Why Advertise If You’re Well Known

Everyone knows Coke, Ford, Amazon, and Google.  These companies have become household names – not because of their products – but because of their marketing.  And even though they are now universally recognized, they still spend billions of dollars each year on advertising. Why would Comcast, for example, pay 5.75 billion dollars for marketing?  They understand the importance of market share, which is imperative for any business to know and command.

Marketshare, your piece of the proverbial pie, determines customer base, retention, profit, and cash flow.  The only way market share is sustainable is to provide a solution to a need and promote a solution to that need.  To have market share you must have mindshare.  Simply put, if you don’t advertise then your competition will take your current and potential clients.  You may reason to not market because you’re already well known.  This is a nail in your company’s coffin. It’s easy to have blinders and think everyone knows about your offerings because you know all about them.

Take Tab, for example. The popular diet soda stopped branding in the late ’80s. They thought everyone knew about the cola and they had captured anyone who would ever want low-calorie drinks.  They were of course, wrong. If your company is busy and people recognize you at the grocery store, then great.  You may be doing something right to build your brand.  However, as soon as you stop marketing, a replacement is ready to step in and steal your spotlight. Everyday, people move, new customers are interested in similar services, and folks are distracted, which chips away at your market share.

Even if you are well known doesn’t mean you’ll be remembered.  We all know hundreds of businesses that we choose not to use.  Marketing keeps your brand fresh so that your services become an obvious choice.  Find your target market and then market to them in a targeted way – this will ensure your company grows and doesn’t go the way of the dinosaur or Tab soda.