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2429 Nicollet Ave. | Minneapolis, Minnesota 55404 | T +1 612 279 1400 | www.zeusjones.com
The Evolution of Modern Brands
MARCH 22, 2018
DIGITAL HAS TRANSFORMED THE NATURE OF BRANDS
BENEFITS
ATTRIBUTES
VALUES
PERSONALITY
ESSENCE
Traditional brand models
Built for traditional media
BENEFITS
ATTRIBUTES
VALUES
PERSONALITY
ESSENCE
First disruption: traditional media…
NCSA Mosaic Web Browser
Becomes interactive
Product Dominant Logic
SUPPLY CHAIN COMPANY VALUE CUSTOMER
Brands are a form of value, and traditional brands were built upon
a one-way transmission of value from company to consumer.
Service Dominant Logic
RESOURCE INTEGRATION RESOURCE INTEGRATION
COMPANY VALUE CUSTOMER
Stephen Vargo and Robert Lusch. Journal of Marketing, January 2004
With the proliferation of interactive media, academics realized
that one-way value models needed to evolve. 

This gave rise to a new model of co-created value.
BENEFITS
ATTRIBUTES
VALUES
PERSONALITY
ESSENCE
In 2008 at Zeus Jones, we replaced our
outdated, one-way branding models…
CORE BELIEF
& PURPOSE
PURSUIT PURSUIT
PURSUITPURSUIT
…with a “modern brand“ model, built
around collaboration with groups of
consumers and communities.
NCSA Mosaic Web Browser
But in recent years, that company-to-consumer interaction
has dramatically magnified and fragmented.
Now, a wide range of different voices impacts and shapes a brand’s perceived
value. These can change how people feel about your brand over night.
Service Dominant Logic
RESOURCE INTEGRATION RESOURCE INTEGRATION
COMPANY VALUE CUSTOMER
Stephen Vargo and Robert Lusch. Journal of Marketing, January 2004
So, in the last two years, a new model of value has arisen,
and it’s moving from co-created value…
Customer Dominant Logic
RESOURCE INTEGRATION
COMPANY VALUE CUSTOMER
Kristina Heinonen and Tore Strandvik Journal of Services Marketing, 2015
EXPERIENCE CONTEXT CULTURE
…to a world where consumers, their past experiences, their context and their
culture have a much larger impact upon value than the company’s activities.
Value today is created by consumers and given to brands.
CORE BELIEF
& PURPOSE
PURSUIT PURSUIT
PURSUITPURSUIT
So, at Zeus Jones, we’re evolving our
thinking about brands again. We’re moving
from isolated, stand-alone brand models…
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
PARTNER
PLATFORM
OWNED
PLATFORM
OWNED
PLATFORM
PAID
PLATFORM
PARTNER
PLATFORM
PAID
PLATFORM
PARTNER
PLATFORM
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
…to networked or ecosystem models - models that
recognize the fact that your brand sits within a world of
explicit and implicit relationships that have huge
impact on how people feel.
DAVID OGILVY

—

The intangible sum of
a product’s attributes.
OWNED BY COMPANY CO-CREATED OWNED BY CUSTOMER
JOHN GRANT

—

The sum of the great
ideas used to build
that brand.
ZEUS JONES

—

The sum of the assets
and networks that are
owned by the brand.
BRANDS AS IDEAS BRANDS AS ACTIONS BRANDS AS ECOSYSTEMS
We’re entering the third wave of brand
Characteristics of a brand ecosystem:
Complex and diverse. They exhibit emergent properties that
aren’t planned and can’t be controlled.
• Different processes at different levels of scale
• Share a common purpose, aligned around mutual success
• Living, evolving, adaptive organisms
PROCESSES WITHIN BRAND ECOSYSTEMS
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
PARTNER
PLATFORM
OWNED
PLATFORM
OWNED
PLATFORM
PAID
PLATFORM
PARTNER
PLATFORM
PAID
PLATFORM
PARTNER
PLATFORM
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
1. Owned platforms
2. Shared platforms
3. Paid platforms
4. Business ecosystem
Three kinds of
owned platforms:
1. Engagement
2. Loyalty
3. Mass
Properties of an 

Engagement Platform
—
Primary growth engine for 

the company
Based upon an operational
asset
Delivers an exchange of value
Acquisition tool that often
generates WOM
Engages collaboration partners
Increased usage builds its value
Delivers marketing benefits as
collateral, not primary, purpose
Properties of a
Loyalty Platform
—
Generates frequency of usage
Leverages external content
creators for efficiency
Assembles brand and partner
assets into a cohesive
“media” network
Optimized for traffic/SEO and
user experience
Can contain both digital and
physical assets
Fed by other platforms
Properties of a 

Mass Platform
—
Aggregates advocates and
media to drive scale
Operates on the company’s
calendar
Works in pulses or bursts
that are timed to big news
Often has its own marketing
program built around it
Highly connected to other
platforms
Shared platforms
• Bring new ideas and audiences to brands
• Helps them extend into areas of culture
that they can’t access alone
Properties of
Shared Platforms
—
Delivers something entirely new,
not old things in combination
Brings different ideas together
Cultural freshness and
relevance is a key output
Contains multiple levels of
engagement
Virality built in, not about
catering to a mass audience
Paid platforms
Traditional and digital
media platforms
Traditional and digital
distribution platforms
Small brands suffer from lower market share and
lower loyalty (purchase frequency).
Loyalty is an outcome of market share - not the
other way around.
The surest way to gain
market share is to increase
your penetration (make your
product more available).
DOUBLE JEOPARDY
PROF. ANDREW EHRENBERG
Mass awareness is not mass penetration
Paid Platform Strategy
—
Availability, not interruption:
Make it really easy to buy your
product/service.
Don’t interfere with other
actions users are trying to take.
Business ecosystem
The relationships and partnerships within your supply,
manufacturing, services, distribution and retailing chain.
The individuals in your organization and partner
organization and their personal, business, political and
spiritual affiliations.
Your brand can change over night.
Business Ecosystem Strategy
—
About reshaping value,
perception and industry.
Achieves commercial, social
and environmental goals
simultaneously.
Makes ecosystem owners
incredibly difficult to unseat or
disrupt.
CORE BELIEF
& PURPOSE
CORE BELIEF
& PURPOSE
1. Owned platforms
2. Shared platforms
3. Paid platforms
4. Business ecosystem
Increase distribution
Increase awareness
Increase engagement
Organic growth
Communication of news
Value enhancement
Reputation change
Business transformation
Gain or increase relevance
Meaning or image extension
Audience extension
PURPOSE IN A BRAND ECOSYSTEM
Those companies holding leadership roles may
change over time, but the function of ecosystem
leader is valued by the community because
it enables members to move
toward shared visions to align
their investments, and to find
mutually supportive roles.
THE DEATH OF COMPETITION
JAMES F. MOORE
Society is demanding that companies, both public
and private, serve a social purpose. To prosper over
time, every company must not only deliver
financial performance, but also show how it makes
a positive contribution to society.
Companies must ask
themselves: What role do we
play in the community? How
are we managing our impact
on the environment?
LETTER TO CEOS
LARRY FINK CEO BLACKROCK
Brand Purpose Strategy
—
Corporate social
responsibility is not an add-
on to purpose.
It needs to be a central part
of the mission.
It must be aligned with and
integrated into the business
overall.
Business aligns to purpose.
BRANDS & EVOLUTION
Julien Malland
Culture’s role is progress
http://www.today.com/video/crowd-turns-its-back-on-hillary-clinton-to-capture-selfies-773131843750
Conducted a study to examine the relationship
between cultural evolution and human evolution.
Culture is essentially a
second inheritance
mechanism that operates 

in conjunction with our
genetic system.
PROFESSOR IN HUMAN EVOLUTION AND SOCIAL CHANGE
CHARLES PERRAULT
Culture helps us evolve
when biology can’t keep up.
Brands help us live in the future.
DAVID OGILVY

—

The intangible sum of
a product’s attributes.
OWNED BY COMPANY CO-CREATED OWNED BY CUSTOMER
JOHN GRANT

—

The sum of the great
ideas used to build
that brand.
ZEUS JONES

—

The sum of the assets
and networks that are
owned by the brand.
BRANDS AS IDEAS BRANDS AS ACTIONS BRANDS AS ECOSYSTEMS
We’re entering the third wave of brand
Modern brands
Guided by a purpose
Internal culture
Multiple coherent ideas
Deliver an experience
Trust through transparency
Progress by iterating
Empowering
Marketing is built in
Create a community
Ecosystem brands
Aligned around a purpose
Relationships and assets
Multiple coherent platforms
Coordinate an ecosystem
Shared destiny
Constant evolution
Sustaining
Marketing is invisible
Support their community
@ADRIANHO

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The Evolution of Modern Brands

  • 1. 2429 Nicollet Ave. | Minneapolis, Minnesota 55404 | T +1 612 279 1400 | www.zeusjones.com The Evolution of Modern Brands MARCH 22, 2018
  • 2. DIGITAL HAS TRANSFORMED THE NATURE OF BRANDS
  • 7. NCSA Mosaic Web Browser Becomes interactive
  • 8. Product Dominant Logic SUPPLY CHAIN COMPANY VALUE CUSTOMER Brands are a form of value, and traditional brands were built upon a one-way transmission of value from company to consumer.
  • 9. Service Dominant Logic RESOURCE INTEGRATION RESOURCE INTEGRATION COMPANY VALUE CUSTOMER Stephen Vargo and Robert Lusch. Journal of Marketing, January 2004 With the proliferation of interactive media, academics realized that one-way value models needed to evolve. 
 This gave rise to a new model of co-created value.
  • 10. BENEFITS ATTRIBUTES VALUES PERSONALITY ESSENCE In 2008 at Zeus Jones, we replaced our outdated, one-way branding models…
  • 11. CORE BELIEF & PURPOSE PURSUIT PURSUIT PURSUITPURSUIT …with a “modern brand“ model, built around collaboration with groups of consumers and communities.
  • 12. NCSA Mosaic Web Browser But in recent years, that company-to-consumer interaction has dramatically magnified and fragmented.
  • 13. Now, a wide range of different voices impacts and shapes a brand’s perceived value. These can change how people feel about your brand over night.
  • 14. Service Dominant Logic RESOURCE INTEGRATION RESOURCE INTEGRATION COMPANY VALUE CUSTOMER Stephen Vargo and Robert Lusch. Journal of Marketing, January 2004 So, in the last two years, a new model of value has arisen, and it’s moving from co-created value…
  • 15. Customer Dominant Logic RESOURCE INTEGRATION COMPANY VALUE CUSTOMER Kristina Heinonen and Tore Strandvik Journal of Services Marketing, 2015 EXPERIENCE CONTEXT CULTURE …to a world where consumers, their past experiences, their context and their culture have a much larger impact upon value than the company’s activities. Value today is created by consumers and given to brands.
  • 16. CORE BELIEF & PURPOSE PURSUIT PURSUIT PURSUITPURSUIT So, at Zeus Jones, we’re evolving our thinking about brands again. We’re moving from isolated, stand-alone brand models…
  • 17. CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE PARTNER PLATFORM OWNED PLATFORM OWNED PLATFORM PAID PLATFORM PARTNER PLATFORM PAID PLATFORM PARTNER PLATFORM CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE …to networked or ecosystem models - models that recognize the fact that your brand sits within a world of explicit and implicit relationships that have huge impact on how people feel.
  • 18. DAVID OGILVY
 —
 The intangible sum of a product’s attributes. OWNED BY COMPANY CO-CREATED OWNED BY CUSTOMER JOHN GRANT
 —
 The sum of the great ideas used to build that brand. ZEUS JONES
 —
 The sum of the assets and networks that are owned by the brand. BRANDS AS IDEAS BRANDS AS ACTIONS BRANDS AS ECOSYSTEMS We’re entering the third wave of brand
  • 19. Characteristics of a brand ecosystem: Complex and diverse. They exhibit emergent properties that aren’t planned and can’t be controlled. • Different processes at different levels of scale • Share a common purpose, aligned around mutual success • Living, evolving, adaptive organisms
  • 21. CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE PARTNER PLATFORM OWNED PLATFORM OWNED PLATFORM PAID PLATFORM PARTNER PLATFORM PAID PLATFORM PARTNER PLATFORM CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE
  • 22. CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE 1. Owned platforms 2. Shared platforms 3. Paid platforms 4. Business ecosystem
  • 23. Three kinds of owned platforms: 1. Engagement 2. Loyalty 3. Mass
  • 24. Properties of an 
 Engagement Platform — Primary growth engine for 
 the company Based upon an operational asset Delivers an exchange of value Acquisition tool that often generates WOM Engages collaboration partners Increased usage builds its value Delivers marketing benefits as collateral, not primary, purpose
  • 25. Properties of a Loyalty Platform — Generates frequency of usage Leverages external content creators for efficiency Assembles brand and partner assets into a cohesive “media” network Optimized for traffic/SEO and user experience Can contain both digital and physical assets Fed by other platforms
  • 26. Properties of a 
 Mass Platform — Aggregates advocates and media to drive scale Operates on the company’s calendar Works in pulses or bursts that are timed to big news Often has its own marketing program built around it Highly connected to other platforms
  • 27. Shared platforms • Bring new ideas and audiences to brands • Helps them extend into areas of culture that they can’t access alone
  • 28. Properties of Shared Platforms — Delivers something entirely new, not old things in combination Brings different ideas together Cultural freshness and relevance is a key output Contains multiple levels of engagement Virality built in, not about catering to a mass audience
  • 29. Paid platforms Traditional and digital media platforms Traditional and digital distribution platforms
  • 30. Small brands suffer from lower market share and lower loyalty (purchase frequency). Loyalty is an outcome of market share - not the other way around. The surest way to gain market share is to increase your penetration (make your product more available). DOUBLE JEOPARDY PROF. ANDREW EHRENBERG
  • 31. Mass awareness is not mass penetration
  • 32.
  • 33. Paid Platform Strategy — Availability, not interruption: Make it really easy to buy your product/service. Don’t interfere with other actions users are trying to take.
  • 34. Business ecosystem The relationships and partnerships within your supply, manufacturing, services, distribution and retailing chain. The individuals in your organization and partner organization and their personal, business, political and spiritual affiliations.
  • 35. Your brand can change over night.
  • 36. Business Ecosystem Strategy — About reshaping value, perception and industry. Achieves commercial, social and environmental goals simultaneously. Makes ecosystem owners incredibly difficult to unseat or disrupt.
  • 37. CORE BELIEF & PURPOSE CORE BELIEF & PURPOSE 1. Owned platforms 2. Shared platforms 3. Paid platforms 4. Business ecosystem Increase distribution Increase awareness Increase engagement Organic growth Communication of news Value enhancement Reputation change Business transformation Gain or increase relevance Meaning or image extension Audience extension
  • 38. PURPOSE IN A BRAND ECOSYSTEM
  • 39. Those companies holding leadership roles may change over time, but the function of ecosystem leader is valued by the community because it enables members to move toward shared visions to align their investments, and to find mutually supportive roles. THE DEATH OF COMPETITION JAMES F. MOORE
  • 40. Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must ask themselves: What role do we play in the community? How are we managing our impact on the environment? LETTER TO CEOS LARRY FINK CEO BLACKROCK
  • 41. Brand Purpose Strategy — Corporate social responsibility is not an add- on to purpose. It needs to be a central part of the mission. It must be aligned with and integrated into the business overall.
  • 42. Business aligns to purpose.
  • 44.
  • 46. Culture’s role is progress http://www.today.com/video/crowd-turns-its-back-on-hillary-clinton-to-capture-selfies-773131843750
  • 47. Conducted a study to examine the relationship between cultural evolution and human evolution. Culture is essentially a second inheritance mechanism that operates 
 in conjunction with our genetic system. PROFESSOR IN HUMAN EVOLUTION AND SOCIAL CHANGE CHARLES PERRAULT
  • 48. Culture helps us evolve when biology can’t keep up.
  • 49.
  • 50.
  • 51.
  • 52.
  • 53. Brands help us live in the future.
  • 54. DAVID OGILVY
 —
 The intangible sum of a product’s attributes. OWNED BY COMPANY CO-CREATED OWNED BY CUSTOMER JOHN GRANT
 —
 The sum of the great ideas used to build that brand. ZEUS JONES
 —
 The sum of the assets and networks that are owned by the brand. BRANDS AS IDEAS BRANDS AS ACTIONS BRANDS AS ECOSYSTEMS We’re entering the third wave of brand
  • 55. Modern brands Guided by a purpose Internal culture Multiple coherent ideas Deliver an experience Trust through transparency Progress by iterating Empowering Marketing is built in Create a community Ecosystem brands Aligned around a purpose Relationships and assets Multiple coherent platforms Coordinate an ecosystem Shared destiny Constant evolution Sustaining Marketing is invisible Support their community