Saturday, September 9, 2017
Promoting Category Benefits
Usually the brand that has the most to gain by promoting category benefits is the market share leader. For instance, as market share leader, Hallmark had the most to gain by promoting the benefits of sending greeting cards.
However, over time, I have come to realize that many brands would benefit from promoting category benefits. While those brands are competing most directly with close-in competitors, that is competitors in the most tightly defined product/service categories, they are also competing with what I call "everyone and everything else."
Consider a fine art museum. It is certainly competing with other nearby fine art museums but it is also competing with every other use of its potential patron's time and money - other recreational or educational activities including other types of museums, botanical gardens, movies, baseball games, etc. That is why it would be wise not only to focus on differentiating benefits within the category but also the category benefits themselves as ultimately, the brand is competing against brands in other categories.
As another example, consider a yacht club brand. It is competing against other yacht clubs within the same geography. But it is also competing against other uses of recreational time - traveling to a nearby city, playing tennis, riding bicycles, playing golf, having a picnic, visiting a zoo, etc. A yacht club can grow by stealing share from other yacht clubs (that is, by getting a bigger slice of the pie) or it can grow by convincing more people that sailing and racing sailboats are very rewarding activities (by expanding the pie).
At Hallmark, we produced two different types of advertising. One highlighted the benefits of maintaining relationships through card sending, while the other spoke to why someone should give a Hallmark card instead of another brand of card.
Promoting category benefits is particularly important in categories that are static or shrinking. It will have a much greater impact on revenues than trying to steal share.
If you haven't considered this already, consider whether promoting category benefits would be beneficial to your brand.