CONFIDENTIAL Copyright © 2001 by Marketspace LLC Chapter 7 Enhanced Lecture Slides Branding Rayport, Jaworski Intro to e-Commerce Exhibits and Tables

2 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-3: What Is a Good Brand? Brand Prestige “Wrap-arounds” Marketing Communications Core Product / Service Core Product / Service Mix of off-line and on-line advertising Emphasizes advantages to AAdvantage memberships, including non-expiring miles and on-line services Superior service AAdvantage frequent flier mile club Award winning Admirals Club lounges Comfortable chairs Portable defibrillators on every flight Safe, on-time transportation from A to B

3 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-4: A Simple Conceptual Model of Brand Equity A good brand... CUSTOMER BENEFITS Confidence Loyalty Satisfaction FIRM BENEFITS Reduce marketing costs Increased margins Opportunity for brand extensions BRAND AWARENESS Depth Breadth BRAND ASSOCIATIONS Strength Relevant Consistent Valence Uniqueness Memorable Disinctive “Wrap-arounds” Core Product / Service Core Product / Service Market Communication … provides positive consumer responses... … and benefits both target customers and the firm Source: Kevin Keller, Strategic Brand Management (Saddle River: Prentice-Hall, 1998); David Aaker, Building Strong Brands (New York: The Free Press, 1995); Strategic Market Research Group; Marketspace Analysis.

4 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Table 7-3: Types of Brands Traditional Brands On-line Brands The product / service with which the brand is associated was established in the online world Examples: –Amazon –Yahoo –ZDNet –AOL –Priceline –CDNow –Wingspanbank –E*Trade The product / service with which the brand is associated was established in the online world Examples: –Amazon –Yahoo –ZDNet –AOL –Priceline –CDNow –Wingspanbank –E*Trade The product / service with which the brand is associated was established offline in the bricks-and-mortar world Examples: –The Gap –UPS –Dell –JCrew –McDonalds –OfficeMax –Ragu –Coca-Cola –Disney The product / service with which the brand is associated was established offline in the bricks-and-mortar world Examples: –The Gap –UPS –Dell –JCrew –McDonalds –OfficeMax –Ragu –Coca-Cola –Disney

5 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-5: Brand Presence Traditional Brands On-line Off-line Online Brands Source: Monitor Analysis Mix of Promotional Activities Product Establishment Yahoo Ragu Yahoo Magazine Wingspan bank Wingspan bank Schwab Egghead

6 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-6: Building an On-Line Brand  1. Clearly define the brand audience  2. Understand the customer  3. Identify key leverage points in customer experience  4. Continually monitor competitors  5. Design compelling and complete Brand Intent  6. Execute with integrity  7. Be consistent over time  8. Establish feedback systems  9. Be opportunistic  10. Invest and be patient  1. Clearly define the brand audience  2. Understand the customer  3. Identify key leverage points in customer experience  4. Continually monitor competitors  5. Design compelling and complete Brand Intent  6. Execute with integrity  7. Be consistent over time  8. Establish feedback systems  9. Be opportunistic  10. Invest and be patient Integrated Campaign Value Cluster

7 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Table 7-4: Similarities and Differences in Offline vs. Online Branding

8 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Table 7-4: Similarities and Differences in Offline vs. Online Branding, cont’d

9 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Table 7-5: Case Studies of Successful Online Branding Efforts

1010 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Brand Reinforce- ment Broad Vs. Focused (Specific Products / Services) Brand Association Brand Awareness Firm Benefits Customer Benefits Product Sales Sales Leads Brand Creation Product Trial Store Traffic What value do you want to derive from your on-line presence? What part of brand equity do you want to build? What product / service are you offering them? Value Objective Component of Brand Equity Product Scope Target Audience Broad Vs. Focused (Specific Segments) Who do we want to target? Exhibit 7-7: Online Branding Choices Source: Forrester Research, Monitor Analysis

1 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-8:

1212 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-9: Assessment of Key Branding Elements On-line Branding Best-in-Class Comparison American AirlinesContinental CVc = very low= low= moderate= high= very high CV

1313 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-10: Assessment of Key Brand Attributes On-line Branding Best-in-ClassComparison American AirlinesContinental = very low= low= moderate= high= very high

1414 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-11:

1515 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-12: Assessment of Key Branding Elements Online Branding Best-in-Class Comparison Monster.com HotJobs.com

1616 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-13: Assessment of Key Brand Attributes Online Branding Best-in-ClassComparison Monster.comHotJobs.com

1717 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Table 7-6: MarketWatch.com Marketing Communications Traditional Mass Marketing Television –Advertising on CBS –Mentions and scrolls during CBS shows –CBS Marketwatch Weekend –Contributions to CBS NewsPath Outdoor Advertising –Outdoor placards –Bus advertisements in target cities Radio –Contributions to Westwood One Radio Network –Spots during NFL radio broadcasts –Mentions on CBS owned and operated radio stations Print –Limited ads in trade journals Conferences –Participation in online finance, online journalism and internet-related conferences General Approaches Advertising on major portals (e.g., Yahoo!, Lycos, Excite, Alta Vista) Advertising on CBS site and other CBS internet partners (e.g. CBS SportsLine, CBS HealthWatch) Advertisements on targeted sites (e.g. other online financial sites) Provision of content and tools to sites (e.g., AOL, Quicken.com) Licensing content arrangements CBS Marketwatch Survivor contest Free information onsite Personalized Permission marketing s sent to groups from opt-in lists Direct OfflineOnline Individualized Broad Communication Needs Audience Focus

1818 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-14: Assessment of Key Branding Elements for MarketWatch.com MarketWatch.com = Very Low= Low= Moderate= High= Very High

1919 Last Updated: 01/10/01 Copyright  2001 by Marketspace LLC Exhibit 7-15: Assessment of Key Brand Attributes for MarketWatch.com MarketWatch.com = Very Low= Low= Moderate= High= Very High