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The Death of Loyalty

or

Marketing Science

and The Age of Enlightenment

Peter Dann

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33

44

5

“

”

Marketing theory was

invented using mediaeval

thinking, not science

Byron Sharp

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77

88

99

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The Dark Ages

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Enlightenment 1

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Enlightenment 2

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Enlightenment 3

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Enlightenment 3

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The Dark Ages of Marketing

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The Dark Ages of Marketing

2020

The Dark Ages of Marketing

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The Dark Ages of Marketing

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The Dark Ages of Marketing

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The Enlightenment in Marketing

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The Enlightenment in Marketing 1

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The Enlightenment in Marketing 2

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The Enlightenment in Marketing 3

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The laws of nature – Double Jeopardy

Brands with less market share have

so because they have far fewer

buyers

and those buyers are slightly less

loyal

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The laws of nature – Double Jeopardy

Market share % Annual Market

Penetration

Purchase

Frequency

Persil 22 41 3.9

Ariel 14 26 3.9

Bold 10 19 3.8

Daz 9 17 3.7

Surf 8 17 3.4

Average 3.7

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The laws of nature – Retention Double Jeopardy

All brand lose some buyers; this

loss is proportionate to their

market share

i.e. big brands lose more customers but these

represent a smaller proportion of total customer

base

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The laws of nature – Pareto’s Law

Slightly more than half a brand’s

sales come from the top 20% of its

customers

i.e. the ‘loyal’ 20% do not account for 80% of

sales

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Customers are not disloyal, they’re disinterested

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Sharp’s Seven Commandments

1. Continuously reach all category buyers

2. Be easy to buy

3. Get noticed

4. Refresh and build memory structures

5. Create and use distinctive brand assets

6. Be consistent yet fresh

7. Stay competitive

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The role for research in the Marketing Enlightenment

Alexander Pope

“Know then thyself,

presume not God to

scan.

The proper study of

mankind is man”