1. Lecture 13
Branding

2. 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

3. 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

4. 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

5. Some Internet Brands Have Become Major Players
Source:

6. Examples of Internet Brands

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

8. 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

9. Should Offline Firms Create New Online Brands?
Point-Counterpoint

10. 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

11. 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

12. 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

13. 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

14. : 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

15. Do Strong Online Brands Matter?
Point-Counterpoint

16. 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

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

18. 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

19. 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

20. Similarities & Differences in Offline vs. Online Branding

21. 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

22. Citibank Online

23. Citibank Vs. Chase: Assessment of Key Branding Elements

24. Citibank Vs. Chase Assessment of Key Brand Attributes

25. CBS MarketWatch.com

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

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

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

29. 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

30. 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

31. 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

32. EBay Vs. Amazon.com Auctions: Key Branding Elements

33. EBay Vs. Amazon.com Auctions: Key Branding Elements

34. EBay and Amazon.com Auctions: Key Attributes

35. 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

36. 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.