Despite the complexities of the consumer landscape, marketing’s goal remains the same: delivering the right message to the right audience at the right moment. With the proliferation of digital media channels and increasing demand from consumers for immersive brand experiences, I suggest a straightforward framework for C-suite marketers and company leaders to plan their marketing efforts for the long-term, irrespective of economic conditions.
The key question is: what type of brand are you? You need to first assess yourself accurately in order to market effectively.
Diaper or Coke?
Marketers today are caught between a rock and a hard place: top-of-funnel brand marketing or pure-play performance investment. Leaders should begin by asking themselves where their brand falls on the diaper or Coke spectrum. In other words, assess the audience scope of the product being marketed, whether it is a broad consumer base or a narrower group. Coke can appeal to just about everyone, but only soon-to-be and new parents will buy diapers. So for brands like Coke, traditional TV and broadcast channels can still offer wide-reaching brand-building power that make emotional connections with consumers for long-term conversion. However, for products with a smaller, targeted consumer base like diapers, addressable advertising with its promise of spot-on targeting is more enticing.
When allocating resources it’s important to remember the basic economics of marketing and keep to the golden rule – know your audience – to avoid getting stuck in the old world or overspending in the new world.
Challenger or Incumbent?
Similar to political candidates, brands operate on a spectrum ranging from challenger to incumbent, which dictates how aggressively and competitively they market to potential consumers. Challengers excel in digital marketing strategies, delivering tailored messages to consumers based on available data to capture their attention. For example, Chipotle has built one of the fastest-growing loyalty programs ever with nearly 30 million members by going straight to the consumer with cheeky marketing, a robust digital targeting strategy powered by a robust CRM system, and a strong consumer app. On the other hand, more established brands with larger market share may rely on traditional mass-market advertising channels to a greater extent.
There are pros and cons to both sides. Challengers enjoy the benefit of newness, being nimble and empowered to take risks – along with the earned media and word-of-mouth virality that comes with it. Incumbents benefit from consumer trust and fandom, and a tested track record of value – which, in times of economic turmoil, can be a powerful conversion force.
Political or Non-Political?
Brands are falling fast in the political crosshairs these days with the 2024 election just over a year away. Yet certain brands can be outspoken in politics without getting penalized. Look at Patagonia, which is #1 on this year’s Axios Harris 100 of top consumer brands and is nearly equally liked by Democrats and Republicans. Nike has also weathered its Colin Kaepernick controversy.
Why do some brands run into the political buzzsaw while others stay above the fray? Identity and consistency make the difference. If politics is core to your identity and you act consistently with that identity, then people will respect you even if they sometimes disagree. But if you typically don’t touch politics, then you may give half your consumers a nasty surprise when you wade into wedge issues. A great brand can win over everyone’s consumer brain – but once people turn on their political brains, there’s no winning them all. Especially as Republican debate season heats up, brands need to figure out their political identity to avoid becoming the next victim.
Tech Integrator or Bust
AI and AR aren’t just hype, but you need a North Star for how your company wants to integrate these emerging technologies. In other words, you can’t afford to opt out, but you also can’t chase every trend. To market effectively in 2023 means blending cutting-edge technology solutions with experiences that specifically make sense for your consumer.
Integrating AI to create efficiencies across your marketing ecosystem is a good investment for all. Developing Web3 capabilities is promising if your consumers traffic primarily in virtual worlds and expect you to interact with them. And with digital overlays on top of existing physical spaces, brands can leverage AR as a bridge between the real and virtual worlds. These technologies provide infinite possibilities, but don’t lose sight that the end goal is to leverage their speed and insights to build more valuable brand-consumer interactions.
The end of 2023 will continue to be full of challenges with the most polarizing election and the most potentially transformative technology of our lifetimes both ramping up. With all these outside forces, the most important thing for your brand to do right now is to understand your identity: marketing success will depend on whether you’re a diaper or Coke, challenger or incumbent, political advocate or nonpolitical everyday brand…and ready to integrate new technologies along the way.
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