added value marketing - do people still need brands?
Post on 17-Oct-2014
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Do people still need BRANDS?TRANSCRIPT
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Added Value MarketingDo people still need BRANDS?
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Internet, social networks, mobility, economical, political, social and cultural changes
= new challenge for the marketers
BIG !!!
Old marketing is not efficient anymore. WHY?
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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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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
Mass communication (TV, radio)
- big ones can do more, market polarizations, global brands, brand image management.
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II. BREAKTHROUGH
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
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
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
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...
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
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...
A new era begins - era of consumer social
networks
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New challenge!14
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/
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
...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...
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
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
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
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
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!
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
How to do it?24
NEW STRATEGY FOR NEW TIMES
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BROADER CONTEXT
for the brand
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Product is the King!
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ADDED VALUE
to the brand
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Cooperation with
consumers
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PRODUCT IS THE KING!
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1
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
CONTEXT
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2
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
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
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
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
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
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
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]
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
ADDED VALUE
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3
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
+
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]
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
+
COOPERATION
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4
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
...find the most dedicated ones43
Step four - cooperation
...and allow them to co-create the brandand its products
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Step four - cooperation
to achieve its new goal: be needed...
in order to survive...45
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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