Innovating To Build Market Share
Most of us, suits, will know David Aaker. One of the world’s foremost thinkers on brands. As an author he has authored some of the most important books on brand building, including classics like Managing Brand Equity and Brand Equity & Advertising. He has an important article in the Sunday issue of Wall Street Journal that asks companies to move away from incrementalism in the name of brand building and embrace true innovation. “In today’s fast-moving marketplace, companies typically compete by improving their products in small ways.” He laments “they make them visually more attractive, or more reliable, or less costly. Maybe they tinker with the marketing. The result is predictable: Competitors make a countermove — and in the end, market share moves slightly, if at all.” He urges companies to go beyond looking at the competitive set and ask what people really need. He quotes Toyota Pirus hybrid as an example “The Prius hybrid, developed with new technology from Japan’s Toyota Motor Corp., has made other cars irrelevant for some buyers, and has helped Toyota establish itself as a leader in industry efforts to make more environmentally friendly cars,” he says. There are many examples he quotes in this article that is a must read for marketers and advertisers alike.