Product Marketing vs Brand Marketing
Brand marketing and product marketing are two very different marketing types that can do well when combined. Brand marketing is a long-term project, whereas product marketing can show effects quicker.
BRAND AND PRODUCT MARKETING DEFINED
- Brand marketing is by nature a long game. It is measured long-term and does not happen overnight. Brand marketing has a focus of building an image or brand identity. This is a broader strategy that goes straight to the heart of the consumer, portraying the business as a "trusted friend."
- Product marketing usually has a short-term purpose. It focuses heavily on the benefits of the product, not the brand.
- Jeff Bezos, CEO of Amazon, gave an excellent definition of a brand: "Your brand is what people say about you when you are not in the room."
PRODUCT MARKETING INSIGHTS
- In 2018, 75% of all communications were visually based. Within the next three years that number will be 90%.
- Videos allow a customer to quickly check out how a product performs.
- Home improvement companies like Lowe's and Home Depot are perfect examples. They have how-to videos so customers can see the product in use before they buy.
- Marketers who employ video grow revenue 49% faster than non-video users.
- Viewers are 64-85% more likely to buy a product after they watch a video.
- Almost 50% of users will search for a video before they head to the store to purchase a product or service.
- With the addition of online presence, stores are open 24 hours per day. Chatbots enable a customer to get questions answered immediately whether someone is monitoring the site. They can also make a purchasing experience more memorable.
- AUGMENTED REALITY (AR) & ARTIFICIAL INTELLIGENCE (AI)
- AR makes it much easier for the consumer to get information, to experiment with products and make purchasing decisions. Examples: IKEA and Wayfair both have apps that let customers see furniture to scale.
- Pokemon Go used AR to allow people to catch their favorite character in 2016 and had 65 million users.
- AR is growing at ten times the speed of VR, mostly in part to its delivery method and not needing special gear.
- We will begin to see AI evolve into data-driven personalization.
BRAND MARKETING INSIGHTS
- BRAND IMAGE
- With over 71% of consumers considering brand image and trustworthiness as major purchase influencers, it is beneficial to take a look at brand priorities.
- Brands will continue to look for ways to pull their customers into the brand rather than forcing it on them by offering experiences in a virtual and physical sense. Expect to see more pop-up stores, online experiences, and mono-branded stores, restaurants, spas, and hotels.
- Experiential commerce is on the rise. It is about connecting your strategy to experiences and relationships with your customer, and thinking beyond just a single transaction.
- Brands are more often being labeled by how the consumer can relate to them.
- EMOTIONAL CONNECTIONS
- Brands need to be known for something meaningful, or else they struggle. Connections are important to the Gen Z era, which makes up 30% of the US population.
- Brand loyalty is improved by emotional connections to the brand. "A brand staying true to a real, long-standing purpose and strong, clear brand values will be the ones to engender brand loyalty and meaningful relationships with customers." This doesn't necessarily mean changing the world, it can simply be consistently providing excellent products and services.
- Once a consumer associates a positive emotion with a brand, loyalty and engagement increase. Forrester states that the emotional connection has a 50% greater impact on "driving positive business outcomes."
- With 77% of people having a social media account, and 3.7 billion global users, social media provides an effective outlet to connect and humanize your brand.
- Forrester states that if a brand can consistently communicate that they are reliable or trustworthy, positive sentiments raise by 20%, and consumer advocacy raises by as much as 15.4%.
- SOCIAL ISSUES/PURPOSE
- Consumers, especially younger ones, expect brands to take a position on social issues and to have a purpose. Lately, we have seen brands abandon the NRA, and Nike supporting Colin Kapernick. Non-controversial positions pose less risk, and state something about your brand that the consumer can identify with.
- Nearly two-thirds of people surveyed by The Edelman's Earned Brand Study stated they would leave or change brands depending on their stance on social issues. Over 50% of Gen Zers state they would consider whether a brand had dedication to a social issue when choosing a brand.
- CONNECTING THE BRAND ONLINE AND IN STORE
- Businesses who can get their shoppers to shop online and in-store get a 30% higher lifetime value from that customer.
- Almost 60% of shoppers look up information about a product while in-store. Having an app that can facilitate this process while promoting the brand is helpful.
- Apps also can assist with personalization. 79% of consumers say they are only likely to engage with an offer if it has been personalized to reflect the relationship the consumer has with the brand. This goes hand in hand with push notifications, which have an open rate of 53.3%, a very high number.
- BRAND EXAPMPLES
- Nike is the perfect example of a company that has perfected their brand. Their "Just Do It" campaign is so strong, that it does not have to mention a specific product, but it does strike an emotional note. This slogan has helped generate over $9.8 billion in sales.
- Harley Davidson has used brand marketing to create a brand that has become more than just a motorcycle. The brand represents a lifestyle.
- Approximately 56% of businesses state they use big data to analyze customers. Big data is the easiest to gather, but small data gives more insights to the emotional drivers.
BRAND -V- PRODUCT MARKETING- WHICH IS BEST?
- Bringing together product and brand marketing gives a business leverage.
- Many companies have shifted to add in heavier brand marketing in addition to product marketing, to make sure there are no missed opportunities.
- Brand marketing is seen as more effective, as it uses emotions to build up an idea of more than a single product.
- Product marketing is easier for global brands with huge budgets.
- Whereas product marketing is great for products that speak for themselves, or products with unique features, brand marketing can help you stand out in a crowded marketplace and build customer loyalty.
To find insights and trends for both product and brand marketing, we consulted twenty different marketing reports, studies, and blogs by marketing companies.
We were able to locate many qualitative and qualitative insights, although there were far more qualitative insights than qualitative. As qualitative results did not show the whole story, we included quantitative results as well. Market research for brand and product marketing that had actual qualitative facts focused on marketing as a whole and examples, when given, where of larger companies, not smaller ones.