The document discusses the evolution of branding in the 21st century, emphasizing the shift from mass marketing to customer-driven approaches and the need for brands to adapt to new economic realities. It highlights the importance of leveraging customer relationships, engagement, and data-driven strategies for effective branding. The text proposes a transition to 'Your Brand 2.0', which includes personalized marketing, social media integration, and innovative branding tools to foster long-term relationships with customers.

1. BRANDING IN THE 21 st CENTURY (R)EVOLUTION: How Croatia can move to “Your Brand 2.0” Nick Wreden, CEO FusionBrand February 29, 2008 Find • Grow • Measure • Profit © 2008. FusionBrand. All rights reserved.

2. 21st CENTURY BRANDING “ The future is here. It’s just not evenly distributed yet.” - - William Gibson Neuromancer

3. 21st CENTURY BRANDING BRANDS: Short shelf life Average tenure of CMOs at top firms = 22.9 months Average failure rate of brands = 40%, 49%, 54%, 60%, 80% Why?????? Concept of brand = strategic asset well-known Budgets = 1% of sales (insurance) -> 50-60% of sales (technology) Lots of smart, creative people

4. 21st CENTURY BRANDING BRAND FAILURE: Why? Brands fail largely because companies use concepts, strategies, and tactics that were suited for 1988, but are doomed to fail in 2008 and beyond. Creative-driven branding Unmeasureable strategies or concepts “ Top-down,” one-size-fits-all marketing

5. 21st CENTURY BRANDING “ A name, term, sign, symbol or design, or a combination of these that identifies the goods or services or one seller or group of sellers and differentiates them from those of competitors”. “ The sum of all the images and associations customers have concerning a company”. “ Great brands are born from people who are having fun. Their excitement is reflected in the meaning of the brand”. “ A brand is a long-term profitable bond between an offering & a customer. This relationship is based on economic, emotional and/or experiential value, backed by everyday operational excellence & consistently measured, optimally by customer profitability.”

6. 21st CENTURY BRANDING Marketing Dept. Mass economy (1920-95) Customer economy (1996-2008) Demand economy (2008-??) Advertising, PR, etc. “ Positioning” Market research Quality/service Process/integration Customer databases Immediacy Personalization Real-time enterprises Marketing dept. Organization Supply chain “ Sell what we make” “ Sell what customers buy” “ Provide customer value/solution” Sales Profitability Relationship depth Driver: Metrics:

7. 21st CENTURY BRANDING Product Development Targeting, “Positioning” Product Strategy Pricing Strategy Promotion Strategy Place Strategy Implementation, Monitoring & Control What two critical branding factors are missing? Ye Olde Mass Economy Top-down, corporate-driven

8. 21st CENTURY BRANDING BRANDING: Mass market dying Television Newspapers Magazines Radio Source: Forrester Research Decreased No change Increased 2% 2% 3% 5% 26% 26% 26% 20% 21st CENTURY BRANDING PC screen Mobile screen TV screen

9. 21st CENTURY BRANDING CASE: Mass market vs. customer economy DM acquisition cost = $333/ good account Source: Netbanker Puts prospects in charge Yields actionable data Engages prospects Cost = $30

10. SUSTAIN VALUE Improve retention Increase customer, product & account penetration Personalize relationships SENSE VALUE Understand competitors Sense market trends Understand customers Identify opportunities DEFINE VALUE Segment customers Target profitable segments Craft value propositions Validate value propositions REALIZE VALUE Develop offerings Meet customer demands for economic, experiential, emotion value Measure value 21st CENTURY BRANDING Find. Grow. Measure. Profit. Customer-driven

11. 21st CENTURY BRANDING BRANDING: Sign of the times “ Marketing is an organi-zational function & a set of processes for creating, communicating, & deli-vering value to custo-mers & for managing customer relationships in ways that benefit the organization & its stake-holders.” -American Marketing Association, 12/07 “ Marketing is the activity, set of institutions , & processes for creating, communicating, de-livering, & exchanging offerings that have value for customers, clients, partners, & society at large. ” -American Marketing Association, 1/08

12. CEM: (customer experience management) How a company looks to a customer CRM: How a customer looks to company Product focus Economic, experiential & emotional value “ Brand equity” Integration into lives or operations Action or SALE! “ Brand personality,” “awareness” Widgets, gadgets/flyers, OpenSocial apps, etc Search engines Banners Advertising/PR/etc Depth of engagement Profitability Sales Network ambassadors Retention Acquisition Self-segmentation Segmentation Mass marketing Customer co-creation; customers as innovators Peer-to-peer (P2P) branding “ Positioning” Demand economy Customer economy Mass economy BRANDING EVOLUTION

13. MEASUREMENT No standard definition of satisfaction Satisfaction NOT = loyalty Satisfaction Not sales, market share or shareholder growth Profit growth 20% of customers = 80% of profits 15% customers unprofitable Customer lifetime value = More sales = Lower acquisition costs = Positive WOM Retention Customer economy Unmeasureable ROI calculation impossible “ Brand equity,” “brand personality,” “brand essence,” “position” Mass economy Comments Metrics

14. Value of social social/networks involved in (closed or public) Relevance of network to your brand Amount of interconnectivity among multiple networks Network value Number of contacts. Degree of network involvement Online & offline social/network activities Connection value Customer's knowledge, interest & involvement in category & brand Number of posts, reviews, feedback Engagement value Demand economy Comments Metrics MEASUREMENT

15. Insights in customer value, activities, referrals, retention, behaviours, etc. No customer/prospect insight Enables measurement of spending, advertising & other marketing Impact difficult to measure Customer relationship is 1 competitive advantage not copied Only 15% of companies declare data as intangible asset in books Most companies only get less than half of potential data from database Competitive advantage = ? Focuses on acquisition & retention Focuses on acquisition Leverages data, segmentation & customer info to increase engagement Leverages visuals & messages to increase awareness Executive management drives strategy Lets agency drive strategy Relates to ads, R&D, sales, operations, supply chains & customer relationships Relates to logos & ads Data-driven branding Creative-driven branding STRATEGIC BRANDING ALTERNATIVES

16. 21st CENTURY BRANDING RSS feeds Email DIGITAL BRANDING EVOLUTION Contextual ads Banners Tagging Search engine optimization Interactivity Publishing Podcasts/Video Downloads Cost per click/action Hits/Page views SQL HTML Links Hits Wikis Encylopedias Blogs Personal sites Web 2.0 Web 1.0

17. 21st CENTURY BRANDING (R)EVOLUTION: Moving to “YourBrand 2.0” Mass access Word/print-centric “ Something for everybody” Social networks Video-centric Customized content (widgets, etc) Business networks Knowledge-centric Timely content Stakeholder networks Database-centric Supply chain integration

18. 21st CENTURY BRANDING INTERNET 1.0: Familiar model Unitary (1 page, multiple data) CHARACTERISTICS Link-oriented “ Pull” information Product-centric (destinations & events) Strategy, message, USP unclear

19. 21st CENTURY BRANDING WEB 2.0: Background "Web 2.0 is a knowledge-oriented environment where human interactions generate content that is published, managed and used through network applications in a service-oriented architecture." --IBM “ Networks of interest” Facebook, MySpace, etc. Social bookmarking Personalization Personalized portals “ Tagging” Data/content targeting Widgets Landing pages Visualization Video

20. 21st CENTURY BRANDING WEB 2.0 #1: “Networks of interest” Definition: (aka “communities of interest”) Networks interconnect people who share a common interest or passion in information, activity or interaction undefined by sex, geography, age, etc. May be interconnected with other networks/ communities (personal, OpenSocial) Develop “norms” based on shared values/feelings Self-segmentation UK study: 80% discuss brands Thousands: Facebook, MySpace, Eons, TeeBeeDee, LinkedIn, Ning (roll-your-own) Facebook Xanga Vois Viadeo “ 6 degrees” Return on networking invest

21. 21st CENTURY BRANDING Croatia: MySpace Croatia: Facebook MySpace (80.74%) Facebook (10.3%) Bebo (1.3%) BlackPlanet (0.9%) Xanga (0.9%) iMeem (0.7%) Yahoo!360 (0.72%) Classmates (0.72%) Hi5 (0.7%) Tagged (0.7%) Hitwise, 3/07 POPULARITY

22. 21st CENTURY BRANDING COMMUNITIES: Social bookmarking Internet 1.0 Directories (Google, Yahoo!, MSN, etc.) organize the Web for you (spiders/algorithms) Social bookmarking You organize Web for yourself or community (perceived utility vs. links) Tagging (keywords) Tag cloud: Relative importance (eg popularity)of hyperlink represented visually Visible to others http://tagcrowd.com http://kevin.vanzonneveld.net/ techblog/article/ list_of_social_book marking_sites/ Social bookmark managers

23. 21st CENTURY BRANDING WEB 2.0 #2: “Personalization” Old definition: “Supersite” (Yahoo!, MSN, AOL) for search, news, email, shopping, map services, chat, etc. New definition: One-stop shop for personal interests -- “my-portals,” “personalized start pages” Netvibes, iGoogle, Pageflakes, Webwag, etc. Use of widgets, RSS For individuals or select communities My Yahoo! 2000

24. 21st CENTURY BRANDING WEB 2.0 #2: “Personalization” Social bookmark Stock RSS Self-select community Chat Tourism Hospitality networkED (THED) Video Flickr (photos) Central file storage News feed Personal

25. 21st CENTURY BRANDING WEB 2.0 #3: Data/content targeting Widgets: Small, interactive apps for PCs, Web (social networks, blogs, etc), mobile AKA “gadgets” (Microsoft/Google) & “applications” (Facebook) Video, game, calculator, sports, stock, etc. Uses RSS feeds Free, discrete data flow from site 2 site, person to person Brand & revenue payoffs Can carry links, logos, advertising, be emailed Viral, visibility, traffic, SEO, E-commerce

26. 21st CENTURY BRANDING WIDGETS: Examples Continuously updated information Football standings, stocks, weather, product prices, etc. Multimedia info Video, Web links, sharing, interactivity, etc. Webcam Tourism, security, visual power/proof, etc.

27. 21st CENTURY BRANDING Webcam Widget Info Widgets Events Widget Poll Widget 1.0 SITE -> 2.0 SITE Tagging!!

28. 21st CENTURY BRANDING DATA/CONTENT TARGET: Landing pages Website page visitors arrive at when clicking on a link Home page or any other page Use landing pages To control where people are coming from Better measurement of ads, campaigns, etc. Easier navigation for visitors Benefits Improve engagement Improves conversions through targeting

29. 21st CENTURY BRANDING LANDING PAGES: Campaigns at work Not: Fidelity.com Video Measurement WITHOUT spiders!

30. 21st CENTURY BRANDING WEB 2.0 #4: Visualization/Video Greater interaction with video ads than image ads Study: 8% interaction (Mouseovers, etc.) Doubleclick CTR study: Image: 0.1-0.2%; Video: 0.4-0.74% Study: 51% of major US corporations have online video strategy (“vidcasts”) Internal branding (training, corp. strategy, etc.) PR (Video news releases; “white papers”) (Expertvillage.com, eHow, videojug, viewdo, etc.)

31. 21st CENTURY BRANDING CROATIA 2.0: Strategic outline Existing Web site Platform for branding Transition to 2.0 Landing pages (LP) Targets niche markets Uses ‘tags’ on pages Croatia 2.0 communities/networks High-yield segments Users can add data Croatia 2.0 Hiking LP Croatia 2.0 Culture LP Croatia 2.0 Sail LP Croatia 2.0 RE LP Song Network.. Dance Network Agent Network 65+ Network Cruise Network Sail boat Network Mountain Network. Camp Network

32. 21st CENTURY BRANDING CROATIA 2.0: Cruise landing page #1: View operators/ itineraries #3: Connect with other passengers Trip reviews #4: Getting there (link to Google maps) #2: Downloadable 3D map #5: Interactivity Contests/surveys External links Formal wear Dive sites Legal info Ext. communities Grapheety, zoomandgo, tripim, etc #6: Video

33. 21st CENTURY BRANDING WEB 2.0: “What if they say something bad?” Negative comments WILL be made Post with you or post elsewhere More important: How you address HSBC eliminated overdraft fees after 6,000 customers complained on Facebook Respond fast By engaging early, can head off problems Silence is the worst response!!! Use as early warning/feedback system Forrester: 65% of companies surveyed tracking social media to identify new risks & issues Asked why M-Net had edited its discussion forum to remove comments about sexual assault, a spokesman said: "This is a serious allegation & there is no proof of this.”

34. 21st CENTURY BRANDING “ YOUR BRAND 2.0:” Tools Traditional Dreamweaver, etc. New (Video, interaction, mash-ups) Viewbook Splashcast Jumpcut Slide Slideshare Mapwing Google MyMaps TouFee Webslides Many, many more

35. 21st CENTURY BRANDING “ YOUR BRAND 2.0:” Tools Social Media Releases (SMR) Incorporate Web 2.0 & other elements that give journalists, etc tools to create multimedia story OpenSocial Standard tools for building apps/widgets across social networks Ajax Programming techniques for creating interactive web apps Update small amounts of data, not Web page

36. SMR example virtualthirst.com/ virtualthirst-socialmediarelease. html

37. 21st CENTURY BRANDING NEXT STEPS: “YourBrand 2.0” Abandon mass-economy ideas “ Positioning,” “brand personality,” etc. Customers define brands, based on value Start measurement Data for smarter decision-making; ROI Customers, retention, campaigns, etc Develop social networking strategy Develop “personas” in social communities Create your own communities Internal (IBM); External (supply chains)

38. 21st CENTURY BRANDING NEXT STEPS: “YourBrand 2.0” Develop & expand widget use What on site can be added/used for widgets? Develop landing pages Integrate with advertising, PR, promotion Develop online video strategy Don’t think press release; think video! Buy digital video cameras; expand in-house editing etc. skills

39. 21st CENTURY BRANDING NEXT STEPS: “YourBrand 2.0” Develop consumer/user marketing strategy Encourage links, forward, invites, nudges, etc. Leverage self-segmentation to target “right” social networks Location (xianei.com = china) Interest/passion (myspace = music) Identity (ivillage = female) Lifecycle (theknot = marriage)

40. 21st CENTURY BRANDING NEXT STEPS: “YourBrand 2.0” Monitor SMM (Social Media Marketing) & SMO (Social Media Optimization) OpenSocial, SMRs, AJAX, other trends Start preparing now! Research, pilots, step-by-step implementation Inevitably, we are moving from Information Age to Social Age Web 2.0 will transform your brand like Web 1.0 did

41. THANK YOU! QUESTIONS? Find • Grow • Measure • Profit Asia’s leading data-driven brand consultancy www.fusionbrand.com “ Best Business Book” Want presentation copy? Go to http://fusionbrand.blogs.com and email me!