The Ehrenberg-Bass Institute at the University of South Australia is a leading marketing research center. Under Byron Sharp's directorship, the institute has become renowned, particularly with Sharp's influential book "How Brands Grow." The institute challenges traditional marketing theories like the 4Ps and STP models, advocating for a data-driven approach over outdated practices.
Part of the University of South Australia, the Ehrenberg-Bass Institute emerges as the world’s largest marketing research centre. Initially called the Marketing Science Center, it was later renamed to honour the seminal contributions of Andrew Ehrenberg and Frank Bass, two luminaries who dedicated their careers to unearthing scientific laws of marketing and consumer behaviour. The institute is often likened to the fabled Library of Alexandria within marketing circles, owing to its vast repository of knowledge and insights into the domain. Garnering international acclaim, particularly through Byron Sharp’s directorship, the institute has profoundly influenced the marketing landscape. Sharp’s pivotal work, “How Brands Grow,” debunked numerous marketing myths, becoming a bestseller and a touchstone for professionals and academics alike. The institute’s research, underpinned by empirical data, continues to challenge and refine the marketing strategies of the world’s leading brands.
The Ehrenberg-Bass Institute has been at the forefront of challenging long-established marketing doctrines. In a recent article, the institute’s scholars, including Byron Sharp, John Dawes, and Kirsten Victory, scrutinised the marketing mix, or the 4Ps model, introduced by Jerome McCarthy in the 1960s. This model, which segments marketing activities into product, price, distribution, and communication, has been a cornerstone of marketing strategies for decades. However, the institute’s critique extends beyond the 4Ps, encompassing the STP (Segmentation, Targeting, Positioning) model popularised by Philip Kotler. The institute’s contention is that these theories, while once groundbreaking, now lack the empirical support necessary to address the complexities of modern marketing. By advocating for a more scientific approach, the Ehrenberg-Bass Institute seeks to supplant these traditional theories with data-driven strategies that better reflect the dynamic nature of contemporary consumer behaviour.
This marketing as a science movement, spearheaded by Byron Sharp, advocates for the application of scientific principles to marketing practices, mirroring the rigour found in disciplines such as medicine and economics. The institute’s recent publication illuminates this paradigm shift, emphasising the necessity for marketing to evolve beyond unverified theories and towards a methodology grounded in empirical evidence. This process involves the meticulous analysis of consumer behaviour patterns and the development of universal marketing laws. The institute’s work has illuminated the importance of such an approach, demonstrating that marketing can benefit from the same level of precision and predictability that science provides to other fields. As a result, marketing strategies become more reliable, measurable, and capable of yielding consistent results across various contexts and markets.
In the realm of media planning, the Ehrenberg-Bass Institute’s commitment to empirical data stands as a beacon of progress. The institute’s research, such as the study by Varan, Nenycz-Thiel, Kennedy, and Bellman on the effects of commercial length on advertising impact, exemplifies the meticulous approach to understanding media efficacy. This empirical focus ensures that media strategies are not based on intuition or outdated practices but are informed by robust evidence. Jenni Romaniuk’s work further underscores the institute’s dedication to data-driven insights. As a Research Professor of Marketing and Associate Director (International) at the institute, Romaniuk has been instrumental in developing methodologies for measuring mental availability and distinctive brand assets. Her contributions have shaped the institute’s media planning strategies, ensuring that they are rooted in quantifiable research. This empirical underpinning is crucial for brands seeking to navigate the complex media landscape effectively.
The Ehrenberg-Bass Institute envisions a future dominated by sophisticated mass marketing. This approach diverges from the traditional segmentation and targeting paradigms, which have been the bedrock of marketing strategies for years. The institute’s research suggests that brands grow not by focusing on narrow segments but by appealing to the broadest possible consumer base. This is substantiated by the Law of Duplication of Purchasing, which demonstrates that competing brands share buyers across the category, not just within segments. The institute’s findings advocate for a shift towards strategies that prioritise mental availability and brand salience over differentiation. The future, as seen through the lens of the Ehrenberg-Bass Institute, is one where marketing efforts are calibrated to resonate with category buyers at large, ensuring that brands remain top-of-mind across the entire market, rather than within segmented niches.
