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Advertising and Branding Trends Beyond Social Media


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Empala published a report today which has predictions of changes in adverting and branding trends in the year 2014. The report also describes about adaptations made by conventional marketing mediums …

Empala published a report today which has predictions of changes in adverting and branding trends in the year 2014. The report also describes about adaptations made by conventional marketing mediums like TV, banners, etc. to revive themselves.

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  • 1. INDEX Content 1. INTRODUCTION Introduction to the Advertising and Branding Industry Introduction to online branding 2. Major Trends Affecting Online Branding Page No 2 Page No 3 Page No 5 Page No 7 2.1 Online Branding industry overview Page No 7 2.2 Social media for online branding. Page No 10 2.3 Television Attempts to Evolve to Face New Challenges Page No 12 2.4 Internet and ecommerce Page No 19 2.5 Technology and Online Branding Page No 21 2.6 Role of Outsourcing Page No 24 2.7 Mobile Marketing Page No 27 3. Research methodology Page No 29 3.1 Research Strategy Page No 29 3.2 Case Studies Page No 31 3.2.1 Mc Donald’s Sweden Page No 31 3.2.2 Coca Cola Page No 33 3.2.3 Salon du chocolat Page No 34 3.3 Data Collection and Analysis Page No 38 4. Research Findings Page No 40 5. Discussion Page No 42 5.1 Accesses to the Internet and its Usage Page No 42 5.2 Branding on the Internet Page No 43 5.3 Search Engine Marketing Page No 43 5.4 Email Marketing Page No 43 5.5 Viral Marketing and Affiliate Marketing Page No 45 5.6 Blogs and Banners Page No 45 5.7 Shopping online or Ecommerce Page No 44 6. Summary and Conclusion Page No 45 7. References Page No 47
  • 2. INTRODUCTION As we are going through the massive transformation at this digital age there are some fundamental mindset or business model changes that need to be changed. In my opinion digital media is a feature not a destination. From the early days of branding and advertising the companies have used different mediums to woo the customers;there has been never an only one channel. It is not about TV or it is digital, it is about coexistence of old and new media. Itis about engagement with the customer, it is about putting the customer into the centre of whatever advertising and marketing mediums are used. While we can turn around and debate about the changing face of media, it is going to continue to change and evolve. At the end of the day, the implications are on the consumer and the changing consumer behaviour. The changing consumer behaviour always challenges marketers to keep up with the pace and finding new ways of customer engagement. This research will focus on some trends and ways to address the upcoming challenges. Marketing in the digital age is evolving at a pace when we cannot cope and it is not driven by social media, it is driven by technology. As an example, let us look at how Volkswagen launched one of its cars in Brazil1. This is one of the best examples of how digital media could engage and how the online and offline media could coexist. Today it is high time for all the marketers to understand the role of technology in branding, also the role of digital media in changing the consumer behaviour. The applicability of digital media will differ from region to region but fundamentally the trends are the same. The major problem with the digital age is the abundance when consumers have too much, know too much and can get access to too much of information. The new consumer media dynamics is changing very rapidly and it is no more about the one way communication, now it is all about conversing. With the surge in digital technology, the users have now taken control and brands have now lost control. They may own the brand but they have no more control on them, as now the consumers trust other consumers, not the brand owners. There is quote from Rupert Murdoch talks about the fundamental change that is happening today. "To find something comparable, you have to go back 500 years to the printing press, the birth of mass media – which, incidentally, is what really destroyed the old world of kings and aristocracies. Technology is shifting power away from the editors, the publishers, the establishment, the media elite. Now it’s the people who are taking control…. the internet is media’s golden age.” 2 The digital media paradox now is that it is making easier for customers and difficult for the businesses, and I call it a paradox because technology is meant to make things easier for businesses. 1 2
  • 3. Now consumers trust more recommendations of a business rather than their advertising. Evolution of marketing in the digital age is all about engagement, experience and conversation. As of today, the internet can effort of traditional media. Most brands do not only deal with only select group of people. So the measurability of a medium of channel is a huge issue. There is a trend now that many big organizations are on digital media not for building but for protecting their brands. 1.1 Introduction to the Advertising and Branding Industry The American Marketing Association defines a brand as “a name, term, design, symbol, or any other feature that identifies one seller's goodor service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name.”3 Brands are seen everywhere we go from store chains to fast-food restaurants easily recognizable. Media technologies such as newspapers, news channels, television commercials, billboards, posters, bus and bus stations ads, bench ads are just to name a few - have perpetuated culture and influence consumers on a day to day basis. We are advertised to everyday. Cars, t-shirts, shoes all have logos and this brand shadow acquire more customers than repetition to develop recognition, trust and the brand identity. Brands want to develop recognition and stimulate spending by consumers. The value of a brand has changed over the last few years. One of the major things is that there are lot of the brands we see now are being built by the consumers. Given the fact that the Internet is becoming more attractive to advertisers, the need for overarching standards is understandable. It can be said that the purpose of advertising and branding is to initiate a communication where the aim is directly or indirectly to influence and increase the sales of goods and services, regardless of where it occurs and the methods used. Advertising is all about communication. Advertising Industry firms deal with how people, companies, organizations and authorities shall communicate to each other and to us as customers, users, citizens, etc.Advertising is always more than just advertising. It is a mirror of the time, as it is helping to create the culture. The influence goes both ways. And the line between advertising and reality becomes increasingly hard to draw. Advertisements have a tremendous impact on brands as well as the consumers, it could be good or bad. Advertising is a company's presentation of its product through various media, such as brochures, newspapers, magazines, radio, television and Internet, etc. Advertising in its best form could be solid consumer information, advertising can be memorable and can make huge impact on the way the generation thinks.Advertising is meant not just to deliver a message, but to open a dialogue. It may be between the brand and consumer groups, it may be between a company and its employees, or between 3
  • 4. state and citizens.The advertising industry sees itself today not only as a facilitator of messages, but it creates and maintains the relationships between people. Advertising agencies provide a personal relationship between brand and customers. Today, however, it is not so easy to build a brand through advertising because many companies operating today are advertising and of course each of these companies claim that their products are the best for consumers. Brands are doing everything these days to get consumer’s attention. Therefore nowadays more often we find advertisements that break in with certain taboo topics and we gradually begin to wonder where all this will lead to. This is one of the classic examples of fact that the brands are driving today so hard to create a particularly striking advertisement. 4 The picture shown above is a very good example of how the brand have changed their appearance over the period of time. One can also say that the branding is the combination of art and science of 4
  • 5. differentiating a brand from others. One has to remember that there is a big difference between an identity and a brand. Logos and graphing are just the trappings and window dressing of the brands. 1.2 Introduction to online branding Understanding and Measuring the ROI of their investments online and i mpact on the growth of your brand / business . Internet investments now exceed 10% of media spend and are growing continuously double-digit year. Being present on the Internet is no longer an option but a necessity .Though the branding industry is centuries old but the online branding part came into existence in the decade of 1990s. It was 1994 when the first online banner advertisement of AT&T was shown on hotwired.com5. Below is the picture of first online banner. At that point of time, companies just started to build their own websites. Most importantly 1994 was the year when online branding was invented. 6 Back in those days, getting an advertisement on a website had very simplistic model. It was as simple as picking up the telephone, calling the website sales team and placing the advertisement. There was not too much of sophistication in it. It was late 1990s when great evolution of online advertising started. It was beginning of “.com” bubble. The digitization of media changed the role of traditional branding methods and techniques.Use of technology has also overall changed the consumer behaviour. With the digital revolution, we have a whole new world which is filled with mobile phones, smartphones, tablets and ever increasing internet consumption. Over the last five years the steady growth in online advertising and branding is seen and it has become a very important channel for all the organizations to position their brands in the correct way. The largest share of money is spent on classic online advertising that is search engine marketing and affiliate networks. All the big brands have increased their budgets astronomically for the marketing in the online space. In these days, companies are not only concerned about building their brands online, they have to be also very careful about managing their reputations as anyone can write anything about them on the internet. It could be a unsatisfied customer or a competitor using dirty tactics. There is a whole new term emerged in the online branding era which is called as reputation management. Big and small companies are using various software to find out who is writing what about them on the different 5 6
  • 6. digital channels. There have been some fundamental changes that technology has done to the branding industry. The most consequential is the skill sets. We can see now that the publishers, agencies and overall branding industry now relies on different type of individuals which is completely different then couple of decades ago. Online branding methods have also changed the efficiency. It simply makes it more efficient for the advertisers by allowing them to target audiences more effectively. Online branding has allowed companies to use data more effectively by having the option of sending customized advertisements to the hyper targeted audiences. It also gives a freedom of holding a medium accountable by making it more measurable in a way that advertisers really check the statistics like number of views, sales conversions etc. If we look at the other side, Research firm Edelman Berland conducted an online survey of 1,250 adults, 18 years or older, including 1,000 general population and 250 Marketing Decision Makers, each in the U.S. 7 This gave a very interesting fact that most of the consumers find online advertisements annoying and disturbing. They have also mentioned that best time to view an advertisement is while reading a magazine or while watching their favourite television show. People know that companies pay to the different providers to advertise their brand on the internet and it is a fair business. But there are lot of times where it becomes unbearable. Internet is one of the fastest growing medium on this planet 7
  • 7. right now so obviously there are lot of good things as well as bad things about it. Needless to say that it has a huge worldwide coverage but there are some downsides brands need to consider. In case of lack ofinternet advertising knowledge, an organization may present or broadcast wrong message in front of the wrong people. There are a lot of ways the internet marketing can be done for example, aiming to micro-communities instead of aiming to advertising the business to international clientele - companies can consider targeting people in their local regions. Major Trends Affecting Online Branding 2.1 Online Branding industry overview One of the great features of internet has been online advertising which is a tremendous revenue earner. The online branding is mainly done by two ways, one of them is organic google search and other one is online display as in pop ups, banners etc. When we look at the direct response advertisements which are mediums like search which are transaction oriented, they take about three quarters of online advertising. Meanwhile display advertisements which are also known as branding cover one quarter of all the expenditure done in the online space. Interestingly in the traditional advertising world it is the other way around. About 60% of all traditional advertisements are display which we can see all the time as billboards, TV ads, radio ads etc. No one clicks on television or radio to buy the things which are displayed as advertisements but they do create a positive image in the consumers’ minds. A consumer may not buy them today but in the long term probably he or she is more influenced to buy them. So when we look into brand advertising versus direct response, it’s been interesting that since the beginning online is all about direct and traditional is all about branding. In the coming future the growth of money spent in online is going to increase many folds and one day we will see that the money spend for online branding and direct marketing will be almost equal. Another great aspect about the internet is that it is a two way channel. A report published at Hubspot in 2013 says “Mass marketing gets a 2% response rate, if you’re lucky. Inbound marketing, on the other hand, can produce conversion rates 10x higher or more. That’s because prospects respond to valuable content that is more helpful and educational. More so than ever before, budgets spent on outbound marketing (paid media) will shift to inbound marketing (earned media and original content). According to 2012 study, one-third of CMOs say that more than half of their budgets have shifted from traditional to digital marketing in the past year.”8 8
  • 8. 9 As mentioned above that in the online world three quarters of money spent is on transaction based or direct response advertising whereas only one quarter is spent for branding. It has been not very successful to do brand adverting online so far. Now there are whole bunch of new tools emerging for example one called real time bidding which allows advertisers to control the appearance of their display advertisements. In the past, it was not possible to take real time control of the advertisements online. Another emerging trend in online branding is brought by social networks recommendation sharing. It turns out to be that the spending money on the social media advertisements is more effective than the spending money on the world wide web or the free for all environment . The final one is use of videos in the online environment which is also called as web TV or video TV. There are online ad campaigns which produce high quality video commercials on online display and having massive success with thousands and millions of views making them top 10 watched videos of the year. A report published by Vizu said “ …As further indicator that online brand advertising is finally coming into its own: 60 percent of brands responding indicated that they are allocating dollars away from direct response to brand advertising initiatives. Agencies mirrored brand marketers’ comments, saying 54 percent of digital ad dollars would be spent on brand advertising, designed to foster or shift consumer perception, with the remainder spent on direct response advertising. Agencies were even more bullish on growth projections for brand advertising, with 71 percent projecting overall growth in 2012. 9
  • 9. Media sellers are also predicting that online brand advertising will become increasingly important to their businesses in 2012 – 67 percent say most of their online ad dollars will be generated by brand advertising in the coming year, and just over half say they expect brand advertising sales to grow. Just under a third – 32 percent of media sellers – said they expect sales growth in direct response advertising.”10 11 The figure above shows the predictions of 2012 and we saw exactly that happened last year. 10 11
  • 10. 2.2 Social media for online branding. Social media represents activities that combine technology, social interaction and creation of media. Social media in other words is combination of all online forums where people can exchange their views with the help of available technology. Examples of social media are Facebook, blogs, MySpace, YouTube, Twitter, LinkedIn, Delicious and Flickr.In the old days the brand was what companies make it but now the brand is what other people make it through different social media channels. This is same for small companies to the large brands. The social media landscape has changed dramatically since 2008. At that time the social media was evaluated and lot of brands were deciding whether or not commit to it. Now the topics which were so controversial are the common place and now it is absolutely essential for brands to have strong digital presence and ability to adapt to quick changes in technology and new best practices. The big brands like Coca Cola use social media as integration tools instead of using it as sales tool. The most important thing on for being successful in social media is engagement, brands post the things on social media which are related to consumers so that they can comment and share them which ignites a good conversation about them. If we see any successful campaign on social media then we will find that they were all meant for engagement, not selling. Social media has definitely changed the way the marketing and business is conducted. Couple of decades ago, branding was all about broadcasting the message. Social media had changed this tradition as now as people are talking back to brands and literally telling them about their experiences. There are organizations which adapted to that and taking advantage of having more personalized branding approach on the other hand there are also organizations which are slow in adapting and still giving more preference to the old model. Marketing on the internet is constantly changing. One day an organization feels that they are doing the right things to attract more customers to the website and the next day they might feel that their method is no longer effective. To keep up with the changes, and in some cases to even survive in the virtual world, businesses must constantly adapt their activities in social media branding. Two trends in social media marketing those have occurred during 2012 which are important for online businesses to understand and apply: mobile marketing and social CRM. These trends in social media strategy offer new ways to attract new consumers and retain existing customers and generate more sales. Social CRM (Customer Relationship Management) is used to create relationships with customers through social channels which can have a big impact on business and has become a vital part in your social media strategy. Social CRM strengthens the relationship between customer and company by creating a communications platform that allows customers to interact with the company. Good
  • 11. activities within Social CRM will often result in the customers feel both important and respected, which increases customer satisfaction and loyalty. Organizations rarely think that social media marketing can generate more sales due to a shortened sales process. Traditional Internet marketing can get customers to contact a company but social media streamlines the process by reducing customer queries generating more sales in less time.Social media offers new opportunities for brands to take advantage of views, trends and observations. But above all, companies can also actively participate in discussions relating to their brand or idea. Most of your customers and prospects are already using social media for a variety of other things. And where your customers are, there your brand should also be available. But it's not about spreading traditional advertising or web advertising. It is about sharing information and knowledge and to pursue research questions and debate.The whole point here is all about convertingmarketing communications into marketing conversations. It is not about buying advertising space on popular websites. It's not about spamming people, copy the link to website in forums and blog comments or to stubbornly and persistently alone argue for your product excellence. In social media everyone is a participant in a conversation, and the purpose of brands is firstly and foremost to understand how your customers think and feel. And when companies converse they should remember that conversation is to talk, not to inform. It is to listen, not to investigate. And to be alert, but not to attract attention. To succeed in social media, a brand must have a clear and consistent personality. It must have a pattern that can be recognized. It must be open to the flow of ideas and opinions that they face in their conversations.Forrester Research, which executed the study, polled 58,068 US and 5,635 Canadian adults ages 18 to 88 in April and May. The study was a mixed bag for marketers looking to capitalize on changes in consumers' media consumption.12 This survey was all about the role of social media as a channel between the brands and consumers. The survey also gave emphasis to role of social media acting as a platform where consumers can share their experiences with the brands. 12
  • 12. Social media offers new opportunities for us to share opinions, trends and observations. It also gives us opportunity to actively participate in discussions relating to the image of ourselves or our brand. 2.3 Television Attempts to Evolve to Face New Challenges When we talk about the television, targeting advertising does not make as much sense as it makes in online branding. The advertising in television is targeted by the program the viewers watching. It costs a lot to make the television advertisements at times it goes up to millions of dollars. So one cannot go into the multiple versions of the same advertisements as it costs too much money. So on television, brands have the limitation of having one advertisement for targeting as many markets as possible. If we compare the online video and universal television in terms of the viewership we can
  • 13. see thatin an online environment, about 1.3% of time spent on viewing videos in the internet is spent in viewing advertisements. In television, roughly 25% of time is spent viewing advertisements. E.g. in one hour show 44 minutes is the actual content and the rest of 16 minutes are advertisements. To break this down even further, let’s look only at the premium television content websites. 13 13
  • 14. 14 There is not much clutter in the online video advertisement space as it is in the television. This means high exposure to the brands which are advertising in online videos. There are statistics which suggest that the viewers are responding more to the online video advertising due to the less clutter. A white paper issued by YuMe networks came to conclusion that stated “Online video ad spending is projected to increase 39% in next 5 years , totalling $2 billion. And, online video consumption has now reached the point of mass market penetration across all demographic and age groups, making in-stream video advertising an essential element of a marketer’s media mix. There is clear evidence that a well-planned campaign combining online video and television is greater than the sum of its parts.”15 Technological developments have led to more viewers than ever are free to choose the time of day they see on television. But how and where they do it? In the computer, mobile phone or tablet device. On the bus, beach or job? One can say that the number of media channels increases as consumers' attention decrease. To achieve the noise a company has to adapt the message for viewers' behavior. So the combination of digital and television advertising will just do the needful. 14 15
  • 15. 16 Another report published by Deloitte stated that “This is likely to leave traditional TV advertising to evolve testing new forms of the thirty-second spot, exploringproduct placement, and seeking new opportunitieswithin linear TV. New forms of advertising will emergearound the content on second (third and fourth)screens.”17 Combining traditional TV advertising with advertising in digital media for increased range is a common practice in the branding industry now a days. Even when a consumer is outside his or her home, screens in a variety of environments are there, including in the health care centers, airports and public transport. There are lot of companies which are offering TV commercials on those screens which is a again a new invention of TV advertising. 16 17
  • 16. Now a day with the huge surge in the regional channels all across the globe, the regional TV channel advertising has also taken a big leap. This has the advantage of cost effective and more targeting audience which a company has on the online platforms. While a company is conducting a major national campaign it can also utilize local television advertising to reach out with specific messages. A company can use the film's final seconds to locally adapted material, for example, they tell the consumers where the local dealer is. Or simply reinforce their campaign with more impressions in the areas of most interest of them. Local television advertising also allows you to customize your campaign season. For example, a beer company can advertise more on a local channel during October Fest in Germany. Another smart option with local television advertising is to select a test area where a brand wants advertise locally to see if the campaign gives the right result. Television is still the predominant way for us to get the huge amount of content. One can say that the digital media services that we see are just complementing the television. If one goes through the history of mass media, it can be seen that no medium has ever replaced any other medium, they coexist side by side. Few years ago it was said that internet is going to kill television but now it is seen that they are working together. In fact people are watching more television than ever before but they are doing it differently. Now, the question is that where do people get time to watch more
  • 17. television as well as getting engaged with new mediums such as internet? The answer is multitasking. Now the people have accustomed themselves to use different types of mass media simultaneously. The new generation is on Facebook and Twitter while checking emails. Carol Edwards, senior vice president for cross-platform sales and marketing at Arbitron in Columbia, Md., said: “There isn’t cannibalization. Other platforms are complementary to television.” “TV continues to play such a dominant role,” she added, “though there is content available on other platforms.” The tests are important, Ms. Edwards said, because “all the media companies are trying to monetize their content platforms and to be fully monetized, they need to be measured.” Among the findings of the Arbitron test that may be surprising was that of all the people who viewed content on all three screens, the largest demographic group was not the youngest. Adults ages 35 to 49 led, at 36.6 percent, followed by adults ages 50 and older, at 34.8 percent, and then by adults ages 18 to 34, at 28.6 percent.18 A report published by TV20 gives a very clear picture of how the television is going to evolve in the future. This report categorizes future of television in five parts as follows: CONNECTED TV (The Merging of TV and Web) SOCIAL TV (Virtual Get-Togethers in Your Living Room) IMMERSIVE TV (3D Intensity and Gaming) MOBILE TV (TV Anywhere) SERVICE TV (Managing Everyday Life with Your TV) PERSONAL TV (Made-to-Measure Programming) 18
  • 18. 19 The world of media is a fast paced industry which is continually adapting to the needs of its customers. The near future for the television industry has to take into account these changes. Advertisers are also going to adapt to reach new audience to build their brands. Since the 1990ss television has made rapid advancements in its technology there has been a shift in how people watch TV with introduction of set top box, internet television etc. Until recently the TV viewer was stuck to a structured schedule and a cable. Now viewers can create a selective schedule that works for them. Now there are tools such as TIVO which collect user behaviour, their interests and viewing patterns. Advertisers are tapping into these data collections to create customized advertisements which will be more relevant to viewers. By using targeting technology, specific commercials will be sent to each television set. Parents with the young children will see more diaper advertisements than the middle aged retiree. So, two neighbours could be watching the same channel but with the different commercials based under consumer profile. Another recent idea is interactive television advertisements. For example, TIVO started rolling interactive advertisements appear across the screens when the viewer pauses of fast forwards the show. If the advertisement is appealing to viewer, it can be clicked using the TV remote which will lead to more information. The thing that makes television interesting today is the same thing that made it interesting when this medium was introduced in 1950s which is its ability to be consumed by the large audience in a relatively short period of time. There is still no better way to reach mass audiences and often times it is the 30 seconds advertisement spot that ignites the conversations online. Bill Patrizio, chief executive 19
  • 19. officer, Red Bee Media says “Automobile brands, soft drink brands, sneaker brands etc. Have very large target audiences so obviously television is the great medium for attracting the mass audience. In order to create a deeper relationship with prospective customers, they have to take advantage of interactivity of television.”20 Advertisers really believe that the primetime is going to be really very important because it’s only place where audiences can be reached in that kind of number. “Advertising will become much more centric around the viewer so that paradigm of measuring households going to become less and less relevant . It will be about connecting with right kind of viewers in right demographic of audience of a particular brand or an advertiser.”21 In the future we will see that four family members watching their own programs on television and they will get the messages or advertisements relevant to them. 2.4 Internet and ecommerce Ecommerce in the digital age is one of the biggest moves made by the business across the globe. Many ecommerce service providers got huge funding from venture capitalists and there are lot of those companies which became big enterprises now. In terms of growth areas of ecommerce, the horizontals are big and now a lot of niche segments can be seen like health, beauty, apparel etc. There is also a huge transition of offline brands to online. One of the primary advantages of ecommerce is that people can shop anytime they want to be it day or night. People can shop on the weekends, after work or anytime that suit them. Another advantage is that the website is accessible globally from anywhere in the world which means that the number of sales that the ecommerce generates literally mushrooms. Also in the traditional shops, owners have overheads like staff, rent, and maintenance of the building which leads to the higher prices. In the ecommerce websites there are very few overheads which leads to lower prices and finally leads to higher volumes of sales. Also in case of traditional shop, a person has to be there and has limited working hours. In case a consumer needs to buy something from a traditional shop, he needs to spend time and money to reach there. If we talk about future of ecommerce, there are three critical factors which are offline discovery, new online discovery, content & commerce. Let us take each point one by one: Offline Discovery: It could be from the sources like billboards, television commercials or word of mouth. It is very important for an ecommerce portal to do offline marketing to create awareness 20 PT.pdf 21 PT.pdf
  • 20. and familiarity with the brand. We can clearly see long television commercials of portals like eBay during the prime time. So the term offline discovery could be defined as the various offline channels which can lead the consumer to log in the ecommerce website of a brand. New Online Discovery: New online discovery can be defined as the various online channels like social media marketing, search engine optimization, blogs and good customer reviews which lead a user to land on the ecommerce website. Content & Commerce: Once the consumer has landed to the website, it is the content and commerce of the website which will lead to the sale. There are factors like ease of navigation, ease of understanding by user and good deals which can lead to a good user experience followed by creating a strong brand for a company. In the info graphic below we can see the type of brands which have got most benefit from ecommerce: 22 In 2011 Visa acquired CyberSource23 which is a gateway of ecommerce retailers into their network. There is another very interesting aspect which is intersection of brand marketing with ecommerce. All the brands which are active on ecommerce are the transactional brands and they always do their brand development based on the transaction. A brand is mainly combination of two things. It is 22 23
  • 21. representation of the culture of the company and secondly it is manifestation of the stories told about that brand by its customers. And as we look at the intersection between brand and ecommerce, one feed the other. When the internet came on board to a number of retailers, they did not have any idea of how to manage the brand in that way. Today all the retailers who have successfully branded themselves via ecommerce have one thing in common which is consistency of brand message which is the same when the consumer sees the picture on the website, he gets the same thing delivered to him within the delivery time. It is the true combination of digital marketing and superior customer service which can lead to a brand to become successful through ecommerce. The multichannel evolution has caused a number of challenges but it is about making sure that the companies should learn the ecommerce business. There are few very structural changes in the world of retail that changing the ways of doing business. A report presented by interactive media in retail group in 2012 which was published after collecting data from small and large retailers shows that the online retail sales are growing by 15% year on year since 2000. It also shows that 20% of the retail purchases made in the UK are online.24 With the rise in multichannel retailing where a brand has a number of channels to be able to get to their marketplace, the consumers have got the freedom of dealing with the brands in the way they want to deal with them. It could be online, telephone or offline retailers. 2.5 Technology and Online Branding Social media, mobile computing and cloud computing are examples of fourth wave technologies and they are all tools those brands are leveraging to differentiate themselves from the market and add value to their businesses. A brand always wants to measure and monitor their community and they want it to be free. There are tools like Twitter and Facebook like mobile and gaming which brands are using to enhance and create their community. The intersection of emerging technologies and digital media are completely transformative. Brands have now understood the difference between doing something and doing something smartly. Now most of the CEOs and CMOs are seeking for analytics that drive decision making and the analytics those ensure that they are hitting the productivity matrix what they are held being accountable for. In the complicated media landscape, the way of trying to find an audience has become as important as content of the message that gets to the audience. That means necessarily one needs to have technology capabilities in an alignment with marketing knowledge. Now media agencies and marketing teams need to have a broad 24 isDetailData=false&itemID=0&pageTemplate=14&isAllRecords=true&isArchiveData=False&parentPageID=0
  • 22. spectrum of talent. On the one hand one can see an engineer who is doing extensive data analysis and coming up with very data rich branding programmes on the other hand the person next to him may come up with a great content idea for new programmes. It is a bold new world. Today there are more ways than ever for marketers to connect their brands with consumers. For example, smart phones are not only phones now, they are powerful wireless computers with an amazing ability to gather and store information and allow people to connect and share with unprecedented speed and convenience. The apple Appstore currently has over 100 thousand applications designed just for the iPhone many of which are designed for branding purposes. Also the electronic tablets are revolutionizing the way people are using media. They may be the biggest development in printing since the first printing press was built in the 15th century. As we know that social media not just 12 years old tweeting to each other. Let’s consider that fact the if it was a country, Facebook would be the fourth populous country in the world. 34% of bloggers post their opinion about products and brands and 78% of consumers trust peer recommendations over the traditional advertising. In today’s digital world, the branding is focussed on three major ideas which are entertainment, commerce and content. In the digital world the online platforms those give access to the content give a unique opportunity for consumer to recommend products or services. And advertisers in return use algorithms to understand consumer’s habits in order to offer the desired experience.Earlier there were only offline recommendations by friends, family and peers but now the online recommendations as consumer gets them is of totally different scale. In the early days of digital evolution it was easier to build one advertisement of a website but now for a brand to reach effective critical mass through different devices, at least nine different experiences have to be built. It has to be for laptops, tablets, mobile applications which are on the different platforms like iOS, Google platform and Microsoft platform. There is also an eventual fourth screen coming in to the play which is the television as this is now a new challenge with connected boxes and internet TV. In today’s world everything that was analog is going digital. Today there is a huge increase in connected TVs. The same is true with mail. This is also true that the landlines are going down and mobiles are going up. Everything that can be digitalised will be digitalised. If we look at the chart by eMarketer, they are predicting virtually a twice the spend in the internet in the digital advertising by 2015. That is coming out of newspapers, magazines and directories. TV is also going to grow but it is not going to grow as fast as the digital world. So, everything is becoming digital and everything that is digital, becomes social. For example in 2011, Motorola Mobility launched an application for their own appliances which is channelling the simultaneous media consumption. The interesting thing about this initiative is that the people are working to
  • 23. channel the multitasking of consumers so that it reinforces the other media consumption. Everything is changing including consumers. The product designs are dictated by the users, not by the brands. The figure below is taken form a report named “The Impact of Internet Technologies: Search” which was published by McKisey& Company in 2011. This clearly shows the role of technology in branding.
  • 24. 25 2.6 Role of Outsourcing Outsourcing these days has become a worldwide phenomenon some companies are happy about it, some are unhappy about it and the rest are curious. Outsourcing is a quite complex process then it seems at the first look. It is not as simple as hiring an individual or a firm located offshore or near shore and start working the next day and your life becomes easier that way. There are different types of outsourcing methods, models and agreements in the market now. In the traditional outsourcing companies find an offshore, on shore or near shore company who is going to do everything for them. For example, there are lot of companies which have outsourced partners of search engine optimization part to offshore companies. The other kind of outsourcing is done on the online job marketplaces like elance and odesk where companies hire an individual for a fixed price small jobs. Because of the recent increase in globalization, companies today face greater competition from within and outside their countries. To increase or remain competitive and keep 25
  • 25. costs as low as possible offshoring has been a strategy for many companies. Much has been said and written about the phenomenon of offshoring to low-cost countries in recent years. India is an example of a country trying to attract business, especially on the IT enabled services side with cost savings of up to 40-50%. In India there are growing number of English speaking professionals each year. The major reasons for outsourcing are as follows: • Cost savings • Skills shortages • Quality Savings • Improved? Time to Market? • Production in low cost countries? lower taxes and wages • Freeing up capital, capital efficiency e-commerce companies can reduce costs by millions of dollars while being able to streamline its business by focusing on sales and offering.The solution is to let somebody else take care of part of the company's logistics. The main driver for outsourcing tends to be cost saving but it is important that a brand also achieve a more efficient process, that is, that the party can outsource to have this as their core competencies and thus can perform this function better than the party who want to outsource the function. In a recent survey done by the IT Sourcing Europe Limited, executives from 764 German companies were interviewed and asked about top three reasons those influence them the most for outsourcing. Majority of people said that the most important factor is the reduction of operating costs and the other two factors were to free in house resources for other business processes and focus on core competence. The fact that outsourcing is a very broad term, we want this paper to create a larger understanding of IT outsourcing means. Companies need to start somewhere, either in a spare bedroom or a garage and most companies reach a point where they need to expand and meet the growing demand of its consumers. So what happens when your small craft businesses go from having a handful of customers to hundreds? I f we are talking about e-commerce, it is not only the factor of how beautiful or well made is the product product but delivery and website usability factors also matter. All the companies especially the small companies cannot afford to have a in house team of developers to make constant changes to the website. Even if they have money, most of them do not have the expertise to build and manage the team of developers. For these kind of businesses it is a good option to outsources their operations which can be anything like call center operations, electronic storage, returns processing, distribution,
  • 26. delivery, pick and pack and not to forget the most important part that is website development and maintenance. If a company selects the right vendor, it will give complete peace of mind with proper functioning of their business. The current trend of software outsourcing companies seem to get advance momentum with more and more organizations realize their goals. The benefits of software outsourcing to countries like India, China and Ukraineare many many due to the fact that they have a good IT infrastructure, better communications facilities and its well-qualified manpower, well versed in English-speaking workforce.In this time questions about the safety and privacy is stronger than in recent years if we talk about outsourcing. SO, one should be really careful while selecting the offshore vendor and make sure that they comply to the international safety and quality standards. Many ecommerce companies rely on outsourcing and information technology (IT) is one of the most outsourced functions available. There are both benefits / opportunities and disadvantages / risks of the phenomenon, companies need to weigh these factors against each other to see if outsourcing is the right solution. There are three main different interpretations in outsourcing: outsourcing as outsourcing of existing activities, outsourcing as purchasing and outsourcing relationship. It has been noticed that the greatest benefits / opportunities of outsourcing is that companies can spend time on the right information and that they can focus on their core business operations. The biggest downside / risk found is that the employees of the company that outsources adversely affected even if the right vendor is selected. In case the decision of choosing the partner has gone wrong, it can affect the whole business of the company. Significant savings can be obtained if all pieces of a e commerce IT business outsourced with the added advantage that is it’s easier to make demands to the outsourced vendor. A major disadvantage could be the increased dependency on the outsourced firm. ewThere are no two reports which have included the same benefits / opportunities and disadvantages / risks as the other, which fits into the various main interpretations. This has meant that no conclusions regarding these fits better into a main interpretation has been drawn. However, it has emerged that outsourcing is a very broad concept which makes it difficult to define or describe it in only one way.
  • 27. 26 2.7 Mobile Marketing Mobile marketing and mobile advertising is all about marketing to users of smartphones such as Apple, Samsungphones, HTC and Blackberry phones. The are lot of reasons for brands turning towards mobile marketing especially smartphones becoming a replacement for usual desktop computers, which means a smartphone user looking for information in a whole new way. Mobile marketing and advertising gave lot of opportunities for companies to communicate with their customers in new ways. Mobile phones are now available in every man's hand, but they are still relatively little used as a marketing channel. Many consumers are demanding mobile solutions that support their shopping, but chains have not kept pace with developments. There is a lot of ongoing research on mobile marketing and its opportunities, challenges and pitfalls.Today most of the mobile phones are connected to the internet. The speed of data transmission becomes faster and faster. Applications of various kinds can be downloaded in smartphones. Smartphone users have higher average spenderbar income and spend more than other mobile users. This development has meant that mobile marketing has become increasingly attractive for retail trade. One of the 26
  • 28. challenges is to integrate mobile marketing in the company's other strategies and operations. These include the development of so-called apps (applications / programs that are downloaded and adapted to the mobile phone software and functions).Apps often have excellent functionality and user experience, anyway "dies of itself" usually after 90 days. It is not uncommon for consumers download 30-40 different apps. Then they simply forget to use them while companies find it difficult to drive traffic and use by other marketing activities. While the debate surrounding mobile marketing is great today, so mobile marketing is not something for all consumers of all purchasing situations. Another important aspect of mobile marketing is mobile websites. The mobile site gives a very professional impression. The visitor feels immediately that the web app gives the company a very serious impression and rather tricky and tough as mobile surfing often becomes the browsing experience on a mobile a pleasure. Many think even that it is more comfortable to surf on your mobile than a computer when he or she visits a mobile website. It is transparent, fast and many of the features of the mobile site is integrated with the phone's internal functions. Mobile marketing is becoming increasingly more and more popular. Many people prefer to search information on the web from their smartphones instead of waiting until they have access to a computer. Mobile marketing is thus important and search engine optimization in mobile and search engine optimizationon the internet are two different things. An organization can be successful in achieving top placement in search results on a desktop computer or laptop but might not have the same rankings on searches via mobile and social media those play a vital role in mobile search optimization. Mobile marketing is a relatively startup stage, the possibilities are limitless when it comes to this new marketing channel.Many brands have already found success by mixing mobile marketing strategy with other digital marketing techniques for example Mc Donald’s and Pizza Hut. If a person is searching for an burger joint or looking for pizza nearby on his mobile, they are directed to the mobile applications of the respective companies which gives a consumer further insight to the offerings of these companies. Often a varied and comprehensive approach best way to reach many customers and maximize your marketing budget.Efforts to mobile marketing is often very convertible and high target, making them very attractive for professionals who are interested to find new customers and keep up with the mobile revolution.The cell phone will not replace existing channels, but will initially be seen as complementary. In pace with the increasing use of smartphones, tablets and other mobile devices with the ability to measure user behavior, search terms, places and positions, increases naturally the mobile marketing, which also is becoming
  • 29. increasingly tailored to the recipients' preferences. Many companies are uncertain over which laws and regulations that apply to mobile marketing. Below is the report published by Interactive Advertising Bureau and PricewaterhouseCoopers. 27 Which showed 14% increase in mobile advertising revenues in the first half of 2012. A mobile does something that no other device has done before as it has a unique capability of combining different media channels. Consumers perform different activates while they are with their mobiles for example watching television or reading newspapers. Companies are utilizing this opportunity by unique ways. For example let’s consider aa television advertising directly refer to an activity in a mobile. Another example is when we go to the McDonald’s mobile application, there is a call button and once a consumer clicks on that, a call s made to the closest Mc Donald’s using his phone. This is possible because of the unique blend of mobility and connectivity of the mobile phones or other mobile devices like tablets. Chapter 3: Research methodology 3.1 Research Strategy 27
  • 30. Scientific approach: In science theory usually two main areas mentioned, and the hermeneutic approach and both the positivist approach.Hermeneutics stands forinterpretation theory, and is a scientific direction in which this study has been conducted. The researchhas been done based on their subjective understanding of researcher.In positivism, knowledge built up by sciencemodels where the context is described by cause and effect, and where the researcher must be an external relation to research the item to ensure objectivity. This essay does not aim to measure the exact phenomena, but to create a greater understanding of online medium from a brand-building perspective, the authors have chosen the hermeneutic approach. Since the purpose of this paper was to find some absolute truths gave the hermeneutic approach authors more freedom to interpret the collected information based on the authors' own frames of reference. Theoretical approaches: Induction and deduction are two alternative approaches that can be used to draw conclusions during an investigation. Deduction belongs to the theoretical research work area while induction belong in empirical data. The two roads to reach knowledge are different, but the research writer pursued both the roads together. Initially, the authors chose the inductive approach to examine the brand -building using online mediums. The study aims at understanding how old and young brands are using the Internet marketing channels to build their brand. In this research, theoretical information is gathered first based on a thorough literature review and the information was analyzed to create a thorough report. To create an understanding of how the brands use internet marketing channels, an observational study was also conducted on brands by checking their online market channels, website, facebook fan page and business. A semi-structured and non-participant observation study was conducted on the selectedcompanies.The problems that can arise with selected observational study is that it is limitedbased study based on selected perspective and observation planes, thus, relevant information missed due to selective perception and the result is limited. Therefore, I chose to do a semi-structured observation structured by first looking atthe different elements on websites such as headline links and information for each link, then how the elements belonged together, they contributed to the whole of the website and the brand. Thus the first step was to analyze the descriptive web sites. Observational study was conducted on Facebook by the same process, however, I focused only on the company’s Facebook pages and news feed. Due to time constraints, I had to define the collection of material. If the observational study is not designed for a structured plan, the bias that may arise, namely the risk that relevant information is missed out
  • 31. or reduced. Observational study is thus qualitative, since the goal of this study is to describe and understanding of brand communication through the digital media. The selected companies have been based on the study's purpose that is to study brandsdoing branding on the internet. The selection criteria was based on: The company has existed for at least 40 years so that it already had a good brand value before evolution of digital media. The company has its own website and using Facebook for at least 3 years so that one can compare their online brand value and compare with the offline branding techniques. Since it takes time for companies to get started properly, I think 4 years is long enough for a company to established its market channels. The brands were chosen for this study were Salon du chocolat, Mc Donald’s and Coca Cola. The research questions were designed as a semi-structured model, which means that I had prepared questions, but with room to research on the topics that are relevant depending on what information we got from the research findings. This method is suitable when the focus is to increase understanding of market trends and the use of internet, research questions were thus ina qualitative character. The research wasconducted to find out if companies cooperate with bloggers, if they measure their marketing, how the Internet affects their activity and that they have strategies or objectives for their marketing communications. The purpose was thus to obtain a deeper understanding of what the big companies think about their work with brand communication. I was able to examine the validity of each material collected with two of the studiedobjects, then I could compare the materials and see if they point to the same fact, thus increasing credibility in my analysis and interpretation of the material. Web pages do not change every day so the validity of this study would have been somewhat limited if only websites were observed. On the other hand the corporate Facebook pages are updated continuously not only from the companies but even by customers. To investigate the question of how companies can measure and evaluate the performanceof investments in digital media was required first and foremost an exploration of themethods that are currently available. 3.2 Case Studies 3.2.1 Mc Donald’s Sweden28 McDonald's has 221restaurants in Sweden and about 80 percent of them owned and operated by local business owners, called franchisees. The headquarters of McDonald's Sweden is in Skärholmen and has approximately 100 employees. Big marketing campaigns are often national (television, radio 28
  • 32. and print) and supplemented with deals in the local media. National campaigns facilitated by all the restaurants have the same menu. Basic values in all McDonald's communication is the genuine desire to serve good food. Besides the passion for good food, almost all franchisees have a tremendous entrepreneurial desire and they are driven by the desire to make guests happy. The driving force is that they want to buildplatform for all customer dialogue, both offline and online. Therefore it was extremely important for them to have a continuous contact with the innkeepers. They meet the their approximately 430,000 guests every day, may take part of what they want, what they are unhappy about, hear what they love and what they lack. At the head office in Skärholmen they have a team to post and reply to Facebook and Twitter. Unhappy, sad, and disappointed guests are treated always, and when warranted, customers can be compensated with vouchers at McDonald's restaurants. They are very transparent, and they always correctmisunderstood messages in social media. McDonald's is working with security firms Retriever and MediaPilot29 to monitor topics and events, analyze how they are connected to traditional media and to evaluate how the brand is reflected in social channels. But it is clear that as company that McDonald's has a challenge to make an impact of their own, positive news. Since all people are eating or have eaten at McDonald's leads the large "noise" of statements and texts online. It is a goal to find and highlight encouraging, happy and positive mentions. This is also the biggest reason why people "like: s" company Facebook page with 21,500 fans today they like the food! McDonald's uses Facebook for advertising, promotional news and customer service. To publish surveys and questions, so called polls, do you do to encourage "likes" the page. McDonald's also see it as their role to educate and inform the employees on how to use social media in privacy. Many of those employed in restaurants are young people who live out much of their lives on Facebook. The company does not limit what employees can post and discuss about them as an employer - but the impact analysis, tips, advice and information about social media is now a part of every employee training. 29
  • 33. Therefore the key points of McDonald's Sweden and Online Media One big advantage is that McDonald's Sweden is not top-down as to if, how or where they get involved in social media. Therefore, the presence adapted to the Swedish market. It has invested in a proper tools and a process of competitive intelligence in social channels. The company's values are shared by the employees and therefore permeates everything they do, even when they use social media in private. It has a system for the unique cases compensate disgruntled guests with vouchers. Thus, to extinguish fires in a popular way. Communications and Customer Service on online medium is purely organizational. Some more things that Mc Donald’s Sweden can do: I think McDonald's can do a lot in Location Based Services especially considering that the whole business idea is based on local franchisees. It has already launched a successful mobile app: McNavigator for iPhone that helps you find restaurants and a complete nutrition and allergy guide. Other unexplored land is to find a natural digital channel where you can reach Sweden's pensioners, who are actually constitutes a large part of McDonald's most loyal guests.30 3.2.2 Coca Cola Online buzz for many brands is a must do thing now. The fact that huge presence of the brand in theonline space is taken as a mark of success. That is why all the brands are using viral tricks and techniques to increase engagement on social networks. Coca Cola has always used innovative branding methods since 1886, the year it was founded. In addition, the company's long history an interesting aspect from a modernization perspective, as it is a company that has grown in step with modernization process that has been at the forefront of marketing in this period. Last month, Coca Cola became the first brand to have reached the threshold of 50 million fans on Facebook, it is over 61 million today31. Coca Cola has used this opportunity to announce the launch of its social innovation.32Like its slogan "Open Coca Cola opens happiness," the Atlanta firm offered its 50 million fans to participate in brainstorming with a great thread for the "happiness" .33The aim is to propose an idea, a social innovation , which for Coca-Cola, will enable participants to be more 30 32 33 31
  • 34. active, engaged, to give to others or to engage in creative happiness. The most creative participant will be supported by Coca Cola and he/she will participate in their brand strategy for 2013. To participate a person just need to go to the Facebook page of Coca-Cola and clickthe application which is dedicated.This is the first time that consumers of Coca-Cola or any brand over the world are invited to participate in such a project .The information is still recent, Coca Cola plans to broadcast details of the selection process ideas and the progress of the program in the coming days. In France, Coca-Cola has 3 million fans34 , enormous progress compared to 2008 figures where the community reached the 300,000 fans. Coca is already planning a surprise for the French after the bar reached 3 million. This is the first time that the brand innovates as much about social networks and also always managed to talk about it in all campaigns in funniest or unusual manner.Last year in Australia, having conducted a survey showing that 50% of adolescents and young adults hadnever drank Coke35, the U.S. firm had just replaced its logo with the names most commonly worn in the country. The campaign was very successful, and all new customers Australians had discussed on the web and the press had also relayed information.36France to also received the same kind of event in early summer with the truck of happiness Coca Cola.The truck crossed the whole of France and offered gifts to passing while filming their reactions. 37 3.2.3Salon du chocolat How to communicate on the Internet when organizing an exhibition? What tools to use?What editorial strategy should be implemented? To answer these questions, I offer you a digital communication analysis of the "Salon du chocolat" also known under the name of "World chocolate and cocoa" which takes place in several cities ( Paris, Bordeaux, Lille, Lyon, Marseille, New York, Bologna, Tokyo, ...). I would like to highlight the tools used by the show and their joints. You will see that the strong point of this case study lies primarily in the design of a coherent ecosystem(website, blog, social networks, etc). 34 36 37 35
  • 35. Websites The organizers wanted to develop a website for each city . Here, below, three examples: Site for Cairo Bordeaux site Site Bologna Each site has its own graphics and content. Of course, each site pointing to other, thus creating a mesh rather favorable to SEO.I believe the idea is interesting provided harmonize sites : - In terms of graphics - At highlighting communities (some sites highlight the Facebook page and blog, some not) Also, if you use this technique, you have to be really careful about the text content of each site. They must be unique to avoid Duplicate Content that would penalize the ranking of your website on Google.I also noticed another weak point at the generic website (which serves as landing page to refer users to living rooms close to home) is developed with Flash technology. Result: the site is unreadable on a large part of smartphones (we see only a blank page). Newsletter The site offers two newsletters, one for visitors and one for professionals . The idea of a newsletter dedicated to two public interest is to continue to inform a more targeted way. It is also a way to work a file called. Blog
  • 36. As I stated earlier, the blog is not highlighted at all sites. This is unfortunate, because there is a really interesting and rich content: texts, pictures and videos .38 39 The publication rate is regular and headings are clear: Parades, Exhibitors, Recipes, News, ...Note the good Page Rank: 4. Facebook The Facebook page gathers 44499 fans.40 38 39 40
  • 37. 41 However, the publications are regular and frequent interaction which generates a high level of commitment . For example, the publication below 264 there I like, 25 comments and 67 shares.We also find on this page a tab contests, fairs upstream assets to win free tickets.If you are organizing a show, do not hesitate to get inspired by good practices of this page. Twitter The Twitter profile has 4388 subscribers and relays especially blog posts.42 Youtube A Youtube channeldedicated to lounges is active. Videos got 120,868 views. They are also shared on Facebook and the blog.43 General conclusion 41 43 42
  • 38. What I find particularly effective is the creation of a coherent ecosystem combined with actions of digital PR. It seems to me that the digital media is the most important tool of this ecosystem. Indeed, it is theheart of the editorial content of the show. It centralizes articles, news, photos and videos. In short, the content that will appeal to chocolate lovers and certainly contributes to the visibility of the show. Social networks, meanwhile, are there to distribute this content to different audiences and create interactions (exchanges, questions, comments etc.). 3.3 Data Collection and Analysis Marketing is customer centered more than ever, but paradoxically, it has never been so difficult to understand, anticipate needs and expectations of a consumer more than ever "liberated". The markets have always been conversations , they are more than ever today because of the Internet. At the same time and for sharing media, the web is now the first exchange of customers and consumers more involved. We have closely monitored those communication in the real time and we have also studied a large number of market reports which indicate the growth in this phenomenon. What was difficult or impossible to do a few years ago is not only possible but necessary today.More than ever, brands and companies who earn their markets are those that are listening to their customers and clients. Blogs, forums, community sites and social networks, the famous web 2.0, can anticipate trends and developments markets. We exactly did follow the online same pattern while doing the research for this assignment. In the analysis chapter empirical data in relation to the theory is analyzed. Empirical applied thus on the theoretical models to create a complete picture and get a deeper understanding of the problem area.On a general level, it has been written a lot about advertising on the Internet and how it works technically and commercially. Internet is an information forum where information spreads very quickly. Italways creates new ways for marketers to reach out to consumers, one of which is to allow consumers to create their own market offer.With the Internet's help it is now easier for consumers to compare price differences between products and services and also find information about detailed offerings of each product. There are plenty of companies now which are only selling on the internet using e-commerce and catalog sales. However these companies use all marketing channels for branding purposes. A person an ecommerce website could be either a curious visitor or a customer, brands these days work hard to give the right message to the right person. Major ecommerce brands are constantly encouraging their customers to leave comments on the products they bought so that the new customers will then be able to access the information.Different media have different advertising requirements. Some advertising mediums have low impact and thus require many repetitions as it takes longer for the advertising to be noticed by the consumer.
  • 39. Internet media have a high impact and the reason for this is that the Internet is an active medium. When a visitor comes to the site, he or she has chosen to go in there and find it impossible to escape advertising.Another reason for the big impact is that there are few distractions in the environment. As a user, you are focused on what you do and the site has even full attention, that unlike, for example, TV advertising where it can be plenty of distractions around. Today brands are using many marketing channels which includes the Internetas well as the more traditional methods such as television, radio, outdoor, events and PR. One of the major benefits of marketing on the Internet is that everything can be measured and registered online. More traditional marketing methods such as TV and radio advertising does not provide the specific measurability. Lot of companies also believethat there is special difficulty with measurability of impact that makes traditional marketing methods inferior to marketing on the Internet. On the Internet, you can instead make use of highly advanced and specific metrics that will help the company to evaluate their campaigns and then place advertising where the majority of the audience are. The challenge for the marketer is to first and foremost to get the consumer's attention and then managing to retain consumer interest in the product or service. By creating an awareness of the company, increase audience loyalty and communicate in a personal way over the internet, the company can strengthen its brand. One of the relatively new methods of internet marketing is affiliate marketing. This type of marketing is a kind of digital performance-based marketing which consists of a cooperation between advertisers, affiliate programs / business and affiliate and whose goal is to communicate the right message to the right audience. In short, it is about driving traffic to the advertiser's web based performance models using target-specific banners or text links. Affiliate marketing is one of the best marketing methods on the Internet, especially at start-up of an e-commerce business now it is a significant part of their total Internet marketing budget. Affiliate marketing is an effective way to reach out to many customers at the same time able to segment target groups, so that the right message reaches the right customers. A customer actively seeking information about a particular product or an item on internet ends up pretty quickly on web pages that have links to the product sought. In the context of blogs, visitors can read the various comments and then form their own opinion about the product that is being sought. Lot of brands are using push strategy bysending their message in many different marketing channels to as many consumers as possible to have the chance to see their message. Online media enables and facilitates this function online which is often in combination with blogs, social media and online
  • 40. advertisements. Variation Search is one of the factors that makes consumers happy to choose different brands just to get some variety and variation. Other factors such as price, brand availability and marketing also influence consumers in their choice of brand. The aim of this paper is to describe how the audience receivesmarketing on the Internet and how they communicate and exchange information on products with each other. Consumers have tendency to trust other consumer reviews and recommendations on the Internet and to the qualitative value of these comments generate more credibility than purely quantitative grading system. There are few consumers in the current situation who are likely to buy products that require a higher commitment without finding out what existing customers have to say about the product. 4. Research Findings: Many companies have adapted themselves and their marketing initiatives along with the evolution of online or so called “.com boom” which started in late 1990s. These were companies who noticed their direct consumers or end customers are there. For example, coke, pepsi, fast food joints, online and offline retail companies etc. Most of the companies which did find their consumers online for example construction companies, shipping corporations etc , stayed away from the internet tough they were doing their constant advertisements on television, posters and event sponsorships. It took a while for the companies to realize that online efforts are as efficient or at times more efficient than the traditional methods. Initially companies as well as consumers had a perception that internet is a place to get information and it overall it is a marketplace. That’s all! This perception has changed a lot since last four or five years. Both companies as well as people have accepted that the internet is not just a marketplace. And now, we can see that there are lot of consumers who buy product from the stores but check the product online by reading what people are saying about it. It was found that the internet marketing is must have for all the companies irrespective of their sizes. There are lot of methods and channels of managing and creating a brand on the internet and with each channel, there are its unique challenges. Some may have long term impact some have small time impact on consumers, some are reversible some of them are irreversible, some need technical skills some do not. In fact if we talk about the online advertising or branding, it is the constant evolution of technology which is rapidly changing the scenario. At times it is pro consumer, at times is pro advertiser and at times it is both. This really depends upon the situation and is not same for all the brands or all the consumers.
  • 41. As discussed in this paper that since 1994 a banner appeared for the first time on a website (HotWired). In the following five years the online display and e-mail marketing together dominate the sector of online advertising. With the development of broadband internet, the nature of online advertising was also changed. The online advertisements became multimedia rich and appealing with the emergence of high speed internet technology to the consumers. During the period of 2000 to 2005, few new platforms emerged such as online search engines (google), blogging, micro blogging and social media (at initial stage) which has changed things as a lot in the field of online branding and the way companies see the internet as a platform for branding. It was found during the research that online branding trends change along with the technology evolutions. If we look for the start, the internet marketing could be divided into different phases since it started in 1994. The online branding process could be categorized into four categories: Banner Advertising:Banner advertising is a very effective means of internet marketing. Companies can reach thousands of potential visitors through ads on websites and portals. Especially banner advertising is more effective when it is combines with combined with search engine marketing. Banners are simply advertising space on the internet that will generate traffic, visitors and new customers.Banners can be created in different sizes and for different purposes, such as sale of products, services, promotions or to profile a company or brand Email Marketing: Email marketing is one of the most cost effective tools to communicate with customers, build strong business relationships and bring down the cost of traditional marketing communications. Lot of companies send out the newsletters and e-mails to their existing and potential customers and this is a an important part of their entire marketing strategy. Blog Marketing: Blog marketing is a way to communicate messages that combines a blog with the right marketing purposes. A very effective way to bring to life the message and generate discussion and feedback. Online Video Marketing:Video marketing has become the fastest growing part of internet marketing in the past year. With web TV and video marketing, companies got new opportunities to communicate with their target even if they are a small business.Videos can be used to reach out with press releases, product news, training, advocacy, advertising services or products, video greetings and blogs, reports, etc. It is a perfect tool to communicate in a vivid and personal way with your audience. Social Media Marketing:Social media is a huge community of people online which is combination of social networking, online communities and member portals, blogs, wikis,
  • 42. forums, member-based image and video portals like Youtube. Everywhere where people socialize and share digital life and information with each other. Search Engine Optimization: This is a process where companies make their websites, blogs and landing pages search engine friendly so that consumers can easily find them when they are searching for their product or service online. 5. Discussion: The Internet's rampage plays an important role for companies and their future is in the current situation.It requires new strategies to reach customers and to capture their interest because they at Internet themselves choose what they want to watch. The Internet offers new and faster means of marketing and customer contact. Marketing can be easily adapted to the correct individual or audience. Deeper customer relationships will therefore be easier to build and maintain.It is important for companies to express themselves simply and concisely on the Internet because it user decides what they want to see, read and so on. The consumers censor themselves so the website must provide added value to the visitor.More and more companies realize today the benefits and savings that can be gained by a transition from traditional marketing to the Internet. 5.1 Accesses to the Internet and its Usage Manymethods of Internet marketing offer the opportunity to make it easier for the companies to focus on the right segment or target audience. Information on how these target audiences are moving and what they do on the internet can be easily obtained, and promote further development of marketing and branding initiatives. The company can easily place their ads, you know what the customer is interested in and so on andcan also design offers customized to the customer. We also recognize quickly the cost savings a company can do by utilizing theinformation they receive.The activities carried outcost less than traditional marketing activities and provide better results. There is another important aspect that the online branding target group belongs to aslightly younger generation where the Internet has taken hold. We believe that people around thirty years in today's society have access to and use the Internet daily. The new generation, who have grown up with the Internet, within a decade have becomethe company's target audience they tend to be more loyal internet branding followers or in other words we can say that these are the consumers who will be most affected by the online branding initiatives of the companies. We see thus that the Internet now
  • 43. and especially in the future will be a major marketing medium and it is already important to prepare for the future and identify opportunities to attract Internet consumers. If the explosive development of the Internet just keeps going in the future, one cannot imagine banding possibilities tomorrow. We believe that more emphasis will be placed on the Internet part of the marketing mix compared to what will be on traditional methods. We do not believe that the traditional marketing types will disappear; rather they will be developed and adaptedin accordance with the internet evolution. Mobiles are now used also to receive alerts, links to pages containingoffers and information etcetera.The opportunities and access has increased exponentially which makes mobile a critical aspect of online branding these days. There are endless opportunities to reach people via their mobile, we believe, mobile is nowone phenomena that every person owns and frequently uses. Search engine marketing is one of the best forms of marketing on the Internet. 5.2 Branding on the Internet There are lots of ways of doing direct marketing on the internet which has turned out to be a very effective method for lot of big and small companies. People are really exhausted by traditional direct marketing methods like telemarketing etc. The best part of doing direct marketing on the internet is that the consumer is not disturbed or annoyed. The consumer can go through the marketing or branding material as and when he gets time. With the growth of internet in the future, the direct marketing methods will also increase which will be suitable for everyone. It is important for brands to realize the impact of internet on society now and in the coming years. By doing appropriate prediction of the future, companies can fine tune their internet branding initiatives accordingly. 5.3 Search Engine Marketing The main goal of any internet surfer is to look for the information about his hobbies, interests and requirements. Search engine marketing is therefore one of the key aspect of online branding for any organization irrespective of its size. This is also a big challenge for the organizations to present themselves where the target audiences move. Today’s largest search engine is Google which is also the world’s most visited website. This is considered as one of the best forms of online branding as the customers are pulled towards a brand instead of any push techniques such as advertisements which direct consumers to the company website or promotion page. 5.4 Email Marketing Email is one of the important tools that the companies are using to reach out their customers. We see that attitude toward e-mail marketing is very good if it is right, that is if it is sent to the right
  • 44. person in right time. For a successful email marketing campaign, the emails should be sent with offers and to the relevant audience else it could be perceived as intrusive andannoying. 5.5 Viral Marketing and Affiliate Marketing Viral marketing is a very positive marketing form for a company to use. It may be to send a link to customers with a short video, game, or similar.If the customer then likes the movie or game he can send this link to colleagues, friends, etc.The website will then receive new visitors and potential customers. However this kind of marketing should not be overused as this may annoy the customers which can lead to a bad brand image. Affiliate marketing is actually ads. The advertiser pays for traffic arisingwhen someone clicks on the ad and follow. We believe that this kind of marketing has the sameproblems as we have with banners. This has low click through rates and is expensive compared with the responseit receives. This is not a kind of marketing that each company can follow, this could be a great tool if it is done in the proper way with the supervision of experts. I can conclude that this not as relevant to the big brands as it is to the small ones since big brands already have lot of exposure. 5.6 Blogs and Banners Making use of banners is not preferable as they have low click through rate and do not give as much as search engine marketing.Many timeseven this is perceived as a disturbance on the website, which we believe makes people do not click or read what it says but just ignore it.We can just go to ourselvesand realize that we do not actually read these ads to any great extent. Since a blog as a marketing tool is both cheap and easy, a little time consuming,should be able to become a channel in the future, then again, the new generation is growing up. Since it does not cost anything, there should be an opportunity to try to make contact with customers and other stakeholders. 5.7 Shopping online or Ecommerce During our research on this paper, we have found out that the people are felling more and more comfortable and secured while spending money on the internet. The credit for this goes to technology for making is secure and user friendly. Even there is a increase in the number of baby boomers who are paying their bills online. If the ecommerce is done in a proper way, this is going to increase the sales as well brand value of a product or service.
  • 45. 6. Summary and Conclusion: In this research we have found that there is re two ways of looking at the internet branding. One is how companies are using online medium in their marketing and how it is to be a consumer in a family of targeted onlineadvertising? As usual, no black or white, and there are pros and cons with everything. While some may think it is practical to have ads and searches are personalized, others may consider it intrusive when, for example, social media especially facebook takes advantage of personal information in order to direct the message.Many things! Above all I hope for less interruption advertising and social media opens up dialogue between consumers and businesses.Consumers can take advantage of the opportunity to actually be able to select and deselect, searching for information and advertising when they want to have it and help each otherto find good products. We also noticed that the future of marketing in the right combination and complementarity of strategies called "push" and "pull" make participation a central points of successful brandsand businesses of tomorrow. In this sense , the online dialogue is a participatory platform secure a steady source of new ideas Exclusive, always available and accessible in realtimeCompanies can take advantage of opportunities when your products are wanted and needed.I also believe that there is a limit to how Facebook and others can take to avoid losing the trust of users. Additionally, it is important that we all become more aware of how the web and social media works, and act based on a conscious choice. For although we are not entirely " stuck in the Facebook network "(it's a free choice to have a Facebook account and you can choose what information you put on yourself) then both businesses and consumers to be aware that we are in some way more or less dependent on privately-owned businesses today. Imagine what Google knows about you, for example. What you are looking at, how to travel and so on. On the other have emerging technologies like e commerce which have given a huge leap to online branding opportunities for the organizations. In fact, these emerging technologies have revived the overall branding process of all the companies. This has also assisted in globalization where lot of companies have started using ecommerce outsourcing so that they can focus more on their core business model which had its own pros and cons which have been discussed in detail. Through the huge opportunities and potential that the Internet has this topic was very interesting to study and it has been interesting discoveries which we now look forward to summarize and draw conclusions from. We choose here to once again present our view and the research question we started from to give the reader an opportunity for more understanding of our discussions.The purpose of our study was to study the marketing methods that are available at Internet marketing and to give suggestions on what we think is the best one.Since the Internet is rapidly growing, there
  • 46. is as great opportunities to succeed Internet marketing. It is important; we believe that identifying its target market and where these people moving on the Internet and what habits they have.It is important, when it comes to Internet use, to realize that different people from the different countries have different preferences, buying habits and perceptions. In our paper we have focused on the ability of companies to new ways to market them on the Internet. We therefore wanted to find out how two modern brands and e-commerce businesses use online medium. Is this marketing strategy itself orit serves as a complement to more traditional marketing? We then compared few leading brands in this in relation to how consumers perceive, receive and convey communication.A bad reputation is hard to wash off, and often spread much faster than a good reputation. The conclusion after conducting the research is that companies should keep in mind that consumers listen and read comments and reviews on internet, they rely more on recommendations from friends, acquaintances and other consumers. Making use of as many internet branding channels as possible does not automatically mean that it can be seen by most consumers but it is rather irrelevant. It is all about getting consumers sympathetic to the brand and products. A satisfied customer spreads positive marketing on and we believe it is one of the main objectives of a business endeavor where such advertising is very reliable and virtually free.We believe that the Internet is the best and most efficient source to successfully place the right message to the right person. Internet rampage has created changing conditions in the market for communications and marketing. Companies marketing themselves increasingly on the Internet and e-commerce has also increased substantially. There is a constant debate on new ways to market on the Internet and how consumers react to information is in full swing. Here comes the concept of word-of-web-in, a concept that is very important on the Internet regarding credibility.The Internet has paved the way for open discussions and conversations among both consumer and consumer and between businesses and consumers. In this way, the Internet is a highly active medium, unlike traditional marketing channels. Ecosystem around these modern communication models and marketing channels are changing behavior it brings to consumers the more they become accustomed to using the Internet. With this new phenomenon called Internet awareness, consumers are increasingly difficult for marketers and companies to influence and set new and high standards of the channels and the information that consumers take in. Subsequently, this study has convinced us to make the assumption that consumers are actually listening to friends, acquaintances and other consumers. It has also emerged that companies use online marketing as a pure marketing strategy, as well as being a complement to other more traditional marketing.
  • 47. 7. References 1. Alwi, S. (2009) Online Corporate Brand Images and Consumer Loyalty, International Journal of Business & Society, 10 (2), 1-19. 2. ONLINE BRANDS WITH OFFLINE AMBITIONS BY JIM HAWKER 3. Brodie, R.J., Ilic, A., Biljana, J. and Hollebeek, L. (2011b), “Consumer engagement in a virtual brand community: an exploratory analysis”, Journal of Business Research. 4. Hatch, M.J. and Schultz, M. (2010), “Toward a theory of brand co-creation with implications for brand governance”, 5. Bernoff, J., Li, C. (2008) “Harnessing the power of the oh-so-social web”. MIT Sloan Management review, spring 2008, Vol 49, no 3. 6. Shao, G. (2009) “Understanding the appeal of user-generated media: a uses and gratification perspective”. Internet Research. 7. Spritz Web Solutions “Does your website have what it takes?” retrieved on 8 October 2012. 8. 9. IBIMA Publishing. Communications of the IBIMA Vol. 2011 (2011), Article ID 489627. 10. 11. veness_v3.pdf 12. ning_buzz_into_gold.pdf 13. elevision.pdf 14. Kirchhoff, S.M. 2009. The U.S. Newspaper Industry in Transition: A CongressionalResearchService. Retrieved October 20, 2011 onlineat
  • 48. Contacts Languages: English and Germen INDIA HEADQUATERS T e l.: + 91 120 427 4845 Contact Person Ashu Francis Market Research Consultant Mobile: +91-921-099-4407 Sweden: +46-253-20954 Email: Website: Connect to: Facebook