peter dann
TRANSCRIPT
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The Death of Loyalty
or
Marketing Science
and The Age of Enlightenment
Peter Dann
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5
“
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Marketing theory was
invented using mediaeval
thinking, not science
Byron Sharp
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77
88
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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”
