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Brand Management, how valuable in the Digital Age?

Brand Management, how valuable in the Digital Age?
Presentation at ESCP Europe campus Madrid.
An open discussion about the role of Brand and Brand Management in the Digital Age.

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Brand Management, how valuable in the Digital Age?

  1. 1. Brand Management, how valuable in the Digital Age? Some ideas for an open discussion Francisco Hernández-Marcos February 5th, 2016 This document has been produced by 11 Goals & Associates. It is not complete unless supported by the underlying detailed analyses and oral presentation.
  2. 2. About me SHAMELESS SELF-PROMOTION Education: Universidad Politécnica de Madrid, UNED, London Business School, University of Chicago – Fundaciò “laCaixa” & Fundación Rafael del Pino scholarships. Firms worked for: Abengoa, McKinsey&Co, ABN AMRO, Real Madrid C.F. Entrepreneurship: Crisalia Social Media & Internet consulting: Lectures & Speaker in 4 continents: The Wall Street Journal, UP Madrid, London Business School, Cornell, Politecnico Milano, CEIBS (Shanghai), Kungliga Tekniska högskolan, The Business Factory, Fulbright Spain, ESCP Europe, UIMP, Harvard, Moscow SU, IE, and several private companies. Full profile:
  3. 3. World’s best brands according to Interbrand Source: “Best Global Brands 2015”, Interbrand Digital- Related Brands
  4. 4. Brand & BM definitions in Wikipedia “brand is a name, term, design, symbol or other feature that distinguishes one seller's product from those of others” “brand management is the analysis and planning on how that brand is perceived in the market”
  5. 5. Brand Management according to Kotler Watch video Product Management (create value) Brand Management (communicate value) Customer Management (deliver value) Which part do companies prefer to focus on?
  6. 6. Legend Excellent Improving Neutral/Unknown Mismanaged BM = Brand Management DA = Digital Age
  7. 7. Apple did very well in ALL 3 parts Customer ManagementBrand ManagementProduct Management Does your company perform in ALL 3 parts?
  8. 8. Does Google need BM at all? Customer ManagementBrand ManagementProduct Management Pure Internet players apparently do not pay much attention to branding •UX •Algorithms •AI •1/0 testing •…
  9. 9. Google, remember Wave or +? Does BM-created expectations ruin product development? Is BM a –negative- predictor of a Google product’s success?
  10. 10. Recommended reading: “Getting Brand Communities Right”, Harvard Business Review, Abril 2009 Watch video Steve Jobs: “Our goal is to make the best personal computers in the world and to make products we are proud to sell and would recommend to our family and friends” Jobs talking about brand? Or about product and customers?
  11. 11. How balanced is your Marketing strategy? Source: “Best Global Brands 2015”, Interbrand How does your brand perform in each part?
  12. 12. Volkswagen Vs Tesla Who focuses more in product? in brand? in customer?
  13. 13. Customers trust each other, no longer the brand! Source: Your Users Trust Each Other, Not You: Why and How to Implement Ratings and Reviews, by Molecular Inc. 76% of American consumers believe companies don’t tell the truth in advertising -Yankelovich (2005) 60% have a much more negative opinion of marketing & advertising than a few years ago - Yankelovich (2004) 78% say consumer recommendations are the most credible form of advertising - Nielsen (2007) 83% say online evaluations and reviews influence their purchasing decisions - Opinion Research Corporation (2008) 84% trust user reviews more than critics’ reviews - MarketingSherpa (2007) Trust in “person like me” tripled to 68% from 2004-2006 – biggest influencer to consumers - Edelman Trust Barometer (2006, 2007)
  14. 14. Design Vs User Experience (ext. product) Do people really want a better “perception”? or a better product?
  15. 15. Iker Casillas: Has BM added value to the pre-existing personal brand? ?
  16. 16. A friend’s recommendation worth more than 96 reviews Do you trust a brand more than former customers? or a friend?
  17. 17. World’s best brands according to me Source: Me 16
  18. 18. Brand’s control in the Digital Age Product Brand Customer Are organizations losing control over brands? Are customers winning brand control?
  19. 19. What form of advertising do consumers trust? Source: Nielsen, Global Trust in advertising and Brand Messages, Q1 2013 29.000 Internet users in 58 countries 84% 69% 68% 67% 62% 61% 61% 60% 57% 57% 56% 56% 55% 48% 48% 48% 45% 42% 37% Recommendations from people I know Branded websites Consumer opinions posted online Editorial content such as newspaper articles Ads on TV Ads in newspapers Brand sponsorships Ads in magazines Billboards and other outdoor advertising Ads on radio Emails I signed up for Ads before movies TV program product placements Ads served in search engine results Ads on social networks Online video ads Display ads on mobile devices Online banner ads Text ads on mobile phones Brand’s control Not Brand’s control
  20. 20. “Marketing is dead” Harvard Business Review – 9 Aug 2012 Source: Traditional marketing — including advertising, public relations, branding and corporate communications — is dead. Many people in traditional marketing roles and organizations may not realize they're operating within a dead paradigm. But they are. The evidence is clear. Buyers are checking out product and service information in their own way, often through the Internet, and often from sources outside the firm such as word-of- mouth or customer reviews. Actually, we already know in great detail what the new model of marketing will look like. It's already in place in a number of organizations. Here are its critical pieces:  Restore community marketing  Find your customer influencers  Help them build social capital (vs Brand Equity?)  Get your customer advocates involved in the solution you provide. Most read article in Aug 2012
  21. 21. Consumer platforms What to believe? Official brand, platform, or personal reviews?
  22. 22. Time spent on different media Source: eMarketer Inc; concurrent consumption is accounted entirely in each category (not weighted) Hrs/day. US 0:00 1:00 2:00 3:00 4:00 5:00 6:00 2010 2011 2012 2013 2014 2015 Digital TV Radio Print 0:00 1:00 2:00 3:00 2010 2011 2012 2013 2014 2015 Desk&LapTop Mobile Other 0:00 0:30 1:00 1:30 2:00 2010 2011 2012 2013 2014 2015 Smartphone/App Smartphone/Web Tablet/App Tablet/Web 21
  23. 23. 22 What’s the weight of brand in an over-informed, hyper- connected economy? Rational (available information) Personal (available contacts) Brand (available mass media) Weight of factors in OLD economy 100% Rational (available information) Personal (available contacts) Brand (available mass media) Weight of factors in the Digital Age
  24. 24. Has traditional PR lost weight in the Digital Age? Traditional Media Brand ADVERTISING FAVORABLE PERCEPTION ACTUAL PERCEPTION
  25. 25. Brand Vs “googling the brand” Is DA forcing brands to communicate actual value? Other cases: FIAT, Renault and VW
  26. 26. Ejemplo de mala gestión de conflictos: Greenpeace contra Nestlé Tras una campaña de Greenpeace para pedir a Nestlé que no comprase a suministradores de aceite de palma que son poco respetuosos con el medio ambiente, Nestlé: • Acusó a Greenpeace de querer dañar su reputación. • Bloqueó un video en YouTube. • Borró comentarios y bloqueó a usuarios críticos en Facebook. • Amenazó con acciones legales a quienes utilizasen su logo sin permiso. Durante varios días la actitud de Nestlé se convirtió en uno de los temas más comentados en RRSS, lo que amplificó el impacto de la campaña de Greenpeace y dañó gravemente la imagen de Nestlé. La gente entraba en las RRSS de Nestlé para pedir explicaciones tanto por la causa original (campaña de Greenpeace), como por su actitud censuradora ante las críticas. El Eco en RRSS die pie incluso a la organización de manifestaciones frente a diversas oficinas de la compañía. Multitud de medios tradicionales se hicieron eco de lo que estaba sucediendo. El 20 de mayo de 2010 Nestlé accedió a las demandas de Greenpeace y de los usuarios. Posteriormente pidió disculpas e inició una serie de acciones en RRSS para tratar de restaurar su deteriorada imagen. 25
  27. 27. Has Brand Management lost weight in the Digital Age? Product Brand Customer Product Brand Customer ¿ ? •More info •More personal references •Less risk of purchase
  28. 28. Steve Jobs internal meeting, sep 23rd, 1997 Watch video Watch “Think Different” commercial “Brand is not about value, but values”
  29. 29. What should BM communicate in the Digital Age? Brand Management Value? Does DA help to communicate value? Values? Does DA help to communicate values?
  30. 30. New role of BM for the Digital Age? Product Management (create value) Brand Management (communicate value) Customer Management (deliver value) Customer Management (create values) Brand Management (communicate values) Product Management (deliver values) ?
  31. 31. Brand Vs Community Brand Vs Community? Alexa Ranking (website rank)
  32. 32. Brand commercialization in Football Clubs Can your brand be translated into other products? •Value? •Values?
  33. 33. Digital brand partnerships – Case 1: EVO & Airbnb Brand image for awareness?
  34. 34. Digital brand partnerships – Case 2: AXA & BlaBlaCar Brand partnership -> Business partnership
  35. 35. 34 How BM’s role is changing in the Digital Age Old Economy Digital Age Media environment Info/Personal ref. Purchasing risk Marketing Process Brand’s main role Brand communicates Main MKT asset Mismatch between brand and product Brand partnerships Product Brand Customer CustomerBrandProduct Slow; Controllable Available, but need time Depends on product Send products to customers (push) External (market) Value Brand image (Brand Equity) Possible, and sustainable unless brand greed leads to a brand crisis. Short- termism issue Difficult Fast; Uncontrollable Massive; real time; in the pocket Low (pure players); Lower (rest) Bring customers to products (pull) Internal (organization) Values Community (Social Capital) Difficult to attain. Public immediately correct it. No cushion forces brand to focus in product An opportunity to grow in the next years Community? APPROXIMATION
  36. 36. •Strategic consulting services in technology and digital marketing for top executives •We advise companies on digital transformation Francisco Hernández •MBA London Business School. •IEP University of Chicago. •11 years of digital experience. •Ex Director Online Strategy Real Madrid C.F. •Other companies: ABN Amro, Abengoa, McKinsey&Company. •Professor at ESCP Europe. •Lecturer in Europe, Latam and Asia •PWC: 10 e-Business talents in Spain. Sonia Fernández •MBA Stanford. •15 years of digital experience. •Ex CEO Vindico Europe. •Ex CEO Spain. •Ex CEO MercadoLibre Spain. •Other companies: Fon, Grupo Prisa, 3i, Lehman Brothers. •Professor at OBS-UB, EOI and MIB •Lecturer at universities and in- company training •Author of two books on networking and social networks published in 2004 and 2001 franciscohm | (+34) 605 58 66 55 soniafernandez | (+34) 619 721 781
  37. 37. Thanks very much for your attention and interaction Francisco Hernández (+34) 605 58 66 55