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Interview with Catherine Gibson & Britta Schmitz, GfK "The big challenge here is that targeting and long-term branding must be consistent."
Interview with Catherine Gibson & Britta Schmitz, GfK
"The big challenge here is that targeting and long-term branding must be consistent."
How can the growth of a brand be secured in the short and long term? Catherine Gibson and Britta Schmitz, GfK, are convinced: neither targeting nor mass marketing is to be neglected. Anticipating their session at Week of Market Research, they give first tips on how to develop a successful dual growth strategy.
The title of your session at Week of Market Research is: “’Targeting or mass marketing? The answer: both!’ How brands can grow in the short and long term.” Why is there a perception in many places that you can't do both?
Catherine Gibson: The contradiction lies in the very nature of things: Targeting to activate individual core target groups is precisely to be very specific to the needs, characteristics, or values of the target group in order to be relevant. This automatically makes you unattractive to other target groups that have different needs, specifics, or values. That is, the more specific I am to a single target group, the more likely I am to "alienate" another target group.
In the past, we have conducted segmentation studies for many of our clients to identify the most promising target groups to develop targeted positioning strategies. In terms of resource optimization, our insights have supported a targeting strategy. This works to drive growth among core target groups. But it's not enough to drive long-term, sustainable growth and attract new audiences. The big challenge here is that targeting and long-term branding must be consistent.
Many companies, like GfK, think they have the answer to how brands can grow successfully. What makes you so sure you have developed the silver bullet? Why should brands rely on you in particular?
Britta Schmitz: We are not completely reinventing segmentation - nor do we need to. But we have brought together our many years of global experience with customers from different industries to develop an optimized approach.
But that's not the main argument. Over the past year, we've spent a lot of time looking at the debates in the international marketing community and the current state of research. Byron Sharp, Mark Ritson, Les Binet and Peter Field have given us sound impetus on how we need to rethink segmentation. The key thing is that we go beyond common segmentations. We don't stop at identifying the most promising segments and market opportunities to derive targeting strategies.
We also tell the customer what effect his/her specific targeting strategy has on the overall market. In other words, who he/she can reach "incidentally", how and why. It's about understanding the market as a whole to identify topics for long-term brand growth that go beyond the core target group but are still in line with it. This gives our clients the insights for a dual brand strategy: short-term activation of core target groups AND long-term brand building in the overall market.
In your opinion, what are the three most common mistakes companies make in their brand management?
Catherine Gibson: 1. Focus on tactical instruments without a well-founded consumer-centric strategy: companies are mainly concerned with the push of sales, shelf space in retail, pricing or shopper activation. This all has its justification, but it is the wrong starting point because it is very tactically oriented. In the words of Mark Ritson: "Digital is just a tactic not a strategy! What is missing is the fundamental consumer-centric strategy to generate a sustainable pull in the market and to grow in the long term.
2. Focus on short-term success: Another mistake that the authors Binet and Field expose in their very readable book "The Long and the Short of it" is the focus on short-term activation of certain target groups - pushed mainly by the excellent opportunities of digital marketing. In the process, the long-term building of brand strength through a primarily emotional, brand-centric approach to the mass market is neglected.
3. Focus on product instead of consumer: Some companies are particularly concerned with their product and its features without thinking about the job to be done in the context of use. Knowing the context of use and understanding it from the consumer's perspective can provide an incredible amount of opportunity for more successful product development and communication.
In the announcement of your session it sounds as if it was quite easy to successfully place a brand in the overall market. However, many brands fail. Do you think your strategic approach works for every brand?
Britta Schmitz: It's certainly not about directly placing the brand in the overall market for all customers. There are also brands that specifically target a niche. However, the key question is, where will growth come from in the long term?
Byron Sharp uses various studies in his highly recommended book "How Brands Grow" to illustrate how crucial increasing customer penetration is to growth. Brands must continually build mental constructs in the minds of consumers at key category entry points to increase their penetration in the long term. Simply put, a consumer must think of the brand at the right time in the right place for a specific need (mental availability). And it is precisely the identification of the crucial issues that our new approach is all about. Looking at the average mass market is not helpful, because the average consumer simply does not exist. The starting point is therefore strong customer segmentation that addresses the strategic goals and challenges of our customers.
If I can't afford both ways together: Does your approach also figure out whether I'm better off using targeting or mass marketing?
Catherine Gibson: A brand needs to have both in mind, with a more or less strong focus. That's why our approach also provides insights on both.
However, it's mainly up to the client's brand strategy. If I see myself as a premium niche brand, I will invest more in specific targeting measures that justify my premium positioning. If I want to grow primarily through volume, I should invest more heavily in mass marketing.
Whatever I focus on, targeting or mass marketing, I need a segmentation that structures the market and shows me differences but also similarities, which in turn are suitable for scaling.
What methods do you use to analyze how the core target group can be activated?
Britta Schmitz: Without getting lost in methodological details: We take into account both the concrete behavior in the context of use, i.e. what does a product have to deliver in the context of consumption or use, and the consumer mindset of consumers, i.e. what deeper values do I have to address in order to intensify brand loyalty. The combination of both provides concrete recommendations for action: Who, what, why, when, how and where.
What will the participants take away with them after your web seminar?
Catherine Gibson: We want them to take away a new perspective on the topic of segmentation and growth opportunities: A segmentation that gives you insights for activating your target groups in a targeted way while working the mass market - as a solid basis for a successful brand and growth strategy.
ABOUT
Catherine Gibson has been advising global clients across all industries on strategic market research with a focus on consumer insights since 2008. Since 2021, she has led global product development around segmentation and growth activation. She holds a degree in sociology with a focus on empirical social research and marketing.
Britta Schmitz joined GfK in 1996 and advises local and global clients on all aspects of brand and consumer research. Her consulting focus is on strategic consumer insights projects with a special focus on segmentation and market opportunities. Britta holds a degree in business administration with majors in marketing, communications, and international management.
The interview was originally published in German on marktforschung.de – here
