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If you’re in the market for a new pair of running shoes, do you think of Nike? Or if you need a new phone, does Apple or Samsung come to mind? This instant brand recognition didn’t happen overnight; it’s the result of consistent brand marketing.
In my opinion, the ultimate goal of marketing is to help your worst salesperson sell your least loved product without sweating. This is why most people pour all of their resources into direct response marketing and completely ignore brand marketing. But what about Nike, Apple, and Samsung? How come these big companies invest in brand marketing? Perhaps they just have too much money to burn. Do you really think so? Let’s find out.
To put it simply, direct marketing's goal is to drive sales (and get leads… But that’s part of sales too), while brand marketing aims for awareness, reputation, engagement, and advocacy. This means brand marketing doesn't necessarily produce revenue; instead, it supports it.
So you must be thinking, "If the ultimate goal of marketing is to help your worst salesperson sell your worst product without sweating, then it seems logical for big companies with big budgets to invest in brand marketing. They have the resources to do so. For a small business like mine, it might seem like a no-brainer to go all-in on direct marketing."
Before you make that decision, like thousands of small businesses putting all their budget into direct marketing, think about this first: If you were buying coffee from two competing neighborhood shops beside each other, would you go to Kopita, who remembers how you like your coffee, or would you go to the competing Kopimo that doesn't even remember your face because they don't care and just want to finish the sale?
This scenario illustrates the competitive advantage of brand marketing. While it may not immediately lead to a sale, it positions your brand favorably in the minds of consumers. For instance, consider a local bakery that shares stories about their baking process and the farmers they source ingredients from. This storytelling builds a connection with customers, who are then more likely to choose their products over a less personable competitor.
Kopimo is an example of direct response marketing, focusing solely on making the sale without building rapport. In contrast, Kopita represents brand marketing. They remember your preferences and engage with you personally, fostering loyalty and repeat business.
Going back to your decision on jumping on the direct response marketing bandwagon, do you really want to pour all your budget into that? Sure, it will make you quick bucks, but have you thought about how your business will perform in the future?
Direct response marketing goes straight for the pocket. It will move the audience to do what you want them to do quickly. It can quickly create revenue if done correctly, but there's a big downside with this approach. Since you're going straight for the pocket of people with whom you don't have a relationship, you could be dealing with one-off purchases.
How can you make it better?
This is where brand marketing plays a huge role. Brand marketing is an approach that will build your tribe. Instead of simply taking their money, you give them value, in turn earning their trust, and eventually building your own community of patrons. Why? Because brand marketing doesn't call for a sale; it builds trust by offering them value instead of making it look like you're just out to make profit.
In my opinion, the best approach is to build trust first, then use direct response marketing within your established community. When your audience trusts you because of the value and engagement you've consistently provided, selling to them becomes much easier and more effective. This approach works well for businesses that have the luxury of time and money to invest in building their brand.
Then what chances do that leave the smaller businesses with limited resources? Does it mean they don't have a chance at surviving the game? Not entirely. For small businesses with limited budgets, it's possible to balance both approaches. Start by creating valuable content that engages your audience and builds your brand. At the same time, use targeted direct marketing campaigns to drive sales. The key is to offer more value than you sell, ensuring your customers feel appreciated and valued.
A strong marketing strategy is crucial for maximizing your budget. It involves understanding how much to allocate to brand marketing to build long-term loyalty and how much to invest in direct marketing for immediate sales. For example, a small clothing boutique could spend a portion of its budget on social media ads (direct marketing) while also investing in community events or influencer collaborations (brand marketing) to build a loyal customer base.
Let's say you're focused solely on social media due to budget constraints. Make sure you don't bombard your followers with ads that sell your products. Post something for their entertainment, education, tell stories about your business, your staff, your advocacy. Anything that would offer your audience value in relation to your brand while building your image.
For example, a small artisanal soap maker might use Instagram to share behind-the-scenes looks at their soap-making process, educating their audience about the benefits of natural ingredients (brand marketing). Simultaneously, they could run Instagram ads for limited-time discounts to drive immediate sales (direct marketing). This balanced approach helps build a loyal customer base while also generating revenue.
By balancing both direct response and brand marketing, you can build a strong, loyal customer base while also driving immediate sales. Remember, it's not just about quick bucks; it's about creating a brand that people trust and return to.
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