Post by account_disabled on Dec 27, 2023 23:01:10 GMT -8
"The Winner Takes It All" is not only one of the most popular songs by the legendary Swedish band ABBA . It is also an effect that sneaks into multiple crevices of our lives . The "The Winner Takes It All" effect is particularly known in connection with the United States presidential elections, where the candidate who manages to win a state takes all the votes there. And it also does its thing in biology, where 1% of all species claim 50% of the biosphere for themselves because at some point they enjoyed some evolutionary advantage and this allowed them to spread better than other species and claim, for hence, "everything" for them. But the "The Winner Takes It All" effect also makes its way into the marketing universe , says Christian Rechmman in an article for Horizont . If we look at online marketing, for example, there is a single relevant search engine, a single online store that can boast success on a global scale and a single 2.0 platform that swallows almost everything ( Facebook ) and leaves the rest. just a few crumbs.
The "ABBA effect" or the law of the strongest in a marketing key The brands that today dominate the digital ecosystem because they devour everything because they were pioneers in their respective marketsn and, by being better and bigger, they can provide better services and better prices. In this context, emerging rivals tend to be swallowed up by the strongest competitor. It is the so-called cumulative benefit. Whoever starts out with a small advantage next to him ends up multiplying it exponentially with the passage of time and it is impossible for his rivals to catch up with him. The “The Winner Takes It All” effect is also very present in branding . Particularly strong brands are always lodged in the same area of the consumer's brain, the area reserved for winning brands. And they manage to alleviate the tasks undertaken by the human brain by simplifying evaluations and speeding up certain choices. Therefore, faced with a plethora of brands on supermarket shelves, consumers always throw their favorite brand into the shopping cart.
It must be taken into account, on the other hand, that the cumulative benefit overlapping the "The Winner Takes It All" effect definitely works better when brands claim to be the first to launch a certain product category. For this reason Red Bull is probably the first energy drink brand that comes to mind when consumers think about this particular product category. And for the same reason Tesla is also synonymous with electric cars for a large part of consumers. Taking advantage of the "The Winner Takes It All" effect In communicative terms, the “The Winner Takes It All” effect means that winning brands would do well to heavily emphasize their own leadership . Coca-Cola is the authentic cola drink, Mercedes-Benz boasts of having invented the automobile, and Apple of having birthed the first smartphone. Because of the "ABBA effect" we tend to always buy the same brands, unless (and this is a very important exception in marketing) we consciously choose to make new decisions to buy, for example, oat milk instead of our brand.
The "ABBA effect" or the law of the strongest in a marketing key The brands that today dominate the digital ecosystem because they devour everything because they were pioneers in their respective marketsn and, by being better and bigger, they can provide better services and better prices. In this context, emerging rivals tend to be swallowed up by the strongest competitor. It is the so-called cumulative benefit. Whoever starts out with a small advantage next to him ends up multiplying it exponentially with the passage of time and it is impossible for his rivals to catch up with him. The “The Winner Takes It All” effect is also very present in branding . Particularly strong brands are always lodged in the same area of the consumer's brain, the area reserved for winning brands. And they manage to alleviate the tasks undertaken by the human brain by simplifying evaluations and speeding up certain choices. Therefore, faced with a plethora of brands on supermarket shelves, consumers always throw their favorite brand into the shopping cart.
It must be taken into account, on the other hand, that the cumulative benefit overlapping the "The Winner Takes It All" effect definitely works better when brands claim to be the first to launch a certain product category. For this reason Red Bull is probably the first energy drink brand that comes to mind when consumers think about this particular product category. And for the same reason Tesla is also synonymous with electric cars for a large part of consumers. Taking advantage of the "The Winner Takes It All" effect In communicative terms, the “The Winner Takes It All” effect means that winning brands would do well to heavily emphasize their own leadership . Coca-Cola is the authentic cola drink, Mercedes-Benz boasts of having invented the automobile, and Apple of having birthed the first smartphone. Because of the "ABBA effect" we tend to always buy the same brands, unless (and this is a very important exception in marketing) we consciously choose to make new decisions to buy, for example, oat milk instead of our brand.