A Brand for All Media - Consumer Brand Relationships and their Influence on Franchise Development in the Changing Media Landscape

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Moving from Traditional Consumer Perspectives to Consumer Brand Relationships

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A Brand for All Media - Consumer Brand Relationships and their Influence on Franchise Development in the Changing Media Landscape

  1. 1. A Brand for All Media Consumer Brand Relationships and their Influence on Franchise Development in the Changing Media Landscape Max Blackston, Melissa Kalish, Ed Lebar February 2014
  2. 2. The Changing Landscape • • • • Digital/mobile/social has fundamentally changed the way people and brands interact and challenged established norms in understanding, developing and measuring brands. New distribution and communication channels, dramatic innovations impacting the shopping experience and the fact that brand owners now share control of their reputation with consumers have, at the same time, created opportunities for marketers to build stronger and more meaningful connections with their audiences. To take advantage of these new opportunities, it is no longer sufficient to think of and measure brands in traditional ways, i.e. brand attributes, awareness, consideration and usage. To build stronger consumer engagement and advocacy, and fully take advantage of new communications opportunities, it is necessary to deeply understand the nature of the relationship between consumer and brand so that appropriate messages and communications channels can be optimized.
  3. 3. Moving from Traditional Consumer Perspectives to Consumer Brand Relationships • Understanding brand relationships is just like understanding any other relationship. • In the consumer/brand relationship – as in all relationships – there are two participants, two sets of attitudes being expressed, and two sets of behaviors that need to be understood before the nature of the relationship can be understood. • This means that we need to listen to both sides of “the conversation”
  4. 4. Listening to both sides of the conversation There is a dialogue between brand and consumer going on inside the consumer’s mind • In most research we elicit and measure only one side of that dialogue – the one that reflects consumers’attitudes toward the brand – brand image • But there is a second side to this dialogue, which reflects the brand’s attitudes toward the consumer, which are a measure of how someone feels as a result of interaction with the brand Essentially, we need to ask the consumer not only what s/he thinks of the brand, but also what the brand thinks of him or her • Not just Brand Perceptions – what you tell consumers about your brand – but also Brand Attitudes – what you make your brand tell consumers about themselves • Not just Brand Use - what the consumer does with your brandbut also Brand Experiences - what your brand does with the consumer
  5. 5. Our Perspective on Brand Relationships Not just what you tell consumers about your brand or what the consumer does with your brand. Based on relational psychology. Brands is seen Brand Relationship are as “Transitional Objects” defined by the tells consumers about themselves - and what it Brand relationships are combination of a specific defined image with a brand by the combination of Brand Perceptions Brand Perceptions /Attitudes specific attitude of the and Brand Experiences. brand; Brand Relationships are a two way street. But also what your brand tells consumers about themselves - and what the brand does with the consumer
  6. 6. Five Universal Relationships • • • • • Reinforcement Identification Role Model Self-Differentiation Playful
  7. 7. BRAND ATTITUDES/EXPERIENCES Self-Esteem BRAND PERCEPTIONS Functionality • Performs well • Satisfaction Emotional Attachment • Love it • Fits my life • Makes me look good to others • Makes me feel good about myself Self-Expression • Simplifies my life • Helps me express myself • Frees me to be myself Mentoring • Challenges me to think differently • Teaches me • Inspires me • Shares my values There For Me • Appreciates my biz • Recommended by people I care about • Responds to my needs • Has my interests at heart Pleasure • Brings back good memories • Provides a little treat for me • Excites me Reinforcement Your brand of choice makes you look and feel good Identification Let the brand you love tell the world who you are Charisma Role Model • Dynamic • Excitingly innovative • Leader • Progressive Be empowered by brands that lead the way Positive Differentiation • Distinctive • Unique Relaxed & Stylish • Fun • Cool • Easy • Friendly • Stylish • Different SelfDifferentiating Let a brand with a difference make a difference to you Playful Fun brands that are just to enjoy
  8. 8. Consumer Brand Communication (Word of Mouth) Paid and Earned Media and Brand Relationships and Franchise Development
  9. 9. Classification of media and other sources of consumer information about brands (With Caveats) Traditional Media Digital Media Personal Contact Website Social Media In-Store Owned Advertising Sponsorships Digital Advertising Social Media In-Store Events Paid News/Editorial Social Media (WOM digital) WOM (human) Earned Caveats: • ‘Content marketing’ as we’ve been discussing crosses many categories… it can be owned or paid and found across channels • Social Media is tricky since it can be generated by the company, sponsored by the company or consumer generated (e.g. commentary or earned viral sharing) • Sponsorships can be ad-oriented or event oriented; hence the ‘Events’ in paid • In-Store can be owned (Walmart, Nike, etc.) or paid, depending on the brand The data collected in this study was not sufficiently fine-grained to be able to make these distinctions. Based on the analysis, it is our belief that social media referred principally to the unpaid sort, while internet and websites referred to brands’ websites. Although we are using the terms paid and unpaid, the real significance of these terms is brand-controlled vs. non-controlled. (Thus, for example an ad posted by someone on YouTube might fall into the latter category).
  10. 10. The Influence of Media and Brand Relationship Equity on Brand Franchise Development • • • The model proposed here specifies that brand franchise development – use, use frequency and brand preference – is a function of Brand Relationship Equity and Media Exposure. There are significant levels of correlation between media exposure and BRE, but the model does not assign a causative relationship to these associations (they probably work in both directions). Using SEM rather than ordinary regression allows estimation with explicit correlation between the “independent” variables without biasing the estimates. With the exception of In Store and Traditional Media, correlations between exposure of brands in different media are not high; with this one exception, the media variables have therefore been treated as independent of each other, in order to avoid over-specifying the model.
  11. 11. Consumer Brand Relationships and Word of Mouth best at Creating Use and Preference • The model proposed here specifies that brand franchise development – use, use frequency and brand preference – is a function of Brand Relationship Equity and Media Exposure. • There are significant levels of correlation between media exposure and BRE, but the model does not assign a causative relationship to these associations (they probably work in both directions). Using SEM rather than ordinary regression allows estimation with explicit correlation between the “independent” variables without biasing the estimates. • With the exception of In Store and Traditional Media, correlations between exposure of brands in different media are not high; with this one exception, the media variables have been therefore been treated as independent of each other, in order to avoid overspecifying the model. • Traditional Media acts as an initiator
  12. 12. The Power of CBR, Digital and Traditional Media Depends on the Product Category For non-digital brands as a group, the two strongest media influences on brand franchise development are Word of Mouth and In-Store; websites and traditional media are significant too (no bars are shown for non-significant coefficients). There is however considerable variation between categories: • Social Media are significant influences both for hair care and mass market retail • Websites are massively influential on bank brands and – to a lesser extent – credit cards too. • Traditional media have their strongest influence for corporate and gasoline brands and for casual dining brands. • Word of Mouth and In-Store play a significant and strong role in most categories.
  13. 13. Relationships Summary • Identification prompts the most positive communication about the brand – whether or not people use it. – People can use brand communication as a form of self expression; that doesn’t mean they necessarily love the brand – or love it enough to use it.
  14. 14. Identification is the relationship with the most power; likely to prompt positive communication about the brand and discourage negative communication Communications About the Brand by Primary Brand Relationship - all Brands 100% 90% 24.3 31.0 31.1 27.8 30.6 net communication about brand positive 80% 50.4 70% no communication 60% 50% 40% 65.2 64.6 61.7 6.3 7.6 7.8 Differentiating Playful Total 62.7 30% 62.5 6.3 Role Model 44.6 20% 10% 10.5 0% 5.0 Reinforcement Identification Primary Relationship with Brand net communication about brand negative
  15. 15. Brand Relationships The Brands’ Customer Franchise Acquisition Growth Brand Perceptions Retention Maintenance
  16. 16. Brand Relationships Build Customer Franchises Acquisition of New Users is Influenced by Brand Relationships 4 of the Universal Brand Relationships contribute significantly to trial consideration among non-users Entertaining /Playful 0.54 0.48 Identification 0.38 0.22 Reinforcement SelfDifferentiating Acquisitions
  17. 17. Brand Relationships Build Customer Franchises Influence of Brand Relationships on Franchise Maintenance A different combination of relationships are significant influencers of brand preference among users 0.24 0.16 Identification Reinforcement Maintenance 0.10 Role Model
  18. 18. Relative contribution of Universal Brand Relationships to Pricing Power (improving customers “willingness to pay more”)
  19. 19. Brand Relationships Directly Influence Branded Business’ Valuations Relationship Equity Relationship Equity and Stable Franchise Size are both very significant Influences on Sales to Market Cap. multiple. .48 R2=.42 Market Cap. /Sales .43 Stable franchise Stable Franchise is defined as the percentage of customers saying they use the brand regularly less the percentage saying they do so only if there is no alternative.
  20. 20. Summary Consumer Brand Relationships Positively Impact 1. Acquisition 2. Retention 3. Pricing power/willingness to pay more 4. Valuation multiples 5. Consumer brand communication
  21. 21. 5 Universal Brand Relationships
  22. 22. BRAND ATTITUDES/EXPERIENCES Self-Esteem BRAND PERCEPTIONS Functionality • Performs well • Satisfaction • Makes me look good to others • Makes me feel good about myself Self-Expression • Simplifies my life • Helps me express myself • Frees me to be myself Mentoring • Challenges me to think differently • Teaches me • Inspires me • Shares my values There For Me • Appreciates my biz • Recommended by people I care about • Responds to my needs • Has my interests at heart Pleasure • Brings back good memories • Provides a little treat for me • Excites me Reinforcement Your brand of choice makes you look and feel good Emotional Attachment Identification • Love it • Fits my life Let the brand you love tell the world who you are Charisma • Dynamic • Excitingly innovative • Leader • Progressive Positive Differentiation • Distinctive • Unique Relaxed & Stylish • Fun • Cool • Easy • Friendly • Stylish • Different Role Model Be empowered by brands that lead the way SelfDifferentiating Let a brand with a difference make a difference to you Playful Fun brands that are just to enjoy
  23. 23. Reinforcement Your brand of choice makes you look and feel good
  24. 24. Identification Let the brand you love tell the world who you are
  25. 25. Role Model Be empowered by brands that lead the way
  26. 26. Self-Differentiation Let a brand with a difference make a difference to you
  27. 27. Study Methodology
  28. 28. Methodology 1 • Included 48 brands in 8 different product categories • Internet Survey of over 1500 respondents • 3 matched representative cells each evaluating 16 brands
  29. 29. Methodology 2 • Questionnaire • • • • Familiarity Brand Image and Personality Brand Experiences (Brands’ Attitudes) Brand “Touch” points (Advertising, Websites, Social Media, etc) • Brand Usage and Consideration • Overall brand evaluations • Other brand-related behavior *conducted by
  30. 30. Methodology 3 (Business Metrics) • Included 30 “mono brands” for which financial data available from public sources: • • • • • Market Capitalization Sales Operating Profit P/E Ratio Operating Margin

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