added value marketing - do people still need brands?

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1 Added Value Marketing Do people still need BRANDS?

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Do people still need BRANDS?

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Page 1: Added Value Marketing - Do people still need BRANDS?

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Added Value MarketingDo people still need BRANDS?

Page 2: Added Value Marketing - Do people still need BRANDS?

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Internet, social networks, mobility, economical, political, social and cultural changes

= new challenge for the marketers

BIG !!!

Page 3: Added Value Marketing - Do people still need BRANDS?

Old marketing is not efficient anymore. WHY?

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Page 4: Added Value Marketing - Do people still need BRANDS?

In the beginning it was simple.We had a simple choice of goods.

We could experience everything ourselves.

Our trusted suppliers themselves were the Brands.

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Page 5: Added Value Marketing - Do people still need BRANDS?

The massive influx of products and brands (fast growth after World War II)

= difficulty in choosing.

The brands took over the role of guides in the

chaos of products multitude.

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I. BREAKTHROUGH

Page 6: Added Value Marketing - Do people still need BRANDS?

Mass communication (TV, radio)

- big ones can do more, market polarizations, global brands, brand image management.

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II. BREAKTHROUGH

Page 7: Added Value Marketing - Do people still need BRANDS?

Internet and media multi consumption.

New generations consume information differently, internet increases our

knowledge about brands and products. Brands become transparent

- not necessarily of their own volition…

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III. BREAKTHROUGH

Page 8: Added Value Marketing - Do people still need BRANDS?

Brand can no longer rely on the strength of their image, what counts is the real strength of the product / service. Millions opinions of consumers may build

up or ruin the new kind of brand value based on reputation.

Reputation now results from the REAL benefits of the product or from other

values added to the product.

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IV. BREAKTHROUGH

Page 9: Added Value Marketing - Do people still need BRANDS?

Today - before consumers buy the product - they check other peopleʼs opinions in the Internet. It is the ZERO MOMENT OF TRUTH

about the brand, its products or services.We face a new kind of marketing practice:

marketing of recommendation.ZeroMomentOfTruth

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IV. BREAKTHROUGH

Page 10: Added Value Marketing - Do people still need BRANDS?

Society 3.0social networks, mobility, consumer power, context,

products convergence, generations Y and Z, new

social trends: „authenticity”, „cocooning”, „sense and

sensibility”, „life under time pressure”, „everything on

demand”...

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LAST BREAKTHROUGH - CHANGING THE RULES COMPLETELY...

Page 11: Added Value Marketing - Do people still need BRANDS?

Information clutter, also in reference to recommendations, first attempts to unethical manipulation of opinions in the Internet. Customers increasingly trust

friends - not anonymous internet users.11

Source: TNS Digital Life

LAST BREAKTHROUGH - CHANGING THE RULES COMPLETELY...

YES58%

NO42%

YES46%

NO54%

Trust in the opinions of friends Trust in the opinions of anonymous users

Opinions in the Internet - level of trust

Page 12: Added Value Marketing - Do people still need BRANDS?

Free from offline media consumers also expect

brands to communicate in a context - when they use the brand, when they

need it, when the brand and its product have a meaning to them, when there is an

important reason for having / using it.

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LAST BREAKTHROUGH - CHANGING THE RULES COMPLETELY...

Page 13: Added Value Marketing - Do people still need BRANDS?

A new era begins - era of consumer social

networks

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New challenge!14

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The convergence has made products of different

brands similar on the functional level.

The brand has lost the possibility of competing

on the product level.

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Products of different brands are similar

http://ski-boots.findthebest.com/

Page 16: Added Value Marketing - Do people still need BRANDS?

Private labels of distribution networks

offer similar functional features

at a much lower price.They are very often

produced in the factories owned by the „big” brands.

For a long time it was a secret.

However the social networks are inquisitive...

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privatelabel

Page 17: Added Value Marketing - Do people still need BRANDS?

...what brands have to say Ex cathedra

in a mass communication.

Who cares about a new shower gel while watching his favourite show on YouTube?

Who wants to listen how he feels or should feel while heʼs

feeling totally different or feeling

nothing at all...

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Customers stopped to listen...

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to connect with the brands.

But only with those, which are needed, which offer

them real values: product features (answering their more and more precise, individual needs) or any

other aspects on the level of values, e.g. building their

private image, PERSONAL BRANDING!

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However they still want to be able

Page 19: Added Value Marketing - Do people still need BRANDS?

PERSONAL BRANDING is a new dimension of what weʼve known for years in a

relationship customer - brand. What we buy or not, defines us in our society. It says who we

are, and what values we stand for.

It is a form of a symbol, a communication shortcut,

some kind of simplified message letting others "read" and classify in our common social relations.

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OLD personal branding

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What has dramatically changed is

THE SCALE OF INFLUENCE of the personal image of each single customer.

Today their "ME" non-stop

reaches hundreds, and sometimes thousands of their friends, friends of

friends and friends of friends of friends.

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NEW personal branding

connect 24/365

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The image and resulting from it

reputation in the network becomes a currency in social

relations.

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NEW personal branding

NEW CURRENCY

REPUTATION

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What people say, what they rate and how they rate it, but also, WHAT THEY BUY OR NOT

it all builds their personal image which BUILDS

THEIR FUTURE!What job they will have,

what kind of friends, what life or business partner

etc.

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NEW personal branding

your

FUTURE

is here!

Page 23: Added Value Marketing - Do people still need BRANDS?

Brands are still needed and important

for people.

Consumers need them to build their own reputation.

Therefore they need trustworthy brands to tie up with for years in a mutually

beneficial relationship.

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New expectations towards the brands

CREDIBILITY

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How to do it?24

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NEW STRATEGY FOR NEW TIMES

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BROADER CONTEXT

for the brand

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Product is the King!

1

ADDED VALUE

to the brand

3

Cooperation with

consumers

4

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PRODUCT IS THE KING!

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1

Page 27: Added Value Marketing - Do people still need BRANDS?

Make sure you have a good starting point. New situation requires

new strategy, but still the base must be stable.

Without good USEFUL product /service the

marketing itself will not achieve anything.

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Step one - Product is the king

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CONTEXT

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2

Page 29: Added Value Marketing - Do people still need BRANDS?

So far the brand appeared in its own

context of the product/service, in the context of needs it was satisfying, in the context of the image it had created , and could

have offered to those who wanted to use the brand for their self-branding.

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Step two - context

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So far it wasTHE BRAND THAT

DECIDED, when and how the consumer may

have experienced it.

It created a virtual experience through

storytelling (advertising/PR).

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Step two - context

controlled

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THE REAL EXPERIENCE

with the brand and its product will always be

„stronger” than any storytelling, however endearing

it is.

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Step two - context

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Customers do not need brands as navigators in the

sea of products, they may not experience themselves.

They can now evaluate the PRODUCT in the Internet

thanks to friendsʼ recommendations.

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Step two - context

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Therefore if the brand is consumed today, it is

consumed in a BROADER CONTEXT.

Always FOR A REASON(useful, self-branding) and „ON DEMAND”

(when the customer wants it).

It is embedded in the culture, everyday life, not just in the

product/service.

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broad brandcontext

brand context

Step two - context

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Today the brand has to take care, to be in that place and

time, when the customers needs

just arise(wide outbound

marketing).

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Step two - context

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When I am healthy, I donʼt care for adverts

of a nasal spray.

But when I have a cold, the first thing I do, Iʼm looking for a solution

to my problem. I am looking for a

product/brand, that I can trust, that advises me,

how to do it best.

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88% of the Internet users derives knowledge on health issues from the Internet first of all

2/3 do this at least once a month

68% start with Google

[example]

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Today the brand has to understand THE

CONTEXT, in which it is „consumed” by the

client andADD VALUE to this context, so that the

context becomes part of the brand value.

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broad brandcontext

Step two - context

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ADDED VALUE

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3

Page 38: Added Value Marketing - Do people still need BRANDS?

The broad brand context must be

constructed based on VALUES ADDED to existing attributes (product and image).

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Step three - added value

ADDEDVALUE

+

Page 39: Added Value Marketing - Do people still need BRANDS?

Danone is not only about yoghurts.

Danone is about healthy life style, childrenʼs sports activities and about Fair Play.

This is the broad context of the Danone Nations Cup.

Education and promotion of such attitudes build added value to yoghurts, which a mother buys for her kids.

Thanks to this her decision making process happens in a broader context of benefits, not just the product dimension.

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[EXAMPLE]

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Added values can be created on different levels of

consumer needs: starting with convenience,

safety, up to community shared values (ecology, changing social

attitudes and behaviours), or values connected with

self-development.

Who knows the needs better than the consumer himself?

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Step three - added value

WARTOŚĆ DODANA

+

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COOPERATION

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The brands need to turn themselves in the hands of their consumers, so they

can co-create brand value again...

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Step four - cooperation

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...find the most dedicated ones43

Step four - cooperation

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...and allow them to co-create the brandand its products

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Step four - cooperation

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to achieve its new goal: be needed...

in order to survive...45

Page 46: Added Value Marketing - Do people still need BRANDS?

The author of the presentation hopes it made added value to You :)

Jarosław GoławskiStrategy Director (Brand Support)[email protected]

Enjoy your day:)

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