Customers don't always buy the best product. They buy the product they know.
Inspiration from Mark Ritson
This article was inspired by Mark Ritson's lecture at this year's Marketing Festival. It focused on key changes in marketing over the past 12 years and began with a reference to John Dawes' 95:5 rule.
Why brand building is key to business growth
Professor John Dawes' research came to the following conclusion: Most company managers believe that a quality product will sell itself. Some hesitate to launch a product because they think it is not perfect enough. Others believe that their product is the best on the market and therefore does not need any promotion. However, both of these ideas are wrong.
Why? First, because no one really knows what the best product is. And second, because they don't have enough time or energy to find out. The main factor for success is therefore to make your product or brand known and to get people thinking about it.
Rule 95:5
According to Professor John Dawes of the Ehrenberg-Bass Institute, the key to success in marketing is building brand awareness. His research shows that up to 95% of potential customers are not ready to buy at any given moment. This means that most marketing activities should focus on building the brand and creating mental availability, not just immediate sales.
The reality of purchasing behavior
The 95:5 rule says that only 5% of customers are ready to buy at any given moment. The remaining 95% are not currently in the buying process, but will be in the future. This is crucial for those who reduce corporate marketing to PPC campaigns. With all due respect to their performance. In short, you are competing with your competitors in PPC auctions for 5% of potential customers. The remaining 95% of the target group remains unaddressed at that moment.
That is why it is important to focus on the brand so that the remaining 95% of the market remembers the brand when the time comes to make a purchase in their customer journey.
Research shows that customers usually consider only a limited number of brands when making a purchase decision. If your brand is not among them, it will probably not be included in the selection at all. In order for your brand to become known to customers, it is necessary to invest in long-term brand building.
Why it is not enough to just have a quality product
Research shows that many companies rely on the fact that their product is of such high quality that it will sell itself. However, the reality is that customers are often unaware of all the options available on the market.
They make decisions based on brand awareness and trust. If they have never heard of your brand, they are unlikely to choose your product, regardless of its quality.
Mental availability is the key to success
Mental availability means that customers remember your brand when they are making a purchase decision. This ability is the result of long-term and consistent brand building. Without it, the likelihood that customers will choose you is minimal.
Long-term brand building vs. short-term campaigns
Short-term campaigns, whether PPC or other, focused on immediate sales can bring quick results, but without a strong brand, their effect is limited. On the contrary, investing in brand building brings long-term benefits:
Greater customer trust: Customers prefer brands they know and trust.
Higher profitability: Strong brands can charge higher prices and have more loyal customers.
Resilience to competition: Brands with high mental availability are less threatened by competing offers.
How to build a brand effectively
Consistent communication
Ensure that your brand has a consistent visual style and tone of communication across all channels.
Emotional connection
Create campaigns that resonate with your customers' emotions and create strong associations with the brand.
Long-term planning
Invest in activities that deliver results over the long term, not just immediate sales.
Broad targeting
Don't limit yourself to current customers. Build brand awareness among those who may be your customers in the future.
Conclusion
Brand building is not a luxury, but a necessity for the long-term growth and success of a company. Focusing solely on short-term sales campaigns may bring immediate results, but without a strong brand, their effect is limited. Investing in brand building ensures that your company will be top of mind when customers decide to buy.
Remember, customers don't always buy the best product, but the product they know.
This article is based on research by Professor John Dawes of the Ehrenberg-Bass Institute for Marketing Science published in May 2025.