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The astonishing fact is that most marketing results in no change in sales or profit if you disregard short-term blips. Nearly all marketing budgets are designed to affect brand preference in established categories and subcategories with established competitors. The great majority of these, on average, have no long term sales impact.
In virtually all categories, any major change in market position comes from the emergence of new subcategories. I studied the Japanese beer market for over 50 years and a major change in market share trajectory came only four times. Three of these were when a new subcategory was introduced (dry beer, Ichiban, Happoshu) and the fourth was when a subcategory was repositioned. In between, huge marketing expenditures simply did nothing. In computers big changes in competitive position occurred only with the introduction of new subcategories such as minicomputers, network computers, tablet computers, and so on. In automobiles we have seen 4 wheel drive,…
February 15, 2011 • Permalink