How Brands Grow (Book Review)
What Marketers Don't Know 1st Edition by Byron Sharp
Interested in the book? Buy on Amazon
"How Brands Grow" by Byron Sharp is a groundbreaking work that challenges traditional marketing theories with evidence-based insights on how brands can achieve growth. This book draws from extensive empirical data and provides a scientific approach to marketing, which Sharp argues many current practices lack. He focuses on what he calls "evidence-based marketing," which sheds light on how buying behaviors really work and how companies can harness this knowledge to make better marketing decisions.
Sharp introduces several key principles that he claims are essential for brand growth:
Continual Reach: Sharp emphasizes the importance of continuously reaching all buyers of the category—both frequent and infrequent—rather than just focusing on loyal customers or niches. He argues that the largest brands usually do this best by maintaining widespread visibility and appeal.
Customer Acquisition: Contrary to the common marketing focus on customer loyalty, Sharp argues that the key to growth is customer acquisition. He provides data showing that all brands lose customers at roughly the same rate, making sustained growth more about gaining new customers than retaining all old ones.
Mental and Physical Availability: Sharp introduces the concepts of mental and physical availability as crucial drivers of brand growth. Mental availability refers to the likelihood of a brand being noticed or thought of in buying situations, while physical availability involves the brand being present where and when consumers are buying. Increasing both forms of availability is essential for growth.
Memory Structures: The book discusses how successful brands are those that are easily recalled by consumers through clear and distinctive brand assets (like logos, slogans, or jingles) that create memorable and consistent brand experiences.
The Double Jeopardy Law: Sharp explains this law, which states that smaller brands not only have fewer buyers but these buyers are also less loyal. As a result, smaller brands must focus not just on gaining more buyers, but also on closing the loyalty gap with bigger competitors.
Category Entry Points (CEPs): Sharp talks about maximizing the number of sensory and contextual cues associated with the brand that can remind potential customers of the brand in various buying scenarios.
Building Physical Availability: Beyond being easy to buy, Sharp stresses that brands should aim to be available in as many channels and locations as possible to maximize customer buying opportunities.
"How Brands Grow" is written with a direct and accessible tone, aiming to equip marketers with the knowledge to apply its findings immediately. Sharp critiques several popular but unsupported marketing strategies like segmented targeting and heavy reliance on loyalty programs, presenting a compelling case for his principles with robust data.
Overall, the book serves as a practical guide that attempts to demystify customer behavior and product marketing. It is highly regarded in the marketing community for its clear insights and data-driven strategies for growing customer bases and achieving brand success. Sharp’s approach encourages marketers to rethink traditional beliefs about brand loyalty and customized marketing, advocating for a broader reach and more consistent brand presence.
Interested in the book? Buy on Amazon