E-Branding - Branding For The Web Age by Netica


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A lecture I gave in Bar Ilan University on June 2007 about the basics of e-Branding, its role in the success of Web giants, and how we at Netica, use it to perform our services to the Israeli high-tech industry

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  • E-Branding - Branding For The Web Age by Netica

    1. 1. e-Branding Branding for the Web Age By Boaz Rossano 15 June 2007, Bar Ilan’s Int’l MBA program © 2007 Netica ltd.
    2. 2. What is branding? <ul><li>Samuel Maverick – A 19th century farmer: </li></ul><ul><ul><li>Allowed cattle to roam free, spared a hot branding iron. </li></ul></ul><ul><li>'Maverick' is an unbranded range animal. </li></ul>
    3. 3. The origins of branding <ul><li>Industrial revolution : the age of packaged goods </li></ul><ul><li>Factories placed logos on products to differentiate them </li></ul><ul><li>Branded products became well known (Coke, Kellogg, Quaker Oats) </li></ul>
    4. 4. The human need for branding <ul><li>In order to communicate with society, a person needs: </li></ul><ul><ul><li>To be remembered </li></ul></ul><ul><ul><li>To be trusted and loved </li></ul></ul><ul><ul><li>Human features : A face, name, family, friends, education, values, job </li></ul></ul>
    5. 5. What's in a company's brand identity ? <ul><li>Name </li></ul><ul><li>Symbol (Face) </li></ul><ul><li>Logo (Name + Symbol) </li></ul><ul><li>Family (Mother Company, Country of Origin) </li></ul><ul><li>Education & Values (Know-How & Technology, Culture & Behavior) </li></ul><ul><li>Friends (Market, Industry, Colleges/Partners, etc.) </li></ul><ul><li>Job (What does it do? In which field?) </li></ul>
    6. 6. What is a brand? <ul><li>Brand is the closest contact point to the customer – a memory or an association </li></ul><ul><li>Creating a brand is similar to strategic real-estate investments </li></ul><ul><li>Associating the Elite brand with love & indulgence gives them a lasting competitive advantage </li></ul>
    7. 7. What is a brand promise? <ul><li>Encountering a familiar brand is like meeting a friend . </li></ul><ul><li>Every brand holds a promise , an opportunity that attracts us. </li></ul><ul><li>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 </li></ul>
    8. 8. Why do companies need branding? <ul><li>In economic terms a &quot;brand&quot; is a device to create a monopoly </li></ul><ul><li>A customer pays $50 for the Levi's branded pants, but only $10-20 for the non-brand. </li></ul><ul><li>Brand = Money </li></ul><ul><li>Brand Equity = Branded product price – Unbranded product price </li></ul>
    9. 9. When do we develop the brand? <ul><li>Brand development begins with recognizing a need of a target audience </li></ul><ul><li>Brand is one of the product's characteristics: the human features that we need to interact with </li></ul><ul><li>Assumption: It’s a competitive market (non-monopolistic) </li></ul>
    10. 10. How do we build a brand? <ul><li>Market research / consumer surveys </li></ul><ul><li>Marketing maps / unexploited niches </li></ul><ul><li>Defining target audience </li></ul><ul><li>Creating the brand message & language </li></ul><ul><li>Analyzing interaction points - between customer and brand </li></ul><ul><li>Defining media strategy </li></ul><ul><li>Creating content for different media </li></ul><ul><li>Brand integration and maintenance </li></ul>
    11. 11. Selecting a brand name <ul><li>A good brand name : </li></ul><ul><ul><li>Easy to pronounce, recognize, and remember </li></ul></ul><ul><ul><li>Legal protection </li></ul></ul><ul><ul><li>Attract attention </li></ul></ul><ul><ul><li>Suggest benefits (e.g., always fresh) or usage </li></ul></ul><ul><ul><li>Suggest an image / identity </li></ul></ul><ul><ul><li>Distinguish the product's positioning relative to the competition. </li></ul></ul><ul><li>Now in the Internet age , a brand should also: </li></ul><ul><ul><li>Have an available .com </li></ul></ul><ul><ul><li>Easy to spell (preferably short) </li></ul></ul><ul><ul><li>Multilingual (e.g., Burger Ranch) </li></ul></ul>
    12. 12. What does branding do to consumers? <ul><li>Brand Engagement: the process of forming an attachment between a person and a brand </li></ul><ul><li>Creates/changes perceptions, attitudes, beliefs, behaviors </li></ul><ul><li>Engages many senses </li></ul>
    13. 13. Brand loyalty <ul><li>When products are the same: price becomes the only motivator </li></ul><ul><li>To avoid price wars , we develop brands </li></ul><ul><li>The ultimate goal of marketing (and branding) </li></ul><ul><ul><li>Customers pay higher prices </li></ul></ul><ul><ul><li>Cost of customer acquisition and maintenance is less </li></ul></ul><ul><ul><li>Bring new customers to the firm </li></ul></ul><ul><li>Sony's president: Sony's greatest asset isn't their entertainment or consumer goods divisions…but rather the Sony brand . </li></ul><ul><li>“ No-one ever got fired for buying IBM &quot; </li></ul>
    14. 14. Why branding became the leading marketing strategy? <ul><li>Increase the product's perceived value to the customer </li></ul><ul><li>Increase sales – creates a more favorable view of product relative to others on market </li></ul><ul><li>Value of the brand determined by the amount of profit it generates </li></ul>
    15. 15. When do we prefer a non-brand? <ul><li>New experience – Japanese local hotel vs. Hilton </li></ul><ul><li>New product / new technology - 200 gram laptop </li></ul><ul><li>Lower cost personal / basic goods - salt, vitamins, etc. </li></ul><ul><li>Low risk - batteries </li></ul><ul><li>Personalized / customized product - carpenter </li></ul><ul><li>Credentials , recommendations , and price </li></ul><ul><li>Catalog products - PC according to specs </li></ul><ul><li>Protected by standards or industry benchmarks </li></ul><ul><li>The lower the risk and the higher the gain, the greater the inclination towards a non-brand </li></ul>
    16. 16. Is branding more important on the net? <ul><li>Yes! e-Branding is even more important </li></ul><ul><li>Web sites: No physical place – Need for the right domain name </li></ul><ul><li>The right experience will create a lasting memory </li></ul><ul><li>Create a sustainable relationship with the users: </li></ul><ul><ul><li>Encourage regular revisits to the site </li></ul></ul><ul><ul><li>Send reminders of site updates and new offerings </li></ul></ul>
    17. 17. The online / offline brand relationships <ul><li>The brand relationship between the physical & virtual worlds is becoming more important </li></ul><ul><li>The Gap offers its customers the best of both worlds </li></ul><ul><ul><li>The site offers a larger inventory </li></ul></ul><ul><ul><li>The stores offer the ability to try items on , local discounts , and personal interaction with sales persons </li></ul></ul><ul><li>Branding is the leading differentiation strategy for creating exceptional shopping experiences both online & offline </li></ul>
    18. 18. Leveraging marketing & branding within the Internet <ul><li>SEO </li></ul><ul><ul><li>A brand analyst can extract the words (meta tags) </li></ul></ul><ul><ul><li>Extract a marketing map and locate potential unexploited/fast growing niches </li></ul></ul><ul><li>Social marketing </li></ul><ul><ul><li>Gmail - Google created scarcity by giving out Gmail accounts only to a handful of “ Power users &quot; </li></ul></ul>
    19. 19. Leveraging marketing & branding within the Net (Cont.) <ul><li>Undercover marketing </li></ul><ul><ul><li>Buzz marketing, stealth marketing </li></ul></ul><ul><ul><li>Subset of guerrilla marketing </li></ul></ul><ul><li>Viral marketing and viral advertising </li></ul><ul><ul><li>Use pre-existing social networks to produce increases in brand awareness. </li></ul></ul>
    20. 20. Leveraging marketing & branding within the Net (Cont.) <ul><li>Evangelism marketing </li></ul><ul><ul><li>Word of mouth marketing (WOMM): Customers become voluntary advocates of the company. </li></ul></ul><ul><li>Affiliate marketing </li></ul><ul><ul><li>An affiliate (publisher) is rewarded for every visitor, subscriber , customer, sale, provided through his/her efforts. </li></ul></ul>
    21. 21. Can a brand be too successful? <ul><li>Xerox </li></ul><ul><li>Walkman </li></ul><ul><li>Google vs. Googling </li></ul>
    22. 22. Brand maturity <ul><li>Qualities that attract us in the beginning might repel us later on </li></ul><ul><li>As brand begins to mature, customary to change messages less rapidly </li></ul><ul><li>Not only does the brand age, but the target audience also ages </li></ul><ul><ul><li>Nike suffered a decline in brand success: young people prefer to wear different brands than their parents </li></ul></ul>
    23. 23. E-Branding in Netica <ul><li>Focus on User Experience – Strong logical design team </li></ul><ul><li>Top to bottom software design: Design the database according to the UX needs </li></ul><ul><li>Client-side expertise (we started using AJAX in 2,000) </li></ul><ul><li>Offering a product branding edge to our high-tech clients </li></ul><ul><li>Web 2.0 for all – Our ready-made UGC platforms adjustable to clients needs </li></ul>
    24. 24. What is the Netica PowerPack ™ <ul><li>Synergetic approach to the creation of a new technology product </li></ul><ul><li>Working with the 3 layers together : </li></ul><ul><ul><li>Technology layer </li></ul></ul><ul><ul><li>GUI layer </li></ul></ul><ul><ul><li>Brand layer </li></ul></ul>
    25. 25. Why do we need the PowerPack ™ <ul><li>The brand and the product become one </li></ul><ul><li>The most important marketing interface that Microsoft has today to its customers is Windows and Office, but they hardly use it </li></ul><ul><li>We need to ask ourselves: </li></ul><ul><ul><li>Is the product brand experience good enough ? </li></ul></ul><ul><ul><li>Will it market our next product? </li></ul></ul><ul><ul><li>What would Google do? </li></ul></ul>
    26. 26. E-Branding Case studies: Strategic advantages through strong Web brands <ul><li>Google – creating an alternative to desktop – disconnecting PC users from Microsoft </li></ul><ul><li>Amazon – more than books – from books to online global retail </li></ul><ul><li>Yahoo/MSN – one pass – deepening the reach and adding barriers to newcomers </li></ul>
    27. 27. Q&A <ul><li>Thank you. </li></ul><ul><li>Boaz Rossano </li></ul><ul><li>[email_address] </li></ul><ul><li>Boaz.Cafe.TheMarker.Com </li></ul><ul><li>TheNet.Cafe.TheMarker.com </li></ul>