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8/3/2019 6322 Chap 06
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MIS 6322 Chapter 6:
Market Communications and Branding
MIS 6322MIS 6322
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Market Communications and Branding
y Questions answered in this chapter:
1. What constitutes a good brand?
2. What are the four categories of market
communications?3. What is a 10-step branding process?
4. What are the arguments for and against leveraging
an offline brand into the online environment?
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Integrating Communications and Branding
y Branding is about consumers perception of the
offeringhow it performs, how it looks, how it makes
one feel, and what messages it sends
y
Market communications represent customersinteraction with the brand and, more generally, mass-
marketing approaches
In the offline world, market communications tend to be
one-way, from the firm to the customer
In the online world, market communications become much
more interactive (two-way)
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The Customer Decision Process
and Market Communications
y Decision stages of the buying process:1. Brand awareness and product consideration can be
communicated through television ads, general interestmagazines, web banners
2. Product preference can be fostered through nichemagazines and company websites
3. Purchase decisions can be triggered by point-of-salepromotions, direct marketing, daily specials, sweepstakes,
and first-time order incentives4. Brand loyalty can be developed through product
experience, buyers clubs, e-mail alerts, newsletters
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Evolution of Customer Buying Process [Exhibit 6-1]
Source: Forrester Research, Monitor Analysis
Web Market
Communication
Television ads
Generalinterest
magazines
Banners
Niche
magazines
Collateral
Microsites
Brochureware
Website
Point-of sale
promotions
Direct
marketing
Daily specials
Sweepstakes
First-time order
incentives
Product
experience
Buyers clubs
E-mail alerts
Newsletters
Television ads
Generalinterest
magazines
Buttons
Banners
Sponsorships
Traditional
MarketCommunication
Consideration Preference Purchase LoyaltyAwarenessBuying Process
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Framework for Marketing Communications [Exhibit 6-2]
Direct Personalized
Broad
Individualized
Offline Online
Communications Media
AudienceFocus
Traditional Mass
Marketing
General Online
Approaches
Market communications refers to all the points of contact
that the firm has with its customers
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Exhibit 6-3: The Four Categories of
CommunicationsDirect
Traditional Mass Marketing
Television
Radio Print
Billboards
Personalized Personalized permission e-mail
Personalized recommendations
Personalized advertisements
Personalized webpages
Personalized e-commerce
General Online Approaches
Banner ads
E-mail Viral marketing
Portal sponsorship/exclusive agreements
Associate programs
Online and offline partnerships
Customer information
Online transactions
Salesforce
Direct mail
Telemarketing
Customer service reps
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What is a Good Brand
y According to theAmerican MarketingAssociation, a brandis name, term, sign, symbol, or design, or a combination ofthem intended to identify the goods and services of one selleror group of sellers and to differentiate them from those of
competitiony A good brand provides positive consumer responses and
benefits both target customers and the firm
y Brand equity is a set of assets (and liabilities) linked to abrands name and symbol that add to the value provided by a
product or service to a firm and/or that firms customers
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Exhibit 6-4: What Is a Good Brand?
Brand Prestige
Marketing Communications
Core
Product /
Service
Mix of offline and online advertising
Emphasizes advantages to AAdvantagememberships, including mileage points andonline services
Superior service
AAdvantage frequent-flyer 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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A Simple Conceptual Model of Brand Equity
y A brand has three components:y Core product/service
y Wrap-around
y Marketing communications
y
Consumer responses can take two broad forms:y Brand awareness (depth, breadth)
y Brand associations (strength, valence, uniqueness)
y Consumer benefits may include the increased confidence in thepurchase decision, loyalty to the brand, and satisfaction with the
experiencey Firm benefits translate into top-line revenue growth, increased
margins, and lower marketing costs
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Types of Brands
y
Pure offline and online brandsy Classic offline brands include the Gap, UPS, and Disney
y New online brands includeAmazon, Yahoo, and Priceline
y Blurring of the distinctiony Brands such as Yahoo were established online but use offline promotional
activities to grow brand awarenessy Brands such as E*Trade are traditional brands, but they are extensions of the
online brandsand thus a mixture of the two
y Brands such as Egghead.com have completely shifted from an offline brand toa purely online brand
y Brands such asWingspan Bank were established in the virtual world but by a
traditional brandy Brands such as Schwab have successfully bridged the gap between online and
offline activities
y Brands such as Ragu were established offline but use online promotion togrow brand awareness
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Brand Presence [Exhibit 6-7]
Source: Monitor Analysis
Traditional
BrandsOnlineOffline
Online Brands
Mix of Promotional Activities
Produc
t
Establishm
ent
E*Trade
Ragu
E*Trade Financial ATM
Wingspan
bank
Schwab
Egghead
Bank One
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Building an Online Brand [Exhibit 6-8]
1. Clearly define the brand audience.
2. Understand the customer.
3. Identify key leverage points in customer experience.
4. Continually monitor competitors.
5. Design compelling and complete brand intent.
6. Execute with integrity.
7. Be consistent over time.
8. Establish feedback systems.
9. Be opportunistic.
10. Invest and be patient.
Integrated
Campaign
Value
Cluster
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Similarities and Differences Between Offline and
Online Branding[Exhibit 6-9]Branding Element Offline Online
1. Clearly define the brand
audiencey Limited to manageable number of
segments to prevent inconsistentmessaging
y Could include larger number ofsegments, with customer-drivenmessages
2. Understand the customer y Requires understanding ofenvironment, desired purchase,and usage experience
y Requires more thoroughunderstanding of desiredpurchase and usage experience
in an interactive environment
3. Identify key leverage points in
customer experiencey Buying process is typically a
simplified representation ofcustomer segment behavior withstatic leverage points
y Buying process tends to be moredynamic and flexible
4. Continually monitor
competitors
y Requires monitoring of competitor
advertisements & activities
y Competitor advertisements &
activities can be monitored online
5. Design compelling and
complete brand intenty Brand intent (desired positioning)
is designed to address the needsand beliefs of target segments
y Greater opportunity forcustomization of key messages
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Similarities and Differences Between Offline & Online
Branding(Exhibit 6-9 contd.)
Branding Element Off-line On-line
6. Execute with integrity y Strong, positive brands are built up overtime
y Online interactions bring in addedconcerns of security & privacy
y Limited familiarity with online brandsmakes fostering trust more difficult
7. Be consistent over time y Brand intent guides marketingcommunications
y Image reinforced through variety of
offline media
y Brand intent guides marketingcommunications
y With the ability to customize, one
customer's brand image may bedifferent than another customers brandimage
8. Establish feedbacksystems
y Collecting and analyzing customerfeedback is more t ime-consuming
y Sophisticated tools exist for trackingonline; allows for anonymous,interactive, quick feedback
9. Be opportunistic y Marketing strategy includes plan forsequenced growth and adjustment ofbrand based on changing customer
needs
y Customization for multiple segmentsand opportunity for early recognition ofchanging customer needs
y Corresponding tailoring of brand intent
10. Invest and be patient y Building brand awareness requiressignificant investment
y Building brand loyalty takes time offline,especially because early customerreceptivity to brands is difficult to assess(and usually involves market research)
y Building brand awareness requiressignificant investment, especially forcompetitors who are not first in theircategory online
y Brands have the potential to generateloyalty more quickly, especially ifcustomers are targeted effectively
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Branding Choices
y A firms online branding choices depend upon its communicationsobjectives
y Brand creation.The objective may be to build a new-to-the-world brandname
y Sales leads.The company may decide that the Internet will be used to facilitate
the sales-lead processy Store traffic.The principal objective for some sites may be to increase store
traffic
y Product trial.A fourth objective may be trial usage of the product
y Product sales.The company can also measure the success of a campaign basedupon the actual increase in product or service sales
y Brand reinforcement. Finally, it is possible that the communications effort isfocused on reinforcing a brand image that is already widely accepted in themarketplace
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Exhibit 6-11: Online Branding Choices
Source: Forrester Research, Monitor Analysis
BrandReinforce-
ment
Broad Vs.Focused(Specific
Products /Services)
BrandAssociation
BrandAwareness
Firm Benefits
CustomerBenefits
ProductSales
Sales Leads
BrandCreation
Product Trial
Store Traffic
What value do you
want to derive from
your online presence?
What part of brand
equity do you want to
build?
What product / service
are you offering them?
Value ObjectiveComponent of Brand
Equity
Product ScopeTarget Audience
Broad Vs.Focused(Specific
Segments)
Who do we want to
target?
Online Branding Choices Exhibit 6-11
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Case Study: American Airlines
y Overview ofAmericanAirlines online branding effortsy First to have a service-oriented website (May 1995)
y First to launch an e-mail service of discounted fares, Net SAAverFares (March1996)
y First to offer real-time flight information (Spring 1996)
y First to offer flight information on competitors (Spring 1996)y First to offer airline reservations online (June 1996)
y First to offer paperless upgrade coupons and stickers (Spring1997)
y First to send e-mail confirmation of itinerary and ticket purchase
(Fall 1997)y First to offer high personalization for consumers (June 1998)
y First airline to partner withAOL to createAOLAAdvantageRewards Program (Fall 2000)
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American AirlinesAssessment of Key BrandingElements Exhibit 6-13:
Key Elements Rating Rationale Rating Rationale
1. ClearlyDefine the
Brand Audience
Targets AAdvantage membershighly profitableand loyal customers familiar with travel (andthus more likely to buy tickets online), as well aslow-fare seekers
Targets both high spending business customers, aswell as OnePass members, and non-OnePassmembers
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 in
Customer
Experience
Net SAAvers and new customization programleverage consumers' desire to find cheap faresinto transaction by sending out e-mails each
week; site features sections for currenttravelers, prospective travelers
Does not promote e-mail subscriptions on the site
4. Continually Monitor
Competitors
If a competitor adopted a technology beforeAmerican, it was quick to follow
Tends to follow what competitors are doing at a slowerpace, launching copy cat initiatives many monthsafter competitor rollout
5. Design Compelling
and Complete
Brand Intent
Focus, streamlining, and ease of use of websiteall convey Americans message of customerneeds first
Unclear target segment (business travelers? OnePassmembers?) causes lack of clarity with Brand Intent
6. Execute with
Integrity
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 tosomething special online
Consistent over time but does not stand out
8. Establish Feedback
Systems
Customer contact offered as a service at the topof each page and customer service offered as aspecific menu item
Very easy to access, prominent feature for obtainingcustomer feedback on the website
9. Be OpportunisticLeader in its industry in innovation and
development Follower in the industry
10. Invest and Be
Patient
Invests significantly in technology for the future Has a tendency to wait too long to make changescompetitors make to their sites
American Airlines Continental
CVc= very low = low = moderate = high = very high
CV
CV
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American AirlinesAssessment of Key Brand Attributes [Exhibit 6-14]
Key Attributes Rating Rationale Rating Rationale
1. Relevant
Up-to-date flight and gate information
Personalized information based onAAdvantage profiles
PDA applications with flight information
Offers only information for Continental,but does offer bookings for rental carsand hotels
Allows travel preferences to be saved inprofiles
2. Distinct
Offers highly personalized experienceFirst to offer tie in with PDA applications
y
Offers extensive online customer serviceoptions
Offers 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
Low use of branding on the site and lackof online / offline message associationfail to create a cohesively memorablebrand for the consumer
American Airlines Continental
= very low = low = moderate = high = very high