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How Brands Grow

summary ofHow Brands GrowBook by Professor Byron Sharp

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You’ll learn

  • Why big brands aren't better loved
  • Who your most valuable customers really are
  • When keeping customers is the wrong goal
  • Why great ads still fail to sell

first KEY POINT

The science behind bigger brands

Some brands become household names. Others stay small even when customers like them, the product works, and the marketing looks perfectly sensible. You can probably name one of each. The usual explanations focus on what makes the winners special. They've got stronger loyalty, sharper positioning, a better-defined audience, or customers who feel attached to the brand.Byron Sharp starts somewhere else entirely, with what people actually buy. He drew on huge sets of purchasing data across categories, countries, and years. The same patterns kept showing up, often across brands that seem to have nothing else in common.Those patterns don't sit well with many familiar assumptions about loyalty, targeting, differentiation, and advertising. Some ideas that sound sophisticated turn out to matter far less than you'd expect. It's much simpler factors that do most of the work in deciding whether a brand stays small or grows.This summary follows Sharp's answer through the data, the marketing myths it unsettles, and the rules that emerge once those patterns become visible.

second KEY POINT

Why loyalty isn't enough

Every category has its giant, and everyone has a theory about how it got there. Usually, that theory involves loyalty. Somewhere behind a dominant market share, we assume, there's a devoted group of customers who keep choosing the same brand and rarely stray.Take two British laundry brands, Persil and Surf. One's a household name at home; one isn't. Persil was roughly a fifth of the laundry aisle, and Surf was a sliver of it. If Persil's lead came from stronger loyalty, its customers should have been buying it far more often. They weren't.Over a year, Persil buyers bought it 3.9 times on average, and Surf buyers bought it 3.4 times. That's barely a gap. The real difference was how many households bought at all. About 41% bought Persil, against 17% for Surf.Sharp's name for this pattern is the double jeopardy law. Smaller brands suffer in two ways: they have fewer buyers, and those buyers tend to purchase them slightly less often. Both matter, but it's the first one that does the damage. The same thing shows up in market after market, decade after decade.There's a tempting alternative here. If adding buyers is hard, why not get the ones you already have to buy more often? Marketers often point to Arm & Hammer, a baking soda brand, as proof that it's possible. In North America, baking soda sat in the cupboard for baking and not much else, so the company sold people on a second use: put an open box in the fridge to absorb odors.Sharp's answer is basically that the example was already old when he was studying marketing. And decades later, it's still the one everyone reaches for. If lifting purchase frequency were an easy route to growth, there'd be a lot more famous examples.The problem is that habits are stubborn. Even dentists can't reliably get people to brush twice a day. Associations are stubborn, too: a product mentally filed under "baking" doesn't easily become part of the "fridge deodorizer" category. And changing how millions of people use a product usually requires enormous marketing effort. Unilever once encouraged men to spray Axe over their bodies like perfume. Most continued using it under their arms.So, if sales come down to how many people buy and how often, you've got far more room to move the first number.

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first KEY POINT

Your average customer doesn't exist

second KEY POINT

Retention can be the wrong target

third KEY POINT

Make the brand easy to choose

fourth KEY POINT

The levers of growth

fifth KEY POINT

Conclusion

About the author

Byron Sharp directs the Ehrenberg-Bass Institute at the University of South Australia, where his marketing research is used by Coca-Cola, Procter & Gamble, and Unilever.

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Frequently asked questions

What is How Brands Grow: What Marketers Don’t Know about?

How Brands Grow: What Marketers Don’t Know is a groundbreaking book by Byron Sharp that challenges traditional marketing beliefs. It offers evidence-based insights on how brands can effectively grow by focusing on acquiring new customers and building recognition rather than relying solely on customer loyalty.

What are the key takeaways from How Brands Grow: What Marketers Don’t Know?

Key takeaways from How Brands Grow include the importance of mental and physical availability for brands, and the role of distinctiveness over differentiation. Sharp emphasizes that marketing should aim to reach a wider audience and that growth comes from attracting new buyers, rather than just retaining existing ones.

Is How Brands Grow: What Marketers Don’t Know worth reading?

Yes, How Brands Grow is highly regarded in the marketing community for its fresh perspective and research-backed insights. If you're looking to deepen your understanding of effective brand growth strategies, this book is a valuable resource.

How many pages is How Brands Grow: What Marketers Don’t Know and when was it published?

How Brands Grow: What Marketers Don’t Know has approximately 250 pages and was originally published in 2010. This insightful work has since become a must-read for marketers seeking to improve their strategies.

What concepts in How Brands Grow: What Marketers Don’t Know can help marketers succeed?

Concepts such as the importance of increasing market penetration and the idea that brands should focus on broadening their reach rather than just nurturing loyal customers can help marketers succeed. Sharp's research highlights the effectiveness of mass marketing for brand growth, making it crucial in today's competitive landscape.