What is a market leader? The short answer involves claiming the largest portion of any monetary market share, but that answer is flawed…at least when you consider the importance of mind share to your brand strategy.
In one study that spanned the period between 2007 and 2011, Asymco discovered that Apple’s iPhone only accounted for 8.75 per cent of all mobile phone sales, but captured 75 per cent of all mobile phone market profits. This seems to conflict with conventional brand strategy wisdom about how to turn a profit – until you consider the phenomenon that is mind share.
Build Mind Share into your Brand Strategy
Mind share is the portion of a consumer’s attention that’s captured by your brand. When the average person thinks cola, fast food, laundry detergent, or mobile devices, his or her mind turns to particular brands. This is mind share, and how much of the mind you claim has everything to do with the effectiveness of your brand strategy.
One way to capture more mind share is to beef up the value proposition of your brand strategy. A value proposition, put simply, is a statement that tells consumers why your brand is a better problem-solver or pain-reliever – i.e. more valuable – than your competitors’ brands. More specifically, your brand’s value proposition is directed toward your ideal clients and decision makers. It tells them, succinctly, why your brand is unique, and how it will improve their lives. It positions your brand in your respective market by explaining how it’s both different and better than the alternatives.
Just as a brand strategy should adhere to a brand’s values in everything it initiates and executes, it should observe its value proposition. Doing so will capture a significant portion of mind share – which will build brand equity, create brand awareness, and establish brand identity.
Apple Mind Share: a Brand Strategy Model
Because Apple have staked claim to so much grey matter, they can net higher profits from every iPhone sale. They’ve established value for their target audience and have shown that their differences are worth the money. The iPhone isn’t right for everyone, but when it’s right, it’s really right.
The moral of the story? Never discount mind share or its role as a path to market share. The concept can seem quite abstract, but we’ve all experienced it. A more economical option might be a better choice, but instead, we go with the brand name that we know and trust – because that brand has captured our mind share.
At How to Build a Brand, we believe in the power of brand equity – and that a properly constructed brand is far more valuable than any product or service that it sells. You, too, can incorporate a value proposition into your brand strategy that captures mind share as a prerequisite to market share. Learn how in our blog posts, with our daily branding tips, and in Brand Brain Magazine.
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