It is just astounding that after more than 35 years, some marketers are still using the flawed funnel approach to how advertising works. This is one reason that real, credible, data-supported brand management must be taught in business schools. For decades, we have known that using the funnel approach to advertising, in hopes of building brand loyalty, is a form of mismarketing on a major scale.
Amazing about face. In a world where deals and promotions abound, where “conquesting and conquering” customers has become the modus operandi (viz, the streaming brands, the automotive industry) and where value continues to be equated with price alone, Barron’s, the financial newspaper, tells us brand loyalty is “in” again. At least in fast food.
A recent article in The Wall Street Journal reminds us that understanding value is critical for brand viability. The story focuses on McDonald’s. According to the reporters, the V (Value) in Ray Kroc’s QSC and V (Quality, Service, Cleanliness, and Value) has vanished. McDonald’s is struggling to recapture its customer-perceived value positioning.
Here is some brand common sense. In order to be purchased, a brand must first be considered. The original advertisements for the New York State Lottery: “You can’t win it if you’re not in it.” Well, the same goes for consideration and purchase. Common sense.
We’ve been told a consumer’s path to purchase proceeds in a straight line: awareness, familiarity, consideration, purchase … and if done right, it leads to brand loyalty. It’s a logical step-by-step progression model and gives brands the confidence to manage customers’ engagement and activate them along each step in their journey.
