1. Chapter 5 Market Communications and Branding

2. Exhibit 5-1: Evolution of Customer Buying Process
Awareness
Consideration
Preference
Purchase
Loyalty
Buying Process
television ads
general interest magazines
television ads
general interest magazines
niche magazines
collateral
point-of sale promotions
direct marketing
product experience
buyers’ clubs
Traditional Market Communication
Early Web Market Communication
buttons
banners
sponsorships
banners
microsites
brochureware
web site
daily specials
sweepstakes
first-time order incentives
alerts
newsletters
Source: Forrester Research, Monitor Analysis

3. Table 5-1: Framework for Marketing Communications
Direct
Personalized
Individualized
Audience Focus
Traditional Mass Marketing
General Approaches
Broad
Off-line
On-line
Communication
Media

4. Table 5-2: The Four Categories of Communications
Direct
Personalized
Permission Marketing
Personalized Recommendations
Personalized Advertisements
Personalized Web Pages
Personalized Upsell
Personalized E-commerce
Salesforce
Retail sales
Customer service reps
Traditional Mass Marketing
General Approaches
Television
Radio
Print
Billboards
Superior Customer Service
Banner Ads
Viral Marketing
Portal Sponsorship/Exclusive Agreements
Associate Programs
On-line and Off-line Partnerships
Provide Information to Entice Customer Purchases
Leverage Customer Base

5. 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

6. Supporting Slide 5-B: Do Strong Brands Matter On-Line?
Point — Counterpoint
Brand 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.
Brand 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.

7. Exhibit 5-2: Banner Click-Through Rates
Banner Click-Through Rates (Apr 1999-Jan 2000)
Note:
Source: Nielsen-NetRatings

8. Exhibit 5-3: What Is a Good Brand?
Mix of off-line and on-line advertising
Emphasizes advantages to AAdvantage memberships, including non-expiring miles and on-line services
Marketing Communications
“Wrap-arounds”
Superior service
AAdvantage frequent flier mile club
Award winning Admirals Club lounges
Comfortable chairs
Portable defibrillators on every flight
Core Product / Service
[Start with only bullet-point]
It is fundamental to remember that a good brand extends the “product” from functionality into meaning. This is done by consistently delivering and communicating a distinct and appealing customer experience.
[Add dash-points as they are mentioned]
A good, branded customer experience needs to: 1) Be based on a good core product, 2) Have its wrap-arounds or add- ons to be delivered in a distinctive way, and 3) Have marketing communications frame the customer experience. A good core product alone is not enough, distinctive wrap-arounds alone are not enough, and marketing communications alone are not enough. All of these things need to be delivered with consistency and integrity to shape the customer experience into a brand.
[Add example at bottom of page, except for arrow and “Hip Prestige”]
Virgin Atlantic Upper Class is a brand. It provides safe, usually on-time transportation from A to B (where either A or B is London). With Virgin, you get the “wrap-arounds” of many entertainment options — particularly modern music. With Upper Class, you get the “wrap-arounds” of more comfortable chairs, shorter check-in lines, lounges, and special luggage tags. Most of these wrap-arounds are delivered in a distinctive way such as bright colors and contemporary furniture in their lounges.
With Virgin Atlantic Upper Class, the product is framed by marketing communications such as provocative, racy advertising (from Virgin tie-ins with Austin Powers movie “The Spy Who Shagged Me”) and direct mail that emphasizes exclusivity (from Upper Class). [Add arrow on bottom and “Hip Prestige”] The same Brand Intent behind these marketing communications also guides how managers put together the core-product and “wrap-arounds” and guides how customers experience the Virgin Atlantic Upper Class brand as Hip Prestige.
Safe, on-time transportation from A to B
Brand
Prestige

9. Exhibit 5-4: A Simple Conceptual Model of Brand Equity
A good brand...
… provides positive consumer responses...
… and benefits both target customers and the firm
BRAND AWARENESS
Depth
Breadth
CUSTOMER BENEFITS
Confidence
Loyalty
Satisfaction
Market Communication
“Wrap-arounds”
Core Product / Service
BRAND ASSOCIATIONS
Strength
relevant
consistent
Valence
Uniqueness
memorable
disinctive
FIRM BENEFITS
Reduce marketing costs
Increased margins
Opportunity for brand extensions
Source: Keller (1996), Aaken (1996), Strategic Market Research Group, Marketspace Analysis

10. Table 5-3: Types of Brands
Traditional Brands
On-line Brands
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 in the online world
Examples:
Amazon
Yahoo!
Chemdex
ZDNet
AOL
Priceline
CDNow
Wingspanbank
E*Trade

11. Exhibit 5-5: Brand Presence
Mix of Promotional Activities
Off-line
On-line
Online Brands
Yahoo!
Egghead
Yahoo! Magazine
Product Establishment
Wingspan
bank
Schwab
Ragu
Traditional Brands
Source: Monitor Analysis

12. Exhibit 5-6: Building an On-Line Brand
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
Value Cluster
Integrated Campaign
1. Clearly define the brand audience
Based on thorough understanding of market
Don’t necessarily need mass audience to have successful brand
2. Understand the customer
Environment, desired on-line experience, company / product / service beliefs and associations, and purchase and usage behavior
3. Identify key leverage points in customer experience
Successful brands do a superior job of fulfilling customer needs
Heavy-users of a brand will know more about it than most managers
4. Continually monitor competitors
Ensure brand continues to be differentiated and is not de-positioned by competitors
5. Design compelling and complete Brand Intent
Should provide customers with functional, end-use, emotional and self-expressive benefits
6. Execute with integrity
All marketing activities should be consistent with Brand Intent and mutually reinforcing
7. Be consistent over time
Stay true to brand’s heritage
Recognize that brand must be believable, based on customer’s current and previous experience
8. Establish feedback systems
Measure and track multiple aspects of brand performance
9. Be opportunistic
Continually update understanding of market segments and plan for sequenced growth
10. Invest and be patient
Brand building requires time, money and effort

13. Table 5-4: Similarities and Differences in Off-Line vs
Table 5-4: Similarities and Differences in Off-Line vs. On-Line Branding

14. Table 5-4: Similarities and Differences in Off-Line vs
Table 5-4: Similarities and Differences in Off-Line vs. On-Line Branding, cont’d

15. Table 5-5: Case Studies of Successful On-Line Branding Efforts

16. Exhibit 5-7: On-Line Branding Choices
Brand reinforce-ment
Broad vs. Focused (specific products / services)
Brand association
Brand awareness
Firm Benefits
Customer Benefits
Product sales
Sales leads
Brand creation
Product trial
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)
Who do we want to target?
Source: Forrester Research, Monitor Analysis

17. Supporting Slide 5-C: Point-Counterpoint: New Brand vs
Supporting Slide 5-C: Point-Counterpoint: New Brand vs. Use Existing Brand
Point — Counterpoint
New 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)
Use 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

18. Exhibit 5-8:

19. Exhibit 5-9: Assessment of Key Branding Elements
On-line Branding Best-in-Class
Comparison
American Airlines
Continental CV CV
CVc
= very low
= low
= moderate
= high
= very high

20. Exhibit 5-10: Assessment of Key Brand Attributes
On-line Branding Best-in-Class
Comparison
American Airlines
Continental
= very low
= low
= moderate
= high
= very high

21. Exhibit 5-11: www.monster.com

22. Exhibit 5-12: Assessment of Key Branding Elements
Online Branding Best-in-Class
Comparison
Monster.com
Hotjobs.com

23. Exhibit 5-13: Assessment of Key Brand Attributes
Online Branding Best-in-Class
Comparison
Monster.com
Hotjobs.com