In modern marketing strategy, a large focus is placed on acquiring new customers. In fact, a recent research survey showed that 72% of small businesses planned to use the majority of their marketing budget to try to attract new customers as opposed to marketing new benefits and products to their existing customers1. However, expanding a company’s customer base does not always equate to business growth. Recent studies have shown that building loyalty with existing customers is equally important, as existing customers tend to be more profitable.
Category: Chapter 9 – Build the Brand
Branding Decisions: Simplifying the Logo
As brands mature and they become widely recognizable, the most important representation of their identity and positioning is their logo. The logo is a visual communicator of the brand’s purpose, values, and who they are to their customers. Nike, Starbucks, and McDonald’s are a few of many brands with ever-changing logo redesigns. Current trends for customer-centric strategy are ushering in simplified and debranded logos.
A Perfectly Packaged Pint
Known for their tradition and scientific method to pouring the perfect pint, Guinness has mastered product differentiation and strategy. The successful brand originating from Ireland operates globally, brewed in over 60 countries and available in over 150. With a diverse range of products, packaging, and labelling, Guinness sets an example to marketing managers promoting consumer products internationally. By adjusting their products to suit the trends and preferences of different markets, Guinness has been able to appeal to a variety of consumer tastes for over 260 years.
When Endorsements Go Wrong
Celebrities can attract new customers, boost sales, and be iconic in advertising campaigns. With increased importance placed on social media marketing, endorsements can also come from smaller scale stars like Instagram influencers. Consumers will buy a product or service because their favorite influencer raves about it on Tik Tok or to support their favorite actress’s new product line, regardless of the celebrity’s actual involvement in product creation. [i] Despite the enormous benefits to celebrity and influencer endorsements, marketers face equally great risks to partnering their brand or product with an individual. Scandal and controversy are difficult to predict and can damage a company’s reputation and sales.
Jazzed Up Bubbles
Celebrity endorsements have been around for as long as the concept of celebrity has existed. Consider PepsiCo’s newest brand of sparkling water, Bubly. In 2019, the company contracted with Michael Bublé for a series of advertisements where he plays with the Bubly/Bublé relationship, insisting that the water’s name is pronounced “boo-blay,” like his last name. The Bublé/Bubly partnership applies a number of essential items for a successful celebrity endorsement.
Quibi Quickly Bites the Dust
Just six months after launch, Quibi is calling it quits. The streaming service, whose name is derived from the phrase “quick bites,” was originally designed to fill smaller gaps of time, like waiting in line for a coffee or during your morning commute on the subway.[i] Just as the service launched, however, the coronavirus changed the everyday landscape of media consumption. This, combined with a number of other factors, led to service’s quick demise.
The Company Which Must Not Be Named
After years marketing to those trusty Millennials, companies now have to change their entire approach to advertising for Zoomers. Some firms are turning to what has been deemed the “anti-advertisement.” Most recently, Frito-Lay brand Doritos launched a new campaign titled “Another Level.” The campaign launched with a 60 second anti-ad on YouTube – an ad that never once showed the Doritos logo or said the Doritos name.
Time is Ticking for TikTok
For many months now, TikTok has become the darling of the American public, logging more than 315 million installs in the first quarter of 2020 – not to mention the millions of installs since the initiation of mandated lockdowns. Many companies have tried to reach large follower bases on TikTok by paying creators to use specific songs, wear branded clothing, and directly promote products in their videos, but President Trump has issued an executive order banning the app in the US unless it is bought out by an American company. So, what happens to the community now that the platform may be disappearing in just a short month?
Fractional Trading: Investors Demand Their Slice of the Pie
The investment industry is undergoing some major changes, and many firms are attempting to bring investing to a wider (read: younger) audience. The major shift has come in the form of fractional trading, which allows smaller investors to enter the trading floor where they otherwise might have been priced out. These programs come during a time when more Americans are at home, spending a majority of their time online already – so they’re perfectly poised to enter the market.
Pride Month Steps Up Its Game
Pride month this year looks a little different. Due to the coronavirus pandemic, many celebrations have been postponed or even cancelled. Because of this, the LGBTQ+ community has had to find other ways to show their pride – something many of them are doing with their pocketbooks. Pride month offers a unique study into just how imperative it is for companies to take on Corporate Social Responsibility initiatives.