We met with Byron Sharp, Professor of Marketing and Director of the Ehrenberg-Bass Institute, one of the most influential figures in marketing science in recent years, as part of Cannes Lions.
Sharp, whose research at the Ehrenberg-Bass Institute has reopened discussions on many established approaches in the marketing world, discussed the most common misconceptions about brand growth, the future of evidence-based marketing, and why the industry is still clinging to old habits in this interview:
The findings of the Ehrenberg-Bass Institute are forcing a rethinking of many fundamental ideas that have long been debated in the marketing world. Despite this, agencies and brands continue to work with outdated concepts in their daily practices. Do you think this stems from a lack of understanding of marketing principles, or is it the way the industry itself operates that makes applying these ideas difficult?
Industry practices are changing, and some companies are taking significant steps to place evidence-based marketing at the heart of their business practices. However, this transformation will inevitably take time. This is because the scientific approach we are discussing is still relatively new, and the majority of marketing professionals have not received systematic training in modern, evidence-based marketing principles. Many have either only superficially encountered the findings of the Ehrenberg-Bass Institute or have never been introduced to them at all.
Therefore, this year we launched the “How Brands Grow: Live” Executive Development Program, which we are holding in Bordeaux, Boston, and Singapore. Our aim is to introduce a marketing approach supported by scientific evidence to more executives.
Our research clearly demonstrates this need. According to data from the Ehrenberg-Bass Institute, 59% of marketing directors do not have a bachelor's degree in marketing. Furthermore, 43% of senior marketing executives have not received any new training to contribute to their professional development in the last 10 years.
You argue that increasing market penetration is at the heart of brand growth. This approach also reframes traditional marketing narratives such as brand meaning, identity, and creativity. But do you think a brand can maintain its meaning while growing?
Yes, the scientific evidence we have is quite clear on this point. A brand cannot grow sustainably without increasing its market penetration, i.e., its customer base.
The findings regarding brand meaning are also quite clear. Research shows that brands don't carry as strong and deep meanings in the minds of consumers as is commonly believed. Therefore, brand image is often neither a key factor in driving growth nor an obstacle to it. In short, this is not what brands should worry about the most.
As for the main reason why consumers don't buy your brand… it's not so much that your brand evokes negative associations in them, but rather that your brand doesn't come to mind frequently enough at the time of purchase.
We are in an era where algorithms, segmentation, and personalization are driving marketing. These systems are encouraging brands to focus on increasingly smaller and more specific target audiences. To what extent does this trend align with your approach of "broad audience and mental accessibility"?
Yes, it's becoming increasingly possible for marketers today to choose a path that doesn't aim for growth. Especially if they prioritize efficiency and return on investment over effectiveness, reaching a narrower audience means becoming a smaller brand. If you don't mind your brand losing market share, then this is certainly a viable option.
If you believe that market penetration explains brand growth so strongly, why does differentiation remain one of the most fundamental concepts in the marketing world?
There's a compelling theory that consumers need to perceive a brand as different, or even better, than its competitors in order to buy it. This approach sounds compelling because it intuitively seems right. That's why marketers rack their brains so much about how to convince consumers that their brand is better.
However, this perspective misses the real issue. The primary reason a brand misses out on sales isn't because consumers dislike or disapprove of the brand, but because the brand lacks sufficient mental and physical accessibility.
Read the full interview on MediaCat.