The role of marketing is to understand customers, create value and drive profitable growth by shaping strategies, guiding innovation and aligning the organisation around customers and their needs. Research from McKinsey, Deloitte, Gartner, the IPA and others consistently shows that organisations with strong marketing capability grow faster, innovate more successfully and also outperform competitors over time.

Why Marketing Matters More Than Ever

Marketing has never been more important to business success. In a world of rapid technological change, rising customer expectations and intense competition, marketing is no longer a communications function — it is the engine of organisational growth.

This article explains the true role of marketing, backed by evidence, and outlines how strengthening marketing capability can transform business performance.

What is the Role of Marketing? (Definition)

Marketing’s role is to understand customer needs, shape strategy, guide innovation and drive profitable growth by creating, communicating and delivering value.

The 7 Seven Core Roles of Marketing in Modern Organisations

1. Customer Insight & Understanding

Marketing identifies customer needs, behaviours, motivations and pain points. This insight informs marketing strategy, innovation, brand development and also customer experience.

Why it matters:

• Customer–centric companies are 60% more profitable (Deloitte) (1).
• Organisations that deeply understand customers innovate more successfully (Harvard Business Review) (2).

2. Market Strategy & Positioning

Marketing defines where to play and how to win — through segmentation, targeting, positioning and value proposition design.

Why it matters: Clear positioning improves differentiation, pricing power and long–term growth (McKinsey)(3).

3. Product & Service Innovation

Marketing shapes propositions based on customer insight, ensuring products and services meet real needs.

Why it matters: Companies that integrate marketing early in product development outperform those that do not (1).

4. Brand Building & Reputation Management

Marketing builds trust, distinctiveness and long–term brand equity — proven to drive profitable growth.

Why it matters: Long–term brand building delivers the highest ROI Ehrenberg–Bass Institute (4) and IPA (5).

5. Demand Generation & Sales Enablement

Marketing creates demand through integrated campaigns, digital channels, content and sales support.

Why it matters: High–performing organisations combine creativity, analytics and purpose — and grow 2.3x faster (McKinsey) (6).

6. Customer Experience & Retention

Marketing ensures consistent, valuable experiences across the customer journey, improving loyalty and lifetime value.

Why it matters: Customer experience is now a key driver of revenue and retention (Forrester) (7).

7. Performance Measurement & Growth Optimisation

Marketing uses data, analytics and experimentation to improve effectiveness and ROI.

Why it matters: Data–driven organisations outperform competitors and allocate budgets more effectively (Gartner)(8).

Why Marketing Matters: Evidence That Marketing Drives Growth

Across industries, research consistently shows that the role of marketing is as a primary driver of growth:

1. Marketing-led companies grow faster

McKinsey finds that companies that combine creativity, analytics and purpose grow revenue 2.3x faster than peers. Marketing is central to this “triple play”, driving customer understanding, innovation and brand strength (3).

2. Customer centric organisations are more profitable

Deloitte reports that customer–centric companies are 60% more profitable (1).

3. Brand building delivers the highest long–term ROI

IPA research shows that long–term brand investment outperforms short–term activation (5).

4. Customer experience drives loyalty and revenue

Forrester finds that improving CX increases loyalty, reduces churn and boosts revenue (7).

5. Distinctive brand assets drive market share

Ehrenberg–Bass research shows that distinctive brand assets increase mental availability and growth (4).

6. Marketing drives innovation success

The Harvard Business Review highlights that marketing–led innovation is more likely to succeed (2).

Together, this evidence demonstrates that marketing is not a cost centre — it is a growth engine.

The Strategic Role of Marketing in Business Success

Marketing is a strategic capability that shapes business success. Organisations with strong marketing functions:

• Grow faster
• Innovate more effectively
• Build stronger brands
• Create more loyal customers
• Outperform competitors over time

Marketing aligns organisations around customer value — the most reliable route to sustainable growth.

Insights from The Marketing Director’s Handbook

Drawing on our own work and research for The Marketing Director’s Handbook, several themes emerge:

• Organisations with strong marketing capability consistently outperform their peers.
• Marketing’s influence increases during periods of uncertainty, when customer understanding becomes critical.
• Many organisations under–invest in marketing capability, limiting growth potential.
• Only a minority of FTSE 100 companies have marketing represented at board level — yet those that do tend to outperform.

These insights reflect decades of hands–on experience working with CEOs, CMOs and leadership teams.

Examples of Marketing’s Impact (Client Success Stories)

1. Consumer Brand Strategy and Innovation

Researching consumers and developing a new communication campaign helped drive a nine-fold sales increase for a product in overlooked consumer markets.

2. Professional Services Repositioning and Communication

Researching and creating a new proposition and communications for a professional educational qualification inspired real growth in students across seven international markets

3. Childrens’ Brand and Marketing Strategy Development

Working collaboratively, engaging consumers and investing in professional marketing inspired a new brand positioning and marketing strategy. As a result this led to a trebling of theatre schools and sales.

If you want to strengthen your organisation’s marketing capability or clarify the role of marketing in your business, we can help. We work with leadership teams to build marketing functions that drive growth, innovation and customer value. So explore our marketing consultancy services or get in touch for an informal conversation.

Frequently Asked Questions (FAQs)

References

These sources provide independent evidence of marketing’s impact on business performance.

(1) Deloitte – Customer Centricity Report: https://www2.deloitte.com
(2) Harvard Business Review – Marketing’s Role in Innovation: https://hbr.org
(3) McKinsey – The New Marketing Organisation: https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/were-all-marketers-now
(4) Ehrenberg–Bass Institute – Distinctive Brand Assets: https://www.marketingscience.info
(5) IPA – The Long and the Short of It (Binet & Field): https://ipa.co.uk
(6) McKinsey – The Growth Triple Play: https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-growth-triple-play
(7) Forrester CX Index: https://www.forrester.com
(8) Gartner CMO Spend Survey: https://www.gartner.com/en/marketing/research/cmo-spend-survey

It seems that world economies follow a never ending series of boom and bust. Just when we thought global economies stable and productivity improving along come new challenges. First Covid-19 (2020), and then the Russian invasion of Ukraine (2022), and all that goes with it, including the rise of energy and food prices. However, when dealing with tough times, and particularly recession, if you face declining or flat sales, how do you grow your business? So do you plan cautiously or aggressively? In all situations marketers have a key role to play and you have a choice to view your glass as half-full or half-empty. Here are seven pointers to successful business growth:

1.   Be more vigilant to threats and opportunities

Information is a source of competitive advantage. While tough times present threats, they also present opportunities – a lower cost investment opportunity here, or opportunity to take out a competitor there. Rarely will there be greater opportunities for a smart marketing and research department to prove its worth. So understand changing market forces and customer needs and provide timely intelligence and quality thinking to spot new opportunities. There are many ways to do this. Firstly, empower your sales team to fact-find, talk to, or research customers. Also track media activity on trends and what your competitors are doing; read investment blogs and company reports too. Then take this intelligence, and use scenario planning to think through how markets might evolve, and devise strategies to survive or thrive in each circumstance. This is something most successfully undertaken by Shell to address turbulent oil prices.

2.   Ensure your business fundamentals are sound

The most successful businesses are those that are the most customer or audience driven. So if tough times impede your sales, this most likely indicates a weakness in your offer which needs to be fully understood and addressed.  So first check your market share, and if that has fallen too, it suggests you need to do more to compete. However, whatever the economic situation, clear insights must inform what you do. Your startpoint is to ensure a strong product offer. Then with a sound marketing strategy in place you’ll be in a good position to invest and grow.

3. Reassess your product and brand portfolio

A consequence of the present inflationary times, is that mortgage costs are rising, and so are savings rates. But these changes affect people differently. Those with their disposable income under pressure will behave differently to those who are ‘flush’. For example, they will be more motivated to save money (energy) by switching lights off and perhaps going to bed earlier. Whereas those who are more flush may be more willing to invest for the longer term, by investing in low-energy lighting or extra home insulation.

Fast moving consumer goods are typically the first markets to experience change in buying behaviour. Those under financial pressure may shop around more, switch to cheaper outlets, and buy own label products instead of brands. Those who are more ‘flush’ may pay more to feel better.

The purpose of this discussion is not to predict behaviour but merely to spotlight the ease and speed with it changes. Your challenge is therefore to anticipate and understand change, and react quickly.

4.   Maximise cash

The trigger for business closure is usually lack of cash. As evidenced by the recent administration of much lauded battery manufacturer, British Volt which has just been bought out by new Australian owners. Of course, cash management is the responsibility of all, but as this is a marketing blog, let’s focus on what marketers can do. One opportunity is to devise strategies to bring forward and maximise cash flows, for example, by rewarding early payment. Another is to reduce marketing costs. So seek out more efficient ways to communicate. In a worst-case situation, devise ways to rationalise your team. View change as an opportunity to ‘right-size’. Consider what roles are ‘must’ and ‘nice-to-have’. Also, make sure that the right resources are in the right places and perhaps refresh the culture. This then provides a more robust foundation to on which to build, invest and probe for renewed growth.

5.   Don’t stop promoting your products but do be smarter about how you do it

Some studies that show how the share of advertising voice correlates with market share. There is also evidence to suggest that those who invest in proactive marketing during tough times are the first to emerge from the tough times. Also that they emerge the strongest. So optimise and promote the benefits of your products, and use creativity to maximise those benefits. If you focus on building your brand you’ll help avoid creating a hostage to fortune.

6.   Invest while advertising bargains abound

The media market is in a state of perennial flux. As the share of one declines, often does the cost per impression, rating point or click. So shop around for advertising bargains. Over the last two decades promotional spend has shifted to digital media, most notably, Google and Facebook. Often when data to justify return on investment has been sparse. However, their recent declines in advertising income suggests their bubble is bursting. As money shifted to digital, other mainstream media such as television and radio became relatively better value. New kids offering better value propositions such as TikTok have also joined the block too.

7.   But manage the risks!

Of course there are risks. But think big, and cultivate a mindset of controlled aggression to mitigate the risks. So test, and test your way from low cost to higher cost business building initiatives. Though only when you are sure that investments work, and have the metrics to prove it, should you invest heavily.

Marketing Inspiration

1. How to grow your business starts with good consumer understanding, and a good product. Then profitable product promotion.
2. So build your business, product and brand strategies on facts by using robust market research. Also make sure you your have processes in place to identify opportunities and threats. Then you’ll be better equipped to, and more timely in making investment recommendations to your Board.
3. Focus your resources on making sure your products are as fit and competitive as possible to compete in their niches. Because Darwinist fundamentals apply.
4. Then, when promoting your products, carpe diem. Take a long and short term view on payback, but make sure you earn more than you spend. To do this, don’t just follow the herd, seek out lower cost marketing opportunities. In so doing you will be able to grow your business while others are worrying or sitting on their laurels.

For personal advice and support on how to grow your business just give us a call.

Evolution of products vs brands

Product recognition is a marketing fundamental. But what really is the difference between products vs brands? The early brands used marks like the red triangle of BASS beer. This was actually a symbol of strength similar to Castlemaine XXXX or Wadworth 6X (Figure 1). Others from Ford to Kellogg to Boots used the simple signature of the owner. These were the first differentiators that enabled products evolve into brands.

Products that are named and recognisable in design and packaging can then be recalled by their qualities, properties, and attributes and benefits. This is all very logical so far ….

Brands add ‘values’ and value

Yet brands also convey ‘values’ – the importance, worth, utility or usefulness of something (1). They build an image or perceptions in the customer’s eyes. In turn they also build a relationship based on emotions of trust and care, responsibility, and respect. Elevating products to brands involves working out what makes them different and better. This process is called brand positioning.

Benefits of brands

Compared with products, brands are more distinctive, and build stronger relationships with customers. In turn they are more valued and valuable. Simply adding more products under the umbrella of the brand also has many attractions. We call this brand extension. In today’s particularly fragmented and targeted media environment, it adds weight to messaging, and scale to business.

Pitfalls to avoid

So make sure that brand values match product performance. Especially in both technical and service sectors. A single poor experience in a restaurant will lower the brand reputation across the entire chain.

This is a problem that befell airplane manufacturer Boeing. When their much-vaulted new plane, the Boeing 737 Max, fell out of the sky it took two years to sort out. The planes underwent final stages of airworthy certification. And Ryanair have now ordered over 200. However, they are no longer named Max (Figure 2). They are now named the Boeing 737-8200.

Marketing Inspiration

So to summarise the difference between products vs brands. Brands are a value-added subset of products and services. All brands are either products or services. However, not all products and services are brands. This is because products and services are typically more generic. Whereas brands have a good awareness, a distinctive image and a stronger emotional connection with consumers. Thus they command premium prices and the strongest brands command higher share prices, reflecting their higher earnings multipliers over the also rans.

So be clear about the difference between products vs brands. And manage the risks and invest accordingly.

References

(1). Oxford English Dictionary. While the word ‘values’ is useful to a point, it is also a somewhat vague term. And thus we prefer the more specific concepts of benefits, personality traits, beliefs and behaviours to understand and describe brands. They are more powerful to develop brand strategies.

We often get asked to help businesses get closer to customers and to develop new business, marketing and brand strategies. Yet businesses plan, organise and manage in different ways. Virtually all also have their own lexicons. Thus sometimes a challenge to address the latter really requires the former and vice versa.

However, a marketing mindset is powerful to address either, and indeed all of these challenges. Marketers are also increasingly empowered to lead business strategy, and many of the world’s most successful businesses are led by CEOs who previously held marketing functional skills.

However, marketing has not always been viewed as a strategic planning and management discipline. It only emerged formally as such in the 1950s (1). Marketing functions evolved from sales, and brand functions, from communications. However, customers and brands are the only constant in a fast-moving digital world.

Simplified strategic planning: 3 steps to success

So here is a simplified strategic planning process that is adaptable for all (2) (Figure 1 – Infographic). By understanding where a business or brand is now and where a business wants to be in the future allows you to plot a route from A to B.

Step 1: Clarify where the business or brand is now

The first step is to understand where the business or brand is now. So determine what are your current business, marketing and brand strengths and weaknesses and what drives growth and profitability?

The marketing discipline uniquely looks through the lens of customers and customer segments to assess issues, size market opportunities and demand influences. It also looks at competitive relativities. So the answer these questions looking through these lens. To do this most robustly, understand your own profitability where the profit opportunities are in the market.

Step 2: Use imagination and analysis to generate ideas, and determine where you want to be

Bring together your colleagues and use your combined imagination to envision your future (2).  What does this look like? What would motivate your stakeholders? Then write a series of clear, challenging, and inspiring goals. While some organisations prefer an analytical approach to business strategy development, others prefer a more creative approach. However, there is merit in dual ‘left brain’ and ‘right brain’ thinking. Left brain thinking involves assessing the pros and cons of each idea or opportunity. Right brain thinking requires stepping away from the detail, and taking inspiration from the world around, to imagine new opportunities and destinations. In our experience no-one has a monopoly on good ideas, and employing different methods leads to better outcomes.

Planning from the customer, market and brand point of view requires considering how to establish or meet customer needs or change customer perceptions. As distinct from setting financial goals, say increasing sales by 5% or realising £Xm. The limitation with the latter is that it is not initially market and customer based. Though financials will need overlaying at a later date.

Step 3: Conduct gap analysis and figure how to bridge the gap

By clarifying where you are now and want to be, will allow you to quantify and qualify the size of the gap that needs bridging. In so doing, potential roadblocks or key issues to address should also become clear. So the challenge is then to design strategies – ‘how to’ solutions, to address the key issues. If this is not possible, then new goals need setting.

Strategic planning success factors

Engage colleagues to win a mandate for change

Engaging colleagues is important to gain buy-in to a way forward.

The best solution is seldom the one that is 100% technically correct if only 20% of stakeholders agree with it. However, a better solution is one that is 90% technically correct where most stakeholders agree with it.

Thus engage a broad church to fact-find, understand hopes and fears, and generate ideas. Then work together to turn your ideas into concrete strategies and solutions.

Through working together, and judicious market research, the best ideas should naturally surface to the top. And with agreement every step of the way, comes a mandate for, as well as desire and commitment to change.

Anticipate and mitigate risks

Change, and the journey to success will not happen overnight. Especially if the journey involves shifting customer hearts and minds. So be pragmatic about what’s achievable, at what cost, and by when. Also understand the risks and barriers to change and factor these into your plans.

Strategic planning context: The product to brand journey

Figure 2 shows a typical journey from basic product to power brand led business. At each stage on the product-brand continuum you’ll realise additional customer and business benefits (3).

If you are a product, service or sales-led organisation, there are benefits in simply understanding and meeting the needs of customers. So put the customer and his or her needs first and centre using market research.

For organisations in markets where brands are emerging as a differentiator, you also need to understand your competitors. And use these insights to better position your brand. 

For digital and service organisations delivering through people, and for larger product brands, understand and influencing perceptions through all brand encounters. This needs structures, skills and processes to focus and align people activities and behaviour to deliver consistent brand experiences.

Finally, the very largest organisations and those contemplating expansion into new countries and categories require more sophisticated relationship building strategies. So build brand personality, structures, skills and processes to extend your brand.

Marketing Inspiration

1. While strategic planning is as simple as 1-2-3 it is complicated by different functional leads, who and what went before, and who is in charge. Yet customer and brand marketing views are gaining increasing traction to drive business growth. So help senior management understand this point, and start by working collaboratively to define relevant business goals.
2. Rarely will success follow if the strategic planning is conducted in a silo, by one person or without engaging the business at large. It is more likely to work by engaging across the entire organisation.
3. It is easy to have ‘rose-tinted’ spectacles, in other words, be overly positive about your own skills and competences. The acid test of a ‘strength’ is through the customers’ eyes and relative to competition.
4. As business and brand drivers continually wax and wane, stay abreast of changing dynamics, and also what works and doesn’t. As a result you’ll be better able to deploy your businesses’ finite resources to influence customer choice.
5. Finally, for those new to marketing, investing in a brand may be a step too far. However, for an inspiring view on the way forward just ask away; our marketing consulting services are always bespoke.

References

1. Webster Frederick E. “A Perspective on the Evolution of Marketing Management” Journal of Public Policy and Marketing Vol. 24 (1) (Spring 2005)
2. Harari Yuval Noah. Sapiens – A Brief History of Humankind (2014)
3. Arnold Tim, Tomlinson Guy. The Marketing Director’s Handbook (2008)

As marketing folk, rather than politicians, we think in a particular way. We also have roots across the country, and don’t live in the London bubble. So reflecting on marketing politics over the General Election, and since the EU Referendum, we share thoughts on lessons learned.

It is Friday 13th December and all of the results from the first winter-time general election since 1923 are in. Of 650 seats, the Conservative Party have 365, a clear majority of 80. That’s an increase of 47 more seats, while Labour Party lost 59 seats. The reflects a 44% and 32% share of the vote respectively. The SNP also gained seats with a 45% share of the Scottish vote. The Lib Dems lost one seat overall, most notably that of leader, Jo Swinson. Their vote share was just 11%.

The Conservative seat gains are largely in the North, Midlands and Wales. These are also amongst the highest Brexit supporting areas. And also areas of traditional working class labour support. Though Labour also lost share of vote in strong remain areas (1).

Six lessons learned

1. The winner best matched the electorate’s wishes

According to numerous polls in the run up to the election, the key issue facing the country was firstly, though not universally, Brexit. Second, health (i.e. the NHS). And third of approximatly equal importance, crime, immigration and the economy (2).

Of course, the Brexit issue masks different needs, either to leave or remain in the EU. Nevertheless, the 2016 Referendum result stands, and ‘leave’ was endorsed in the 2019 local European elections. Further, Parliament’s inability to get the job done has compounded public frustration.

2. Simplicity of offering and message

The Conservative message focused primarily on ‘Get Brexit Done’ and also ‘Unleash Britain’s Potential’. Secondarily that enabled investment in the NHS (20 new hospitals, 30-50k new nurses etc.) and 20k more police. Thus cleverly linking the voter’s #2 and #3 concerns to the first. Whereas Labour focused primarily on the NHS (the concern most relevant to their supporters) yet offered a protracted and no obvious solution on Brexit.

Yet interestingly, despite the Conservative’s focus on Brexit messaging, a recent survey suggested that still only some 57% associate the party with this cause. Thus while many of us may be bored with the message, it failed to reach 43%.

3. Messages must be believable

At the same time as promoting ‘Get Brexit Done’ the Conservatives also ‘dissed’ the ambiguity and incredibility of Labour’s position in calling for another referendum, and being unclear what they would support.

Conversely the Labour Party attempted to stoke fear that the NHS would be sold by the Conservatives to Donald Trump). This message was strongly challenged, unsupported by documents provided. Procuring drugs from US companies at the right price appears an entirely different and less relevant point.

4. Targeting by demographics alone is not enough

While historically voting allegiances split along age, wealth and geographic lines, the Brexit issue has complicated this pattern (3). There now appear to be more different types of people with differing underlying concerns. In London, folk are younger, more white collar, work for big, multi-national business and are remain concerned. Whereas in the Midlands, North, and Wales, as well as parts of the South, there are also larger numbers of blue collar, small business, and leave concerned. As the Conservatives have won them over, reading between the lines, it appears that Labour has failed to understand and meet their hopes.

Social media which allows targeting by multiple demographic and psychographic variables seems to have played a significant role.

Of course, it remains to be seen whether Labour voters’ switch of allegiance is temporary or evidence of a fundamental shift in attitudes.

5. Personality counts

The Conservatives elected Boris Johnson leader partly on the premise that he would give them a bounce in the polls. He has also consistently led Jeremy Corbyn on leadership ratings (strong, decisive) (4). While there are many personality issues on both sides, it appears there is considerable anecdotal evidence on doorsteps that JC was a liability. The Conservatives knew this and it was central to their communication strategy – ‘we’re not Jeremy Corbyn’ (rated dislikeable, weak, untrustworthy) (4).

6. Know where you are on the brand lifecycle

Sensing decline under Mrs. May in the Summer, the Conservatives, quickly replaced her with a fresh face. While much has been made of his personal life little appears to have harmed. Again this is interesting, and by comparison, we should remember that a ‘colourful’ personal life appears essential to get top jobs in countries such as France and Italy. Looking to the future, it remains to see what type of Prime Minister Boris Johnson will be. He has the opportunity to choose and learn from others – perhaps Winston Churchill or Ronald Reagan.

Today’s announcement that JC will not stand at the next election in order to oversee a change of leadership and not go quickly seems to prolong Labour’s difficulty. Though perhaps in time, the Labour Party will thank the Conservatives for hastening his end.

Politics and Marketing Inspiration

1. Successfully marketing politics, political parties, and policies, as well as any product or service, relies on a clear understanding of audiences, their needs and attitudes.
2. Understanding, segmenting and targeting audiences by needs and attitudes is easier, more discriminating and effective than demographics alone.
3. Don’t under-estimate the importance of a clear singled-minded message, and benefit, backed by a credible supporting argument. Equally, fuzzy messages are both difficult to understand and identify with. They also question the credibility of the message sender.
4. Personality is also differentiating. It is fine to have a few warts and use colourful language or display strength of character such as drive and determination, in order to get your message across and engage. Though it is important that your overall beliefs and behaviours are consistent, and grounded in what’s generally regarded as truthful.
5. Monitor where you are on the brand lifecycle. If sales or support wanes, it is time to rethink your brand communication. Start with #1.

References

1. Based on EU Referendum estimates by the BBC and Professor Chris Hanratty
2. Sir John Curtice, Strathclyde University writing for the BBC.
3. Sir John Curtice’s research on political leadership as published by the BBC
4. You Gov Political tracker

B2B vs B2C marketing is a very different proposition. Or is it? The growth of digital media means that there is an increasing number of channels and methods from which to choose. So how should marketers approach the task of engaging and winning customers? It’s a bit like learning a dance.

Comparing B2B vs B2C marketing

Businesses that Sell to Consumers

The B2C marketing challenge is to build product awareness and convert browsers into buyers.  As it’s usually a ‘low involvement’ purchase, say to buy a confectionery bar, thus marketing campaigns must capture the consumer’s interest immediately. Typically mass promotion activities like TV and press advertising are employed.  Special offers such as discounts or vouchers also ‘activate’ the purchase. The challenge is therefore to establish an effective one-step routine.

In the online world, an email or search marketing campaign encourages consumers to click and buy. The email or advert encourages consumers to a website landing page designed to sell the product. If the purchasing process takes more than a couple of clicks then this risks the customer shopping elsewhere. So make it simple and easy, for example, by integrating the shopping basket and checkout page.

Businesses that Sell to Businesses

The goal of B2B marketing is also to convert prospects into customers. However the purchase is usually more considered. More decision makers are also usually involved. So the challenge is to engage and educate the target audience and build relationships with them. To succeed a B2B company must generate and nurture leads over a longer time period. A careless or quick step could mean a lost partner (or customer). The challenge is to therefore also to establish an effective multi-step relationship building routine.

In the online world, an email campaign or online advertising campaign also drives prospects to a website. However it is less likely to achieve an immediate sale.  A more realistic aim is to secure a meeting with a sales representative to discuss the customer’s business requirements and also influence him, her or them to buy (i.e. complete a sale). By providing information about the products and services, benefits, features, possibly pricing, and also contact information, reassures customers and wins trust. Conceiving marketing activity as one of several steps in a longer, integrated, multi-step campaign is more likely to persuade. So consider awareness and relationship building via direct mail, newsletters, video promotion, webinars, virtual exhibitions, conferences or live events and also social media such as Twitter or LinkedIn .

Marketing Inspiration

While there are differences between B2B vs B2C marketing, engagment and relationship building principles remain the same. So use market research to understand the customer journey from the customer’s point of view.  In particular, the sources of information and the selection criteria that the customer uses, and the triggers and barriers to building awareness, relationships, and drive sales. At each step along the journey, learn how your brand experience compares with your competitors. And if it is no different, then improve it.

This information will then help you build a better marketing communication strategy. Specifically the key messages, media and timing to attract and engage customers at each step on the journey. If you are a B2B marketer, learn how to dance the marketing 2 or 3 step. And while B2C marketers may be 1 step routine masters, learning a 2 or 3 step routine may help you to build stronger customer relationships. In so doing you will better invest your resources to really make a difference.

Storytelling predates writing; the earliest forms were spoken, and combined with gestures and expressions. Types of stories include fairy tales, myths, legends and many of religious origin. There is much to learn from stories. With brand storytelling it is possible to transform a brand from a frog to a prince, prolong brand life and also slay your competitors in the process.

Great stories endure

Saint George (AD 280 to 23 April 303), for example, is immortalised in the myth of Saint George and the Dragon. Initially, a soldier in the Roman army, he was venerated as a Christian martyr. He was also subsequently adopted as patron saint of many countries, cities and organisations. 

The story about George and the Dragon originated from the Crusades in the 11th Century. In the story, now a legend, the dragon lives at a water hole and requires a gift of a sheep or maiden to allow the locals to reach the water. When it is a maiden, they draw lots. However, one day a princess is chosen. She begs for her life but to no avail. Then George comes along, slays the dragon and saves the day.

Great stories are retold

Great stories touch and move us. Particularly when seen in a cinema, or through mini movies – as some television advertising has become. Not only do great stories engage, but they merit retelling and sharing. Only the best stories grab attention, are ‘liked’ and shared. In this rich digital media world (1), we are all writers, photographers, producer/directors and editors!

The same thinking process applies to brands. Only the best impress journalists, trade buyers and of course, consumers. Some brands became great through brand storytelling. Some stories are born of reality, though many of accident, serendipity or even invention.

Great stories offer inspiration for brands

Figure 1 shows a typical cinematic story structure. This is also useful for brand storytelling. Act 1 involves setting the scene, introducing the characters, conflict and setting. It then concludes with a climax or set-back (turning point 1 (TP1)). Act 2 develops the story, with rising action and tension, and concluding with another climax or set-back (turning point 2 (TP2)). Finally, in the last act, the dénouement, the story reaches a climax, and resolves. For brands, consider and dramatise the problem it must solve, and finally the benefit it must deliver.

Great stories recognise deep truths, important life lessons

Examples of great stories include ‘good triumphing over evil’, and ‘that every cloud has a silver lining’ – i.e. that you can derive some benefit from every bad thing that happens to you. Also ‘that fortune favours the brave’ – that drive and determination is essential to success. Christopher Booker’s Jungian-influenced analysis of stories and their psychological meaning, espoused seven basic plots (2). Margaret Mark and Carol S. Pearson subsequently highlighted eighteen: eight guides or gifts and ten warnings (3). Figure 2 maps eight familiar stories against Mark and Pearson’s need-states.

So-called ‘transformations’ deal with significant change in attitude, behaviour or personal growth. ‘Overcoming the Monster’ stories are crime and adventure staples. They feature archetypal heroes (and villains) such as George and the Dragon. Also James Bond and Scaramanga (in The Man with the Golden Gun). And Harry Potter, growing from boy to man, while battling Voldemort.

The typical story-line is baddie does bad thing (set-up), goodie fights baddie and loses (story development, set-back). Then goodie digs deeper, fights back and wins the day (dénouement). In Bram Stoker’s Dracula, he kills a young maiden and then goes after Harker, the hero’s fiancée. Harker and friends then hunt and eventually kill Dracula. Thus saving Harker’s fiancée (and allowing them to live happily ever after).

Great brand storytelling follows from brand archetypes

Brand archetypes play different roles in narratives, and inspire different forms of brand storytelling. For example, in a typical ‘overcoming the monster’ story-line, archetypal heroes, such as James Bond and Harry Potter are protagonists (leading players). Alternatively, the brand could still be the hero, but not the protagonist. Or a bit player – perhaps the protagonist’s assistant or ‘weapon’. The choice is yours.

Here’s another example. Cleaning brand Mr. Muscle is a utilitarian hero archetype. In a typical 3 act story, the housewife battles the dirt, then gets tired and frustrated at her inability to clean the house etc. Then along comes the hero, to clean away the dirt and save the day. The protagonist is the brand user or housewife, and the adversary is simply the dirt.

Nike is an inspiring hero(ine) archetype (4).  The protagonists in Nike advertisements are usually athletes or ordinary people, and the adversaries are fellow competitors. In a typical 3 act story, the athletes compete against each other. One wearing Nike clothing or using Nike equipment, suffering set-backs yet finally winning through, and winning applause.

The Nike advert (below) features a female tennis playing protagonist vilified for being a pretty face. However, the antagonist is not just a fellow competitor but public dismissal, or disdain. All questions confidence in the athlete’s skills. Will she, won’t she succumb to the pressure? Watch the advert to see the dénouement. Also feel how the rising tension strengthens the brand story, and benefit pay-off.

Brand Storytelling Marketing Inspiration

Now work through these simple brand storytelling steps to finesse and execute your brand strategy.

1. Understand your brand truth, archetype and positioning

Great brands like great stories are based on great truths. Great truths include customer and brand truths. So look inside and outside your business to find them.

• Consider what do customers’ really think, believe or need? What is meaningful and true or unknown or disbelieved about your brand?
• What is your brand founder’s tale?
• What’s special about where or how it was invented? Perhaps a ‘secret’ production or delivery process or ‘magical’ ingredient?
• Also what’s special about the brand look, livery or the people who make or deliver the brand?

2. Create and tell stories to engage and dramatise the brand benefits

Consider characters, the role of the brand, and how your brand can transform customers’ lives. How can you create rising tension, and a dénouement that fits the brand? To work out the answers involve disparate people in the creative process and allow lots of time to nurture your ideas.  Figure 3 shows a start-point brand storytelling concept.

3. Express the story through multiple media

While great stories and great brands touch people in different ways, they are based on a clear brand strategy and also express a consistent message. Also consider how your brand story unfolds or presents through different media and choose media that enhance the message and encourage social media sharing.

References

1. According to https://www.internetlivestats.com there are now over 1.1 billion websites including a burgeoning range of social media including Facebook, You Tube, Twitter, Instagram, Pinterest, LinkedIn, Snapchat and many more.

2. Booker, Christopher The Seven Basic Plots: Why We Tell Stories.

3. Mark, Margaret and Pearson, Carol S. The Hero & the Outlaw. Building Extraordinary Brands through the Power of Archetypes.

4. Named after Nike, the Greek goddess of victory.

On Dec 31st 2020 the UK left the EU single market. So what does this mean for UK businesses and marketers? As everyone digests the facts, and plans are enacted, new issues and opportunities become more evident. So it is never too late to finesse your Brexit plans.

Rather than think doom, gloom and despondency, think positive, and as global citizens, embrace the world

The trade barriers erected around the EU protect EU businesses from global competitive pressures. As a result they cause ‘flabby’ rather than ‘fit’ competitors. The UK has a proud history as a free trading nation and being ‘open for business’. Thus UK business should be materially ‘fit’ to compete in unfettered markets. Also to attract inward investment.

The world is a big market

According to the IMF (1) the world economy was worth $73.2 billion with the EU accounting for $16.2bn (22%) (Figure 1) in 2015. Thus the rest of the world accounts for the larger proportion (78%), with the USA, China and Japan, being the largest markets.

Many global opportunities

Moreover, emerging markets are forecast to grow faster than the developed markets, and China and India will both reach the top 3 by 2030 (Figure 2). There are many opportunities to grasp.

As marketers we know that the most successful businesses are those that understand and meet the needs of their customers. Thus investing in research and marketing to better understand and meet future customers’ needs, and build relationships and value makes sense.

Marketing Inspiration

1. To best manage the risks, and realise opportunities, you should continually update your business and marketing plans. Also make clear that you that you value your customer relationships, and take steps to strengthen those relationships.
2. Keep searching for win-win opportunities to sell, invest and buy. Also acquire knowledge to build competitive advantage. Use research to uncover insights and and realise short and long term opportunities.
3. Have no fear. The fittest or most able will be the most successful. So stay true to good business and marketing principles; understand customer needs, and demonstrate and deliver value in meeting needs.
4. For any business that considers themselves unfit, finesse your Brexit plans to maximise the value of your offer and embrace the world.

References

1. International Monetary Fund
2. PricewaterhouseCoopers

Comparing Online vs. Telephone vs. Face-to-face Quantitative Research Survey Methods;  Which is top dog?

Recent OFCOM Research (1) highlighted that 71% of the UK receive 9 nuisance calls a month. Also that telephone is the #4 culprit. This questions whether this quantitative research survey mode has had its day? But while online has grown in share, is this top dog? We’ve looked closely at the merits of online, telephone (random direct dialing) and face-to-face (ftf).  Several insights emerged. So if you are about to brief in a quantitative research survey, this article summarises our findings. It also spotlights ideas to help you make the most of your research investment.

Cost of research

Costs vary by sample size, ease of reaching an audience or ‘incidence’, the length of survey, mode, and also complexity of fieldwork and analysis. Some costs such as coding for online research, computer aided telephone interviewing (CATI) and computer assisted personal interviewing (CAPI) are similar. Compared with online (index =100) fieldwork costs are typically higher for face-to-face (index 250-300) than telephone (index 250-300) due to the greater human time involved.

Coverage or reach

Online presently reaches 87% of the UK (1) though many online surveys run via panels which cover just 5% of the population. Thus sample carefully to cover geographic gaps and bear in mind that respondents are also usually more ‘Internet experienced’. Conversely, nearly all homes have access to at least one phone though telephone databases cover just 60% UK (and we suspect even fewer are opted-in to research). Within this fixed line telephone reaches 79% (with greater penetration among older respondents) and mobiles reach 96% (with greater penetration of younger respondents) (1).  Face-to-face also reaches most places (though at a cost).

Response rates

Online response depends on the nature of the panel, and how responsive and interested respondents are; expect between 5-30%. Conversely, response from links on websites or emails depend on the nature of the source. Telephone responses have also fallen over the last decade and responses are now around 10-15%. Face-to-face response, by contrast, is around 15-20%.

Avidy bias (Sample bias)

The self-selection nature of online means there is a greater risk of respondents opting-in to surveys that interest them. This is called avidy bias. Typically online respondents are younger, more familiar with the online world and spend more time on it. They are also more informed, more opinionated and more politically activist. (2) Panels also contain more early technology adopters though it remains possible to discern other types on the diffusion of innovation spectrum.

Social desirability bias

Research (3, 4) observes that those responding by telephone present more socially desirable responses more often than face-to-face (FTF). This is particularly the case with those with lower intellectual ability/fewer years of formal education (i.e. C2DEs).  Research also shows that respondents are more comfortable discussing sensitive subjects face-to-face as they can see. This they have greater trust in the interviewer. Conversely, FTF interviews conducted in the respondent’s home eliminate anonymity, making socially desirable responses more pronounced. Overall however, interpersonal trust between the interviewer and the respondent has a greater influence resulting in more honest responses. FTF also shows similar results to online (where there is no interviewer effect). However some research (5) has observed higher valuation responses to some ‘willingness to pay’ questions. For example, when there is a perceived ‘civic virtue’ in being seen to contribute to a common good.

Satisficing

Satisficing (combining the words satisfy and sacrifice) involves short-cutting the response process, settling on a solution that is ‘good enough’ but could be ‘optimised’.

Telephone poses an increased cognitive burden. The increased difficulty to fully comprehend questions, reduces the effort to cooperate, search the memory and process information. Perceived time pressure also fatigues and demotivates. As a result, questions are less considered, giving rise to higher acquiescence (answering affirmatively regardless of the question), having no opinions, choosing mid-points or only extremes in rating scales, easier to defend answers and reduced disclosure. Again this is more evident with those with lower intellectual ability.  Further research (3, 4, 5) suggests FTF researchers are better able to judge confusion, waning motivation, distraction (via watching a tv, eating etc.), Thus also be better able motivate and make it easier for the respondent to understand questions and improve cooperation on complex tasks. Conversely, with online, respondents go at their own pace.

Marketing Inspiration

(1) Great research starts with a great market research brief. Decide your target and what’s most important. Beyond feasibility and answers to questions, what’s the relative importance of cost, speed, precision etc.

(2) There are many pitfalls in conducting quantitative research. Even more if you would like to repeat a survey or set up a tracker.  So use larger samples to give greater reliability; a sample in excess of 1000 will give more reliability than a sample of 500. This means that repeating a survey 100 times means that in 95 instances, responses (confidence interval) will be within +/- 1%. Also make sure data is comparable from wave to wave, and design shorter surveys to cut the risk of satisficing.

(3) Take care to make sure samples are not biased and give reliable findings. Nationally representative samples are essential to measure awareness, usage and market share. Also make sure your sample eliminates any demographic, subject affinity, usage or other bias.

(4) Buyer beware. Remember the Whiskas advert that famously told us that ‘8 out of 10 cats prefer Whiskas’. This was eventually changed to ‘8 out of 10 owners that expressed a preference said their cats preferred Whiskas’. However, what we still don’t know is the sample size, how many said ‘don’t know’, and how many expressed a preference. So whatever the survey mode, be clear what is statistically significant or merely directional, and make the context clear. This will help you avoid being duped and make better decisions! Meoww, yum!

References

(1) OFCOM (2019).

(2) Duffy Bobby, Smith Kate, Terhanian George, Bremer John. Comparing Data from Online and Face-to-face Surveys. International Journal of Market Research Vol 47 Issue 6. (2005)

(3) Holbrook Allyson L, Green Melanie C, Krosnick Jon A. Telephone versus Face-to-face interviewing of National Probability Samples with Long Questionnaires. Public Opinion Quarterly, Volume 67:79–125 (2003).

(4) Szolnoki G, Hoffman D. Online, face-to-face and telephone surveys – Comparing different sampling methods in wine consumer research. Wine Economics and Policy 2 (2013) 57-66.

(5) Lindhjema Henrik, Navrudb Ståle. Are Internet surveys an alternative to face-to-face interviews in contingent valuation? Ecological Economics 70(9): 1628-1637 (2011).

The Marketing Directors and The Market Researchers have no vested interest in promoting one quantitative research survey mode over another. Thus, we work in partnership with the world’s leading online, telephone and face-to-face fieldwork companies to deliver the best solution for you.  Read about all of our market research services.

Following recent profit warnings (2014), Tesco veteran and CEO Philip Clark has fallen on his sword and given way to an outsider – Dave Lewis from Unilever.

In this article and short video, Tim Arnold and Guy Tomlinson discuss what’s gone wrong with Tesco marketing, and suggest some issues and opportunities for Tesco’s incoming CEO to explore.

The Tesco success story in brief

Founded in 1919 by Jack Cohen, Tesco is one of the world’s largest retailers. In 1993,  facing more service-centric competition, under Lord MacLaurin, the original ‘pile it high, sell it cheap’ strategy was replaced by ‘every little helps’. This manifest in improved service as well as low prices. In recent years Tesco has been so successful that it garnered a 30% share of the grocery market.

Big is not necessarily beautiful

When you grow so big, growth in core markets becomes increasingly difficult. Tesco addressed this challenge by diversifying into new markets. These include new countries (such as the USA) and new sectors such as telecommunications and financial services. In the UK, Tesco expanded into new neighbourhoods by taking over small high street stores and pubs.

What’s gone wrong with Tesco marketing?

The recession years have seen the rise of lower cost grocery alternatives such as Aldi and Lidl and experiential or ‘quality’ alternatives such as Waitrose and Marks & Spencer. As customers migrated to these two ends of the grocery market the middle-ground has become an uncomfortable place to compete.

Tesco’s ‘every little helps’ proposition appears to have become increasingly insignificant and meaningless. The price proposition – just a little too uncompetitive and the store experience – just a little boring.

However purchasing influences have changed. There are a growing range of price, experience, personality-rich and digital shopping options and tools. Customers have also become increasingly ‘savvy’. There is more shopping around. The price of loyalty also appears to have exceeded a couple of Clubcard points. Whereby Tesco marketing once had an advantage with the Clubcard and the accompanying big data insights this provided, this now seems eroded. Tesco appears to have failed to understand and adapt to changing customer behaviour and desires.

In a video interview, Dave Lewis also says that staff morale is low.  In turn this raises questions about the relationship between the management team and front-line staff, the management ethos and culture.

The challenge for Dave Lewis is to trace and understand the reasons behind these issues.

Between the lines we suspect that Tesco has become a victim of its own success. It has lost its heart. The relentless pursuit of profit has hindered and not enhanced customer, employee, community and supplier relationships. Perhaps by unwittingly creating a cultural myopia. Compounded by an over-reliance on big data systems and analysis. And also prioritising revenue growth and profit over the best interests of customers, employees, communities and suppliers. The £250m profit black-hole due to the accounting of supplier rebates also seems consonant with a less than open culture.

Marketing Inspiration

1. There will always be a limit how big a brand can grow before the benefit of big becomes a liability.  Success is culturally reinforcing only to the point when something goes wrong. Then is the time to understand, challenge and redefine the cultural norms.
2. Customers are not all the same. Thus one ‘size’ no longer fits all.  However, markets grow by adding new segments so by understanding and revealing new segments could reveal new growth opportunities.  This will therefore require creativity and research to understand and tap into customer needs, attitudes and motivations, not just big shopping and purchasing data analysis.   
3. Over-reliance on one form of intelligence gathering and managing a business also risks myopia. Big data analysis is also limited in being just that – big data analysis. It risks ‘failing to see the wood for the trees’. It is also a rational activity, run by computers – with rational outcomes. Relying on rational analytic methods alone thus ignores important emotional drivers.
4. Customers are human. They have emotional needs as well as rational needs.  When Tesco originally introduced their ‘every little helps’ strategy’ this added an extra ‘nice touch’ to their earlier wholly rational offer. A new way of connecting emotionally with customers therefore needs defining. The value proposition also needs strengthening and sharpening. In particular, the brand needs to become more human, personality-rich and experiential. Humans and human common-sense should take back control from computers and data management systems – and thus deliver the brand.
5. Can big be beautiful again? There are precedents for success in Archie Norman’s revitalisation of Asda in the 1990s. Understanding customers and their needs via market research and then putting them first is a good place to start. The reward will be their loyalty. We wish Mr. Lewis every success.