Marketers and CEOs, how do you grow your brand or your company’s market share & sales volume? A few years ago, I posted on my blog titled ‘what is your marketing iq?’ which has all the answers. The answer is actually quite simple, so simple that most don’t know the answer. Most company would think that the answer is to get existing customers to increase their purchase frequency i.e. buy more from you or by increasing customer loyalty. This is why so many companies allocate a substantial amount of their marketing budgets towards customer loyalty program. But in fact, this is not true. The answer to growth is to actually get more customers or buyers. This is not too hard to understand, imagine there are a 1000 people in your market and you have 700 people who are your customers. This is 70% of the market share and thus making you the market leader. Having 100 out of a 1000 people buying multiples times from you still doesn’t change the fact that you only have 10% market share. Simple, isn’t it?
If you are interested to know more how about brands grow, you need to visit this website or buy this book from Professor Byron Sharp titled ‘How Brands Grow‘. There are alot of marketing knowledge from this book where most marketers don’t know:
1. Growth in market share comes by increasing popularity; that is by gaining more buyers (of all types), most of whom are light customers buying the brand only occasionally.
2. Brands, even though they are usually slightly differentiated, mainly compete as if they are near lookalikes; but they vary in popularity (and hence market share)
3. Brand competion and growth is largely about building two market based assets: physical availability and mental availability. Brands that are easier to buy – for more people, in more situations – have more market share. Innovation and differentiation (when they work) build market based assets, which last after competitors copy the innovation.