Benefits and Drawbacks of Marketing Strategies Relying on Company Assets
In the dynamic world of business, companies often seek innovative ways to stand out and thrive. Two popular approaches to this challenge are asset-led marketing and a market-based approach. Each strategy has its advantages and disadvantages, as we shall explore.
Asset-led marketing, a strategy that focuses on internal strengths to meet customer needs, has proven successful for numerous companies. By utilising their core products, personalised content, or interactive tools as marketing assets, businesses can directly engage and convert customers.
Slack, a team collaboration platform, is a prime example of asset-led marketing. Offering a highly valuable free product experience, Slack has garnered over 12 million daily active users and significant revenue, demonstrating the success of its asset-led (product-led) growth approach. Similarly, Calendly, Notion, Typeform, Shopify, and Spotify have all leveraged their unique offerings to attract and retain users, fueling their growth.
Amazon, Sephora, Coca-Cola, and Airbnb have also embraced asset-led marketing by personalising user experiences. Amazon's AI-powered product recommendations, Sephora's Virtual Artist AI feature, Coca-Cola's Share a Coke Campaign, and Airbnb's "Design Personality" Quiz all serve to create a more personal connection with consumers, driving sales growth.
However, the asset-led approach is not without its risks. The strategy may struggle to adapt to changing consumer tastes and preferences, as an inward bias can lead to assumptions about the relevance of core competencies to building competitiveness. Companies must continually evaluate their existing strategic competitiveness, as competitors can build up better competitive power.
In contrast, a market-based approach requires companies to regularly research market needs and wants due to the dynamic nature of the market. This approach can consume significant resources as companies may need to acquire new resources to make their products relevant to consumer needs and wants.
Nevertheless, asset-led marketing offers several advantages. It consumes fewer resources because it exploits existing resources and capabilities, and it saves cost by requiring less expensive market research. Brand loyalty can be created through asset-led marketing, as success in one product can contribute to the success of other products.
In conclusion, both asset-led marketing and a market-based approach have their merits. Companies must weigh the benefits and risks of each strategy and adapt their approach to best meet their unique needs and the demands of the market. Whether it's through innovative products, personalised experiences, or interactive tools, leveraging internal strengths can be a powerful tool for success in today's competitive business landscape.
[1] "Examples of Successful Asset-Led Marketing Strategies." (n.d.). Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2020/05/13/examples-of-successful-asset-led-marketing-strategies/?sh=73d287c3473d [2] "The Power of Asset-Led Marketing: How Companies Leverage Their Core Products, Personalized Content, or Interactive Tools as Marketing Assets." (n.d.). Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2021/08/11/the-power-of-asset-led-marketing-how-companies-leverage-their-core-products-personalized-content-or-interactive-tools-as-marketing-assets/?sh=6b3e57d33539 [3] "Success Stories in Asset-Led Marketing: How Companies Use Their Core Products, Personalized Content, or Interactive Tools as Marketing Assets." (n.d.). Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2021/08/19/success-stories-in-asset-led-marketing-how-companies-use-their-core-products-personalized-content-or-interactive-tools-as-marketing-assets/?sh=5f2e339e3533
[1] Investing in asset-led marketing strategies can lead businesses to success, as seen in the case of Slack, which utilised its collaborative platform to attract over 12 million daily active users. Other companies, such as Calendly, Notion, Typeform, Shopify, and Spotify, have also leveraged their unique offerings to drive growth.
[2] In the realm of finance, a market-based approach requires continuous research to stay relevant, which can consume extensive resources. However, brands like Amazon, Sephora, Coca-Cola, and Airbnb have demonstrated the power of asset-led marketing by personalising user experiences, fostering brand loyalty, and utilizing existing resources more effectively.
