This post may not be for everyone. For example, if you're a challenger brand, suffer from low brand awareness or are trying to change people's perceptions about what you stand for, you might want to move along.
But what if you're a market leader -- not necessarily number one in your category, but certainly in the top two. Maybe you're Coke or Pepsi, McDonalds or Burger King, Hershey or Nestle. Or maybe you've got products that people just "gotta have." You're Mercedes or BMW, Apple or Intel. Or frankly -- you vs your competitor? Six of one half a dozen the other. You're Kellogg's or Post, Crest or Colgate, Dell or HP.
Why advertise? Seriously... You might argue that competition is still fierce, that you've run the numbers. The data shows that when you heavy up in TV, print, radio and out-of-home you see corresponding lifts in sales. Compared to what? Tell me the last time you didn't see Coke or McDonalds ads. Find me someone (anyone) who isn't already aware of these brands. Show me someone who buys a car because it looks good in an ad, rather than because it turns heads on the road. My wife has wanted a BMW for years. Why? Because she wanted it. Period. When it came time to shop for a new car, we visited exactly one dealership. Guess which one. (Yes, even though we've seen plenty of ads for Mercedes, Lexus, Audi, Cadillac, etc.)
Sure, to make my point I'm painting this picture in black and white, but it strikes me that the billions these brands spend could be spent smarter. Instead of running ads, what if these companies invested that same money in product improvements? What if they used that money to serve their existing customers better and turn them into loyal evangelists? Do you think better products, lower prices or better customer experiences might have a positive impact on sales, maybe even an impact greater than the awareness lifts that advertising delivers? Do you think remarkable products, pricing incentives or examplary service might get people talking, spreading the word?
I bet they would. So why haven't any big brands come to the same conclusion? Maybe it's because they have too much vested in the status quo, because "it's always been done this way," because doing the right thing isn't as easy as doing the easy thing.
Or maybe I'm way off base - I'm willing to admit that.. So let me know what you think. Chime in.
