How Brands Grow: The Evidence-Based Marketing Theory Every Business Should Understand
Amid the rise of modern marketing strategies such as marketing funnel, flywheel marketing, and loop marketing, there is one approach that stands on a different foundation. Rather than being developed from the experience of a single company or technology vendor, this approach is based on decades of academic research involving thousands of brands across multiple countries.
This approach is known as How Brands Grow, a marketing theory introduced by Professor Byron Sharp of the Ehrenberg-Bass Institute for Marketing Science at the University of South Australia.
For business owners, marketers, and digital agencies, this theory has become an essential reference because it explains how brands actually grow based on scientifically validated consumer buying behavior rather than assumptions or marketing trends.
What Is How Brands Grow?
How Brands Grow is a collection of research findings that examine consumer purchasing patterns and brand growth. Unlike marketing frameworks that focus on operational processes, this theory seeks to answer fundamental questions such as:
- Why do some brands continue to grow?
- Is customer loyalty truly the primary driver of growth?
- How do consumers actually choose a brand?
Through extensive analysis of purchasing data across numerous industries, Byron Sharp concluded that brand growth is driven more by acquiring new buyers than by increasing purchases from existing customers.
Who Is Byron Sharp?
Professor Byron Sharp serves as the Director of the Ehrenberg-Bass Institute for Marketing Science, one of the world’s most influential marketing research organizations.
The institute has conducted research across a wide range of industries, including FMCG, retail, services, and several B2B sectors. These findings were compiled into the book How Brands Grow: What Marketers Don’t Know, published by Oxford University Press.
Today, the book remains one of the most respected references in modern marketing science.
Why Is This Theory Important?
For many years, businesses believed that long-term success depended primarily on customer loyalty.
However, Byron Sharp’s research demonstrates that business growth more often comes from increasing the number of people who purchase a brand.
In other words, companies should not focus solely on retaining existing customers. They must also continually expand their market reach so that more people become aware of—and ultimately purchase—their products or services.
Five Core Principles of How Brands Grow
1. Growth Comes from Market Penetration
Brands grow by attracting more buyers, not simply because existing customers purchase more frequently.
The broader a company’s market reach, the greater its opportunity for sustainable growth.
2. Double Jeopardy Law
Research shows that smaller brands face two simultaneous disadvantages.
- They have fewer buyers.
- Their customer loyalty is typically slightly lower than that of larger brands.
Conversely, larger brands naturally appear more loyal because they possess a much broader customer base.
3. Mental Availability
A brand should come to consumers’ minds easily whenever a purchasing need arises.
Mental Availability can be built through:
- consistent communication,
- recognizable visual identity,
- simple and memorable messaging,
- repeated brand exposure.
The easier a brand is to recall, the more likely consumers are to choose it when making purchasing decisions.
4. Physical Availability
Being memorable alone is not enough—products and services must also be easy to find.
Physical Availability includes:
- product availability,
- wide distribution,
- an accessible website,
- a presence across multiple digital platforms.
Even the most effective marketing campaigns will underperform if customers struggle to find the products or services being promoted.
5. Distinctive Brand Assets
How Brands Grow argues that easily recognizable brand assets are often more important than simply being different.
These assets may include:
- logos,
- signature colors,
- typography,
- taglines,
- visual style,
- packaging design.
The more consistently these assets are used, the easier it becomes for consumers to recognize the brand.
The Empirical Laws Behind the Theory
How Brands Grow is built upon several empirical laws that have been tested across numerous countries and product categories.
- Double Jeopardy Law
- Duplication of Purchase Law
- Law of Buyer Moderation
- Natural Monopoly Law
- Dirichlet Model of Buying Behaviour
These models are used to explain consumer purchasing behavior statistically and have been replicated in numerous marketing studies.
What Does This Mean for Businesses?
The theory offers several practical lessons for companies seeking sustainable growth.
- Prioritize expanding market penetration.
- Build brand awareness consistently.
- Ensure products and services are easy to find.
- Maintain a consistent brand identity across every touchpoint.
- Continuously reach new potential customers.
In short, marketing should focus not only on retaining existing customers but also on continually attracting new buyers.
Is There Any Criticism of How Brands Grow?
Although supported by extensive research, the theory has also received criticism.
Some academics argue that it places relatively little emphasis on emotional branding and brand differentiation.
Others believe that industries with long purchasing cycles may not always behave the same way as fast-moving consumer goods.
Nevertheless, numerous follow-up studies continue to demonstrate that most of the empirical laws developed by the Ehrenberg-Bass Institute can be replicated across a wide variety of industries.
Why Is How Brands Grow Relevant to Digital Marketing?
In today’s digital landscape, capturing consumer attention is more challenging than ever. Competition is no longer just about product quality—it’s also about being the easiest brand to find and remember.
A well-optimized website, effective SEO, high-quality content, active social media, and a consistent visual identity all contribute to building both Mental Availability and Physical Availability.
That is why many modern digital marketing strategies naturally align with the principles explained in How Brands Grow.
How Can SIMPLIFY Help Your Business?
According to the principles of How Brands Grow, business growth occurs when more people become aware of, remember, and ultimately choose your brand. Achieving this requires a professional website, an effective SEO strategy, consistent content creation, and a strong digital presence that is easy for potential customers to discover. SIMPLIFY helps businesses build a solid digital foundation through website development, SEO optimization, content management, and digital marketing strategies designed to increase visibility and attract more customers.
Or save SIMPLIFY’s contact information for your future digital business needs here.
Conclusion
How Brands Grow is considered one of the most influential marketing theories of the past few decades because it is built upon empirical research rather than anecdotal business experience.
Through the work of Byron Sharp and the Ehrenberg-Bass Institute, businesses gain a deeper understanding that sustainable brand growth depends largely on increasing market penetration, improving brand recall, and making products or services easier to find.
For businesses looking to grow in the digital era, these principles provide a strong scientific foundation for developing more effective branding, SEO, website, and digital marketing strategies that support long-term growth.
Image source: Cure Media
References
- Sharp, B. (2010). How Brands Grow: What Marketers Don’t Know. Oxford University Press.
- Sharp, B., & Romaniuk, J. (2015). How Brands Grow: Part 2. Oxford University Press.
- Sharp, B. (2017). Marketing: Theory, Evidence, Practice. Oxford University Press.
- Sharp, B., Wright, M., Dawes, J., Driesener, C., Meyer-Waarden, L., Stocchi, L., & Stern, P. (2012). It’s a Dirichlet World: Modeling Individuals’ Loyalties Reveals How Brands Compete, Grow, and Decline. Journal of Advertising Research, 52(2), 203–213.
- Wright, M., & Riebe, E. (2010). Double Jeopardy in Brand Defection. European Journal of Marketing, 44(7/8), 860–873.
- Ehrenberg-Bass Institute for Marketing Science. Research Publications.
- Oxford University Press. How Brands Grow.