Branding 2.0: Creating Strong Brands Through Interaction

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Presentation about how the social media phenomenon has changed the concept of branding. In this new era, strong branding is all about interaction.

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  • Hello everyone my name is Kara Scharwath. For our last installment this morning, I’m going to talk about how the social media phenomenon has changed the concept of branding and show that in this new era, strong branding is all about interaction. Before social media, branding was essentially a one-way communication from company to consumer.
  • Before social media, branding was essentially a one-way communication from company to consumer. A company developed ads designed to portray the image it wanted to embody and would broadcast them out to consumers. Through advertising and PR, companies were able to exert a significant amount of influence over the information that people received about the company.
  • Through advertising and PR, companies were able to exert a significant amount of influence over the information that people received about the company. Branding was really about trying to control the corporate brand and message in this way. If an undesirable story or message got out, companies would try to counteract that negative message.
  • If an undesirable story or message got out, companies would try to counteract that negative message. Case in point: after initially refusing to communicate about the Valdez spill, Exxon spent $1.8 million to apologize on full page ads in 166 newspapers. In terms of communication from customer back to the company, these channels were really limited…
  • In terms of communication from customer back to the company, these channels were really limited to customer service calls, complaint letters, and the occasional focus group or survey. This relationship was distant and static. Social media has completely transformed this relationship.
  • Social media has completely transformed this relationship. My favorite example of this change comes from Dell. In June 2005, the blogosphere exploded with complaints after a popular blogger wrote about his horrible experience with the company. Shortly after, a Dell laptop caught on fire at a conference in Japan.
  • Shortly after, a Dell laptop caught on fire at a conference in Japan. These photos quickly spread across the Internet. Up until this point, Dell had not been tracking or responding to the online buzz about their faulty products. The company scrambled to catch up to this new online reality by launching an online media strategy and blog.
  • The company scrambled to catch up to this new online reality by launching an online media strategy and blog. They responded to the laptop fire with a post aptly named “Flaming Notebook” and were quickly praised for finally joining the conversation. Dell’s response was so well-received because it was authentic.
  • Dell’s response was so well-received because it was authentic. They didn’t deny what happened. They engaged in an honest, open conversation with bloggers and customers and even managed to poke fun at themselves a bit. In this new era, brands are created by how people experience them online and in their everyday lives.
  • In this new era, brands are created by how people experience them online and in their everyday lives. It’s all about interaction. What can people do with your brand? Google is the quintessential example. Their brand is a verb. It’s something you do. So, what can companies do to leverage this new paradigm?
  • So, what can companies do to leverage this new paradigm? Well, the first step is simple. They need to LISTEN. They need to embrace social media tools like Twitter to track what people are saying about their company and industry. Brands need to try to own the conversation in their brand space but stop trying to control the outcome.
  • Brands need to try to own the conversation in their brand space but stop trying to control the outcome. With its Campaign for Real Beauty, Dove provoked an open debate about the true meaning of beauty which redefined their role in that industry. Companies also need to be authentic by delivering on the experience they promise to people.
  • Companies also need to be authentic by delivering on the experience they promise to people. Red Bull says that its energy drinks will give you wings. To reinforce this brand promise they created a daredevil air race that tours the globe. But they didn’t stop there. They also created a virtual game and corresponding Facebook application.
  • But they didn’t stop there. They also created a virtual game and corresponding Facebook application. By showing people what it feels like to fly a plane 400 miles an hour 10 feet off the ground, they really deliver on their promise. Companies also need to engage people and make them part of their brand.
  • Companies need to engage people and make them part of their brand. Doritos asked their fans to make Superbowl commercials which viewers then voted on during the game. This got people interacting with their brand in a very real, and also fun way. With their shoe customization application, Nike has turned the act of picking out shoes into an art form.
  • With their shoe customization application, Nike has turned the act of picking out shoes into an art form. People can create their own unique designs, share them with friends and even make them into desktop wallpaper. Some companies are further leveraging brand interactions by using consumers’ ideas and opinions to inform their corporate decision-making
  • Some companies are further leveraging brand interactions by using consumers’ ideas and opinions to inform their corporate decision-making. Pepsi uses its Refresh Project to help match their corporate philanthropy efforts with community needs. Companies are also getting more and more creative with interactive branding.
  • Companies are also getting more and more creative with interactive branding. IKEA just launched a computer application that helps you organize your desktop using one of their shelving organization systems. This is extremely useful to people and fits perfectly with the IKEA brand. So, in summary, Branding 2.0 is about creating authentic, useful and enjoyable branded experiences for people.
  • So, in summary, Branding 2.0 is about creating authentic and creative branded experiences for people. If there is one thing you take away from this, it should be that branding is about creating opportunities for interaction.
  • Branding 2.0: Creating Strong Brands Through Interaction

    1. 1. Branding 2.0: Creating Strong Brands Through Interaction Kara Scharwath Managerial Marketing Presidio Graduate School March 19, 2011
    2. 3. Brand Message
    3. 4. <ul><ul><li>Exxon Valdez: $1.8 million for apology ads </li></ul></ul>
    4. 5. CUSTOMER COMPANY
    5. 6. June 5, 2005 : Blog Posts from Jeff Jarvis “… read the comments to see what their real public relations look like .” “ Dell lies. Dell Sucks. Is anybody at Dell listening? What do you have to say, Dell?”
    6. 7. June 21, 2005 : Conference in Osaka, Japan
    7. 8. July 13, 2005 : “Flaming Notebook” Post from Dell RESPONSE: “ Glad to see you join the conversations… .” POST: “… there is no update on the now infamous ‘flaming notebook’.. .”
    8. 9. THE REAL DEAL
    9. 10. Interaction IS Brand is a verb
    10. 11. #1 Listen
    11. 12. #2 Relinquish Control
    12. 13. #2 Be Authentic #3 Be Authentic
    13. 15. #4 Make them part of your brand
    14. 16. #5 Let them make it theirs
    15. 17. #6 Leverage Their Input
    16. 18. #7 Think of creative opportunities for interaction
    17. 19. Branding 2.0: Listen. Be Authentic. Create Experiences. It’s all about INTER- ACTION.
    18. 20. Thank You. Kara Scharwath Presidio Graduate School
    19. 21. References 154 Blue Chrome Rain Social Media Icons. (n.d.). Flickr . Retrieved March 12, 2011, from http://www.flickr.com/photos/webtreatsetc/4091128553/sizes/o/in/photostream/ Bass, A. (n.d.). Branding 2.0. BrandChannel . Retrieved March 9, 2011, from http://www.brandchannel.com/papers_review.asp?sp_id=1318 Doritos® and Pepsi MAX® Present: CRASH THE SUPER BOWL. (n.d.). Retrieved March 14, 2011, from http://www.crashthesuperbowl.com/ Dowler, M. (2011, March 13). Twitter / Melissa Dowler: Interaction IS brand. Goog ... Retrieved March 14, 2011, from http://twitter.com/melissadowler/statuses/47051807293308928 Interactive ad: IKEA: e-Folder set. (2011, March 7). Best Ad on TV . Retrieved March 10, 2011, from http://www.bestadsontv.com/ad/34931/IKEA-e-Folder-set Joyce, M. (2011, March 13). Twitter / Michael Joyce: Connected Brands Futures p ... Retrieved March 14, 2011, from http://twitter.com/MPJoyceII/status/47051932879159296 Korngold, A. (2011, February 3). Crowdsourcing: Yesterday's Corporate Philanthropy Is Today's Branding and Community-Building. Fast Company . Retrieved from http://www.fastcompany.com/1723858/crowdsourcing-yesterdayrsquos-corporate-philanthropy-is-todayrsquos-branding-and-community-b Le Poole, W. (2010, September 16). Branding In Social Media. ViralBlog . Retrieved March 5, 2011, from http://www.viralblog.com/online-marketing/branding-in-social-media/ Li, C., & Bernoff, J. (2008). Groundswell . Boston, Massachusetts: Harvard Business Press. Monberg, J. (2011, February 25). Authenticity Is King Because Branding Bores Everyone. Fast Company . Retrieved March 6, 2011, from http://www.fastcodesign.com/1663269/authenticity-is-king-because-branding-bores-everyone NIKEiD. (n.d.). Retrieved March 14, 2011, from http://nikeid.nike.com/nikeid/index.jsp Shapiro, J. (2010, March 10). Corporate Branding Goes Rogue. Ad Age . Retrieved March 5, 2011, from http://adage.com/article/digitalnext/corporate-branding-rogue/142734/ Smith, R. (2007, Spring). Public Relations, Case Studies, Exxon Valdez. Buffalo State College . Retrieved March 11, 2011, from http://faculty.buffalostate.edu/smithrd/PR/Exxon.htm

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