Lecture 13 Branding

Branding — Today’s Objectives Objectives will be to: Understand what a brand is and how the 2Is affect branding Understand what brand equity is and how it is measured Discuss how marketing programs build brand equity Examine the seven-step branding process Review two case studies in online branding Discuss the effects of brand on the four customer relationship stages

Branding Defining Brand and Examining How the 2Is Affect Branding What Is Brand Equity, and How Is It Measured? How Marketing Programs Build Brand Equity The Seven-Step Branding Process Two Case Studies in Online Branding Effects of Brand on the Four Customer Relationship Stages EBay Example Conclusion

Branding Defining Brand and Examining How the 2Is Affect Branding What Is Brand Equity, and How Is It Measured? How Marketing Programs Build Brand Equity The Seven-Step Branding Process Two Case Studies in Online Branding Effects of Brand on the Four Customer Relationship Stages EBay Example Conclusion

Some Internet Brands Have Become Major Players Source: www.brandinstitute.com/bi_site/news_release_megabrands1098.htm

Examples of Internet Brands

Case Studies of Successful Online Branding Efforts Established as Traditional Brand Established as Online Brand Source: PricewaterhouseCoopers Moneytree Report 2000.

The 2Is and Branding Individualization Interactivity Community Interactivity creates value because the brand is tailored to the individual Customers gain a sense of control with respect to the nature and timing of their interactions with the brand There is a danger that the brand will stray from its core personality Responsiveness becomes a key brand attribute as customers recognize that their concerns are heard and responded to across multiple channels The frequency of interaction is increased — leading to the need to freshen content and target messages to specific usage occasions Customers expect the brand to evolve in response to their needs and desires Community

Should Offline Firms Create New Online Brands? Point-Counterpoint

Branding Defining Brand and Examining How the 2Is Affect Branding What Is Brand Equity, and How Is It Measured? How Marketing Programs Build Brand Equity The Seven-Step Branding Process Two Case Studies in Online Branding Effects of Brand on the Four Customer Relationship Stages EBay Example Conclusion

Quotes on Online Branding “E-branding is more important [than e-commerce]. And it must come first. Because few people will buy your stuff – online or off – unless you are top-of-mind.” – Annette Hamilton, Executive Producer, ZDNet “Brand is the price of entry [to the Internet], not the winning strategy.” – Dylan Tweney, infoNet “By the time your potential customers log on, they already know what they’re looking for, and they often know from whom they want to buy it. … They’re just not listening to branding messages anymore.” – Michael Fischler, Principal, The Pubs Group

Quotes on Online Branding (cont.) “Brands stand as comfort anchors in the sea of confusion, fear, and doubt. In dynamic markets, strong brands have more value than ever, precisely because of the speed with which these markets move.” – Chuck Pettis, Technobranding “It took more than 50 years for Coca-Cola to become a worldwide market leader, but only five years for online search engine Yahoo to gain market dominance. The role of the brand has changed dramatically and has created a vacuum between offline and online brands.” – Mark Lindstrom, Executive Director, ZIVO “A company’s website is the brand. It’s the hub of consumer experience, the place where all aspects of a company, from its annual report to its products to its support, intersect. It’s the company in a nutshell, all there in a way that just is not possible in the analog world.” – Sean Carton, Carton Donofrio Interactive

A Simple Conceptual Model of Brand Equity . . . provides positive consumer responses . . . . . . and benefits both target customers and firm A good brand . . . Product, Price, Community, Communication and Distribution Programs Brand Awareness Depth Breadth Customer Benefits Confidence Loyalty Satisfaction Wraparounds Core Product/ Service Brand Associations Strength Relevant Consistent Valence Uniqueness Memorable Distinctive Firm Benefits Reduced marketing costs Increased margins Opportunity for brand extensions Source: Keller (1996), Aaker (1996), Strategic Market Research Group, Marketspace Analysis

: A Model of FogDog Branding Fogdog Brand Perceptions Product, Price, Community, Communication and Distribution Programs Emphasize prices and selection benefits Selective distribution Competitive pricing Wraparounds Core Product / Service Gift shopping service MyFogdog discounts and benefits “How to buy” help Discussion groups by sport Fogdog Fetch helps you find the right product Low prices Selection breadth and depth

Do Strong Online Brands Matter? Point-Counterpoint

Branding Defining Brand and Examining How the 2Is Affect Branding What Is Brand Equity, and How Is It Measured? How Marketing Programs Build Brand Equity The Seven-Step Branding Process Two Case Studies in Online Branding Effects of Brand on the Four Customer Relationship Stages EBay Example Conclusion

Marketing Programs to Build Brand Equity Product Pricing Brand Equity Communication Promotional Program Distribution

Branding Defining Brand and Examining How the 2Is Affect Branding What Is Brand Equity, and How Is It Measured? How Marketing Programs Build Brand Equity The Seven-Step Branding Process Two Case Studies in Online Branding Effects of Brand on the Four Customer Relationship Stages EBay Example Conclusion

A Seven-Step Branding Process Clearly Define the Target Audience Step 1 Understand the Target Customer Step 2 Understand the Competition Step 3 Design Compelling Brand Intent Step 4 Identify Key Leverage Points in Customer Experience Step 5 Execute the Branding Strategy Step 6 Establish Feedback Systems Step 7

Similarities & Differences in Offline vs. Online Branding

Branding Defining Brand and Examining How the 2Is Affect Branding What Is Brand Equity, and How Is It Measured? How Marketing Programs Build Brand Equity The Seven-Step Branding Process Two Case Studies in Online Branding Effects of Brand on the Four Customer Relationship Stages EBay Example Conclusion

Citibank Online

Citibank Vs. Chase: Assessment of Key Branding Elements

Citibank Vs. Chase Assessment of Key Brand Attributes

CBS MarketWatch.com

CBS Marketwatch.com Vs. Bloomberg.com: Key Branding Elements

CBS Marketwatch.com Vs. Bloomberg.com: Key Brand Attributes

Brand as a Moderating Variable Enhances or Detracts Marketing Levers Relationship Stages For advertising, brand can enhance awareness

Branding Defining Brand and Examining How the 2Is Affect Branding What Is Brand Equity, and How Is It Measured? How Marketing Programs Build Brand Equity The Seven-Step Branding Process Two Case Studies in Online Branding Effects of Brand on the Four Customer Relationship Stages EBay Example Conclusion

Branding and Four Key Stages of Customer Relationships Awareness Exploration/ Expansion Commitment Dissolution Offline advertising Web price discount Increased number of channel intermediaries Online billboards Direct mail Targeted price promotions Efficient site structure Volume discounts Personalized pages Loyalty programs Discontinue pricing discounts Reduce advertising expenditures Identify “departing friends” Reduce customer care

Branding Defining Brand and Examining How the 2Is Affect Branding What Is Brand Equity, and How Is It Measured? How Marketing Programs Build Brand Equity The Seven-Step Branding Process Two Case Studies in Online Branding Effects of Brand on the Four Customer Relationship Stages EBay Example Conclusion

EBay Vs. Amazon.com Auctions: Key Branding Elements

EBay Vs. Amazon.com Auctions: Key Branding Elements

EBay and Amazon.com Auctions: Key Attributes

Branding Defining Brand and Examining How the 2Is Affect Branding What Is Brand Equity, and How Is It Measured? How Marketing Programs Build Brand Equity The Seven-Step Branding Process Two Case Studies in Online Branding Effects of Brand on the Four Customer Relationship Stages EBay Example Conclusion

Branding — Conclusion Branding is fundamentally different from the other marketing activities — product, pricing, communication, community and distribution — in three ways: Brands are reflections or outcomes of the firm’s marketing activities Unlike the other activities, branding is an integral part of every marketing activity and strategy Strong brands can be used to enhance the effectiveness of all other marketing activities The branding process includes seven steps: 1) clearly define the target audience, 2) understand the target customer, 3) understand the competition, 4) design compelling BrandIntent, 5) identify key leverage points in customer experience, 6) execute the branding strategy and 7) establish feedback systems. The presence of a strong brand enhances positive marketing activities such that awareness, exploration and commitment are more effectively established.