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Sharp, How Brads Grow (GetAbstract) PDF
Sharp, How Brads Grow (GetAbstract) PDF
by Byron Sharp
Oxford University Press (USA) © 2010
228 pages
Focus Take-Aways
Leadership & Management • Consumers buy and sales grow in predictable patterns or “laws.”
Strategy
Sales & Marketing • “Small” and “large” brands have about equal market penetration.
Finance
• However, the law of “double jeopardy” says that small brands are vulnerable to two
Human Resources
hazards: lower sales, which can affect all brands, and fewer buyers to make purchases.
IT, Production & Logistics
Career & Self-Development • Customer defection rates remain about the same among competing brands.
Small Business
Economics & Politics • To increase sales and expand a brand, target occasional, light buyers.
Industries
• Acquiring new customers is cheaper and easier than keeping existing customers.
Global Business
Concepts & Trends • The “law of buyer moderation” says light buyers will become heavier and heavy buyers
will become lighter.
• All brands gain and lose customers. Brand instability applies to all brands in all sectors.
• Competing brands share customers. Customers exhibit “divided loyalty” and purchase
from a select group of brands.
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Recommendation
Companies waste time and money on ineffective marketing strategies. Marketing research
professor Byron Sharp suggests that, instead, they should act according to research
that shows definite patterns or “laws” in how buyers buy and brands grow. He defies
conventional marketing theories as he explains why sellers should use mass marketing to
reach light buyers, and why loyalty programs and price promotions don’t work. According
to Sharp, marketing managers erroneously focus on serving existing customers rather
than on acquiring new ones. However, Sharp doesn’t mention Groupon, Living Social
and similar sites that redefine mass marketing every day. And, except for the occasional
quirky quote, the prose – while informative and applicable – is dense and dry. getAbstract
recommends his insights to marketing students, professors and researchers; to those
seeking to understand consumer behavior; and to data-oriented ad buyers or analysts.
Abstract
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Determining Brand Growth
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“Doing things that this information gap makes for inefficient and costly marketing. Research shows definite
no other brand has
been able to do, in
patterns in how consumers make purchasing decisions and how brands grow. How well
spite of considerable a brand sells depends on how many buyers it has and how often they buy.
investments
in customer In theory, a brand can be large, either because a few buyers purchase it frequently or
relationship
management because many people buy it occasionally. Consumer loyalty is stable across different-
(CRM) and sized brands. Large brands have higher penetration, but consumers buy most brands at an
other customer
satisfaction
equal rate of frequency (if you need a new box of detergent monthly, you buy it monthly,
initiatives, is seldom whatever the brand).
cheap or easy.”
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Smaller brands are vulnerable to this hazard in that they have fewer buyers, who buy less
“It’s wrong to frequently, so they can lose both sales (which can affect all brands) and buyers (of whom
assume that a they have fewer from the outset).
brand appeals to a
particular type of
buyer; most don’t Building Your Customer Base
and they shouldn’t
Increasing penetration is the best way to expand a brand. You want more customers
want to.”
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