Chapter Six Online Branding There must be, and is, life beyond the 30-second spot. We must accept the fact that there is no mass media anymore, and leverage more targeted approaches. ~Jim Stengel, CMO of P&G

Shifting Landscape of Branding Threats to traditional advertising include shrinking audiences, rising costs and competing technologies

Shifting Landscape of Branding Threats to traditional advertising include shrinking audiences, rising costs and competing technologies Tivo ad blocking and the Do Not Call registry restrict marketers reach

Shifting Landscape of Branding Threats to traditional advertising include shrinking audiences, rising costs and competing technologies Tivo ad blocking and the Do Not Call registry restrict marketers reach Fears of the chaos scenario: a drop in mass media effectiveness with no equally effective marketing alternative

Power of the Brand A strong brand provides… –Financial Benefits Price premiums Lower retailer “monies” –Nonfinancial Benefits Enhances one’s power within the channel Provide quality cues for intangible goods to customers during the purchase evaluation stage which influence one’s consideration set and eventual choice

Building Brands Online Aggregate U.S. Advertising and Online Advertising

Building a Brand Four stages of establishing customer-based brand equity

Building a Brand Four stages of establishing customer-based brand equity 1.Establishing the right identity (including the selection of domain names)

Branding by Domain Name Reinforce branding Build traffic Anticipate consumer behavior and mistakes Memorability matters Simplicity counts

Branding by Domain Name SOURCE: Bloomberg News/Landov Alternate names should help drive traffic to main site

The Challenge of Multiple Brands Multi-brand companies must determine whether each brand stands alone or is linked by the common firm

The Challenge of Multiple Brands Multi-brand companies must determine whether each brand stands alone or is linked by the common firm A branded house treats all products as an integrated brand

The Challenge of Multiple Brands Multi-brand companies must determine whether each brand stands alone or is linked by the common firm A branded house treats all products as an integrated brand A house of brands emphasizes product- specific marketing with few ties to other company brands

The Challenge of Multiple Brands BRANDED HOUSEHOUSE OF BRANDS Branding Advantages Efficient use of resources Lower cost of product introductions, brand extensions Focus on key users Avoids confusion Dominance in product category Reduces or minimizes channel conflict Online Advantages Traffic steered to single page Authority status of site through shared in-bound links Easier user tracking Focused content Simplified imagery Better measurement of brand-specific campaigns Online Challenges Complicates content choice Potential navigation problems Difficult to measure advertising effectiveness per individual brand Hinders cross-selling opportunities “Content fatigue” reduces likelihood of frequent customer visits URL Choices Homepage as umbrella Virgin.com/books Virgin.com/travel Separate URLs per brand

Evaluating Online Effectiveness Four stages of establishing customer-based brand equity 1.Establishing the right identity (including the selection of domain names) 2.Creating appropriate brand meaning

Creating Brand Meaning Online images and content reinforce brand personality and imagery

Creating Brand Meaning Online images and content reinforce brand personality and imagery Digital content transforms a brand into an authority

Creating Brand Meaning Online images and content reinforce brand personality and imagery Digital content transforms a brand into an authority –The Stain Detective at Tide.com –Daily pollen counts at Allegra.com

Creating Brand Meaning Online images and content reinforce brand personality and imagery Digital content transforms a brand into an authority –The Stain Detective at Tide.com –Daily pollen counts at Allegra.com Online responses offer a swift, and lasting, response to brand crises

Evaluating Online Effectiveness Four stages of establishing customer-based brand equity 1.Establishing the right identity (including the selection of domain names) 2.Creating appropriate brand meaning 3.Reinforcing the right brand response

Reinforcing Brand Response Pairing traditional media campaigns with Web advertising helps drive customer response to a brand –Billboards, television have wide reach but limited information –Internet lacks wide reach but provides deep content, elaboration, reinforcement –A “handoff” strategy recognizes strengths and weaknesses of each media type

Reinforcing Brand Response In Apple Computer’s “Switch” campaign, TV ads and billboards steer users to the Web

Evaluating Online Effectiveness Four stages of establishing customer-based brand equity 1.Establishing the right identity (including the selection of domain names) 2.Creating appropriate brand meaning 3.Reinforcing the right brand response 4.Forging appropriate customer brand relationships

Forging Brand Relationships Online content can deepen consumer attachment to a specific brand

Forging Brand Relationships Online content can deepen consumer attachment to a specific brand Legacy drives brand connections and can be highlighted through online and multi- media content

Forging Brand Relationships Online content can deepen consumer attachment to a specific brand Legacy drives brand connections and can be highlighted through online and multi- media content Brand communities place special emphasis on a brand or product and are powerful purchasers

Forging Brand Relationships Brands as socially negotiated constructs

Evaluating Online Effectiveness Source: Kevin Lane Keller