He believes that many companies don't take marketing as seriously as their business functions. That's because marketing isn't always treated as an exact science. “Companies like Red Bull, a long-term sponsor of the institute, think of themselves as media companies. When you have to compete for customers, marketing becomes important,” he said.
This is an independent research organization, which means we don't investigate a topic just because Coca-Cola asks us to, for example. “Although our sponsors do not direct our research, we are inspired by them. We always ask ourselves, would it be of interest to our sponsors?” Dr. Sharp said. Told.
The institute is currently investigating the impact of pricing on marketers. “We're currently conducting extensive pricing research because it's such a hot topic during times of high inflation,” he said.
For many years, the Ehrenberg-Bass Institute has worked to create laws that govern overall marketing strategy. Its most famous rule is called the law of double jeopardy. “That tells us a lot about how brands grow or decline. Because that's probably a fundamental question in marketing – why some brands do so much more than others. Will it sell a lot?'' Dr. Sharp said.
“We found that there was a very systematic pattern. Smaller brands have a much smaller customer base. In any given era, people make at least one purchase. And those customers are loyal. On the flip side, big brands have more customers, and those customers are a little more loyal.
“For a textbook written about loyal, niche brands, this is a bit of a shocking discovery. And really, what defines a brand is how many customers it has. And it's very It has a deep meaning.”
Another finding the institute found is that price-driven promotions and sales have little long-term effect. “They work in that they create a spike in sales. People hope that that draws people into the brand,” Dr. Sharp said.
“At the end of the day, Knoop. Those are costs. They always lose money. The lesson for management is, 'We're going to have to do something for retailers.' Do whatever it takes to keep Coles and Woolworths happy. ” No more. ”
