© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Internet Marketing & e-Commerce Ward Hanson Kirthi Kalyanam Requests for permission to copy any part of the material should be addressed to: PERMISSIONS DEPARTMENT THOMSON BUSINESS and ECONOMICS 5109 Natorp Boulevard Mason, OH Phone: (800)

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Part Two: 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, Chief Marketing Officer, Procter & Gamble

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Shifting Landscape of Branding Threats to traditional advertising include shrinking audiences, rising costs and competing technologies

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation 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

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation 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

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Building Brands Online Web spending, especially for keyword search, is expanding Content and development central to online branding efforts Improved multi-media technology increases ad effectiveness

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Building Brands Online Aggregate U.S. Advertising and Online Advertising

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Evaluating Online Effectiveness Four stages of establishing customer- based brand equity

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Evaluating Online Effectiveness Four stages of establishing customer- based brand equity – Establishing the right identity

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Evaluating Online Effectiveness Four stages of establishing customer- based brand equity – Establishing the right identity – Creating appropriate brand meaning

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Evaluating Online Effectiveness Four stages of establishing customer- based brand equity – Establishing the right identity – Creating appropriate brand meaning – Eliciting the right brand responses

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Evaluating Online Effectiveness Four stages of establishing customer- based brand equity – Establishing the right identity – Creating appropriate brand meaning – Eliciting the right brand responses – Forging appropriate customer brand relationships

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Evaluating Online Effectiveness Source: Kevin Lane Keller

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Establish Proper Brand Identity Reinforce brand salience – Brand has both breadth and depth of brand awareness – Exposure to web advertising Brand Identity and Brand name – Reinforce branding – Build Traffic – Anticipate consumer behavior and mistakes Defining Domain Names – Memorability matters – Provide several ways to get to an address – Simplicity counts

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Branding by Domain Name SOURCE: Bloomberg News/Landov Alternate names should help drive traffic to main site

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation The Challenge of Multiple Brands Multi-brand companies must determine whether each brand stands alone or is linked by the common firm

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation 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

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation 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

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation 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

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Enhancing Brand Meaning Online images and content reinforce brand personality and imagery

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Enhancing Brand Meaning Online images and content reinforce brand personality and imagery Digital content transforms a brand into an authority

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Enhancing 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

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Enhancing 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

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Enhancing Brand Meaning 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

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Enhancing Brand Meaning In Apple Computer’s “Switch” campaign, TV ads and billboards steer users to the Web

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Forging Brand Relationships Online content can deepen consumer attachment to a specific brand

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation 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

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation 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

© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation Forging Brand Relationships Brands as socially negotiated constructs