STRATEGIC MARKETING

Rethinking brand marketing

Ruchi Gunewardene laments the lack of strategic marketing thinking – which has been replaced by digital communications

Marketing and brand building in Sri Lanka is so intrinsically associated with the social media communications of most companies that heads of marketing positions are now filled with digital marketing expertise.

The strategic multi-skilled marketer is dead. As a result, many brands are losing sight of significant opportunities for growth.

With the multitude of tools and channels available for tactical communication in the digital age, marketing managers are expected to deliver growth through innovative content creation while deploying them across the spectrum of digital media channels.

To understand the potential beyond digital communication, we need to take a step back and review the strategic options available to build brands, gain market share and drive growth.

QUALITY AND POSITIONING Elon Musk, the founder of Tesla Motors, banished any form of advertising investment for the Tesla S, Tesla X and Tesla 3. To him, advertising was a waste as it was contrived and inauthentic.

Instead, he invested heavily in his product offering… as he insisted it would speak for itself.

To get out of the communication trap, Sri Lanka’s marketers must stop relying on large marketing budgets and instead, explore alternative cost-effective options for growth. This must begin with the product itself and explore product improvements from a customer centric mindset.

The marketing team should be intrinsically involved in innovation and enhancement as it is the custodian of the customer within the company.

Deep introspection is also required to identify stimuli and barriers to purchasing a product or service across
myriad influencing factors – such as emotional triggers and aspirations, price sensitivity, distribution and availability, points of differentiation, distinctive design, service delivery standards and related employee training among many others – the majority of which are beyond the sphere of digital marketing.

The launching pad for strategic marketing is effective research and data driven segmentation of the entire market, providing the marketing manager with a bird’s-eye view of existing and potential customers.

This should result in careful long-term positioning of the brand relative to the competition and an overall strategic marketing plan.

EXISTING CUSTOMERS Most marketing departments invest huge sums of money in communications with no distinction between current and lapsed customers, and non-users, on the premise that the messaging will be picked up by the relevant group.

A lack of focus across various customer segments (that have entirely different mindsets) undermines the loyal customer base, which is the bread and butter of the company. Herein lies the low hanging fruit – meaning, to engage with them to make them even more loyal users, and also spread positive messages about the brand to their friends and family. The opportunity is to convert loyal customers into brand advocates.

Word of mouth is a powerful tool that was extensively leveraged by Tesla in its early global promotions. The company formed Tesla clubs, which comprised ardent fans who were offered points for redemption (to be used when they bought their next car) based on the number of friends they recommended to buy a vehicle from the company. A few were so successful that they were able to get a free Tesla for themselves!

Besides loyalty programmes and membership clubs, other strategies such as cross selling or providing special offers before they become available to the broader customer base are options to explore. This provides a positive signal and acknowledges loyal customers as being special.

Such initiatives demonstrate that the brand truly cares, thereby building closer relationships and customer advocacy. The ultimate aim is to establish a core group of brand evangelists.

Relevant product enhancements, careful long-term positioning and building passionate customers should be prio­rities.

EXPANDING THE BASE Educational content can help expand the customer base – especially for new products – because it answers customer queries, induces trials and provides a physical or virtual handholding service for non-users.

Providing educational content may also increase customer satisfaction because it may answer questions they have and teach them how to derive better results. This may also include free sampling, experiential videos, infographics, blogs, webinars, workshops and so on.

Additionally, physical interaction with customers will result in further learning, leading to product modifications and improvements based on feedback.

When Tesla was launched, stores were opened in shopping malls and retail centres while cutting out dealers, thereby providing direct access to customers who were able to be educated and experience the products firsthand. Essentially, it was an innovative way of sampling in the world of car sales.

BUILDING PARTNERSHIPS This is an often overlooked area but it could result in synergy between brands. Mutual goals need to be established as well as co-hosting or co-branding where relevant.

Uber’s association with Spotify is a great example of this. The Uber customer is able to listen to music through Spotify while travelling in a vehicle. While music makes for a more pleasant ride experience, Spotify expands its customer base.

Another great example is the partnership between Coca-Cola and The Jack Russell Company, which introduced the famous yo-yo promotion. Through this association, Jack Russell sold yo-yos through Coca-Cola’s extensive distribution system. Meanwhile Coca-Cola sold more products because of the promotion.

The value of such third party endorsements (either direct or indirect) should not be discounted as it provides an independent seal of approval for a brand. Developing such credible independent partnerships can only strengthen a brand.

INTERNAL MARKETING A company must build a brand on the inside for the benefit of customers outside.

There is usually a substantial waste of marketing budgets as investments are made in communicating with customers but bypass employees. Because many departments do not know what’s happening or expected of them when customers call directly, the brand is unable to deliver what has been promised.

Therefore, aligning the brand promise with service delivery, training and monitoring is vital, along with a strong internal marketing process that constantly updates employees across departments. This adds to the synergy of external marketing programmes.

RETHINKING MARKETING Communication is the heroin that drives most marketing initiatives these days. Weaning away from this will force a more critical review of what else could be done with the adoption of an innovative and more impactful approach to marketing.

To leverage this power, companies need to appreciate the value a strategic marketer can bring to the business.