Market share opportunity

The alarming statistics we reported last week are telling a very interesting business story. In many instances, we know it is a story of delusion. 

With all challenges, underinvestment in marketing presents an incredible opportunity for those who are willing to take a different perspective from their competitors.

So what were the statistics?

Gartner report a 30% drop in marketing budgets over the last four years with a massive contraction from an average of 11.4% of revenue to 8.2%. The net result is less resource, less consumer insight, less innovation, less investment in brand and experience. 76% of marketing leaders believe their business targets are unachievable as a result.

https://emt.gartnerweb.com/ngw/globalassets/en/marketing/documents/q3-2024-cmo-journal.pdf?_gl=1*18155fj*_gcl_au*MjA2OTMwNjczNi4xNzI4MDA0MzY4*_ga*MTAyNzAzMTI5OS4xNzI4MDA0MzY4*_ga_R1W5CE5FEV*MTcyODAwNDM2Ni4xLjAuMTcyODAwNDM2Ny41OS4wLjA.

Forrester report that their CX benchmark has declined for an unprecedented third year in a row, with only 3% of business achieving their 'customer obsessed' categorisation. Customer experience is at an all time low.
https://www.forrester.com/press-newsroom/forrester-2024-us-customer-experience-index/

Strategically, turning your back on customers is right IF you have no competitors.

We are seeing more businesses pursuing a competitor-avoidance strategy. The ambition is noble. When you have no competitors, your customers buy regardless. You have a brilliant business, and marketing is unnecessary. These businesses are diverting investment to moats, structural advantage, acquisition, flywheels and category creation. All of which is incredibly expensive, and even harder to achieve.

For 99.9% of businesses, being competitor free is a delusion. Only a handful of businesses have managed to achieve that, and invariably it is due to shifting market conditions, being in the right place at the right time, and more than a little unicorn dust. Those who have are all valued at $1tr+, and you know them because they are under anti-trust scrutiny for monopolisation. The mark of being truly competitor-free is being in court besides Alphabet (internet search dominating advertising), Meta (data transfers for ad targeting), Apple (smartphone), Microsoft (browsers on PC), Nvidia (Ai dominance), Saudi Aramco (international bonds), Amazon (online marketplace) and Tesla (repairs and parts).

If you are not fighting an anti-trust case, you need to invest in marketing.

For the businesses who have turned their backs on their customers to invest in moats, structural advantage, acquisition, flywheels and category creation; your competitors are taking your market share.

And with only .1% of businesses avoiding competitors, underinvestment in share of market is not the correct strategic decision for most.

Where is the opportunity?

If your competitor has reduced their spend in marketing for ANY reason, it means they have lost sight of their customers. You can easily take their market share. The new frontier is out-competing delusional businesses who believe they don’t need marketing.

There is market share to be won. Let’s get to it!