What is Your Marketing Why?

As a senior marketing director and CMO with over 20 years of experience leading marketing functions across both large and SME businesses across global landscapes, I've seen the ebbs and flows of countless campaigns, rebrands, and strategic shifts. One question I've often asked teams, colleagues and clients is this: "What is your marketing why?" It's a question that sounds simple but reveals much about an individual, a team, or even an entire organisation.

Understanding your "why" in marketing is crucial. It's the North Star that guides decision-making, shapes strategy, and influences the outcomes we seek. But what truly is the most effective marketing why?

The Usual Suspects: Common Marketing Whys

First, let's consider some of the typical answers to the question:

1. Brand Awareness

Many marketers aim to increase brand awareness. This is especially common in new enterprises or during rebrand efforts. It's essential, as you can't sell to consumers who don't know you exist. But is it enough?

2. Lead Generation

Generating leads is often at the core of B2B marketing efforts. Quality leads translate into sales opportunities. The more leads you have, the better your sales team's chances. But does more always mean better?

3. Customer Engagement

Engaging your customers via social media, email marketing, and other channels ensures you stay top of mind. Engagement can foster loyalty, but in a crowded digital space, can your message cut through the noise?

4. Sales and Market Share Growth

Surely, boosting sales and increasing market share should be the ultimate goal. After all, revenue is the lifeblood of any business. However, relentless focus on sales can sometimes mean sacrificing long-term sustainability for short-term gains.

5. Innovation and Differentiation

Standing apart from the competition through innovative products or campaigns can draw consumers in. But isn't everyone trying to be different these days?

While these are valid and important objectives, I'd argue that they are all means to an end rather than the end itself. They should be tactics derived from your true marketing why. Enter pricing power.

What is Pricing Power?

Pricing power is the ability of a company to set and sustain prices above the competitive level without losing customers. It's the measure of how a business can command premium prices for its products or services, a reflection of the value perceived by customers and the strength of the brand.

When you have pricing power, you can withstand market pressures such as economic downturns or competitive threats. It allows for better profit margins, more significant investments in areas like R&D and marketing, and, importantly, it can provide a buffer against price wars that erode profitability.

Warren Buffett has stated: “The single most important decision in evaluating a business is pricing power. If you've got the power to raise prices without losing business to a competitor, you've got a very good business.

Why Should Pricing Power Be Your Marketing Why?

1. Sustainable Revenue

Pricing power means your business isn't just surviving on thin margins. It creates room for growth and stability. When you can price effectively, you control your destiny—not the market conditions.

2. Brand Strength

Achieving pricing power is fundamentally about building a strong brand. A strong brand resonates with customers emotionally and rationally, making them less price-sensitive and more loyal.

3. Investment in Innovation

High margins generated through pricing power give you the financial bandwidth to reinvest in your business. Whether it's through innovative products, better customer service, or more aggressive marketing, these investments can further strengthen your brand.

4. Attracting Talent

The best people want to work for the best brands. If you have pricing power, it often means your brand is seen as a leader. This attracts top talent, further accelerating your growth and success.

5. Market Resilience

During economic downturns or competitive pressures, businesses with pricing power can better weather the storm. They have the flexibility and resources to adapt without sacrificing long-term sustainability.

Building Towards Pricing Power

So how do you achieve pricing power?

Strong Brand Positioning

Ensure your branding efforts highlight your unique value proposition and align with customer needs and desires. Your brand should evoke a clear, distinct image in the minds of your target audience.

Customer-Centric Approach

Understanding what your customers value and are willing to pay for is crucial. This can be achieved through market research, customer feedback, and data analysis.

Quality and Consistency

Never compromise on quality. Consistency helps build trust, and trust translates to loyalty. This means customers will be more likely to tolerate price increases if they believe in the consistent value you provide.

Innovative Differentiation

While differentiation alone may not be a sufficient why, it is vital to achieving pricing power. Continually innovate to stay ahead of competitors and justify a premium price.

Effective Communication

Articulate the value of your offerings clearly and compellingly. Use marketing to tell stories that resonate, engage, and persuade your audience of the worth of what you're offering.

Building Relationships

Leverage CRM (Customer Relationship Management) tools to nurture relationships. The stronger the relationship, the less likely price will be the deciding factor in a customer's purchasing decision.

The Ultimate Marketing Why

Ultimately, all roads in marketing strategy should lead to creating and sustaining pricing power. It's the pinnacle of a successful marketing strategy, combining elements of brand strength, customer loyalty, and business resilience.

Pricing power isn't achieved overnight. It requires a comprehensive, sustained effort across all facets of your marketing and business strategy. Brands like Apple, Tesla, and even niche luxury brands like Hermes have honed this to perfection. Their ability to command premium prices reflects their strong market positions and unwavering brand strength.

So, the next time you ask yourself, "What is my marketing why?" remember that while increasing awareness, generating leads, and engaging customers are essential, they're all pieces of a larger puzzle. The ultimate goal is to build pricing power—it's not just about surviving in the marketplace; it's about thriving and leading.

What is stopping you from making this your why? It’s time to recalibrate your strategies, align your team, and focus on creating undeniable value that commands respect in the form of pricing power.

Let’s stop playing the game at the level of tactics and instead aim for the win that really matters. Your competitors might not like it, but your margins will. And in the end, that's what counts.

Remember, pricing power isn't just a metric—it's the heartbeat of long-term business success. Make it your marketing why and watch your brand ascend to new heights.

Feel free to reach out if you would like to chat further or grab a Teams slot in my diary here https://meetings.hubspot.com/ged-leigh1