![]() I have always thought the provenance of these programmes suspect. I also have no problem with his evidence that light brand users are of great importance for both current and future sales and therefore relationship marketing and CRM programmes that ignore them are a bad idea.Īnd I agree with his evidence and argument that loyalty programmes have weak effects on brand share and are unprofitable. It seemed to me to be a corollary of the Parfitt and Collins (1967) trial and repeat-purchase model of how new brands become established in the first place. Their deduction is that ‘more from existing users’, an oft-stated marketing strategy, never works.Īlthough there are some major unanswered questions about this, I have always felt comfortable with putting penetration as the header objective if growth is to be achieved. Ehrenberg/ Sharp have studied hundreds if not thousands of brands in different markets and geographies and nowhere do they find brands with greater loyalty than their competitors. To grow, it must get more users it can’t grow by inducing existing users to use more. However, in Sharp’s book there are areas where in my view his ‘evidence’ fails to convince and there are key issues that he doesn’t address at all.Ī central Ehrenbergian assertion, with only minor caveats, is that a brand’s share is determined by the number of users is has. ![]() I am a partial convert to Ehrenberg’s ideas and have been since the early 1970s. ![]() ![]() It has been reviewed in Market Leader (Quarter 2, 2011) but, given its iconoclastic nature and that it is based on more than 50 years of scholarship, it requires much attention and some challenge by the marketing community. The book is an accessible compendium of the work of the late Professor Ehrenberg and his colleagues. Deeply held marketing ideas and widespread practices are denounced and derided – marketers likened to medieval doctors, with their principles and practices compared to those of blood letting. The baying and mooing of marketing sacred cows being slaughtered can be heard emanating from the pages of Professor Byron Sharp’s book How brands grow: what marketers don’t know. ![]()
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