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What Is The Total Market Approach?
What Is The Total Market Approach?
It’s been nine years since Wiley published Reframe The Marketplace: The Total Market Approach To The New Majority.
It is a “How To” book for Leaders who want to accelerate inclusive change and growth at scale. Let’s just say the topic and title at the time of publication was disruptive.
When our founder and CEO launched the Total Market topic at the Association of National Advertisers conference in 2009, many within the marketing and communications industry sold ideas and formed businesses to provide marketing services based on the idea of “general market” and “multicultural” for more than 50 years.
The idea of a “Total Market” approach meant the reconsideration of industry structure and how agencies serviced brands. For some agencies, a new and innovative approach was a perceived threat. Here’s what we knew in 2009:
1. There was a New Majority forming, per the 2010 and 2020 U. S. Census.
2. The “general market” and “multicultural” marketing approach was dated and did not reflect the Total Addressable Market (TAM).
3. Because of this decades old practice of “general market” and “multicultural” marketing approach, there were significant inequities in how brands resourced diverse audience segments.
Prior to our founder moving to New York City to work at Ogilvy, he worked in the technology (tech) industry and was apart of the bubbling Austin, Texas tech scene. In the tech scene, founders pitched powerpoint presentations and talked about the Total Addressable Market(TAM).
For investors listening to founders pitching ideas, they have to know how big of an opportunity they are considering for allocating resources and getting a big return. If every addressable consumer purchased your product, there was a big financial value on the other side.
While at Ogilvy in his early days of 2008, the marketing and communications industry was shifting from traditional to digital. No one was talking about the Total Addressable Market or TAM in the rooms I was in. When he mentioned TAM in client meetings, very few knew the terminology.
What this meant in practice was very few brands could quantify the value of ALL consumers and the financial value they represented to the brand.
At the time (2009), most brands could quantify the addressable opportunity for the “general” audience and not the multicultural audience segments. This was and continues to be a BIG miss for brands today!
If brands only quantify the total addressable opportunity for the general market audience segment, then resources follow with a clear understanding of the investment return.
Hence, why our hypothesis, there was an under investment in multicultural audience segments because brands could not properly quantify the TOTAL Addressable Market.
This is WHY the name and topic exist, Reframe The Marketplace: The Total Market Approach To The New Majority and change the marketplace approach.
To learn more and read the book: https://jeffreylbowman.com/books/