successful growth brands (ones
with the highest market share) are
the ones with universal appeal and
the biggest customer
base. This suggests that it makes
more sense to advertise to
everyone in the market for a
product you sell rather than limiting
your communications to a small,
segmented audience.
LOYALTY VS PENETRATION?
True or False? 20% of your customers
represent 80% of your sales. Byron Sharp
says FALSE! After studying brand after
brand, category after category, the
number never got higher than 50/20.
He also studied loyalty programs and
determined that while they may work ‘a
little’, that they have minimal impact on
overall loyalty. For example – a person
who chooses a credit card based on the
QANTAS Frequent Flyer Points they can
earn may only choose to fly QANTAS
when they’ve accumulated enough
points to get an upgrade or a free flight
but not choose to fly with them over other
airlines on a regular basis.
72% of Coke drinkers
also buy Pepsi
Which means unless you have unlimited budget
(and if you do, please get in touch!), topping up
your leaky bucket and attracting new customers to
your brand will be far more cost effective than
investing into purchase frequency with existing
customers.
PENETRATION
NO PRICE PROMOTIONS
It goes without saying, a price promotion
will often lead to an immediate peak in
sales. BUT promotions have little impact on
long term sales & brand growth. In fact,
the sales increase during promotions is
often driven by brand loyalists and does
little to improve penetration.
Brands must recognise that choosing to
invest their budgets into price promotions is
more often than not an investment into the
relationship with the retailer and not into
their own long term brand growth.
BE ALWAYS ON
Like price promotions, Bryon Sharp
demonstrates how a big but short-term
burst of advertising will sometimes drive a
short lived increase in sales immediately
afterwards but that in the long-term this
approach does not drive brand growth.
Instead, he recommends continuously
reaching all buyers within a brand’s
category continuously. This ‘always-on’
strategy builds brand salience and ensures
the brand is always front of mind,
especially when it comes time to
purchase.
Of course, none of this means anything
unless your brand is physically available to
buy when your consumers are ready to
buy it! Not only does this mean distribution
through retail outlets but considering
alternative channels and accessibility
options. In one of his blogs Sharp notes that
Sainsbury’s experienced amazing growth
over the 2010 Christmas period. One
strategy they applied during this time was
to buy 12,000 tonnes of salt to put on their
car parks to ensure snow did not act as a
deterrent for customers!
BE WHERE THEY BUY
Byron Sharp’s 7 Rules for Brand Growth
1. Continuously reach all buyers of the category (communication
+ distribution) – don’t ever be silent.
2. Ensure the brand is easy to buy (communicate how it fits with
the user’s life).
3. Get noticed (grab attention & focus on brand salience to
prime the user’s mind).
4. Refresh & rebuild memory structures (respect existing
associations that make the brand easy to notice & easy to
buy)
5. Create & use distinctive brand assets (sensory cues that get
noticed & stay top of mind).
6. Be consistent (avoid unnecessary changes, whilst keeping
brand fresh & interesting).
7. Stay Competitive (keep the brand easy to buy & avoid giving
excuses not to buy).
Some Thought-Starters
• How have modern brands such as Amazon, Apple & eBay
achieved brand growth?
• Can mass marketing be achieved in alternative / non-TV
channels?
• Should loyalists be altogether discounted… or do they have a
role to play in advocacy?
• Does digital only play a role in mental availability or can it play
a role in physical as well?
Stay tuned for my follow-up thoughts on
the role digital has to play in How Brands
Grow!
THANK YOU!
Amie Weller Colbert
Digital Strategist
@thebondipantry
https://www.linkedin.com/in/amieweller
CREDITS
Sharp, Byron (2010). How Brands Grow. Oxford University Press
Cameron, Douglas (2010). Cultural Strategy. Oxford University Press
Icons :
Stamp by Franco Marino Cagnina from The Noun Project
Brain by Blake Ferguson from The Noun Project
Store by Rémy Médard from The Noun Project
Shopping Cart by John Caserta from The Noun Project
Soda Bottle by Alex Valdivia from The Noun Project
Group by Parmelyn from The Noun Project
Woman by Justin Alexander from The Noun Project
Book by Ben Rex Furneaux from The Noun Project
Discount by Ricardo Moreira from The Noun Project
Clock by Dmitry Baranovskiy from The Noun Project

More Related Content

What's hot

Creative Planning @ Miami Ad School
Creative Planning @ Miami Ad SchoolCreative Planning @ Miami Ad School
Creative Planning @ Miami Ad School
The Planning Lab
 
What's Next: Authenticity - The Struggle is Real
What's Next: Authenticity - The Struggle is RealWhat's Next: Authenticity - The Struggle is Real
What's Next: Authenticity - The Struggle is Real
Ogilvy Consulting
 
Creating a brand strategy
Creating a brand strategyCreating a brand strategy
Creating a brand strategy
Paolo Massimilla
 
How to write a killer agency creative brief
How to write a killer agency creative briefHow to write a killer agency creative brief
How to write a killer agency creative brief
David Bell
 
Brand Planning for Clients
Brand Planning for ClientsBrand Planning for Clients
Brand Planning for Clients
Griffin Farley
 
Brand Masterclass Week One
Brand Masterclass Week OneBrand Masterclass Week One
Brand Masterclass Week One
Idris Mootee
 
Strategic Planning & the Importance of Consumer insights
Strategic Planning & the Importance of Consumer insightsStrategic Planning & the Importance of Consumer insights
Strategic Planning & the Importance of Consumer insights
Karen Saba
 
Social Media Trends 2023 - MarketingTrips.pdf
Social Media Trends 2023 - MarketingTrips.pdfSocial Media Trends 2023 - MarketingTrips.pdf
Social Media Trends 2023 - MarketingTrips.pdf
MarketingTrips
 
Creating a beloved brand
Creating a beloved brandCreating a beloved brand
Creating a beloved brand
Beloved Brands Inc.
 
The value of brand
The value of brandThe value of brand
The value of brand
luciantrestler
 
What is Comms Planning?
What is Comms Planning?What is Comms Planning?
What is Comms Planning?
Julian Cole
 
Human Kind
Human KindHuman Kind
Human Kind
triso01
 
Integrated Digital Campaign Planning for L'Oréal
Integrated Digital Campaign Planning for L'OréalIntegrated Digital Campaign Planning for L'Oréal
Integrated Digital Campaign Planning for L'Oréal
Ronak Soni
 
How to Create a Killer Creative Brief with Wild Alchemy
How to Create a Killer Creative Brief with Wild AlchemyHow to Create a Killer Creative Brief with Wild Alchemy
How to Create a Killer Creative Brief with Wild Alchemy
United Adworkers
 
Creative Brief Workshop
Creative Brief WorkshopCreative Brief Workshop
Creative Brief Workshop
Beloved Brands Inc.
 
Digital Strategy Toolbox
Digital Strategy ToolboxDigital Strategy Toolbox
Digital Strategy Toolbox
Julian Cole
 
What is an insight?
What is an insight?What is an insight?
What is an insight?
Umar Ghumman
 
Brand Masterclass Week Five - Developing Brand Strategy (l)
Brand Masterclass Week Five - Developing Brand Strategy (l)Brand Masterclass Week Five - Developing Brand Strategy (l)
Brand Masterclass Week Five - Developing Brand Strategy (l)
Idris Mootee
 
What is consumer insight in advertising?
What is consumer insight in advertising?What is consumer insight in advertising?
What is consumer insight in advertising?
Aleksas Drozdovskis
 
Creative Business Ideas: 10 Years of Euro RSCG Breakthrough Thinking
Creative Business Ideas: 10 Years of Euro RSCG Breakthrough ThinkingCreative Business Ideas: 10 Years of Euro RSCG Breakthrough Thinking
Creative Business Ideas: 10 Years of Euro RSCG Breakthrough Thinking
EuroRSCGMoscow
 

What's hot (20)

Creative Planning @ Miami Ad School
Creative Planning @ Miami Ad SchoolCreative Planning @ Miami Ad School
Creative Planning @ Miami Ad School
 
What's Next: Authenticity - The Struggle is Real
What's Next: Authenticity - The Struggle is RealWhat's Next: Authenticity - The Struggle is Real
What's Next: Authenticity - The Struggle is Real
 
Creating a brand strategy
Creating a brand strategyCreating a brand strategy
Creating a brand strategy
 
How to write a killer agency creative brief
How to write a killer agency creative briefHow to write a killer agency creative brief
How to write a killer agency creative brief
 
Brand Planning for Clients
Brand Planning for ClientsBrand Planning for Clients
Brand Planning for Clients
 
Brand Masterclass Week One
Brand Masterclass Week OneBrand Masterclass Week One
Brand Masterclass Week One
 
Strategic Planning & the Importance of Consumer insights
Strategic Planning & the Importance of Consumer insightsStrategic Planning & the Importance of Consumer insights
Strategic Planning & the Importance of Consumer insights
 
Social Media Trends 2023 - MarketingTrips.pdf
Social Media Trends 2023 - MarketingTrips.pdfSocial Media Trends 2023 - MarketingTrips.pdf
Social Media Trends 2023 - MarketingTrips.pdf
 
Creating a beloved brand
Creating a beloved brandCreating a beloved brand
Creating a beloved brand
 
The value of brand
The value of brandThe value of brand
The value of brand
 
What is Comms Planning?
What is Comms Planning?What is Comms Planning?
What is Comms Planning?
 
Human Kind
Human KindHuman Kind
Human Kind
 
Integrated Digital Campaign Planning for L'Oréal
Integrated Digital Campaign Planning for L'OréalIntegrated Digital Campaign Planning for L'Oréal
Integrated Digital Campaign Planning for L'Oréal
 
How to Create a Killer Creative Brief with Wild Alchemy
How to Create a Killer Creative Brief with Wild AlchemyHow to Create a Killer Creative Brief with Wild Alchemy
How to Create a Killer Creative Brief with Wild Alchemy
 
Creative Brief Workshop
Creative Brief WorkshopCreative Brief Workshop
Creative Brief Workshop
 
Digital Strategy Toolbox
Digital Strategy ToolboxDigital Strategy Toolbox
Digital Strategy Toolbox
 
What is an insight?
What is an insight?What is an insight?
What is an insight?
 
Brand Masterclass Week Five - Developing Brand Strategy (l)
Brand Masterclass Week Five - Developing Brand Strategy (l)Brand Masterclass Week Five - Developing Brand Strategy (l)
Brand Masterclass Week Five - Developing Brand Strategy (l)
 
What is consumer insight in advertising?
What is consumer insight in advertising?What is consumer insight in advertising?
What is consumer insight in advertising?
 
Creative Business Ideas: 10 Years of Euro RSCG Breakthrough Thinking
Creative Business Ideas: 10 Years of Euro RSCG Breakthrough ThinkingCreative Business Ideas: 10 Years of Euro RSCG Breakthrough Thinking
Creative Business Ideas: 10 Years of Euro RSCG Breakthrough Thinking
 

Similar to How Brands Grow : A summary of Byron Sharp's book on what marketers don't know

The 10 most abused words in Marketing
The 10 most abused words in MarketingThe 10 most abused words in Marketing
The 10 most abused words in Marketing
Beloved Brands Inc.
 
The Power of a Big Idea for your Brand
The Power of a Big Idea for your BrandThe Power of a Big Idea for your Brand
The Power of a Big Idea for your Brand
Beloved Brands Inc.
 
Brand Management
Brand ManagementBrand Management
Brand Management
akbar bhatti
 
Map of Modern Brand Building
Map of Modern Brand BuildingMap of Modern Brand Building
Map of Modern Brand Building
Thanh Nhàn
 
Topic 2- Understanding the Customer Journey .ppt
Topic 2- Understanding the Customer Journey .pptTopic 2- Understanding the Customer Journey .ppt
Topic 2- Understanding the Customer Journey .ppt
JaySears2
 
Bridging the divide between brand and shopper marketing
Bridging the divide between brand and shopper marketingBridging the divide between brand and shopper marketing
Bridging the divide between brand and shopper marketing
TNS
 
Becoming a Leading Edge Brand Consultant
Becoming a Leading Edge Brand ConsultantBecoming a Leading Edge Brand Consultant
Becoming a Leading Edge Brand Consultant
Bridge Training and Events
 
Brand Positioning Pbm
Brand Positioning PbmBrand Positioning Pbm
Brand Positioning Pbm
GOEL'S WORLD
 
Functional and emotional benefits
Functional and emotional benefitsFunctional and emotional benefits
Functional and emotional benefits
Beloved Brands Inc.
 
For startups
For startupsFor startups
For startups
chevyandhika
 
Brand equity
Brand equityBrand equity
Brand equity
Ajilal
 
Brand equity
Brand equityBrand equity
Brand equity
Ajilal
 
Branding
BrandingBranding
THE BRAND - MiNi ENCYCLOPEDIA
THE BRAND - MiNi ENCYCLOPEDIATHE BRAND - MiNi ENCYCLOPEDIA
THE BRAND - MiNi ENCYCLOPEDIA
KACHARAGADLA MEDIA CORP
 
How to run a B2B brand
How to run a B2B brandHow to run a B2B brand
How to run a B2B brand
Beloved Brands Inc.
 
Branding Yourself and Your Business.pdf
Branding Yourself  and Your Business.pdfBranding Yourself  and Your Business.pdf
Branding Yourself and Your Business.pdf
anandjob26
 
MILTON AND CROSS Branding toolkit
MILTON AND CROSS Branding toolkitMILTON AND CROSS Branding toolkit
MILTON AND CROSS Branding toolkit
Chimezie Onwuama, MSc
 
Marketing Dossier.pdf
Marketing Dossier.pdfMarketing Dossier.pdf
Marketing Dossier.pdf
HardikPatel509103
 
451 Brand Bootcamp Deck
451 Brand Bootcamp Deck 451 Brand Bootcamp Deck
451 Brand Bootcamp Deck
AJ Gerritson
 
Brand management unit 1
Brand management unit 1Brand management unit 1
Brand management unit 1
Dnyan Bharti society/BMS,Dahanu
 

Similar to How Brands Grow : A summary of Byron Sharp's book on what marketers don't know (20)

The 10 most abused words in Marketing
The 10 most abused words in MarketingThe 10 most abused words in Marketing
The 10 most abused words in Marketing
 
The Power of a Big Idea for your Brand
The Power of a Big Idea for your BrandThe Power of a Big Idea for your Brand
The Power of a Big Idea for your Brand
 
Brand Management
Brand ManagementBrand Management
Brand Management
 
Map of Modern Brand Building
Map of Modern Brand BuildingMap of Modern Brand Building
Map of Modern Brand Building
 
Topic 2- Understanding the Customer Journey .ppt
Topic 2- Understanding the Customer Journey .pptTopic 2- Understanding the Customer Journey .ppt
Topic 2- Understanding the Customer Journey .ppt
 
Bridging the divide between brand and shopper marketing
Bridging the divide between brand and shopper marketingBridging the divide between brand and shopper marketing
Bridging the divide between brand and shopper marketing
 
Becoming a Leading Edge Brand Consultant
Becoming a Leading Edge Brand ConsultantBecoming a Leading Edge Brand Consultant
Becoming a Leading Edge Brand Consultant
 
Brand Positioning Pbm
Brand Positioning PbmBrand Positioning Pbm
Brand Positioning Pbm
 
Functional and emotional benefits
Functional and emotional benefitsFunctional and emotional benefits
Functional and emotional benefits
 
For startups
For startupsFor startups
For startups
 
Brand equity
Brand equityBrand equity
Brand equity
 
Brand equity
Brand equityBrand equity
Brand equity
 
Branding
BrandingBranding
Branding
 
THE BRAND - MiNi ENCYCLOPEDIA
THE BRAND - MiNi ENCYCLOPEDIATHE BRAND - MiNi ENCYCLOPEDIA
THE BRAND - MiNi ENCYCLOPEDIA
 
How to run a B2B brand
How to run a B2B brandHow to run a B2B brand
How to run a B2B brand
 
Branding Yourself and Your Business.pdf
Branding Yourself  and Your Business.pdfBranding Yourself  and Your Business.pdf
Branding Yourself and Your Business.pdf
 
MILTON AND CROSS Branding toolkit
MILTON AND CROSS Branding toolkitMILTON AND CROSS Branding toolkit
MILTON AND CROSS Branding toolkit
 
Marketing Dossier.pdf
Marketing Dossier.pdfMarketing Dossier.pdf
Marketing Dossier.pdf
 
451 Brand Bootcamp Deck
451 Brand Bootcamp Deck 451 Brand Bootcamp Deck
451 Brand Bootcamp Deck
 
Brand management unit 1
Brand management unit 1Brand management unit 1
Brand management unit 1
 

Recently uploaded

Unlocking Deliverability with Marketo Engage
Unlocking Deliverability with Marketo EngageUnlocking Deliverability with Marketo Engage
Unlocking Deliverability with Marketo Engage
GNW Consulting
 
Adult Services Ads _ Adult Search Engine Marketing _ Adult Ads.pdf
Adult Services Ads _ Adult Search Engine Marketing _ Adult Ads.pdfAdult Services Ads _ Adult Search Engine Marketing _ Adult Ads.pdf
Adult Services Ads _ Adult Search Engine Marketing _ Adult Ads.pdf
jorge638714
 
CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARECAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
solitaireshubham
 
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdfTAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
Social Samosa
 
"Crafting Interactive Metaverse Games: Development Solutions"
"Crafting Interactive Metaverse Games: Development Solutions""Crafting Interactive Metaverse Games: Development Solutions"
"Crafting Interactive Metaverse Games: Development Solutions"
Donna Lenk
 
Free Healthcare Marketing Plan for Healthcare professionals
Free Healthcare Marketing Plan for Healthcare professionalsFree Healthcare Marketing Plan for Healthcare professionals
Free Healthcare Marketing Plan for Healthcare professionals
Mazhar Shah
 
The Top 6 Facebook Ad Hacks of 2024, Targeting the Untargetable - Larry Kim
The Top 6 Facebook Ad Hacks of 2024, Targeting the Untargetable - Larry KimThe Top 6 Facebook Ad Hacks of 2024, Targeting the Untargetable - Larry Kim
The Top 6 Facebook Ad Hacks of 2024, Targeting the Untargetable - Larry Kim
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Chemical Industry- Rashtriya Chemical Fertilizers (RCF) .pptx
Chemical Industry- Rashtriya Chemical Fertilizers (RCF) .pptxChemical Industry- Rashtriya Chemical Fertilizers (RCF) .pptx
Chemical Industry- Rashtriya Chemical Fertilizers (RCF) .pptx
mayurparate000
 
Digital marketing strategist in Kerala I have a keen eye for analytics and da...
Digital marketing strategist in Kerala I have a keen eye for analytics and da...Digital marketing strategist in Kerala I have a keen eye for analytics and da...
Digital marketing strategist in Kerala I have a keen eye for analytics and da...
vineethoneteamsoluti
 
Uncovering Marketo Engage's Target Account Management
Uncovering Marketo Engage's Target Account ManagementUncovering Marketo Engage's Target Account Management
Uncovering Marketo Engage's Target Account Management
GNW Consulting
 
Do's and Don'ts: How to Pitch Your Press Release to Journalists
Do's and Don'ts: How to Pitch Your Press Release to JournalistsDo's and Don'ts: How to Pitch Your Press Release to Journalists
Do's and Don'ts: How to Pitch Your Press Release to Journalists
Aggregage
 
Distribution Decision concept by sandesh acharya (1).pptx
Distribution Decision concept by sandesh acharya (1).pptxDistribution Decision concept by sandesh acharya (1).pptx
Distribution Decision concept by sandesh acharya (1).pptx
SandeshAcharya17
 
10 Advantages and Disadvantages of Social Media Marketing in 2024
10 Advantages and Disadvantages of Social Media Marketing in 202410 Advantages and Disadvantages of Social Media Marketing in 2024
10 Advantages and Disadvantages of Social Media Marketing in 2024
Markonik
 
LinkedIn Marketing Plan for The Sparks Foundation.pdf
LinkedIn Marketing Plan for The Sparks Foundation.pdfLinkedIn Marketing Plan for The Sparks Foundation.pdf
LinkedIn Marketing Plan for The Sparks Foundation.pdf
The Sparks Foundation
 
Digital marketing metrics every one must know in 2024
Digital marketing metrics every one must know in 2024Digital marketing metrics every one must know in 2024
Digital marketing metrics every one must know in 2024
Digital Scape
 
How to Get High-Quality Backlinks in 2024
How to Get High-Quality Backlinks in 2024How to Get High-Quality Backlinks in 2024
How to Get High-Quality Backlinks in 2024
Jomer Gregorio
 
Brand Repositioning & Communication Presentation
Brand Repositioning & Communication PresentationBrand Repositioning & Communication Presentation
Brand Repositioning & Communication Presentation
Rajesh Math
 
Demystifying Attribution Reporting in Marketo Measure
Demystifying Attribution Reporting in Marketo MeasureDemystifying Attribution Reporting in Marketo Measure
Demystifying Attribution Reporting in Marketo Measure
GNW Consulting
 
Digital Marketing Trends, Experts Insights on How to Gain a Competitive Edge ...
Digital Marketing Trends, Experts Insights on How to Gain a Competitive Edge ...Digital Marketing Trends, Experts Insights on How to Gain a Competitive Edge ...
Digital Marketing Trends, Experts Insights on How to Gain a Competitive Edge ...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 

Recently uploaded (20)

Unlocking Deliverability with Marketo Engage
Unlocking Deliverability with Marketo EngageUnlocking Deliverability with Marketo Engage
Unlocking Deliverability with Marketo Engage
 
Adult Services Ads _ Adult Search Engine Marketing _ Adult Ads.pdf
Adult Services Ads _ Adult Search Engine Marketing _ Adult Ads.pdfAdult Services Ads _ Adult Search Engine Marketing _ Adult Ads.pdf
Adult Services Ads _ Adult Search Engine Marketing _ Adult Ads.pdf
 
CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARECAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
 
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdfTAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
 
"Crafting Interactive Metaverse Games: Development Solutions"
"Crafting Interactive Metaverse Games: Development Solutions""Crafting Interactive Metaverse Games: Development Solutions"
"Crafting Interactive Metaverse Games: Development Solutions"
 
Free Healthcare Marketing Plan for Healthcare professionals
Free Healthcare Marketing Plan for Healthcare professionalsFree Healthcare Marketing Plan for Healthcare professionals
Free Healthcare Marketing Plan for Healthcare professionals
 
The Top 6 Facebook Ad Hacks of 2024, Targeting the Untargetable - Larry Kim
The Top 6 Facebook Ad Hacks of 2024, Targeting the Untargetable - Larry KimThe Top 6 Facebook Ad Hacks of 2024, Targeting the Untargetable - Larry Kim
The Top 6 Facebook Ad Hacks of 2024, Targeting the Untargetable - Larry Kim
 
Chemical Industry- Rashtriya Chemical Fertilizers (RCF) .pptx
Chemical Industry- Rashtriya Chemical Fertilizers (RCF) .pptxChemical Industry- Rashtriya Chemical Fertilizers (RCF) .pptx
Chemical Industry- Rashtriya Chemical Fertilizers (RCF) .pptx
 
Digital marketing strategist in Kerala I have a keen eye for analytics and da...
Digital marketing strategist in Kerala I have a keen eye for analytics and da...Digital marketing strategist in Kerala I have a keen eye for analytics and da...
Digital marketing strategist in Kerala I have a keen eye for analytics and da...
 
Uncovering Marketo Engage's Target Account Management
Uncovering Marketo Engage's Target Account ManagementUncovering Marketo Engage's Target Account Management
Uncovering Marketo Engage's Target Account Management
 
Do's and Don'ts: How to Pitch Your Press Release to Journalists
Do's and Don'ts: How to Pitch Your Press Release to JournalistsDo's and Don'ts: How to Pitch Your Press Release to Journalists
Do's and Don'ts: How to Pitch Your Press Release to Journalists
 
Distribution Decision concept by sandesh acharya (1).pptx
Distribution Decision concept by sandesh acharya (1).pptxDistribution Decision concept by sandesh acharya (1).pptx
Distribution Decision concept by sandesh acharya (1).pptx
 
Social Media and Personal Branding - Bob Cargill
Social Media and Personal Branding - Bob CargillSocial Media and Personal Branding - Bob Cargill
Social Media and Personal Branding - Bob Cargill
 
10 Advantages and Disadvantages of Social Media Marketing in 2024
10 Advantages and Disadvantages of Social Media Marketing in 202410 Advantages and Disadvantages of Social Media Marketing in 2024
10 Advantages and Disadvantages of Social Media Marketing in 2024
 
LinkedIn Marketing Plan for The Sparks Foundation.pdf
LinkedIn Marketing Plan for The Sparks Foundation.pdfLinkedIn Marketing Plan for The Sparks Foundation.pdf
LinkedIn Marketing Plan for The Sparks Foundation.pdf
 
Digital marketing metrics every one must know in 2024
Digital marketing metrics every one must know in 2024Digital marketing metrics every one must know in 2024
Digital marketing metrics every one must know in 2024
 
How to Get High-Quality Backlinks in 2024
How to Get High-Quality Backlinks in 2024How to Get High-Quality Backlinks in 2024
How to Get High-Quality Backlinks in 2024
 
Brand Repositioning & Communication Presentation
Brand Repositioning & Communication PresentationBrand Repositioning & Communication Presentation
Brand Repositioning & Communication Presentation
 
Demystifying Attribution Reporting in Marketo Measure
Demystifying Attribution Reporting in Marketo MeasureDemystifying Attribution Reporting in Marketo Measure
Demystifying Attribution Reporting in Marketo Measure
 
Digital Marketing Trends, Experts Insights on How to Gain a Competitive Edge ...
Digital Marketing Trends, Experts Insights on How to Gain a Competitive Edge ...Digital Marketing Trends, Experts Insights on How to Gain a Competitive Edge ...
Digital Marketing Trends, Experts Insights on How to Gain a Competitive Edge ...
 

How Brands Grow : A summary of Byron Sharp's book on what marketers don't know

  • 1. How Brands Grow A summary.
  • 2. Introduction Upon hearing ‘How Brands Grow’ referenced & adhered to by several of my clients, I decided to pull together this summary on Byron Sharp’s ground-breaking and controversial book. The thoughts presented on the following slides are his – I have my own thoughts and interpretations which I will share separately. What I will say is this. It is hard to disagree with science but it is easy to over-simplify something as complex as human behaviour. What Byron Sharp may not have accounted for and what science cannot yet study is a fundamental change, driven by technology, in how people are consuming media & shopping for / purchasing products.
  • 3. Who is Byron Sharp? Byron Sharp is a professor of Marketing Sciences. A lot of what he challenges in his ground-breaking book suggests that much of what is learned in ‘traditional’ marketing degrees is just theory. Mr Sharp however applies rigorous scientific methodology across a number of categories and verticals (including but not limited to FMCG, finance / banking, airlines & loyalty programs) and simplifies marketing principles down to 7 simple rules & 3 new marketing laws.
  • 4. Mr. Sharp simplifies the real challenge of growing a brand down to one thing: AVAILABILITY. MENTAL AVAILABILITY PHYSICAL AVAILABILITY
  • 5. ‘How Brands Grow’ suggests that brand consideration is not so much ‘considered’ as it is emotional which means that being mentally available when a consumer is shopping your vertical is key but perhaps not as complex as some marketers have thought it in the past.
  • 6. PSYCHOLOGY OF SHOPPING Rational (Neo-mammalian) Emotional (Mammalian) Survival (Reptilian) As marketers we like to think that people put more thought into the purchasing of a product than they actually do. Byron Sharp suggests that exercises in segmentation, brand differentiation and personality are mostly wasted effort. Because most purchase decisions are made with the emotional brain, Mr. Sharp believes a marketer’s focus should be on simple & consistent brand assets that are easy to remember & when seen, trigger instinctual responses.
  • 7. No need for DIFFERENTIATION Positioning determines the place a brand should occupy in the consumer’s mind compared to the competition & “which functional benefit in a given category is most valued by consumers & least dominated by other brands”*. The issue is, potentially because most consumers favour their emotional brains in purchase decisions, most buyers don’t perceive brands as having a difference OR that the difference actually matters when buying them. So what instead?
  • 8. BE DISTINCT Instead of focusing on differentiation and creating ‘meaning’ in their consumers lives, Mr. Sharp believes the key to success is creating consistent & constantly used, easy- to-remember brand assets which will over time create distinctive memory structures which bring the brand front-of-mind when a consumer is shopping that category (mental availability). Distinctive brand assets are ones that are memorable & attractive and provide sensory & semantic cues. Examples include: logo, tagline, jingle, colour & packaging.
  • 10. WHO BUYS YOUR BRAND? It stands to reason that if brand differentiation assumes customers are more considered in their purchase choices than they actually are, that the same may apply to segmentation. Sharp confirms that in spite of their best efforts to segment and target different audiences to their competitors, brands more often than not, end up sharing customer bases.
  • 11. MARKET TO THE MASSES How Brands Grow demonstrates that successful growth brands (ones with the highest market share) are the ones with universal appeal and the biggest customer base. This suggests that it makes more sense to advertise to everyone in the market for a product you sell rather than limiting your communications to a small, segmented audience.
  • 12. LOYALTY VS PENETRATION? True or False? 20% of your customers represent 80% of your sales. Byron Sharp says FALSE! After studying brand after brand, category after category, the number never got higher than 50/20. He also studied loyalty programs and determined that while they may work ‘a little’, that they have minimal impact on overall loyalty. For example – a person who chooses a credit card based on the QANTAS Frequent Flyer Points they can earn may only choose to fly QANTAS when they’ve accumulated enough points to get an upgrade or a free flight but not choose to fly with them over other airlines on a regular basis. 72% of Coke drinkers also buy Pepsi
  • 13. Which means unless you have unlimited budget (and if you do, please get in touch!), topping up your leaky bucket and attracting new customers to your brand will be far more cost effective than investing into purchase frequency with existing customers. PENETRATION
  • 14. NO PRICE PROMOTIONS It goes without saying, a price promotion will often lead to an immediate peak in sales. BUT promotions have little impact on long term sales & brand growth. In fact, the sales increase during promotions is often driven by brand loyalists and does little to improve penetration. Brands must recognise that choosing to invest their budgets into price promotions is more often than not an investment into the relationship with the retailer and not into their own long term brand growth.
  • 15. BE ALWAYS ON Like price promotions, Bryon Sharp demonstrates how a big but short-term burst of advertising will sometimes drive a short lived increase in sales immediately afterwards but that in the long-term this approach does not drive brand growth. Instead, he recommends continuously reaching all buyers within a brand’s category continuously. This ‘always-on’ strategy builds brand salience and ensures the brand is always front of mind, especially when it comes time to purchase.
  • 16. Of course, none of this means anything unless your brand is physically available to buy when your consumers are ready to buy it! Not only does this mean distribution through retail outlets but considering alternative channels and accessibility options. In one of his blogs Sharp notes that Sainsbury’s experienced amazing growth over the 2010 Christmas period. One strategy they applied during this time was to buy 12,000 tonnes of salt to put on their car parks to ensure snow did not act as a deterrent for customers! BE WHERE THEY BUY
  • 17. Byron Sharp’s 7 Rules for Brand Growth 1. Continuously reach all buyers of the category (communication + distribution) – don’t ever be silent. 2. Ensure the brand is easy to buy (communicate how it fits with the user’s life). 3. Get noticed (grab attention & focus on brand salience to prime the user’s mind). 4. Refresh & rebuild memory structures (respect existing associations that make the brand easy to notice & easy to buy) 5. Create & use distinctive brand assets (sensory cues that get noticed & stay top of mind). 6. Be consistent (avoid unnecessary changes, whilst keeping brand fresh & interesting). 7. Stay Competitive (keep the brand easy to buy & avoid giving excuses not to buy).
  • 18. Some Thought-Starters • How have modern brands such as Amazon, Apple & eBay achieved brand growth? • Can mass marketing be achieved in alternative / non-TV channels? • Should loyalists be altogether discounted… or do they have a role to play in advocacy? • Does digital only play a role in mental availability or can it play a role in physical as well?
  • 19. Stay tuned for my follow-up thoughts on the role digital has to play in How Brands Grow!
  • 20. THANK YOU! Amie Weller Colbert Digital Strategist @thebondipantry https://www.linkedin.com/in/amieweller
  • 21. CREDITS Sharp, Byron (2010). How Brands Grow. Oxford University Press Cameron, Douglas (2010). Cultural Strategy. Oxford University Press Icons : Stamp by Franco Marino Cagnina from The Noun Project Brain by Blake Ferguson from The Noun Project Store by Rémy Médard from The Noun Project Shopping Cart by John Caserta from The Noun Project Soda Bottle by Alex Valdivia from The Noun Project Group by Parmelyn from The Noun Project Woman by Justin Alexander from The Noun Project Book by Ben Rex Furneaux from The Noun Project Discount by Ricardo Moreira from The Noun Project Clock by Dmitry Baranovskiy from The Noun Project

Editor's Notes

  1. Icon Credit: Stamp by Franco Marino Cagnina from The Noun Project
  2. Icon Credit: Brain by Blake Ferguson from The Noun Project Icon Credit: Store by Rémy Médard from The Noun Project
  3. Icon Credit: Brain by Blake Ferguson from The Noun Project
  4. Icon Credit: Shopping Cart by John Caserta from The Noun Project
  5. *Reference: Cameron, Douglas (2010). Cultural Strategy. Oxford University Press
  6. Icon Credit: Soda Bottle by Alex Valdivia from The Noun Project
  7. Icon Credit: Soda Bottle by Alex Valdivia from The Noun Project
  8. Icon Credit: Woman by Justin Alexander from The Noun Project Icon Credit: Book by Ben Rex Furneaux from The Noun Project
  9. Icon Credit: Group by Parmelyn from The Noun Project
  10. Icon Credit: Discount by Ricardo Moreira from The Noun Project
  11. Icon Credit: Clock by Dmitry Baranovskiy from The Noun Project
  12. Icon Credit: Store by Rémy Médard from The Noun Project