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Marketing Strategies that Build Brand Equity Without 'Branding'

Jonathan Rolley
Jonathan Rolley Posted on Apr 19, 2016, 10:00:00 AM

Of all the larger-than-life figures produced by the Lone Star State of Texas, Samuel Maverick is by far our favourite.

a cow that has been branded

When asked why he hadn’t branded his cattle like everyone else, the independently-minded rancher replied that since everyone else branded their cattle, he already knew which ones were his - the ones that weren’t branded. He argued that it would take time and effort, and he saw no need to follow a practice just because everyone else did. In short, Maverick saw no value in branding. And neither do we.

Of course, I’m not talking about holding a red hot iron to a cow’s hide. I’m referring to those advertising techniques aimed solely at creating brand awareness and building brand equity, the supposed precursors of increased sales. The premise behind such marketing strategies is that if consumers have already had experience with particular brands and think positively about them, then they will be more likely to choose those brands when they are ready to buy.

Most brands try to inspire these positive thoughts by focusing on values like product quality, integrity or transparency. The problem is that it is difficult to determine the success of such messages and almost impossible to determine the ROI. Without a call to action and the associated data analytics metrics, there is actually no way of telling whether such a marketing strategy is of any value. In short, branding is a bit like shooting with your eyes closed – not very efficient and probably dangerous.

Direct marketing is measurable and delivers real ROI

Direct marketing, on the other hand, is completely measurable: the response rate and conversion rate of a DRTV advertisement can be measured at every stage of a marketing campaign. As a result, it’s possible to both fine-tune direct marketing strategies and measure their ROI. This reduces the risk of wasted time and ad spend, and it allows marketers to determine what works and what doesn’t.

It’s a marketing strategy that is most commonly used to build a customer base and increase sales through lead generation, launch a new product and clear out excess stock. It can also be used to create brand awareness. It does so because real interactions with a business and its products are far more memorable than an advertisement. When a customer has had a positive firsthand experience, they are far more likely to remember it and recommend those brands to their friends.

The best marketing strategies rely on direct marketing to sell products and services that delight

When your direct response advertising results in greater sales, it isn’t only increasing revenue; it’s inspiring the kind of word-of-mouth marketing that money can’t buy. And that builds brand equity in a way that branding never will. Of course, this also depends on the ability of a business to delight its customers. Customer service is set to become an even more important factor to differentiate between brands, and the most successful marketing strategies will be those that use direct marketing to sell great products and then deliver great customer service to build real customer loyalty.

If you want to see better results from your marketing and advertising strategies and want to know more about how direct marketing can improve lagging marketing strategies, contact us now for more information on how our leading Melbourne advertising agency can assist you.

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Image Credit: Branding Irons

Jonathan Rolley
This post was Written by Jonathan Rolley

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