This graph illustrates how the focus of marketing might change at different stages of a brand's life.
In some categories, it is important to provide excellent customer care to your initial clients and make sure any teething problems are dealt with well and do not detract from overall satisfaction. Early adopters who are happy with the product/service can help attract new customers if they are encouraged to leave positive reviews and become brand advocates. The next phase is all about achieving scale by building distribution and investing in advertising. Good customer care is still important but less critical to growth. As a rule of thumb, this phrase starts when the brand has reached c.15% penetration/c.60% brand name awareness. If the brand is highly successful, a point will come when further growth is hard to achieve e.g. once it has reached c.60% penetration (unless, for some reason, it is difficult for competitors to enter the market or provide an equally compelling offer). If so, the brand can be managed to maximise on-going profits for the business. These profits can be returned to share-holders or invested in other brands within the portfolio with greater growth potential. See also: Brand Extension. What to learn more? Try asking Virtual Dan White. |