MARKET COMMUNICATIONS & BRANDING
Integrating Communications & Branding
*Branding
– Is about consumer’s perception of the offering
*Market communications
– Represent customers’ interaction 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)
The Customer Decision Process & Market Communications
Decision stages of the buying process:
– Brand awareness and product consideration can be communicated through television ads, general interest magazines, web banners
– Product preference can be fostered through niche magazines and company websites
– Purchase decisions can be triggered by point-of-sale promotions, direct marketing, daily specials, sweepstakes, and first-time order incentives
– Brand loyalty can be developed through product experience, buyer’s clubs, e-mail alerts, newsletters
Evolution of Customer Buying Process
What are the Four Categories of Market Communications?
*Market communications
– Refers to all the points of contact that the firm has with its customers
a. General online communications
b. Personalized online communications
c. Traditional mass media communications
d. Direct communications
Framework for Marketing Communications
The Four Categories of Communications
1. General online communications:
– Banner ads
– E-mail
– Viral marketing
– Portal sponsorship/exclusive agreements
– Associate programs
– Online and offline partnerships
– Customer information
– Online transactions
2. Personalized online communications:
– Personalized permission e-mail
– Personalized recommendations
– Personalized advertisements
– Personalized webpages
– Personalized e-commerce
3. Traditional mass media communications:
– Television
– Radio
– Print
– Billboards
4. Direct communications:
– Salesforce
– Direct mail
– Telemarketing
– Customer service reps
What is a “Good” Brand?
*According to the American Marketing Association, a brand is “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”
*A good brand provides positive consumer responses and benefits both target customers and the firm
A simple Conceptual Model of Brand Equity
*Brand equity
– Is a set of assets (and liabilities) linked to a brand’s name and symbol that add to the value provided by a product or service to a firm and/or that firm’s customers
A brand has three components:
– Core product/service
– “Wrap-around”
– Marketing communications
Consumer responses can take two broad forms:
– Brand awareness (depth, breadth)
– Brand associations (strength, valence, uniqueness)
*Consumer benefits may include the increased confidence in the purchase decision, loyalty to the brand, and satisfaction with the experience
*Firm benefits translate into top-line revenue growth, increased margins, and lower marketing costs
Types of Brands
*Pure offline and online brands
– Classic offline brands include the Gap, UPS, and Disney
– New online brands include Amazon, Yahoo, and Priceline
Blurring of the distinction:
– Brands such as Yahoo were established online but use offline promotional activities to grow brand awareness
– Brands such as E*Trade are traditional brands, but they are extensions of the online brands—and thus a mixture of the two
– Brands such as Egghead.com have completely shifted from an offline brand to a purely online brand
– Brands such as WingspanBank were established in the virtual world but by a traditional brand
– Brands such as Schwab have successfully bridged the gap between online and offline activities
– Brands such as Ragu were established offline but use online promotion to grow brand awareness
*Traditional Brands
– The product / service with which the brand is associated was established offline in the bricks-and-mortar world
Examples:
– Gap
– UPS
– Dell
– J.Crew
– McDonald’s
– Office Depot
– Ragu
– Coca-Cola
– Disney
*Online Brands
-The product / service with which the brand is associated was established in the online world
Examples:
– Amazon
– Yahoo
– ZDNet
– AOL
– Priceline
– CDNow
– Excite
– E*Trade
Brand Presence
Building an Online Brand
Value Cluster:
– Clearly define the brand audience.
– Understand the customer.
– Identify key leverage points in customer experience.
– Continually monitor competitors.
– Design compelling and complete brand intent.
Integrated Campaign:
– Execute with integrity.
– Be consistent over time.
– Establish feedback systems.
– Be opportunistic.
– Invest and be patient.
Offline versus Online Branding
Cases of Successful Online Branding Efforts
Branding Choices
A firm’s online branding choices depend upon its communications objectives:
– Brand creation
– Sales leads
– Store traffic
– Product trial
– Product sales
– Brand reinforcement
Online Branding Choices
E-COMMERCE 