chapter 5 market communications and branding. zop-mkx-branding bic report-10/12/99-nlm confidential...
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Chapter 5
Market Communications and Branding
ZOP-MKX-Branding BIC Report-10/12/99-NLM
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Exhibit 5-1: Evolution of Customer Buying Process
Early Web Market
Communication
television ads general interest
magazines
niche magazines
collateral
point-of sale promotions
direct marketing
product experience
buyers’ clubs
television ads general interest
magazines
Traditional Market
Communication
Source: Forrester Research, Monitor Analysis
Consideration Consideration Preference Preference Purchase Purchase Loyalty Loyalty Awareness Awareness Buying Process
buttons banners sponsorships
banners microsites brochureware web site
daily specials sweepstakes first-time order
incentives
e-mail alerts newsletters
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Table 5-1: Framework for Marketing Communications
DirectDirect PersonalizedPersonalized
Broad
Individualized
Off-line On-line
CommunicationMedia
Audience Focus
Traditional Mass Marketing
Traditional Mass Marketing
General Approaches
General Approaches
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Table 5-2: The Four Categories of Communications
DirectDirect
Traditional Mass Marketing Traditional Mass Marketing Television Radio Print Billboards Superior Customer Service
Television Radio Print Billboards Superior Customer Service
PersonalizedPersonalized Permission Marketing Personalized Recommendations Personalized Advertisements Personalized Web Pages Personalized Upsell Personalized E-commerce
Permission Marketing Personalized Recommendations Personalized Advertisements Personalized Web Pages Personalized Upsell Personalized E-commerce
General ApproachesGeneral Approaches Banner Ads E-Mail Viral Marketing Portal Sponsorship/Exclusive Agreements Associate Programs On-line and Off-line Partnerships Provide Information to Entice Customer Purchases Leverage Customer Base
Banner Ads E-Mail Viral Marketing Portal Sponsorship/Exclusive Agreements Associate Programs On-line and Off-line Partnerships Provide Information to Entice Customer Purchases Leverage Customer Base
Salesforce Retail sales Customer service reps
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Supporting Slide 5-A: Quotes on On-Line Branding
“E-branding is more important [than e-commerce]. And it must come first. Because few people will buy your stuff -- on-line 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 of The Pubs Group “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 on-line search engine Yahoo! to gain market dominance. The role of the brand has changed dramatically and has created a vacuum between off-line and on-line brands.” -- Mark Lindstrom, Executive Director ZIVO
“A company's web site 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
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Supporting Slide 5-B: Do Strong Brands Matter On-Line?
Point — CounterpointPoint — Counterpoint
Brand is EssentialBrand is Essential
Flood of new entrants. Too many brands. Hence, need to build your presence.
Strong brands -- customers come to you vs. you chasing customers.
All winners currently have strong brands.
It is an “instant message” that contains a lot of associations.
Conversion rates. Clear brand associated with higher conversion rates.
Flood of new entrants. Too many brands. Hence, need to build your presence.
Strong brands -- customers come to you vs. you chasing customers.
All winners currently have strong brands.
It is an “instant message” that contains a lot of associations.
Conversion rates. Clear brand associated with higher conversion rates.
Brand is Side-showBrand is Side-show
Alliances lock-up the market. Considerably more important than brands.
Third-party evaluator sites decrease power of brand (e.g., bizrate.com).
But… we expect a lot of well-known brands will go “belly-up” (e.g. beyond.com, FreePC).
Speed is more important than brand. Need to build customer base.
Everything about customization. It is a “personal” brand experience.
Alliances lock-up the market. Considerably more important than brands.
Third-party evaluator sites decrease power of brand (e.g., bizrate.com).
But… we expect a lot of well-known brands will go “belly-up” (e.g. beyond.com, FreePC).
Speed is more important than brand. Need to build customer base.
Everything about customization. It is a “personal” brand experience.
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Exhibit 5-2: Banner Click-Through Rates
0.40
0.45
0.50
0.55
0.60
0.65
Apr May Jun Jul Aug Sept Oct Nov Dec Jan
Banner Click-Through Rates (Apr 1999-Jan 2000)
Note:Source: Nielsen-NetRatings
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Exhibit 5-3: What Is a Good Brand?
Brand Prestige
“Wrap-arounds”
Marketing Communications
CoreCoreProduct /Product /ServiceService
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
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Exhibit 5-4: 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”
CoreCoreProduct /Product /ServiceService
Market Communication
… provides positive consumer responses...
… and benefits both target customers and the firm
Source: Keller (1996), Aaken (1996), Strategic Market Research Group, Marketspace Analysis
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Table 5-3: Types of Brands
Traditional BrandsTraditional Brands On-line BrandsOn-line Brands
The product / service with which the brand is associated was established in the online world
Examples:
– Amazon
– Yahoo!
– Chemdex
– 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!
– Chemdex
– 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
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Exhibit 5-5: Brand Presence
Traditional Brands
On-line Off-line
Online Brands
Source: Monitor Analysis
Mix of Promotional Activities
ProductEstablishment
Yahoo! Yahoo!
Ragu Ragu
Yahoo! Magazine
Wingspan
bank
Wingspan
bank
Schwab Schwab
Egghead Egghead
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Exhibit 5-6: Building an On-Line Brand
1. Clearly define the brand audience2. Understand the customer3. Identify key leverage points in customer experience4. Continually monitor competitors5. Design compelling and complete Brand Intent6. Execute with integrity7. Be consistent over time8. Establish feedback systems9. Be opportunistic10. Invest and be patient
1. Clearly define the brand audience2. Understand the customer3. Identify key leverage points in customer experience4. Continually monitor competitors5. Design compelling and complete Brand Intent6. Execute with integrity7. Be consistent over time8. Establish feedback systems9. Be opportunistic10. Invest and be patient
Integrated Campaign
Value Cluster
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Table 5-4: Similarities and Differences in Off-Line vs. On-Line Branding
Branding Element Off-line On-line
1. Clearly define the brand audience
Limited to manageable number of segments to prevent inconsistent messaging
Could include larger number of segments, with customer driven messages
2. Understand the customer Requires understanding of environment, desired purchase and usage experience
Requires more thorough understanding of desired purchase and usage experience in an interactive environment
3. Identify key leverage points in customer experience
Buying process is typically a simplified representation of customer segment behavior with static leverage points
Buying process tends to be more dynamic and flexible
4. Continually monitor competitors
Requires monitoring of competitor advertisements & activities
Competitor advertisements & activities can be monitored online
5. Design compelling and complete Brand Intent
Brand intent (desired positioning) is designed to address the needs and beliefs of target segments
Greater opportunity for customization of key messages
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Branding Element Off-line On-line
6. Execute with Integrity Strong, positive brands are built up overtime
Online interactions bring in addedconcerns of security & privacy
Limited familiarity with on-line brandsmakes fostering trust more difficult
7. Be consistent over time Brand intent guides marketingcommunications
Image reinforced through variety ofoffline media
Brand intent guides marketingcommunications
With the ability to customize, onecustomers’ brand image may bedifferent than another customer’s brandimage
8. Establish feedbacksystems
Collecting and analyzing customerfeedback is more time consuming
Sophisticated tools exist for trackingonline; allow for anonymous, interactive,quick feedback
9. Be opportunistic Marketing strategy includes plan forsequenced growth and adjustment ofbrand based on changing customerneeds
Customization for multiple segmentsand opportunity for early recognition ofchanging customer needscorresponding tailoring of brand intent
10. Invest and be patient Building brand awareness requiressignificant investment
Building brand loyalty takes time offline,especially because early customerreceptivity to brands is difficult to assess(and usually involves market research)
Building brand awareness requiressignificant investment, especially forthose competitors who are not first intheir category online
Brands have the potential to generateloyalty more quickly, especially ifcustomers are targeted effectively
Table 5-4: Similarities and Differences in Off-Line vs. On-Line Branding, cont’d
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Table 5-5: Case Studies of Successful On-Line Branding Efforts
Established as TraditionalBrand
Established as On-line Brand
BrandingOn-line
Branding andSelling On-line
Intermediary /Vertical Portal
E-commerce
Businessto
ConsumerRagu American
AirlinesMonster.com CDNow
Businessto
BusinessFedEx Cisco Systems Healtheon Ventro
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Brand reinforce-
ment
Brand reinforce-
ment
Broad vs. Focused (specific
products / services)
Broad vs. Focused (specific
products / services)
Brand association
Brand association
Brand awareness
Brand awareness
Firm Benefits Firm Benefits
Customer Benefits
Customer Benefits
Product sales Product sales
Sales leads Sales leads
Brand creation
Brand creation
Product trial Product trial
Store traffic 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)
Broad vs. Focused (specific
segments)
Who do we want to target?
Exhibit 5-7: On-Line Branding Choices
Source: Forrester Research, Monitor Analysis
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Supporting Slide 5-C: Point-Counterpoint: New Brand vs. Use Existing Brand
Point — CounterpointPoint — Counterpoint
New BrandNew Brand
An existing brand name limits the size of the user base
A single company brand name cannot be the “objective, third party portal (I.e. Travelocity will atract more visitors as compared to AA.com)
Existing brands are less likely to “get it” (e.g. less usable interfaces)
An existing brand name limits the size of the user base
A single company brand name cannot be the “objective, third party portal (I.e. Travelocity will atract more visitors as compared to AA.com)
Existing brands are less likely to “get it” (e.g. less usable interfaces)
Use Existing BrandUse Existing Brand
Enormous amounts of time and money are necessary to build new brands
Customer understands and will respond to a known brand
Customer will understand the value of being able to use both on-line and off-line services interchangeably
Target customers will not be confused
Enormous amounts of time and money are necessary to build new brands
Customer understands and will respond to a known brand
Customer will understand the value of being able to use both on-line and off-line services interchangeably
Target customers will not be confused
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Exhibit 5-8: www.aa.com
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Exhibit 5-9: Assessment of Key Branding Elements
Key Elements Rating Rationale Rating Rationale
1. Clearly Define theBrand Audience
Specifically targets AAdvantage members –highly profitable and loyal customers familiarwith travel (and thus more likely to buy ticketsonline)
Targets both high spending business customers, aswell Onepass members, and non Onepass members
2. Understand theCustomer
Constantly anticipates and innovates to meetthe needs of the customer
Tends to be a “follower” in the industry, late inlaunching its website (6/97)
3. Identify KeyLeverage Points inCustomerExperience
Net SAAvers and new customization programleverage consumers desire for finding cheapfares into transaction by sending out e-mailseach week
Sends C.O.O.L. e-mails similar to Net SAAvers andadded a personalization feature to the site, but lateidentification of this leverage point has result insignificantly lower subscription rates
4. Continually MonitorCompetitors
In one of the few cases a competitor adopted atechnology before American was quick to follow
Tends to follow what competitors are doing at a slowerpace, launching “copy-cat” initiatives many monthsafter competitor roll-out
5. Design Compellingand CompleteBrand Intent
Focus, stream lining, and ease of use of website all convey American’s message of customerneeds first
Unclear target segment (business travelers? OnePassmembers?) causes lack of clarity with Brand Intent
6. Execute withIntegrity
Trust fostered in the offline world carries overinto the online world
Trust fostered in the offline world carries over into theonline world, with extensive information for memberson privacy and use of provided information
7. Be Consistent OverTime
Although constantly innovating newtechnologies and features, stays true to“something special online”
Different URLs for different portions of the site do notconvey message of consistency
8. Establish FeedbackSystems
Customer service offered as a service at the topof each page in small letters, but is not labeledas a specific menu item
Very easy to access, prominent feature for obtainingcustomer feedback on the website
9. Be Opportunistic Leader in its industry in innovation and
development Follower in the industry
10. Invest and BePatient
Invests significantly in technology for the future Has a tendency to wait too long to make changescompetitors make to their sites
On-line Branding Best-in-Class Comparison
American Airlines Continental
CVc= very low = low = moderate = high = very high
CV
CV
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Exhibit 5-10: Assessment of Key Brand Attributes
Key Attributes Rating Rationale Rating Rationale
1. Relevant
Up to date flight and gate checkinformation
Personalized information based onAAdvantage profiles
PDA applications with flight information
Offers only information for Continentalairlines, but does offer bookings forrental cars and hotels
Allows travel preferences to be saved inprofiles
2. Distinct
Availability of competitor information Offers highly personalized experience First to offer tie in with PDA applications
Offers extensive online customer serviceoptions
Offer customized services for thebusiness traveler
3. Consistent
Portrays an image of something “specialonline”, consistent with its image ofoffering something “special in the air”
No key messages online associatedclosely with the offline campaign
4. Memorable
Provides a unique service others cannotoffer (in terms of personalization)
Net SAAvers is the most well known andeffective e-mail marketing tool
Multiple URLs associated with the siteand lack of online / offline messageassociation fail to create a cohesivelymemorable brand for the consumer
On-line Branding Best-in-Class Comparison
American Airlines Continental
= very low = low = moderate = high = very high
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Exhibit 5-11: www.monster.com
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Exhibit 5-12: Assessment of Key Branding Elements
Key Elements Rating Rationale Rating Rationale
1. Clearly Define theBrand Audience
Within the employer market, targets all types of companies, fromstart-ups to large corporations
Appeals to a wide range of job seekers,but it specializes in the intern and entrylevel positions
2. Understand theCustomer
Offers highly personalized services for the job seekers,addresses security concerns, and offers value added services(resume help, advice, interactive communication with other jobseekers.)
Only site to offer privacy feature whichallows job seeker to select whichcompanies have access to their resume
3. Identify Key LeveragePoints in CustomerExperience
Provides interactive career information for customers that are notnecessarily “looking,” thus increasing the probability that they willbecome job seekers
Allows recruiting process to becomeinternal through Hotjobs.com and itsproprietary Softshoe technology, andeliminates concerns about adding anadditional venue for recruiting
4. Continually MonitorCompetitors
Currently a leader in providing unique services to its consumers,but does not have some features that competitors do
Adopts successful features of theMonster.com site, but usually on a lesserscale
5. Design Compelling andComplete Brand Intent
Message of “there’s a better job out there” combined withdiversified strategic alliances and “intern-to-CEO” strategyconvey the idea that Monster.com can find you that better job
Message of “all the hottest jobs at all thehottest companies” was overshadowed inthe spring with controversy overtastefulness of ads which were rejected bynetworks
6. Execute with Integrity Offers password and ID protection, as well as some ability to
selectively decide when and where your resume can seen; Offers most specialized security measures
for individual users (prevent currentemployers from viewing resume)
7. Be Consistent OverTime
In the short time since “there’s a better job out there” messaging Recent “Hottest Hand on the WebCampaign” different from past brandingmessages
8. Establish FeedbackSystems
Offers extensive feedback system for users, allowing users toeven selecting categories of information / feedback
Also offers feedback mechanism forusers, although less specialized
9. Be Opportunistic Partners with firms that could potentially be competitors, rather
than trying eliminate competition Took a risk with Super Bowl advertising,
even without a compelling ad campaign,to raise brand awareness
10. Invest and Be Patient Willing to invest heavily in the offline world to gain brand
recognition Also willing to invest in the offline world to
gain brand recognition
Online Branding Best-in-Class ComparisonMonster.com Hotjobs.com
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Exhibit 5-13: Assessment of Key Brand Attributes
Key Attributes Rating Rationale Rating Rationale
1. Relevant
For job seekers: Providesinformation for individualsregardless of whether or not theyare actively pursuing a newposition, including careerinformation, and chats with othermembers on various career topics
For job seekers: Provides informationgeared more specifically for thoseindividuals that are seeking positions
2. Distinct
For job seekers: Aids in resumebuilding, personalization with “MyMonster” pages and enhancedprivacy options; also offersopportunity for interactivecommunication with othermembers
For job seekers: Allows selection ofcompanies which view your resume
3. Consistent
Recent partnerships have beenconsistent with Monster.com’s aimto provide the most diverse set ofindividuals with the most diverseset of employment opportunities
New “Hottest Hand on the Web”campaign, although new and catchy,has not been consistent since thecompany’s beginning
4. Memorable
Witty and award winning offlineadvertising have allowedMonster.com to cement itself asthe best known online career siteon the web
Although also one of the most wellknown online career services on theweb, has not been as successful asMonster.com in creating a uniquelymemorable advertising campaign andmessage
Online Branding Best-in-Class Comparison
Monster.com Hotjobs.com