Mindshare Before Market Share

It is very important for brands to build mindshare as a first step toward market share. I will begin with a personal example of this. The majority of my clients approach me in the following manner: "I heard you speak at the XYZ conference. After that, I bought your Brand Aid book. I refer to it so often that many of its pages are dog-eared. I have been following your blog for X number of years. And now I have this brand problem. I like the way you think. I knew you could help me with this." That is called mindshare. When your brand is top-of-mind associated with a specific need, benefit or category, or better yet, when it has totally consumed someone's thoughts regarding that need, benefit or category, that is called mindshare. 

Here are some other examples. Remember when Amazon.com was first introduced? Everyone was talking about it. Jeff Bezos was on the front cover of numerous magazines and you could not pick up a periodical without reading something about Amazon.com. Consider Tesla Motors today. The Tesla Model S earned a perfect 100 rating by Consumer Reports and has been the buzz of almost every other automotive magazine. Elon Musk has achieved celebrity status and has been interviewed by dozens of periodicals. Or, how about Donald Trump? Watch any news network, Democratic or Republican leaning, and the presidential candidate that dominates the news is Donald Trump. He seems to be sucking up every other GOP presidential candidate's oxygen. 

Strong brands must develop mindshare. This typically requires a superior product with a great story to tell but equally as important is the daily blocking and tackling of being in front of people, communicating with them, interacting with them, entertaining them and giving them something of value. The old saying "familiarity breeds contempt" is not generally true. In fact, familiarity usually leads to mindshare and liking. Find as many ways as possible to keep your brand in front of its customers and potential customers day after day.

Did you know?

• There is a direct correlation between advertising spending, brand awareness, and market share (given that the brand’s distribution is equal to that of other brands in the category and consumers like the brand’s point of difference). In fact, James Gregory and the Corporate Branding Partnership (and others) have linked advertising spending to increases in sales, earnings, market share, and stock price.
• A brand’s perceived quality increases with increases in advertising impressions, regardless of message.
• The more extended a brand becomes, the more it needs sub-brands to aid with its extensions.
• “Purchase intent” tends to be inflated for declining brands and understated for emerging brands.
• Advertising is often most effective in increasing share of market when brands are so similar that the advertising message is the primary source of differentiation.

Excepted from Brand Aid, second edition, available here.

Ten Sources of Potential Share Loss

Don’t ever be satisfied with ‘business as usual.’ There are always others in the marketplace trying to create the next ‘killer application.’ They are smart, they are savvy, they have discovered new technologies, they have deep customer insight and they have an outsider’s perspective. Stay close to your customers. Understand their frustrations. Identify their latent needs. Keep abreast of market trends and new technologies. Constantly innovate. Test new features and new concepts. Relentlessly search for superior solutions to the customer needs that your products address today. Try to view your business from an industry outsider’s perspective. Try to put yourself in your customers’ shoes.

Following are ten sources of potential share loss for your products and brands:

1. SUBSTITUTE PRODUCTS – Products offering a similar consumer benefit but from a different product category
1. Examples:

                         i.     Vacation rental homes in lieu of hotels or motels

                        ii.     Contact lenses versus eye glasses, LASIK surgery versus contact lenses

                       iii.     Aspirin versus Acetaminophen versus Ibuprofen versus Naproxen

                       iv.     A plane versus a train versus a bus

2. BIG BOX RETAIL/CATEGORY KILLER STORES - A new retail format offers significantly more variety and selection (and often lower prices too) than your retail store does
1. Examples:

                         i.     Barnes & Noble replacing smaller, local book stores

                         ii.     Wal-Mart replacing smaller, local department or variety stores

                        iii.     Home Depot or Lowe’s replacing smaller, local hardware stores

3. NEW TECHNOLOGY - A new product or technology meets the same needs as your brand’s products do (often in a superior way), even if it is not in the same industry
1. Examples:

                          i.     Computers replacing typewriters

                         ii.     UPS and FedEx replacing US Postal Service package delivery, E-mail 

                                 replacing US Postal Service mail

                        iii.     DVDs replacing videotapes, Netflix replacing video/DVD rental stores, on-demand movies replacing videos or DVDs

                        iv.     Digital clocks replacing analog clocks

                         v.     MP3 downloads replacing CDs

                        vi.     Books on tape/CD versus printed books

                       vii.     Digital versus traditional chemistry based photography

                      viii.     Online brand asset management systems replacing brand identity guidelines/standards manuals

4. INTERNET SOLUTIONS – The Internet is often superior in offering maximum product variety, robust search and browse capabilities, 24/7 service and low prices. This can take share from brick and mortar retail store sales.
1. Examples:

                         i.     Amazon.com versus Barnes & Noble big box book stores

                         ii.     Online computer backup versus customer owned backup hard drives

                        iii.     Online versus box office ticket sales

5. MEGA-TECHNOLOGY PLATFORMS – What used to address a single customer need now delivers an ever increasing number of features and applications previously delivered by other products
1. Examples:

                          i.     Computers

                         ii.     Cable televisions

                        iii.     Mobile telephones

                        iv.     MP3 players

6. VERTICAL INTEGRATION - A supplier or customer integrates upstream or downstream into your business
1. Examples:

                          i.     Printers entering the publishing business

                         ii.     Grocery stores opening their own organic farms

                        iii.     Clothing manufacturers entering the fashion design business

7. TIMESHARING - Timesharing makes it much more cost effective for people to own a fraction of a product or to rent it when needed versus owning it outright
1. Examples:

                          i.     Condominium timeshares

                         ii.     Private aircraft fractional ownership and rentals

                        iii.     Yacht fractional ownership and charters

                        iv.     Cyber cafes

                         v.     Art rental

8. SUPERIOR CONVENIENCE – Someone else is selling the same customer benefits that you are but in a way that is much more convenient for the customer
1. Examples:

                        i.     Home delivery versus pick-up versus in-store shopping

                       ii.     24/7 access versus standard daytime and evening hours six days a week

                       iii.     Pay via the Internet or telephone versus the mail

                       iv.     Free rental car while your car is being serviced; better yet, the service shop swaps the cars at your house or place of work

9. VALUE-ADDED ENVIRONMENTS – Sometimes a new product purchase or usage environment based upon deep customer insight can provide a preferred customer experience at a price premium
1. Examples:

                        i.     Starbucks – coffee is now $3-4 a cup because you get to drink it in an  environment that provides a pampering experience

                        ii.     Build-A-Bear Workshop – pay more to build your own teddy bear from scratch. It is a fun experience.

10. SERVICE ON STEROIDS – Someone else is doing what you are doing, only with superior customer service
1. Examples:

                         i.     Grocery stores with in-store dining or freshly made ready-to-eat gourmet meals (such as Wegmans)

                         ii.     Dry cleaners that pick up and deliver

                        iii.     New home developments that include concierge services, country club memberships and on-site daycare

I wish you great success in anticipating and addressing the potential sources of brand share erosion. Stay ahead of the competition -- constantly innovate ways to gain share instead of losing it.