Title: How Brands Grow: What Marketers Don’t Know
Author: Byron Sharp
Published: 2010
Category: Brand Management

Byron Sharp’s “How Brands Grow: What Marketers Don’t Know” challenges many traditional marketing theories and offers a science-based approach to understanding brand growth. Sharp’s insights are drawn from empirical evidence on purchasing behavior and form a foundation for creating sustainable brand strategies. Key points focus on the statistical patterns of consumer behavior and actionable strategies for marketers to drive brand growth.

Key Point: The Law of Double Jeopardy states that smaller brands not only have fewer buyers, but these buyers are also less loyal compared to those of larger brands.

Action: Focus on increasing market penetration rather than trying to boost the loyalty of existing customers.

Example: Coca-Cola versus Pepsi. Coca-Cola, being the larger brand, not only has a greater number of buyers but also enjoys higher repeat purchases compared to Pepsi.

Key Point: Brands grow by being easy to buy and being remembered by consumers. This translates to high mental and physical availability.

Action: Invest in widespread distribution and distinctive brand assets that make the brand easy to recognize and choose.

Example: McDonald’s golden arches and consistent global presence ensure that consumers encounter the brand frequently, making it mentally and physically available.

Key Point: Differentiation is less significant than marketers are taught to believe; instead, ensuring distinctiveness is key.

Action: Focus on creating and maintaining distinctive brand attributes, such as logos and packaging, that are easily recognizable.

Example: Apple’s unique logo and sleek product design make its products easily distinguishable from competitors, contributing significantly to its market presence.

Key Point: Growth comes from acquiring more light buyers rather than merely trying to increase the purchase frequency of heavy buyers.

Action: Design marketing campaigns that appeal broadly to the entire market, not just high-value segments.

Example: Procter & Gamble (P&G) runs extensive household product ads addressing general consumer needs, aiming to attract a diverse audience rather than targeting niche market segments.

Key Point: Brands should aim to create strong memory structures through consistent, often repeated marketing communications to build and reinforce brand recall.

Action: Employ consistent branding messages and visual cues across all marketing platforms to build and strengthen brand memory structures.

Example: Nike’s Just Do It campaign has employed the same slogan and tone for years, helping the brand stay top-of-mind for consumers.

Key Point: Category Entry Points are specific contexts or situations where a brand should be recalled by a consumer. They are crucial moments for influencing brand choice.

Action: Identify and target your primary Category Entry Points effectively through marketing communications.

Example: For beer brands, CEPs include occasions such as parties, BBQs, and sports events. Brands like Budweiser actively advertise during sports broadcasts to leverage these moments.

Key Point: Consistency in marketing and brand presentation is more critical than continuously seeking radical innovations.

Action: Maintain a consistent message and visual identity across all marketing materials and advertising campaigns.

Example: Coca-Cola has maintained its core brand elements such as its logo and the red color scheme for decades, capitalizing on brand recognition and consistency.

Key Point: Online advertising should not be viewed as a separate entity but as part of an integrated marketing strategy that encompasses multiple channels.

Action: Integrate online advertising with traditional marketing efforts to ensure a seamless brand experience.

Example: Amazon’s advertising strategy uses data-driven ads online while also investing in traditional media like TV to reach a wider audience.

Key Point: Sales promotions can be useful for short-term boosts but should not be relied upon for long-term brand growth, which is driven by penetration.

Action: Use promotions strategically and sparingly, ensuring they do not compromise the brand’s perceived value.

Example: L’Oréal uses occasional discounts and promotions to attract new buyers but heavily invests in consistent brand advertising to build long-term growth.

Key Point: Mass marketing remains the most effective approach for driving penetration and reaching a broad audience.

Action: Employ mass marketing tactics, such as TV ads, digital ads, and outdoor advertising, to maintain broad reach and brand visibility.

Example: Pepsi’s high-profile Super Bowl ads aim to reach a vast audience, emphasizing the brand’s presence in the market.

Key Point: Focus on long-term brand equity measures rather than short-term sales bumps to achieve sustained brand growth.

Action: Allocate budget towards activities that build brand equity even if they do not deliver immediate sales results.

Example: Lego’s branding efforts include extensive collaborations and sponsorships to maintain its brand equity over time, even when these do not result directly in immediate sales.

By emphasizing empirical data and behavioral science, “How Brands Grow” provides a compelling case for revisiting traditional marketing strategies. Marketers are advised to prioritize reach, visibility, and mental availability over narrow targeting and differentiation. Investing in consistent, mass-market advertising and focusing on light buyers can significantly contribute to long-term brand growth.

In summary, Sharp’s book is a call to action for brands to rethink established marketing ideologies and adopt a more evidence-based approach to brand management, ensuring sustainable growth and increased market share.