Branding in a Connected World

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Branding in a Connected World

• Professor Alan Wilson
• University of Strathclyde
• Business School

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Objectives

• To understand the Broad Principles of Branding
• To highlight how new media is impacting on these
  principles

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A Successful Brand

• A successful brand is an identifiable product,
  service, person or place augmented in such a way
  that the buyer or user perceives relevant,
  unique, sustainable added values which match
  their needs most closely.
• ( de Chernatony and McDonald, 1998)

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Value of Brands (FT 3/2/04)

• On average, companies with strong brand
  identities consistently outperform their key
  stock market indices ( particularly in service
  industries)
• A strong brand ensures
• a level of security
• premium pricing
• greater market share

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Value of Brands

• Depending on the market, up to 70 of the
  earnings can be attributed to the brand (
  Perrier, 1997)
• People choose brands not simply because of their
  utility, but because they project aspects of the
  buyers personality ( de Chernatony, 2001)

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Brand Equity

• The value of the goodwill that an established
  brand has built up over the period of its
  existence
• loyalty, awareness, positive attitudes

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The Brand Concept

• The specific meaning that a brand creates and
  communicates
• The Target Market
• Functional Needs ( quality, convenience, ease of
  use)
• Symbolic/ Emotional (friendly, serious,
  professional)
• Experiential needs (I am important, trendy, young)

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Top 10 most-loved brands

• Cadbury
• Heinz
• Sony
• Marks Spencer
• Kellogg
• Tesco
• Coca -Cola
• Nike
• Nescafe
• Panasonic
• source Marketing 16/9/2009

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Why are they loved?

• Consistency in what they do
• the product or service is always perfect
• Impacts on trust and perceptions of quality and
  reliability

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The Brand Iceberg (Davidson, 1997)
Logo
Marketing Factors
Name
Company-wide Factors
Values
Quality
Customerrelations
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An Integrated Brand
Staff/ Organisation Behaviour
The Product/Service
Brand Values
Communication
Distribution Channels
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Sources of Brand Contacts - McDonalds

• Advertising
• Word of Mouth
• The Retail Environment
• Employees

• Litter in Street
• News Stories
• Signage
• Product
• Personal Experience

Consistency of Message is required.
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Who creates a brand?

• Branding is not simply something that is done to
  consumers - consumers place a perceived meaning
  on a brand.
• The company may try to influence these
  perceptions but they cannot control them.

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The Brand Cycle
Brand
Market Perceptions
Organisations Inputs
Brand
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Branding in a New World?
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The Changing World of Web 2.0

• Participation, openness, conversation, community
  and connectedness
• Generational shift in attitudes towards privacy
  and sharing
• Willingness to reveal oneself
• Willing to criticise and praise in equal measure

This raises major issues for brands
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Word of Mouth/ Word of Mouse

• Can be conveyed via online communication tools
  including e-mail, web sites or social media,
  review sites, youtube etc.
• With the ubiquity of the Internet, this type of
  communication has increased in quantity and speed
• Increasing trend of organizations encouraging
  their consumers to discuss the brand, product or
  service
• Companies may have less and less control over the
  messages about their brands

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Impact on Branding

• The provision of Brand information and advice
  becoming a peer-to-peer service cutting out other
  forms of intermediary.
• Need for facilitating the posting of comments by
  satisfied customers
• Caution should also be exercised in terms of
  activity as members may be suspicious of
  commercial motivations e.g. seeded activity or
  faked comments -impact on brand integrity.

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Remember

• Branding is not simply something that is done to
  consumers - consumers place a perceived meaning
  on a brand.
• The company may try to influence these
  perceptions but they cannot control them.