• Save

Loading…

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

Like this presentation? Why not share!

Interactive Marketing: Branding & Consideration

on

  • 5,840 views

Branding and Consideration, Vorlesung Jürgen Rösger, Universität Mannheim

Branding and Consideration, Vorlesung Jürgen Rösger, Universität Mannheim

Statistics

Views

Total Views
5,840
Views on SlideShare
5,510
Embed Views
330

Actions

Likes
3
Downloads
0
Comments
0

5 Embeds 330

http://www.img.ag 162
http://img.ag 75
http://doktordanismani.com 73
http://192.168.0.101 15
http://alexw.me 5

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Interactive Marketing: Branding & Consideration Interactive Marketing: Branding & Consideration Presentation Transcript

  • Branding and consideration page 1
  • Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities page 2
  • “A brand for a company is like a reputation for a person. You earnreputation by trying to do hard things well.” Jeff Bezos, founder of Amazon.com page 3
  • Definition of Branding Branding …  is the entire process involved in creating an unique name and image for a product (good or service) in the consumers mind through advertising campaigns with a consistent theme.  aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. (Source: Businessdictionary.com, 2009) page 4
  • Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities page 5
  • Top 25 most valuable brands 2009Bill. US $ 68,7 70 60,2 60 56,6 47,8 50 40 34,9 32,9 32 31,3 30,6 28,4 30 24,1 23,9 22,8 22 21 21,7 19 20 17,8 17,5 15,4 15,4 15 13,7 13,7 13,3 10 0 Ex M M ia W i de r d s co fé nz ng a e G s Sa da l o tt- n e y E e ft tte e M on ta te ps es d ol pl or so cl gl G ok & IB ce cka ca Lo BM yo Be In is al su on itt ile Pe ra C H oo Ap lb pr ro is N C on es To V m G O ar H a D a s ic s oc cD N P M ui anC M le ic er ew er M H Am Source: Interbrand, September 2009 page 6
  • The Interactive-Tableau helps to structurecommunication activities Communication cycle Branding Consideration Transaction CRM PR Possible crossmedia integration PP + Progr. Print TV Online DM + Mobile Outlet page 7
  • Product placement / programming page 8
  • Product Placement Product Placement is an advertising technique used by companies to subtly promote their products through appearances (integration of products into the plot) in film, television, or other media. Benefit: Product is not perceived within an advertising context, but as part of the plot. Source: Businessdictionary.com, 2009 page 9
  • Examples – Sex and the City Do you imagine a shoe brand when you see these pictures? page 10
  • Examples – Sex and the City + Manolo Blahnik No classic advertising, but close to 99% aided brand awareness in relevant target group. That‟s the result of brilliant strategic and operational PR work. page 11
  • Examples – Sex and the City (The Movie) Movie or advertising? page 12
  • Examples – Sex and the City (The Movie) „Women come to New York for the two Ls: Labels and Love“ Designers Roger Vivier Gucci Adidas Manolo Blahnik Diane von Furstenberg Vera Wang Burberry Vivienne Westwood Hermès Oscar de la Renta Swarovski Louis Christian Louboutin Carolina Herrera Hello Kitty Chanel Prada Christian Lacroix Dior Tiffany and Co. Lanvin Ferragamo Escada Nike Versace Sips and Snacks Gadgets Stores & Services Publications Starbucks Apple Henri Bendel Vogue Pellegrino iPhone Scoop New York Post Skyy Vodka Blackberry Bluefly.com Page Six VitaminWater Duane Reade Entertainment Weekly Bang & Olufsen Smart Water Manhattan Mini Storage New York magazine Dell Bag Borrow or Steal Netflix Marie Claire Pret a Manger Cuisinart U-Haul The Wall Street Journal Cup of Noodles Sprint page 13
  • Programming Programming / Advertiser-founded programming (AFP) is thedevelopment, planning and realization of television / movie formats together with a brand. General Motors promoted its new Pontiac GTO in the movie “The last ride” in 2004. (Source: absatzwirtschaft, 2005) page 14
  • Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities page 15
  • Brand game page 16
  • Human personalities and Greek gods Robust Rationality Fortitude Brave Intelligent Robin Nelson Hood(Prometheus) Authentic Mandela(Hephaistos) Alice Reliable Schwarzer(Artemis) Lance Freedom-loving J. W. von Armstrong(Herkules Well-behaved ) Bruce Goethe(Apollo) Willis(Ares) James Bond Evita Perón(Helena) Honest (Zeus) Spirited Mick Gentle Jagger(Diony Thomas sos) Impassionate Gottschalk (Hermes) Intellect Julia Desire Roberts(Aphrodite) Bright / Happy Charming(Source: McKinsey & Company, Hajo Riesenbeckund Jesko Perrey, Mega-Macht Marke, p. 189) page 17
  • The brand personality gameboard (BPG) Robust Rationality Fortitude Brave Intelligent Robin Hood Mahatma Gandhi Authentic Jever Camel Nelson Mandela Alice Schwarzer Reliable Lance Armstrong Freedom-loving NIVEA Beck„s Well-behaved Richard v. Weizäcker Volksbanken Bruce Willis Honest Goethe James Bond Lucky Strike Spirited Radeberger Evita Alfred Biolek Gentle Mick Jagger Günther Krombacher Impassionate Jauch Thomas Robbie Warsteiner Williams Gottschalk L„Oréal Intellect Julia Roberts Desire Bright / Happy Charming(Source: McKinsey & Company, Hajo Riesenbeckund Jesko Perrey, Mega-Macht Marke, p. 191) page 18
  • Krombacher and Günther Jauch negative O positivePersonality traits -40 +40 Gentle Krombacher Charming Günther Jauch Successful Intelligent Bright / happy Impassionate Spirited Brave Freedom-loving Reliable Robust Honest Well-behaved AuthenticSource: Riesenbeck / Perrey (2004), p. 196 page 19
  • Success factors of brand management Strong brands are…  …continuous.  …sustaining and maintaining its brand name.  …not changing their positioning, target group or public appearance from day-to-day. (Source: Riesenbeck / Perrey (2004), p. 31) page 20
  • Persil The brand Persil page 21
  • Persil page 22
  • Persil Centennial success story of a detergent brand:  Always innovative, without changing personality  "Top-brand 2008”  External appearance almost unchanged  More than 20 variations have been invented  Market share: 37%  1907 „First self-acting detergent“  1959 „First synthetic detergent, non-sensitive concerning water-hardness“  1986 „First phosphate-free detergents“  1994 Persil Megaperls  1998 Persil Tabs  2002 Persil LIQUITSSource: Riesenbeck / Perrey (2004), p. 31 ff., www.persil.de page 23
  • The cowboy always works – Camel is searching Market shares of branded cigarettes Smoking Riding Smoking Smoking in percent cowboy cowboy cowboy cowboy 40 Marlboro: high advertising consistency 35 30 25 20 Camel: inconsistent advertisement 15 Smoking Camel in Smoking Kangaroo in Funny Relaxed camel-man front of adventurer in the desert dromedary young the jungle 10 pyramid character people 5 0 Year* 1988 89 90 91 92 93 94 95 96 97 98 99 2000 01 2002 1900 1900 1900 1900 1900 1900 1900 1900(Source: Riesenbeck / Perrey (2004), p. 33, * since 1991 incl. East Germany) page 24
  • Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities page 25
  • Typology of brands I Typology characteristics Brand types Examples Institutional position Producer brand Jacobs Krönung Trade brand Albrecht coffee Service brand TUI Geographical coverage Regional brand Südmilch National brand Ernte 23, Mark Astor International brand Opel, EC-card Global brand Coca-Cola Vertical range within the supply- Vanishing preliminary product brand Duraterm-Chromium-ignition plug chain Accompanying preliminary product brand Sympatex, Intel Finished product brand Boss-Suit Amount of brand owners Individual brand Rosenthal Collective brand Gruppe 21 Amount of marked goods Single brand Odol Product group brand Nivea Umbrella brand SiemensSource: Ansätze zur Typologisierung von Marken, Bruhn, Kommunikationspolitik, edition 1997, p. 1447 page 26
  • Typology of brands I Typology characteristics Brand types Examples Market levels Primary brand Henkel Trocken Secondary brand Carstens SC Tertiary brand Rütgers Club With regards to contents of the brand Enterprise brand Bahlsen cookies Fantasy brand Merci-chocolate Utilization of perceptional Underberg (melody) Acoustic brand instruments Optical brand Mohr von Sarotti Instruments of marking Olfactory brand (smell) 4711 Tactile brand (touch) Nylon Way of marking Word brand Daimler-Benz Picture brand Mercedes star Knowledge of Company-labeled brand Bahlsen Choco Leibniz producer Third party brand Palazzo (chocolate cookies)Source: Ansätze zur Typologisierung von Marken, Bruhn, Kommunikationspolitik, edition 1997, p. 1447 page 27
  • Brand functions out of different perspectives Company Intermediary Consumer • Differentiation from • Reduction of own sales • Orientation guide and competition and signaling risk facilitation for information quality reception and processing • Image transfer (from • Building customer brand leader towards • Signal of quality and preferences and loyalty intermediary) reduction of risk • Creation of market entry • Limitation of own • Communication of an barriers for competitors consulting activities by experience value sales staff • Establish a price • Self-expression (of premium individual taste, group membership or social • Creation of a platform for status) new products (introduction with established brand name)(Source: Homburg/Krohmer, Marketingmanagement, 2003, p. 517) page 28
  • Challenges for brand management Market / Competition Product  Product inflation International market Deregulated national markets  Reduction of product life cycle New competitors  Equality of brands Concentration (M&A)  Increasing flop rates Communication Brand  New information- and  Increasing costs of brand communication technologies management  Declining efficiency of Brand  Undifferentiated brand profiles communication erosion - Trade Consumer Brand value  Increasing emancipation and  Changed consumer needs power of the retailer -  Variety seeking  New management concepts Business  Fragmentation of target groups  Increasing importance of retailer success  Stimulus satiation brands  Individualization (Source: Esch, F.R. / Wicke, A. (2002): Herausforderungen und Aufgaben des Markenmanagements, in: Esch, F.R. (Ed.): Moderne Markenführung, 3. edition, Wiesbaden, p. 3-60) page 29
  • Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities page 30
  • Instruments of the Web 2.0 Ad games Peer-to-Peer Auctions Avatars Podcasts Blogs Online advertising IP TV Source: IMG (2006) page 31
  • Online advertising has high growth rates Online advertising is …advertisement, which is communicated in different ways over the medium Internet. 1. Classic online advertising OVK advertising statistic 2007 and 2008 with forecast for 2009 in mill. Euro by segments  Branding orientated or transaction orientated  Banner, e-mail advertising, layer ads… 2. Key word advertising  Transaction orientated advertising  Context relevant insertion of advertising links depending on the entered search term (e.g. on Google) 3. Affiliate advertising 2007 2008 Forecast 2009  Mutual placement of advertising and accordingly advertising links in a Affiliate networks Key word advertising partnership of websites Classic online advertising Source: OVK (2009) page 32
  • How key word advertising works Key word Key word advertising  Enter search term on Google  Display of specific search results  Display of advertising links dependent on entered key word in the beginning (context relevant advertising) Implications  Sales management  Stronger perception of advertisement due to higher relevance Ordinary Context relevant search results advertisement Source: Google (2006); IMG (2006) page 33
  • Google  Google is No. 1 search engine in Germany with more than 17 mill. users. Development of market shares  Google is the fifth largest homepage worldwide.  In Germany, 87,1% of the Internet traffic, which is generated by search engines, is induced by Google. Search Engines  Google is provided in 124 languages.  In 2008 Google launched its own Browser (Chrome) and gained a total revenue of 22.5 bill. USD. page 34
  • Google tools and services Google Maps / Street View: since 2008 Google is taking pictures of German neighborhoods Google Books: Google‟s newest project contains the scanning of about a million non- protected books, in order to provide them online. page 35
  • Three ways Google is earning money with2.) Paid placement: The one who pays most, will be listed on top. 1.) Key word advertising 3.) License model: Like in case of software, buyers of the license are paying Google for the right to merchandise Google‟s know how on their own web pages. page 36
  • Instruments of the Web 2.0 Ad games Peer-to-peer Auctions Podcasts Avatars Online Blogs advertising IP TV Source: IMG (2006) page 37
  • Avatars Avatar describes…  …an artificial person or a graphic representative of a real person in the Internet.  Avatars may be displayed in form of a picture, icon or as 3D figure of a human. Impact of avatars  Avatars possess a higher influence on the user, if the similarity compared to the own character is perceived as higher. Source: Bauer et al. (2005) page 38
  • Avatars as sales representatives for brands Avatars interact with customers: Benefits  adaption to the consumer in appearance (1) Generation of user related and behavior data (2) Acceptance testing of new products (3) Trend analysis (4) Gaining of new customers  giving product recommendations (5) Commitment of existing  answering questions concerning particular products and utilization customers Source: IMG (2006) page 39
  • Instruments of the Web 2.0 Ad games Peer-to-peer Auctions Podcasts Avatars Online Blogs advertising IP TV Source: IMG (2006) page 40
  • Podcasts Podcasts… …are available online as video or audio clips …consist of reports of relevant topics in society (e.g. business, lifestyle, entertainment or food) • Staff members upload • Staff members • Private persons • Private persons • Press • Press download Benefits (1) Innovative approach to address special interest consumers and experts (retailer, press, etc.) (2) Gaining of new customers (3) Retention of existing customers Source: IMG (2006) page 41
  • Instruments of the Web 2.0 Ad games Peer-to-peer Auctions Podcasts Avatars Online advertising Blogs IP TV Source: IMG (2006) page 42
  • Blogs Blogs are…  … websites, which contain periodicallynew entries.  Most of them are published by private persons  and serve the exchange of opinions of users among each other. Implications:  Topics primarily discussed in blogs are taken over from the established press in the meantime.  Blogs are accepted as opinion leader. page 43
  • Blogs enhance interaction with the brand Possible areas of application Benefits  Managers (executive board, directors, etc.) are (1) Trend analysis telling about job, highlights or private belongings  Feedback and discussions of employees in the (2) Monitoring of product management blog acceptance  Public forums about topics like work, living, (3) Active complaint food or brand relevant areas of life  Assistance from mentor of the enterprise management  Blogs for daily exchange of ideas and solutions concerning important topics among brand products (4) Retention of existing (B2B and B2C) customers  Exchange of tips, tricks and recommendations of (5) Gaining of new utilization between consumers  Individual consulting from experts of the company customers Source: IMG (2006) page 44
  • Case study: Dell Computer - Blogging 21thof June  First post from Jeff Jarvis 26th of June  Jarvis considers to switch from Dell to Apple 30th of June – 1st of July  Top blogger Scoble, Calacanis, Rubel and Silverman are following 1st of July  „Blog Business Summit“ concludes, that Dell interpreted the blog entries falsely  Jarvis gets ranked on 5th place at Google for “Dell sucks“ 8th of July  Dell reports troubles with closing down customer forums 17 th of August  Jarvis writes an open letter to Michael Dell 23th of August  Dell changes its blog policy “Look & don„t touch“ – Consumer service is now scanning blogs 25 th of August  Jarvis locates his story in BusinessWeek online. He receives emails from Dell‟s PR manager 27 th of August  Jarvis locates his story in the printed edition of BusinessWeek 29 th of August  Jarvis receives a warmbut peremptory call of the Dell PR manager page 45
  • Case study: Development of Dell„s stock price First post Dell publishes from Jarvis quarterly figures Jarvis‟ open letter to Michael Dell Story appears in BusinessWeek online Last Dell post Top blogger are following Dell closes down customer Jarvis‟ page gets forums ranked on 5th place for “Dell sucks“ Dell changes blog policy Jarvis is attacked from PR page 46
  • Instruments of the Web 2.0 Ad games Peer-to-peer Auctions Podcasts Avatars Online Blogs advertising IP TV Source: IMG (2006) page 47
  • Online Auctions Auctions Offerings Auctions Demand  Private persons  Special offers or new developments  Registered retailer  Limited products with  Registered reseller special design  Private products Benefits (1) Gaining new customers (2) Market research instrument for early detection of new trends (3) Testing new products (4) Testing market related willingness to paySource: IMG (2006) page 48
  • Instruments of the Web 2.0 Ad games Peer-to-peer Auctions Podcasts Avatars Online Blogs advertising IP TV Source: IMG (2006) page 49
  • Ad-Games Ad games…  …are games, which serve advertising in an entertaining way (advertainment / in-game advertising) and containadvertising banner or products.  …are also used by non-commercial enterprises and institutions to communicate their message.  …posses a great significance for young customers, since long-lasting relationships with brands are often initiated under 17 years.  …on gateways are good opportunities to address young and fashion-conscious recipients. iPhone Game Volkswagen Scirocco R 24H Challenge page 50
  • Ad games - Examples Benefits Moorhuhn(1) Consumers are engaged voluntarily and in an active way with brand or product(2) Avoid advertising reactance(3) Brand management (linkage of brand with entertainment)(4) Gaining of new customers(5) Customer retention“While almost 90 percent of all test persons regard TV-spots as disturbing, advertising in ad games is Created 1999 by Phenomedia as ad game for appreciated from more than 50 the Scottish whiskey brand Johnnie Walker percent.” Source: Institut für angewandte Kommunikationsforschung (2002) page 51
  • Instruments of the Web 2.0 Ad games Peer-to-peer Auctions Podcasts Avatars Online Blogs advertising IP TV Source: IMG (2006) page 52
  • IP TV Internet Protocol TV (IP TV)…  …describes thedigital transmission of television programs and movies.  …is only receivable via broadband connection.  …is used for:  Broadcast TV (reception of multicast video streams, also referred to as live TV).  Video on demand (virtual video shop).  Internet TV (playback of video streams). Benefits (1) Innovative approach to address special interest consumers and experts (retailer, press, etc.) (2) Increases the significance of brand relevant areas of life by placement of channels or programs about lifestyle topics (3) Customer retention and gaining of new customersSource: IMG 2006 page 53
  • Economic significance of IP TV Study of Goldmedia (2010):  More than 3.8 mill. households will use IPTV in Germany until 2014  Utilization of video on demand enables (via the feedback channel Internet) various interactive services like shopping or online auctions on the TV screenSource: Goldmedia (2006) page 54
  • Instruments of the Web 2.0 Ad games Peer-to-peer Auctions Podcasts Avatars Online Blogs advertising IP TV Source: IMG (2006) page 55
  • P2P is the decentralized diffusion of all types of files Peer-to-peer (P2P) Peer Peer  Describes the communication among equals.  Within a P2P network all computers are equal.  No central database (every peer makes a part of the existing information available). No controlling  No peer administrates (or knows) the total stock. entity  Peers are autonomous. Peer Peer  Nocentral entity, which is navigating or coordinating interactions.  Peers, connections and information are not reliable. Due to the lack of controllability, an implementation of the P2P technology for objects of an enterprise seems not to lead to success. page 56
  • Example - simfy What is simfy? • simfy gives you the possibility to share your music with your friends, legally and without having any bad conscience • simfy is your music stored at one place and available from everywhereMarketing / commercialization options FORMATS & PRICES MEDIA DATA Music creates a lucrative Display, audio, video-ads – Simfy in facts andfigures right format for everyone advertising environment and as the number of users OFFERING PACKAGES Advertising packages – Discover our special increases, advertising gets matched with your needs forms of advertising more and more profitable Reach exactly your target (see facebook / StudiVZ) group Source: Simfy.de (2009) page 57
  • Outline 1. Definition of branding 2. Brands 2.1 Importance 2.2 Classification 2.3 Functions 3. Instruments of the WEB 2.0 4. Brand communities page 58
  • What is the difference between these two products? quality, technique, design? The social cover! page 59
  • History of communities Traditional Functionalization Individualization New forms of communities “society" "Cocooning" communities e.g. family, clans, village e.g. contract orientated groups, e.g. singles, dropouts, big city e.g. virtual communities, communities, cliques, churchly transaction communities residents consumption communities, communities Brand Communities  Common origin (geographic  Weak relationships  Release of the ties of  Physical adjacency no or relatedness)  Functional interests traditional communities longer required (“global  Strong relationship  Commercialization  Individual freedom village“)  Shared identity  Transaction orientation  Self-actualization  Identification via shared  Reciprocity  Information procurement  Search for identity interests, values or ideals  Trust  Enjoyment orientation and  Community as value hedonism Values Functional needs Individual needs Symbolic decisive decisive decisive consumption decisive Source: University of St. Gallen (2006) page 60
  • From core product towards social experience (1/2) Social interaction Needs Control conception Emotional Individual as part of a Social experience social network orientation (e.g. brand community) Brand Added value Art, lifestyle orientation Hotline, Consumer Core 24-hours service orientation product Attractive, quality products Product for affordable prices orientation  Consumption became a social act of symbolic self-expression  The brand is the connector of social interactions in this process Source: University of St. Gallen (2006) page 61
  • From core product towards social experience (2/2) Core product Added value Emotional experience Social experience I revive your spirits! I am practical! I make you stylish! We are friends! Social reasons for buying: The brand creates a new social standing / contacts for the consumer  Customer value: Contribution to shaping of identity, group experiences and encounter platform Consequence: Affective brand loyalty (emotions, love relationship) page 62
  • Brand communities and their characteristics (1/3)  Uniting fans, admirers and customers with basic interest of the brand  Members represent strong market for license products and Compare & compete:  Save your runs and plot your results brand extensions  Discuss new tips and training tools  Members are also willing to  Share your playlists & powersongs  Join events like city marathons invest in shares of the enterprise  Social interaction Music & Entertainment  Based on interests Online Games Events  Not bound to time and place  Allow consumers a bigger influence on brand design page 63
  • Brand communities and their characteristics (2/3)  “We” feeling& social identity  Environment with high identification potential  Presence of shared rituals and traditions (allow to continue certain history or culture)  Members operate as “brand missionaries”, who carry brand message to other communities Members are motivated to give  Hosting or joining a home party feedback to company  Join an online party  Online and / or offline page 64
  • Brand communities and their characteristics (3/3) Sony„s Playstation / Nintendo„s Wii  Members are more likely to forgive product imperfection or a lack of service quality  Members are less willed to switch brand, even if products of competitive brands provide better Providing: blogs, forums, events, downloads, network gaming, etc. performance characteristics  A sense of moral responsibility (towards community and other members)  Members represent a valuable source of information for brand MTV community contains areas like: multiplayer games, blogs, contests, events or activism relevant topics page 65
  • Example: Harley DavidsonRelevance of events for community building: European Posse Ride Attraction Integration Deepening Validation Attraction  Chapter information  Arrival in groups  T-shirts  Certificates  Chapter activities  Direct mailing  Welcome event  Story nights  Honors  Story telling  Word of mouth  Passports  Daily challenges  Farewell event  Oath Meet & Greet in Paris Word of mouth Excitement Challenge Affirmation Pleasant anticipation  Community formation process: The aim of these activities is to develop long-term relationships between the customers and towards the brand.  Role of the company: Enabler, not in the centre of interest (fascination), concentration on customer interaction, detailed planning of the event.  Problem: Relationships are breaking after an event page 66
  • Brands will clearly benefit from brand communities Delphi study „Interactive Marketing 2020“ Affirmation from Thesis concerning brand communities marketing experts (in %) 1. The brand is benefiting from the interactionwith 100% consumers. 0% 100% 2. Exchange of ideas and information with other consumers (via brand communities) is leading to 90.9% higher brand attraction. 0% 100% 3. Consumers are voluntarily engaged with brands and are thereby encouraging the exchange of information 87% between company and consumers. 0% 100% 4. The communication between consumers in brand communities has a significant impact on brand 81.8% choice. 0% 100% Source: University of St. Gallen & University of Mannheim (2006) page 67
  • Economic relevance of community marketing Social arguments for Functional arguments Brand loyalty has a rational and a social purchasing for purchasing component Brand Loyalty Brand loyalty  Functional and social aspects are in (Word of Mouth) (WoM) principle equally weighted components 0,39 0,19  Only community marketing not enough! 0,17  Social aspects of consumption (customer Customer Customer involvement) have the biggest impact on the Trust Trust Satisfaction Satisfaction involvement Involvement willingness of recommendation for a brand 0,61 Community marketing is cash-relevant: 0,59 0,69 0,61  The combination of product quality and Community Community Product Product social cover is encouraging the frequency of quality Quality quality Quality purchase and is resulting in a higher willingness to pay Building up differentiation potentials via Bottom line: Social arguments for purchasing (via community value: brand community) have same impact as functional  Social criteria are less replaceable than arguments, for creation of brand loyalty service componentsSource: Herrmann / Löwenfeld, 2004 page 68