e-Branding Branding for the Web Age By Boaz Rossano 15 June 2007, Bar Ilan’s Int’l MBA program © 2007 Netica ltd.

What is branding? Samuel Maverick – A 19th century farmer: Allowed cattle to roam free, spared a hot branding iron. 'Maverick' is an unbranded range animal.

Samuel Maverick – A 19th century farmer:

Allowed cattle to roam free, spared a hot branding iron.

'Maverick' is an unbranded range animal.

The origins of branding Industrial revolution : the age of packaged goods Factories placed logos on products to differentiate them Branded products became well known (Coke, Kellogg, Quaker Oats)

Industrial revolution : the age of packaged goods

Factories placed logos on products to differentiate them

Branded products became well known (Coke, Kellogg, Quaker Oats)

The human need for branding In order to communicate with society, a person needs: To be remembered To be trusted and loved Human features : A face, name, family, friends, education, values, job

In order to communicate with society, a person needs:

To be remembered

To be trusted and loved

Human features : A face, name, family, friends, education, values, job

What's in a company's brand identity ? Name Symbol (Face) Logo (Name + Symbol) Family (Mother Company, Country of Origin) Education & Values (Know-How & Technology, Culture & Behavior) Friends (Market, Industry, Colleges/Partners, etc.) Job (What does it do? In which field?)

Name

Symbol (Face)

Logo (Name + Symbol)

Family (Mother Company, Country of Origin)

Education & Values (Know-How & Technology, Culture & Behavior)

Friends (Market, Industry, Colleges/Partners, etc.)

Job (What does it do? In which field?)

What is a brand? Brand is the closest contact point to the customer – a memory or an association Creating a brand is similar to strategic real-estate investments Associating the Elite brand with love & indulgence gives them a lasting competitive advantage

Brand is the closest contact point to the customer – a memory or an association

Creating a brand is similar to strategic real-estate investments

Associating the Elite brand with love & indulgence gives them a lasting competitive advantage

What is a brand promise? Encountering a familiar brand is like meeting a friend . Every brand holds a promise , an opportunity that attracts us. The cosmetics manufacturer can not sell us wrinkle-free skin and we know it – he sells the hope of turning back time and fulfill our desire to be beautiful & young again

Encountering a familiar brand is like meeting a friend .

Every brand holds a promise , an opportunity that attracts us.

The cosmetics manufacturer can not sell us wrinkle-free skin and we know it – he sells the hope of turning back time and fulfill our desire to be beautiful & young again

Why do companies need branding? In economic terms a "brand" is a device to create a monopoly A customer pays $50 for the Levi's branded pants, but only $10-20 for the non-brand. Brand = Money Brand Equity = Branded product price – Unbranded product price

In economic terms a "brand" is a device to create a monopoly

A customer pays $50 for the Levi's branded pants, but only $10-20 for the non-brand.

Brand = Money

Brand Equity = Branded product price – Unbranded product price

When do we develop the brand? Brand development begins with recognizing a need of a target audience Brand is one of the product's characteristics: the human features that we need to interact with Assumption: It’s a competitive market (non-monopolistic)

Brand development begins with recognizing a need of a target audience

Brand is one of the product's characteristics: the human features that we need to interact with

Assumption: It’s a competitive market (non-monopolistic)

How do we build a brand? Market research / consumer surveys Marketing maps / unexploited niches Defining target audience Creating the brand message & language Analyzing interaction points - between customer and brand Defining media strategy Creating content for different media Brand integration and maintenance

Market research / consumer surveys

Marketing maps / unexploited niches

Defining target audience

Creating the brand message & language

Analyzing interaction points - between customer and brand

Defining media strategy

Creating content for different media

Brand integration and maintenance

Selecting a brand name A good brand name : Easy to pronounce, recognize, and remember Legal protection Attract attention Suggest benefits (e.g., always fresh) or usage Suggest an image / identity Distinguish the product's positioning relative to the competition. Now in the Internet age , a brand should also: Have an available .com Easy to spell (preferably short) Multilingual (e.g., Burger Ranch)

A good brand name :

Easy to pronounce, recognize, and remember

Legal protection

Attract attention

Suggest benefits (e.g., always fresh) or usage

Suggest an image / identity

Distinguish the product's positioning relative to the competition.

Now in the Internet age , a brand should also:

Have an available .com

Easy to spell (preferably short)

Multilingual (e.g., Burger Ranch)

What does branding do to consumers? Brand Engagement: the process of forming an attachment between a person and a brand Creates/changes perceptions, attitudes, beliefs, behaviors Engages many senses

Brand Engagement: the process of forming an attachment between a person and a brand

Creates/changes perceptions, attitudes, beliefs, behaviors

Engages many senses

Brand loyalty When products are the same: price becomes the only motivator To avoid price wars , we develop brands The ultimate goal of marketing (and branding) Customers pay higher prices Cost of customer acquisition and maintenance is less Bring new customers to the firm Sony's president: Sony's greatest asset isn't their entertainment or consumer goods divisions…but rather the Sony brand . “ No-one ever got fired for buying IBM "

When products are the same: price becomes the only motivator

To avoid price wars , we develop brands

The ultimate goal of marketing (and branding)

Customers pay higher prices

Cost of customer acquisition and maintenance is less

Bring new customers to the firm

Sony's president: Sony's greatest asset isn't their entertainment or consumer goods divisions…but rather the Sony brand .

“ No-one ever got fired for buying IBM "

Why branding became the leading marketing strategy? Increase the product's perceived value to the customer Increase sales – creates a more favorable view of product relative to others on market Value of the brand determined by the amount of profit it generates

Increase the product's perceived value to the customer

Increase sales – creates a more favorable view of product relative to others on market

Value of the brand determined by the amount of profit it generates

When do we prefer a non-brand? New experience – Japanese local hotel vs. Hilton New product / new technology - 200 gram laptop Lower cost personal / basic goods - salt, vitamins, etc. Low risk - batteries Personalized / customized product - carpenter Credentials , recommendations , and price Catalog products - PC according to specs Protected by standards or industry benchmarks The lower the risk and the higher the gain, the greater the inclination towards a non-brand

New experience – Japanese local hotel vs. Hilton

New product / new technology - 200 gram laptop

Lower cost personal / basic goods - salt, vitamins, etc.

Low risk - batteries

Personalized / customized product - carpenter

Credentials , recommendations , and price

Catalog products - PC according to specs

Protected by standards or industry benchmarks

The lower the risk and the higher the gain, the greater the inclination towards a non-brand

Is branding more important on the net? Yes! e-Branding is even more important Web sites: No physical place – Need for the right domain name The right experience will create a lasting memory Create a sustainable relationship with the users: Encourage regular revisits to the site Send reminders of site updates and new offerings

Yes! e-Branding is even more important

Web sites: No physical place – Need for the right domain name

The right experience will create a lasting memory

Create a sustainable relationship with the users:

Encourage regular revisits to the site

Send reminders of site updates and new offerings

The online / offline brand relationships The brand relationship between the physical & virtual worlds is becoming more important The Gap offers its customers the best of both worlds The site offers a larger inventory The stores offer the ability to try items on , local discounts , and personal interaction with sales persons Branding is the leading differentiation strategy for creating exceptional shopping experiences both online & offline

The brand relationship between the physical & virtual worlds is becoming more important

The Gap offers its customers the best of both worlds

The site offers a larger inventory

The stores offer the ability to try items on , local discounts , and personal interaction with sales persons

Branding is the leading differentiation strategy for creating exceptional shopping experiences both online & offline

Leveraging marketing & branding within the Internet SEO A brand analyst can extract the words (meta tags) Extract a marketing map and locate potential unexploited/fast growing niches Social marketing Gmail - Google created scarcity by giving out Gmail accounts only to a handful of “ Power users "

SEO

A brand analyst can extract the words (meta tags)

Extract a marketing map and locate potential unexploited/fast growing niches

Social marketing

Gmail - Google created scarcity by giving out Gmail accounts only to a handful of “ Power users "

Leveraging marketing & branding within the Net (Cont.) Undercover marketing Buzz marketing, stealth marketing Subset of guerrilla marketing Viral marketing and viral advertising Use pre-existing social networks to produce increases in brand awareness.

Undercover marketing

Buzz marketing, stealth marketing

Subset of guerrilla marketing

Viral marketing and viral advertising

Use pre-existing social networks to produce increases in brand awareness.

Leveraging marketing & branding within the Net (Cont.) Evangelism marketing Word of mouth marketing (WOMM): Customers become voluntary advocates of the company. Affiliate marketing An affiliate (publisher) is rewarded for every visitor, subscriber , customer, sale, provided through his/her efforts.

Evangelism marketing

Word of mouth marketing (WOMM): Customers become voluntary advocates of the company.

Affiliate marketing

An affiliate (publisher) is rewarded for every visitor, subscriber , customer, sale, provided through his/her efforts.

Can a brand be too successful? Xerox Walkman Google vs. Googling

Xerox

Walkman

Google vs. Googling

Brand maturity Qualities that attract us in the beginning might repel us later on As brand begins to mature, customary to change messages less rapidly Not only does the brand age, but the target audience also ages Nike suffered a decline in brand success: young people prefer to wear different brands than their parents

Qualities that attract us in the beginning might repel us later on

As brand begins to mature, customary to change messages less rapidly

Not only does the brand age, but the target audience also ages

Nike suffered a decline in brand success: young people prefer to wear different brands than their parents

E-Branding in Netica Focus on User Experience – Strong logical design team Top to bottom software design: Design the database according to the UX needs Client-side expertise (we started using AJAX in 2,000) Offering a product branding edge to our high-tech clients Web 2.0 for all – Our ready-made UGC platforms adjustable to clients needs

Focus on User Experience – Strong logical design team

Top to bottom software design: Design the database according to the UX needs

Client-side expertise (we started using AJAX in 2,000)

Offering a product branding edge to our high-tech clients

Web 2.0 for all – Our ready-made UGC platforms adjustable to clients needs

What is the Netica PowerPack ™ Synergetic approach to the creation of a new technology product Working with the 3 layers together : Technology layer GUI layer Brand layer

Synergetic approach to the creation of a new technology product

Working with the 3 layers together :

Technology layer

GUI layer

Brand layer

Why do we need the PowerPack ™ The brand and the product become one The most important marketing interface that Microsoft has today to its customers is Windows and Office, but they hardly use it We need to ask ourselves: Is the product brand experience good enough ? Will it market our next product? What would Google do?

The brand and the product become one

The most important marketing interface that Microsoft has today to its customers is Windows and Office, but they hardly use it

We need to ask ourselves:

Is the product brand experience good enough ?

Will it market our next product?

What would Google do?

E-Branding Case studies: Strategic advantages through strong Web brands Google – creating an alternative to desktop – disconnecting PC users from Microsoft Amazon – more than books – from books to online global retail Yahoo/MSN – one pass – deepening the reach and adding barriers to newcomers

Google – creating an alternative to desktop – disconnecting PC users from Microsoft

Amazon – more than books – from books to online global retail

Yahoo/MSN – one pass – deepening the reach and adding barriers to newcomers

Q&A Thank you. Boaz Rossano [email_address] Boaz.Cafe.TheMarker.Com TheNet.Cafe.TheMarker.com

Thank you.

Boaz Rossano

[email_address]

Boaz.Cafe.TheMarker.Com

TheNet.Cafe.TheMarker.com