brand report
zyyyy
L6_slides_SPR_19.pdf
Branding in the digital era
and building secondary
associations
BRAND MANAGEMENT
24752
Key Issues for Branding in the Digital
Era
• There are many important developments with branding in
this digital era
• Findings:
– 97% of consumers turn to a search engine like Google
when they are buying a product
– 96% of consumers search for product information from
their mobile device
– 95% of millennials expect brands to have a Facebook
presence
– 89% of consumers do online research prior to
purchasing instore
Key Digital Era Trends with Implications for
Branding and Brand Management
1. Changes in the consumer decision journey
2. Sharp increase in buying via online retail channels
3. Shift in advertising and promotion expenditures toward digital channels
4. The rise of many-to-many communications
5. Dramatic increase in consumer touchpoints
6. Tremendous increase in data availability
7. The use of digital personalization
8. A loss of control over the brand message and the co-creation of brand meaning
9. The role of user experiences
10. The growth of brands as cultural symbols
Changes in Consumer Decision
Journey
• Digital marketing and social media has changed the
consumer decision journey
Expanded Consumer Decision Journey
Growth of Online Retailing
• The popularity of online retailing can be inferred from
the following statistics:
– Value of ecommerce sales will reach $414 billion in
2018
– 60% of adult Americans are happy to not shop in a
crowded mall or store
– 71% of shoppers believe they will get a better deal
online than in stores
– 40% of men and 33% of women aged 18 to 34 say
they would ideally “buy everything online”
Advertising and Promotions Using
Digital Channels
• Advertising dollars are allocated differently now across
online and offline channels
– As of 2017, digital media expenditures in the United
States exceeded TV advertising expenditures
• The growth in digital media is expected to outpace growth
of traditional media channels
– By 2020, it has been projected that online channels will
be almost 50 percent larger than TV advertising
Traditional Marketing: One-to-Many
Communications
New Media Environment: Two-Way and
Many-to-Many Communications
Increase in Consumer Touchpoints
• Digital marketing and social media channels and the ability
to communicate with each other
– Has fueled an increase in touchpoints
Increase in Data Availability
• Data, data everywhere!
– Clickstream data on users’ browsing behaviors on
companies’ Web pages
– Advertising metrics
▪ Click-through rates
▪ Cost per clicks
– Information regarding the number of unique visitors to
a brand’s Web site
Digital Personalization
• Targeting individual consumers with varying offers
– To try to ensure that they complete a purchase
• Digital tools have allowed for unprecedented
personalization
– Product as well as message
• Dynamic pricing
– The same product can become available at different
prices based on expressed customer interest
Loss of Control over Brand Message
and Co-Creation of Brand Meaning
• The digital age has created conditions such that brand
meaning is primarily coproduced by three different forces:
– Firm-generated brand meaning
– Consumer-generated brand meaning
– Media and cultural influences
E.g. Dove, Doritos
https://www.youtube.com/watch?v=jx17uPbIm3Q
http://www.youtube.com/watch?v=YC0fnpfTq6k
User Experience Is the Key to Digital
Brand Success
• A seamless user experience is crucial to a success of a
digital brand
• Needs an interface that consumers can effortlessly
navigate
– To maximize user experience
Brands as Cultural Symbols
• Brands have greater impact as cultural icons than ever
before
• Brands help consumers feel a part of something
– Allows them to signal and connect with others
Brand Engagement
• Three levels of customer engagement:
– Low brand engagement
– Moderate brand engagement
– High brand engagement
Brand Engagement Pyramid
Negative Brand Engagement
• Hatred and dissatisfaction with a brand
– Companies can redress customer grievances
▪ Brand ambassadors
• Boycotts or social movements
• Brands are more readily ridiculed and parodied due to the
online nature of the communication
E.g. Pepsi
https://www.youtube.com/watch?v=uwvAgDCOdU4
https://www.youtube.com/watch?v=rbFLINZVBjY
Digital Communications (1 of 2)
• Paid channel
– A marketer typically runs paid advertising
▪ Facebook, TV, print, etc.
• Owned channel
– Sources of information for consumers about a company’s
offerings
▪ YouTube channel
• Earned channel
– Review sites and reviews posted online typically at no
expense
▪ Social media or blog post
Summary of Digital Marketing
Communication Channels
Digital Communications (2 of 2)
• Company Web Sites
• E-mail Marketing
• Segmenting, Targeting, and Personalization
• E-mail Structure and Subject Line
• Timing and Industry Differences
• Entertaining and Engaging Content
• Testing and Monitoring
• Search Advertising
• Display Advertising
Overview of Social Media Paid
Channels (1 of 2)
• Social media channels offer unparalleled access to
communities of users with similar demographic,
geographic, and psychographic characteristics
– Facebook and Twitter, for example
• Roles of social media:
– Establishing a public voice and online presence
– Amplifying marketing message
– Helping monitor and obtain feedback from consumers
– Promoting customer engagement
Overview of Social Media Paid
Channels (2 of 2)
• Video
Example: #Likeagirl
https://www.youtube.com/watch?v=yIxA3o84syY
Mobile Marketing
• Messaging services
– Short messaging service (SMS) and multimedia
messaging service (MMS)
▪ Offer customers unique offers based on time and
location
• In-app advertising
– Way by which mobile marketing can help brands touch
customers
• Proximity systems marketing, or geo-fencing
– Involves particular advertising messages delivered to
mobile users with a defined geographic area
Influencer Marketing and Social Media
Celebrities
• Influencer marketing involves utilizing key influencers
– Sponsored bloggers
– Celebrity influencers (e.g. devinsupertramp)
https://www.youtube.com/watch?v=GJdEqU6l7pw
Content Marketing
• According to the Content Marketing Institute
– “Content marketing is a strategic marketing approach
focused on creating and distributing valuable, relevant,
and consistent content to attract and retain a clearly
defined audience—and, ultimately, to drive profitable
customer action.”
• A key difference between content marketing and traditional
marketing is that
– Consumers typically want to consume the posts that
form part of a content marketing campaign
Summary of Pros and Cons, Integrating
Across Paid Channels
• Brand marketers have to make an effort to create
integrated digital media campaigns that leverage the
benefits of different social media
Brand Management Structure
• Success factors for strategy-making:
– Senior management should be tasked with understanding how
products and brands are researched and viewed online
– Cross-functional coordination is increasingly important
– Data-driven decision-making will become standard operating
procedure
– A brand or marketing strategy should be viewed as a part of an
overall strategy
– High-quality data can assist marketers to personalize a given
message to an audience
– Accessing data on consumers’ conversation can help uncover
information that can be useful
– Understanding how online and offline communications interact
and coordinating with a digital channels strategy is important
Secondary Sources of Brand
Knowledge
Effects on Existing Brand Knowledge
• Three important factors in predicting the extent of
leverage from linking the brand to another entity:
1. Awareness and knowledge of the entity
2. Meaningfulness of the knowledge of the entity
3. Transferability of the knowledge of the entity
Understanding Transfer of Brand
Knowledge
Guidelines
• Leveraging secondary brand associations may allow
marketers to
– Create or reinforce an important point-of-difference or
– Create or reinforce a necessary or competitive point-of-
parity versus competitors
• Commonality leveraging strategy
– Makes sense when consumers have associations to
another entity that are congruent with the brand
• Complementarity branding strategy
– Makes sense when entities represent a departure for the
brand because there are few if any common or similar
associations
Company
• Existing brands can be related to a corporate or family
brand
• Corporate or family brand can be a source of brand equity
• Leveraging a corporate brand may or may not be useful
• Three main branding options exist for a new product
– Create a new brand
– Adopt or modify an existing brand
– Combine an existing and a new brand
Country of Origin and Other
Geographic Areas (1 of 2)
• A country of geographic location from which a product
originates may
– Become linked to the brand
– May generate secondary associations
• Consumers choose brands originating in different countries
based on:
– Their beliefs about the quality of certain types of products
from certain countries
– The image that these brands or products communicate
https://www.youtube.com/watch?v=o6gN8BI6DTk&feature=yout
u.be
Country of Origin and Other
Geographic Areas (2 of 2)
• Other geographic associations besides country of origin
are possible
– States, regions, cities
• Classic U.S. tourism slogans
– “I Love New York”
– “Virginia Is for Lovers”
– Las Vegas’s “What Happens Here, Stays Here”
Channels of Distribution
• Channels of distribution can directly affect the equity of
the brands they sell
• Retail stores can indirectly affect brand equity through an
“image transfer” process
• Retailers have their own brand images in consumers’
minds due to the following associations
– Product assortment
– Pricing and credit policy
– Quality of service
Co-Branding (1 of 2)
• When two or more existing brands are combined into a
joint product or are marketed together in some fashion
– Also called brand bundling or brand alliances
– Example: Betty Crocker paired with Sunkist Growers
to market a lemon chiffon cake mix
• Interest in co-branding as a means of building brand
equity has increased
Co-Branding (2 of 2)
• Brand alliances, such as co-branding, require marketers
to ask themselves questions such as:
– What capabilities do we not have?
– What resource constraints do we face (people, time,
money)?
– What growth goals or revenue needs do we have?
Ingredient Branding
• Creates brand equity for materials, components, or parts
that are contained within other branded products
• Branded ingredients are often a signal of quality
• Uniformity and predictability of ingredient brands can
reduce risks and reassure consumers
E.g. Lycra®
Licensing (1 of 3)
• Creates contractual arrangements whereby firms can use:
– Names, logos, and characters of other brands to
market their own brands for some fixed fee
• Can also provide legal protection for trademarks
Licensing (2 of 3)
• One danger in licensing
– Manufacturers can get caught up in licensing a brand
that might be popular at the moment but is only a fad
▪ May produce short-lived sales
• Corporate trademark licensing
– Licensing of company names, logos, or brands
– For use on various, often unrelated products
Licensing (3 of 3)
• Firms may license corporate trademarks to:
– Generate extra revenue and profits
– Protect their trademarks
– Increase their brand exposure
– Enhance their image
• Risk
– Product may not live up to the reputation established by the
brand
– Inappropriate licensing can delete brand meaning
– Consumers don’t care about the financial arrangements
behind a particular product or service
▪ If the brand is used, the brand promise must be upheld
Celebrity Endorsement (1 of 2)
• Using well-known and admired people to promote
products
– Widespread phenomenon with a long marketing
history
• Rationale
– A famous person can:
▪ Draw attention to a brand
▪ Shape brand perceptions, by virtue of consumers
perceptions of the famous person
Celebrity Endorsement (2 of 2)
• Celebrity endorsers should have
– High level of visibility
– Rich set of potentially useful associations, judgments,
and feelings
• Potential problems
– Celebrity endorsers can endorse so many products that
they lack any specific product meaning
▪ Or are seen as opportunistic or insincere
– Must be a reasonable match between celebrity and
product
– Celebrity endorsers can get in trouble or lose popularity
Social Influencers as the New
Celebrities
• Rapid growth in the use of social media celebrities for
advertising brands
• Also noncelebrity or micro-influencers who have
considerable sway on social media
Sporting Cultural or Other Events
• Events have their own set of associations
– May become linked to a sponsoring brand under
certain conditions
• Contribute to brand equity by
– Becoming associated to the brand and improving
brand awareness
– Adding new associations
– Improving the strength, favorability, and uniqueness
of existing associations
Third-Party Sources
• Marketers can create secondary associations in a number
of different ways
– By linking the brand to various third-party sources
• Third-party sources can be especially credible sources
– Marketers often feature them in advertising campaigns
and selling effort
