brand marketing

5 Reasons of Proof that Brand Marketing Works

I hear these three words every month, DOES MARKETING WORK? I can give you five reasons that support the answer of “absolutely”. Brand Marketing is as powerful as being number one or number three.

1) If you are a woman, what lipstick do you wear? What Shampoo do you use? What brand Jeans do you own? Women spend an average of $15,000 on makeup in their lifetimes. Beauty manufacturers spent $2.2 billion on advertising last year. Marketers allocated most of their ad spend to TV (42%) and print (54%). So what makes you buy the brand you purchased? Whatever your answer, it stems from marketing. The formula to penetrate into your mind is a complex one. But you have been brainwashed whether you accept it or not.

2) Typically, if you are of age, you are driving your car. Why are you a BMW or Volkswagen driver? Does not every brand have some sort of emotional and intellectual connection with you? What are your thoughts on a Mercedes Benz driver? The reason you have these thoughts are because of this fact:

  • General Motors spent 3.5 billion on advertising last year
  • Ford Motors spent 2.7 billion on advertising last year
  • Fiat Chrysler Automobiles spent 2.2 billion on advertising last year

Automakers sold almost 18 million vehicles. Do you think they would do all this advertising if it didn’t work? Marketing is the driving force to give you a lasting impression when it comes time to purchase your next car. You probably already know what vehicle represents who you are. Brand loyalty is also a big piece of the advertising puzzle and they spend millions to keep you coming back.

3) You’re hooked on some television shows? Why is that? How did you find out about them? The advertising to capture an audience of a certain demographics has become easier with all the analytical data thats accessible. You may of picked a show just because you liked that actor or actress. They too are a brand. I want to focus on one show and one show only, NFL Programming. NFL are branding machines. They encourage Fantasy Football, they can charge up to $600,000 for a .30 spot on Sunday Night Football, they have begun to market to women and they have the best branded show in the history of shows, the Super Bowl. Why then are they losing shares at the end of 2016?

Factors for decline:

  • The Chicago Cubs win
  • Donald Trumps Election (this took shares away from everyone)
  • Deflate-gate debacle
  • Stand on Domestic Violence
  • The respect of the American Flag

Americans are standing up for what they believe in. Colin Kaepernicks kneeling at the American Flag has still left Colin a free agent who is not signed. He is not liked and this is linked to the NFL. The NFL needed to take a stance and speak out on the issues pertaining to this behavior. They remained quiet and seeing how that impacted them must be painful. How smart proof is your company? New factors always pop up and how you address them might mean your brand lives on, or dies over time. Don’t get me wrong, the NFL will bounce back since they have a great cash surplus. They just signed a deal with Amazon for the rights to Thursday Night Football. Now that is re-inventing yourself while keeping your brand.

They do have the strictest guidelines when it comes to using their brand. I respect them for protecting their assets, for making counterfeiters go to jail, and great product placement with partnerships. Who else could have every football team on a BudLight can? But always remember your demographics. NFL might just have lost that reality when they don’t take a stand on players actions. Never take your eye off the ball.

Learn more on Defining Your True Brand Story and Bringing it to Life Online.

4)  The grocery store is a subject of brands. I want to focus on just beer. How is it that Bud Light leads the beer division. If you drink beer, you have a favorite. The reason might be image or taste. But you tried other beers because of marketing. If you say no to this idea, how did you hear about the other beers in the first place? If your answer is friends, that is also marketing. Word of mouth marketing is still the most powerful marketing this century. And your friends received the marketing somehow. Alcohol ads have increased 400% over the last 40 years. The industry spends around 89% of its advertising dollars on television, according to research done by Citigroup. Bud Light spent 85 million dollars on TV ad placements in 2014. Today Anheuser-Busch spends 1.68 billion in all advertising spends. They have averaged 1.4 billion over the last decade. It’s the reason they have 48% of the beer market. How else would a company stay above the rest in the highly competitive beer category?

5)  Fast Food. McDonalds has a value of 88 billion and next on the list is Starbucks with 43 billion. To understand this slightly better, Burger King has a value of 3.6 billion. A huge wide difference. So why the separation you may ask? McDonalds spent 5.9 billion on advertising in the United States alone. Burger King spent 255 million on advertising, which has contributed to the separation of these two brands. Marketing obviously works or McDonalds would not continue this spending trend for over a decade. I do wonder, if Burger King had good marketing and spent what McDonalds spends, if they would jump over Starbucks? Product is still king. There is a connection of why Coca-Cola and Bud Light are both the most valuable soft drink and beer brands in the World. Marketing, and marketing dollars allocated.

Those are five samples of how creative marketing builds brands to lead a nation. Marketing + Strategy + Creative + Execution = A powerful formula for elevating your product or brand. I will agree that all samples above have unlimited budgets. My point to this blog was to simply support the concept that you are a victim of marketing and strong marketers seem to rise above the competition. What is your company doing to rise above?

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Mark Beebe
Mark Beebe oversees all current clients. His secondary focus is leading the creative with original thinkers who provide innovative processes and insightful answers for clients’ marketing needs. His 30+ years has garnered the team to over 50+ national and international awards. As a partner, Mark, looks for unusual solutions to bring smart results and metrics to your bottom line.