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					      Chapter 7: Market Communications and Branding

  Questions answered in this chapter:
           • What are the four categories of market
             communications?
           • What is a good brand?
           • What is a 10-step branding process?
           • How does online branding compare between American
             Airlines and Continental Airlines?
           • What are the point-counterpoint arguments for
             leveraging an offline brand into the online environment?



September 2001       Chapter 7: Market Communications and Branding      1
       Integrating Communications and Branding

  Branding is about consumer’s perception of the
   offering—how it performs, how it looks, how it
   makes one feel, and what messages it sends
  Market communications represent customers’
   interaction with the brand and, more generally,
   mass-marketing approaches
         • In the offline world, market communications tend to be
           one-way, from the firm to the customer
         • In the online world, market communications become
           much more interactive (two-way)

September 2001     Chapter 7: Market Communications and Branding    2
       Integrating Communications and Branding
                      (cont’d)
  Communications and brands are the media of
   which the Web is made
         • Old marketing notions—“shelf space equals market
           share” in retail, or “mind share leads to market share” in
           entertainment
         • On the Internet, mental space is market space
         • If brands are real estate owned by companies in the
           minds of consumers, then communications and brands on
           the Web represent real estate competing to attract the
           scarcest resource in the new economy—consumer
           attention


September 2001      Chapter 7: Market Communications and Branding       3
          What are the Four Categories of Market
                    Communications?
  Market communications refers to all the
   points of contact that the firm has with its
   customers:
           • General online communications
           • Personalized online communications
           • Traditional mass media communications
           • Direct communications



September 2001     Chapter 7: Market Communications and Branding   4
      The Customer Decision Process and Market
                 Communications
  Decision stages of the buying process:
           • Brand awareness and product consideration can be
             communicated through television ads, general interest
             magazines, web banners
           • Product preference can be fostered through niche
             magazines and company websites
           • Purchase decisions can be triggered by point-of-sale
             promotions, direct marketing, daily specials,
             sweepstakes, and first-time order incentives
           • Brand loyalty can be developed through product
             experience, buyer’s clubs, e-mail alerts, newsletters


September 2001       Chapter 7: Market Communications and Branding   5
          Exhibit 7-1: Evolution of Customer Buying Process




    Buying Process                 Awareness
                                   Awareness         Consideration
                                                     Consideration        Preference
                                                                          Preference          Purchase
                                                                                              Purchase                  Loyalty
                                                                                                                        Loyalty



                                  Television           Television      Niche             Point-of sale         Product
      Traditional                  ads                   ads              magazines          promotions             experience
        Market                    General              General         Collateral        Direct                Buyers’ clubs
    Communication                  interest              interest                            marketing
                                   magazines             magazines

      Early Web                   Buttons              Banners         Microsites        Daily specials            E-mail alerts
       Market                     Banners                               Brochureware      Sweepstakes               Newsletters
    Communication                 Sponsorships                          Web site          First-time order
                                                                                             incentives




      Source: Forrester Research, Monitor Analysis
                                                                      1




September 2001                             Chapter 7: Market Communications and Branding                                                6
     Table 7-1: Framework for Marketing Communications




                 Individualized        Direct
                                       Direct        Personalized
                                                     Personalized

           Audience
            Focus
                         Broad    Traditional Mass
                                  Traditional Mass     General
                                                       General
                                     Marketing
                                     Marketing       Approaches
                                                     Approaches


                                      Offline          Online

                                         Communications
                                            Media



                                                2




September 2001          Chapter 7: Market Communications and Branding   7
        Table 7-2: The Four Categories of Communications




                                  Direct
                                  Direct                                          Personalized
                                                                                  Personalized
             Salesforce                                        Permission marketing
                                                                  Permission marketing
             Retail sales                                      Personalized recommendations
                                                                  Personalized recommendations
             Customer service reps                             Personalized advertisements
                                                                  Personalized advertisements
                                                                Personalized webpages
                                                                  Personalized webpages
                                                                Personalized upsell
                                                                  Personalized upsell
                                                                Personalized e-commerce
                                                                  Personalized e-commerce




                    Traditional Mass Marketing
                    Traditional Mass Marketing                               General Approaches
                                                                             General Approaches
            Television
              Television                                        Banner ads
                                                                  Banner ads
            Radio
              Radio                                             E-mail
                                                                  E-mail
            Print
              Print                                             Viral marketing
                                                                  Viral marketing
            Billboards
              Billboards                                        Portal sponsorship/exclusive agreements
                                                                  Portal sponsorship/exclusive agreements
            Superior customer service
              Superior customer service                         Associate programs
                                                                  Associate programs
                                                                On-line and off-line partnerships
                                                                  On-line and off-line partnerships
                                                                Provide information to entice customer purchases
                                                                  Provide information to entice customer purchases
                                                                Leverage customer base
                                                                  Leverage customer base



                                                         3



September 2001                    Chapter 7: Market Communications and Branding                                      8
         The Four Categories of Communications

  General online communications
           • Banner ads are box-like, graphical ads displaying a simple
             message designed to entice viewers to click the ad
           • Unsolicited e-mail advertising (extensively used by Cyber
             Promotions)
           • Viral marketing occurs when awareness about company-
             developed products, services, or information is passed from user to
             user
           • Sponsorship and exclusive partner agreements expand brand
             and product exposure
           • Affiliate programs refers to arrangements where a particular site
             directs a user to an e-commerce site receiving a commission on
             sales generated by that user



September 2001         Chapter 7: Market Communications and Branding               9
         Exhibit 7-2: Banner Click-Through Rates




                                           Banner Click-Through Rates (Apr 1999-Jan 2000)
                       0.65


                       0.60


                       0.55


                       0.50


                       0.45


                       0.40
                                Apr     May   Jun     Jul   Aug     Sept   Oct    Nov       Dec   Jan




   Note:
   Source: Nielsen-NetRatings
                                                                4




September 2001                        Chapter 7: Market Communications and Branding                     10
         The Four Categories of Communications
                        (cont’d)
  Personalized online communications. The manner in which
   transactions occur on the Web provides e-commerce
   companies with detailed information on their customers and
   gives the opportunity to create one-to-one marketing
   relationships
           • Permission marketing involves customers volunteering
             information regarding their on-line interests and preferences in
             exchange for some offered benefit
           • Personalized recommendations entail specific merchandise
             recommendations for each user based on past purchases, site pages
             viewed, and survey information that the user has provided
           • Personalized advertisements provide a customer with
             dynamically updated personalized ads
           • Many portals and e-commerce sites allow users to create their own
             personalized web pages, encouraging users to return more often
             and increasing the user’s familiarity with the site
September 2001        Chapter 7: Market Communications and Branding              11
         The Four Categories of Communications
                        (cont’d)
  Traditional mass media communications
           • Television. Many online companies find that television,
             while expensive, can provide a critical exposure to large
             audiences and generate explosive growth in customer
             base (Monster.com)
           • Radio. In 1999, Priceline.com management allocated
             two-thirds of its $60 million marketing budget to radio
             and claimed that it was the most effective medium for
             reaching potential customers




September 2001       Chapter 7: Market Communications and Branding       12
         The Four Categories of Communications
                        (cont’d)
  Direct communications
           • Sales representatives. When properly managed, the Web
             can lead to the increased effectiveness of sales
             representatives, rather than making them obsolete
           • Direct marketing. With the new information gained
             online, e-commerce companies are able to better target
             and customize conventional direct marketing mailings




September 2001       Chapter 7: Market Communications and Branding    13
                 What is a “Good” Brand

  According to the American Marketing Association,
   a brand is “name, term, sign, symbol, or design, or
   a combination of them intended to identify the
   goods and services of one seller or group of sellers
   and to differentiate them from those of competition”
  A good brand provides positive consumer responses
   and benefits both target customers and the firm




September 2001   Chapter 7: Market Communications and Branding   14
         Exhibit 7-3: What Is a Good Brand?




                                                      Mix of off-line and on-line advertising
                  Marketing Communications
                                                      Emphasizes advantages to AAdvantage
                                                       memberships, including non-expiring miles
                      “Wrap-arounds”
                                                       and on-line services

                                                      Superior service
                           Core
                         Product /                    AAdvantage frequent flier mile club
                          Service                     Award winning Admirals Club lounges
                                                      Comfortable chairs
                                                      Portable defibrillators on every flight


                                                      Safe, on-time transportation from A to B



                           Brand                                    Prestige




                                               5




September 2001           Chapter 7: Market Communications and Branding                             15
     A Simple Conceptual Model of Brand Equity

  Brand equity is “a set of assets (and liabilities)
   linked to a brand’s name and symbol that add to the
   value provided by a product or service to a firm
   and/or that firm’s customers”




September 2001   Chapter 7: Market Communications and Branding   16
     A Simple Conceptual Model of Brand Equity

  A brand has three components:
           • Core product/service
           • “Wrap-around”
           • Marketing communications
  Consumer responses can take two broad forms:
           • Brand awareness (depth, breadth)
           • Brand associations (strength, valence, uniqueness)
  Consumer benefits may include the increased confidence in
   the purchase decision, loyalty to the brand, and satisfaction
   with the experience
  Firm benefits translate into top-line revenue growth,
   increased margins, and lower marketing costs

September 2001         Chapter 7: Market Communications and Branding   17
          Exhibit 7-4: A Simple Conceptual Model of Brand Equity



             A good brand...                                        … provides positive                                      … and benefits both target
                                                                      consumer responses...                                    customers and the firm


                                                                   BRAND AWARENESS                                                CUSTOMER BENEFITS
                                                                    Depth                                                         Confidence

                                                                    Breadth                                                       Loyalty

             Market Communication                                                                                                  Satisfaction

                 “Wrap-arounds”

                       Core
                     Product /
                      Service



                                                                    BRAND ASSOCIATIONS                                            FIRM BENEFITS
                                                                     Strength                                                     Reduce marketing costs

                                                                        Relevant                                                  Increased margins

                                                                        Consistent                                                Opportunity for brand

                                                                     Valence                                                       extensions
                                                                     Uniqueness

                                                                        Memorable

                                                                        Disinctive

   Source: Kevin Keller, Strategic Brand Management (Saddle River: Prentice-Hall, 1998); David Aaker, Building Strong Brands (New York: The Free Press, 1995); Strategic
   Market Research Group; Marketspace Analysis.
                                                                                        6




September 2001                                 Chapter 7: Market Communications and Branding                                                                               18
                            Types of Brands
  Pure offline and online brands
           • Classic offline brands include the Gap, UPS, and Disney
           • New online brands include Amazon, Yahoo, and Priceline
  Blurring of the distinction
           • Brands such as Yahoo were established online but use offline
             promotional activities to grow brand awareness
           • Brands such as Yahoo Internet Life magazine are traditional brands,
             but they are extensions of the online brands—and thus a mixture of
             the two
           • Brands such as Egghead.com have completely shifted from an offline
             brand to a purely online brand
           • Brands such as WingspanBank were established in the virtual world
             but by a traditional brand
           • Brands such as Schwab have successfully bridged the gap between
             online and offline activities
September 2001        Chapter 7: Market Communications and Branding                19
        Table 7-3: Types of Brands




                      Traditional Brands
                      Traditional Brands                                     On-line Brands
                                                                             On-line Brands

         
            The product // service with which the
             The product service with which the           
                                                             The product // service with which the
                                                               The product service with which the
             brand is associated was established
             brand is associated was established              brand is associated was established in
                                                               brand is associated was established in
             offline in the bricks-and-mortar world
             offline in the bricks-and-mortar world           the online world
                                                               the online world
              Examples:
              Examples:                                        Examples:
                                                               Examples:
              – The Gap
              – The Gap                                        – Amazon
                                                               – Amazon
              – UPS
              – UPS                                            – Yahoo
                                                               – Yahoo
              – Dell
              – Dell                                           – ZDNet
                                                               – ZDNet
              – JCrew
              – JCrew                                          – AOL
                                                               – AOL
              – McDonalds
              – McDonalds                                      – Priceline
                                                               – Priceline
              – OfficeMax
              – OfficeMax                                      – CDNow
                                                               – CDNow
              – Ragu
              – Ragu                                           – Wingspanbank
                                                               – Wingspanbank
              – Coca-Cola
              – Coca-Cola                                      – E*Trade
                                                               – E*Trade
              – Disney
              – Disney




                                                      7




September 2001               Chapter 7: Market Communications and Branding                              20
        Exhibit 7-5: Brand Presence




                                                               Mix of Promotional Activities
                                                   Off-line                                        On-line

                                 Online Brands


                                                                                          Yahoo
                                                                                          Yahoo



                                                                                         Egghead
                                                                                         Egghead
                                                               Yahoo Magazine


                                  Product
                               Establishment
                                                                                               Wingspan
                                                                                               Wingspan
                                                                                                bank
                                                                                                bank




                                                                                Schwab
                                                                                Schwab




                                                        Ragu
                                                        Ragu
                                     Traditional
                                        Brands



    Source: Monitor Analysis
                                                                   8




September 2001                        Chapter 7: Market Communications and Branding                          21
        Exhibit 7-6: Building an On-Line Brand




                          1. Clearly define the brand audience
                          1. Clearly define the brand audience
                          
                          



                          2. Understand the customer
                          2. Understand the customer
                          
                          

             Value
                          3. Identify key leverage points in customer experience
                          3. Identify key leverage points in customer experience
                          
                          
             Cluster
                          4.
                          4.
                          
                              Continually monitor competitors
                               Continually monitor competitors
                          5.
                          5.
                          
                              Design compelling and complete Brand Intent
                               Design compelling and complete Brand Intent
                          6.
                          6.
                          
                              Execute with integrity
                               Execute with integrity
                          7.
                          7.
                          
                              Be consistent over time
                               Be consistent over time
           Integrated
                          8. Establish feedback systems
                          8. Establish feedback systems
                          
                          
           Campaign
                          9. Be opportunistic
                          9. Be opportunistic
                          
                          



                          10. Invest and be patient
                          10. Invest and be patient
                          
                          




                                              9




September 2001          Chapter 7: Market Communications and Branding              22
       Table 7-4: Similarities and Differences in Offline vs. Online Branding


               Branding Element                           Off-line                               On-line
       1. Clearly define the brand           Limited to manageable number of       Could include larger number of
          audience                             segments to prevent inconsistent      segments, with customer driven
                                               messaging                             messages


       2. Understand the customer            Requires understanding of             Requires more thorough
                                              environment, desired purchase          understanding of desired
                                              and usage experience                   purchase and usage experience
                                                                                     in an interactive environment

       3. Identify key leverage points in    Buying process is typically a         Buying process tends to be more
          customer experience                 simplified representation of           dynamic and flexible
                                              customer segment behavior with
                                              static leverage points

       4. Continually monitor                Requires monitoring of competitor     Competitor advertisements &
          competitors                         advertisements & activities            activities can be monitored online




       5. Design compelling and              Brand intent (desired positioning)    Greater opportunity for
          complete Brand Intent               is designed to address the needs       customization of key messages
                                              and beliefs of target segments




                                                              1
                                                              0



September 2001                  Chapter 7: Market Communications and Branding                                             23
        Table 7-4: Similarities and Differences in Offline vs. Online Branding, cont’d

            Branding Element                            Off-line                                       On-line
        6. Execute with Integrity       Strong, positive brands are built up over    Online interactions bring in added
                                         time                                          concerns of security & privacy
                                                                                      Limited familiarity with on-line brands
                                                                                       makes fostering trust more difficult
        7. Be consistent over time      Brand intent guides marketing                Brand intent guides marketing
                                         communications                                communications
                                        Image reinforced through variety of          With the ability to customize, one
                                          offline media                                customers’ brand image may be
                                                                                       different than another customer’s brand
                                                                                       image
        8. Establish feedback           Collecting and analyzing customer            Sophisticated tools exist for tracking
           systems                       feedback is more time consuming               online; allow for anonymous, interactive,
                                                                                       quick feedback
        9. Be opportunistic             Marketing strategy includes plan for         Customization for multiple segments
                                         sequenced growth and adjustment of            and opportunity for early recognition of
                                         brand based on changing customer              changing customer needs
                                         needs                                         corresponding tailoring of brand intent
        10. Invest and be patient       Building brand awareness requires            Building brand awareness requires
                                         significant investment                        significant investment, especially for
                                        Building brand loyalty takes time offline,    those competitors who are not first in
                                         especially because early customer             their category online
                                         receptivity to brands is difficult to assess  Brands have the potential to generate
                                         (and usually involves market research)         loyalty more quickly, especially if
                                                                                        customers are targeted effectively




                                                                   1
                                                                   1




September 2001                      Chapter 7: Market Communications and Branding                                                  24
      Table 7-5: Case Studies of Successful Online Branding Efforts




                            Established as Traditional      Established as On-line Brand
                                      Brand
                            Branding      Branding and      Intermediary /    E-commerce
                             On-line      Selling On-line   Vertical Portal

                 Business
                    to        Ragu          American         Monster.com        CDNow
                 Consumer                    Airlines


                 Business
                    to        FedEx       Cisco Systems       Healtheon         Ventro
                 Business




                                                  1
                                                  2


September 2001          Chapter 7: Market Communications and Branding                      25
                            Branding Choices

  A firm’s online branding choices depend upon its
   communications objectives
           • Brand creation. The objective may be to build a new-to-the-world
             brand name
           • Sales leads. The company may decide that the Internet will be used
             to facilitate the sales-lead process
           • Store traffic. The principal objective for some sites may be to
             increase store traffic
           • Product trial. A fourth objective may be trial usage of the product
           • Product sales. The company can also measure the success of a
             campaign based upon the actual increase in product or service sales
           • Brand reinforcement. Finally, it is possible that the
             communications effort is focused on reinforcing a brand image that
             is already widely accepted in the marketplace

September 2001         Chapter 7: Market Communications and Branding               26
       Exhibit 7-7: Online Branding Choices


                                                                                                   Component of Brand
        Target Audience                             Product Scope            Value Objective
                                                                                                        Equity
      Who do we want to                      What product / service         What value do you       What part of brand
           target?                           are you offering them?         want to derive from    equity do you want to
                                                                          your on-line presence?           build?

                                                                                 Brand
                                                                                 Brand
                                                                                Creation
                                                                                Creation                  Brand
                                                                                                          Brand
                                                                                                        Awareness
                                                                                                        Awareness

                                                                               Sales Leads
                                                                               Sales Leads


                                                                                                         Brand
                                                                                                          Brand
                                                                                                       Association
                                                                                                       Association
                                                     Broad Vs.
                                                     Broad Vs.                 Store Traffic
                                                                               Store Traffic
           Broad Vs.
            Broad Vs.                                 Focused
                                                      Focused
            Focused
            Focused                                   (Specific
                                                       (Specific
            (Specific
             (Specific                               Products //
                                                     Products
           Segments)
           Segments)                                 Services)
                                                      Services)                Product Trial            Customer
                                                                               Product Trial            Customer
                                                                                                        Benefits
                                                                                                         Benefits


                                                                              Product Sales
                                                                              Product Sales


                                                                                 Brand                 Firm Benefits
                                                                                                       Firm Benefits
                                                                                  Brand
                                                                                Reinforce-
                                                                                Reinforce-
                                                                                  ment
                                                                                  ment
     Source: Forrester Research, Monitor Analysis
                                                                      1
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September 2001                              Chapter 7: Market Communications and Branding                                  27
                 Case Study: American Airlines

  Overview of American Airlines’ online branding efforts
           • First to have a service-oriented website (May 1995)
           • First to launch an e-mail service of discounted fares, Net SAAver
             Fares (March 1996)
           • First to offer real-time flight information (Spring 1996)
           • First to offer flight information on competitors (Spring 1996)
           • First to offer airline reservations online (June 1996)
           • First to offer paperless upgrade coupons and stickers (Spring 1997)
           • First to send e-mail confirmation of itinerary and ticket purchase
             (Fall 1997)
           • First to offer high personalization for consumers (June 1998)
           • First airline to partner with AOL to create AOL AAdvantage
             Rewards Program (Fall 2000)


September 2001         Chapter 7: Market Communications and Branding               28
      Exhibit 7-8:    WWW.AA.COM




                                         1
                                         4




September 2001       Chapter 7: Market Communications and Branding   29
            Exhibit 7-9:                         Assessment of Key Branding Elements
                                                 On-line Branding Best-in-Class                                                     Comparison
                                                       American Airlines                                                             Continental
                  Key Elements          Rating                         Rationale                         Rating                             Rationale
                                                  Specifically
                                                              targets AAdvantage members –                       Targets
                                                                                                                         both high spending business customers, as
                                                   highly profitable and loyal customers familiar                  well Onepass members, and non Onepass members
            1.   Clearly Define the                with travel (and thus more likely to buy tickets
                 Brand Audience                    online)


            2.   Understand the                   Constantly
                                                            anticipates and innovates to meet                    Tends
                                                                                                                       to be a ―follower‖ in the industry, late in
                 Customer                          the needs of the customer                                       launching its website (6/97)
            3.   Identify Key                     Net
                                                     SAAvers and new customization program                       Sends
                                                                                                                         C.O.O.L. e-mails similar to Net SAAvers and
                 Leverage Points in                leverage consumers desire for finding cheap                     added a personalization feature to the site, but late
                 Customer                          fares into transaction by sending out e-mails                   identification of this leverage point has result in
                 Experience                        each week                                                       significantly lower subscription rates
                                                  If
                                                  a competitor adopted a technology before                       Tends
                                                                                                                        to follow what competitors are doing at a slower
            4.   Continually Monitor
                                                   American; it was quick to follow                                pace, launching ―copy-cat‖ initiatives many months
                 Competitors
                                                                                                                   after competitor roll-out
            5.   Design Compelling                Focus,
                                                          stream lining, and ease of use of web                        target segment (business travelers? OnePass
                                                                                                                   Unclear
                                                                                                                  
                 and Complete                      site all convey American’s message of customer                  members?) causes lack of clarity with Brand Intent
                 Brand Intent                      needs first
                                                  Trust
                                                        fostered in the offline world carries over               Trust
                                                                                                                       fostered in the offline world carries over into the
            6.   Execute with
                                                   into the online world                                           online world, with extensive information for members
                 Integrity
                                                                                                                   on privacy and use of provided information
                                                  Although
                                                          constantly innovating new                                      URLs for different portions of the site do not
                                                                                                                   Different
                                                                                                                  
            7.   Be Consistent Over
                                                   technologies and features, stays true to                        convey message of consistency
                 Time
                                                   ―something special online‖
                                                  Customer
                                                           service offered as a service at the top               Very
                                                                                                                      easy to access, prominent feature for obtaining
            8.   Establish Feedback
                                                   of each page in small letters, but is not labeled               customer feedback on the website
                 Systems
                                                   as a specific menu item
                                                  Leader
                                                        in its industry in innovation and                        Follower
                                                                                                                             in the industry
            9.   Be Opportunistic        CV        development
            10. Invest and Be                     Invests
                                                          significantly in technology for the future             Has
                                                                                                                    a tendency to wait too long to make changes
                Patient                  CV                                                                        competitors make to their sites


                                           = very low              = low                = moderate            = high       CVc = very high

                                                                                           1
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September 2001                         Chapter 7: Market Communications and Branding                                                                                           30
        Exhibit 7-10:                     Assessment of Key Brand Attributes
                                      On-line Branding Best-in-Class                                       Comparison
                                              American Airlines                                             Continental

        Key Attributes   Rating                      Rationale                      Rating                       Rationale
                                   Up to date flight and gate check                          Offers only information for Continental
                                    information                                                airlines, but does offer bookings for
                                   Personalized information based on
                                                                                               rental cars and hotels
      1. Relevant
                                    AAdvantage profiles                                       Allows travel preferences to be saved in

                                   PDA applications with flight information
                                                                                               profiles


                                   Availability of competitor information                    Offers extensive online customer service
                                   Offers highly personalized experience                      options
      2. Distinct                                                                             Offer customized services for the
                                   First to offer tie in with PDA applications
                                                                                               business traveler


                                     Portrays an image of something ―special                   No key messages online associated
                                      online‖, consistent with its image of                      closely with the offline campaign
                                      offering something ―special in the air‖
      3. Consistent



                                   Provides a unique service others cannot                     Multiple URLs associated with the site
                                    offer (in terms of personalization)                          and lack of online / offline message
                                   Net SAAvers is the most well known and
                                                                                                 association fail to create a cohesively
      4. Memorable
                                    effective e-mail marketing tool                              memorable brand for the consumer



                         = very low          = low          = moderate            = high           = very high

                                                                      1
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September 2001                        Chapter 7: Market Communications and Branding                                                        31
                     Case Study: Monster.com

  Overview of Monster.com’s branding efforts and
   achievements
           • Launched in 1994 as the 454th website in the world
           • Monster.com has over 50% of the online-recruitment ad market
           • Revenue increased from $6.9 million in 1996 to $133.5 million in
             1999
           • The site’s traffic—averaging 3.6 million unique visitors in January
             2000—translates into more than 5% of all U.S. Internet users
           • At the end of 2000, Monster.com had 7.2 million resumes on file
             and more than 273,000 registered recruiters
           • In February 1999, Monster.com’s Super Bowl TV ads generated
             2.2million searches, a 450% traffic increase in one week
           • To further its branding efforts, Monster.com signed alliances with
             Yahoo and a $100 million four-year agreement with AOL to be its
             exclusive career-information provider
September 2001         Chapter 7: Market Communications and Branding               32
       Exhibit 7-11: www.monster.com




                                           1
                                           7




September 2001        Chapter 7: Market Communications and Branding   33
       Exhibit 7-12: Assessment of Key Branding Elements
                                                Online Branding Best-in-Class                                                       Comparison
                                                       Monster.com                                                                  HotJobs.com
         Key Elements           Rating                                 Rationale                                   Rating                     Rationale

                                          Within
                                               the employer market, targets all types of companies, from                   Appeals
                                                                                                                                     to a wide range of job seekers,
  1.   Clearly Define the
                                          startups to large corporations                                                     but it specializes in the intern and entry
       Brand Audience
                                                                                                                             level positions
                                          Offers
                                              highly personalized services for the job seekers,                            Only site to offer privacy feature which
                                                                                                                            
  2.   Understand the                     addresses security concerns, and offers value added services                       allows job seeker to select which
       Customer                           (resume help, advice, interactive communication with other job                     companies have access to their resume
                                          seekers.)
                                          Provides interactive career information for customers that are not
                                                                                                                           Allows
                                                                                                                                   recruiting process to become
  3.   Identify Key Leverage              necessarily ―looking,‖ thus increasi ng the probability that they will             internal through Hotjobs.com and its
       Points in Customer                 become job seekers                                                                 proprietary Softshoe technology, and
       Experience                                                                                                            eliminates concerns about adding an
                                                                                                                             additional venue for recruiting
                                          Currently
                                                 a leader in providing unique services to its consumers,                   Adopts successful features of the
                                                                                                                            
  4.   Continually Monitor
                                          but does not have some features that competitors do                                Monster.com site, but usually on a lesser
       Competitors
                                                                                                                             scale
                                          Message
                                                   of ―there’s a better job out there‖ combined with                       Message of ―all the hottest jobs at all the
                                                                                                                            
                                          diversified strategic alliances and ―intern -to-CEO‖ strategy                      hottest companies‖ was overs hadowed in
  5.   Design Compelling and
                                          convey the idea that Monster.com can find you that better job                      the spring with controversy over
       Complete Brand Intent
                                                                                                                             tastefulness of ads which were rejected by
                                                                                                                             networks
                                          Offers
                                               password and ID protection, as well as some ability to                      Offers most specialized security measures
                                                                                                                            
  6.   Execute with Integrity             selectively decide when and where your resume can seen;                            for individual users (prevent current
                                                                                                                             employers from viewing resume)
                                          In
                                          the short time since ―there’s a better job out there‖ messages                   Recent ―Hottest Hand on the Web
                                                                                                                            
  7.   Be Consistent Over
                                          have been consistent                                                               Campaign‖ different from past bran ding
       Time
                                                                                                                             messages
  8.   Establish Feedback                 Offers
                                              extensive feedback system for users, allowing users to                       Also offers feedback mechanism for
                                                                                                                            

       Systems                            even selecting categories of information / feedback                                users, although less specialized

                                          Partners
                                                  with firms that could potentially be competitors, rather                 Took
                                                                                                                                  a risk with Super Bowl advertising,
  9.   Be Opportunistic                   than trying eliminate competition                                                  even without a compelling ad campaign,
                                                                                                                             to raise brand awareness
                                          Willing
                                               to invest heavily in the o ffline world to gain brand                       Also
                                                                                                                                willing to invest in the offline world to
  10. Invest and Be Patient               recognition                                                                        gain brand recognition




                                                                                      1
                                                                                      8




September 2001                                 Chapter 7: Market Communications and Branding                                                                                  34
         Exhibit 7-13: Assessment of Key Brand Attributes
                                            Online Branding Best-in-Class                         Comparison
                                                    Monster.com                                   HotJobs.com

             Key Attributes   Rating                 Rationale               Rating                 Rationale
                                        For job seekers: Provides
                                                                                     For job seekers: Provides information
                                                                                      

                                        information for individuals                    geared more specifically for those
                                        regardless of whether or not they              individuals that are seeking positions
         1. Relevant                    are actively pursuing a new
                                        position, including career
                                        information, and chats with other
                                        members on various career topics
                                        For job seekers: Aids in resume
                                                                                     For job seekers: Allows selection of
                                                                                      

                                        building, personalization with ―My             companies that view posted resumes
                                        Monster‖ pages and enhanced
         2. Distinct                    privacy options; also offers
                                        opportunity for interactive
                                        communication with other
                                        members
                                        Recent partnerships have been
                                                                                     New ―Hottest Hand on the Web‖
                                                                                      

                                        consistent with Monster.com’s aim              campaign, although new and catchy,
         3. Consistent                  to provide the most diverse set of             has not been consistent since the
                                        individuals with the most diverse              company’s beginning
                                        set of employment opportunities

                                        Witty and award winning offline
                                                                                     Although also one of the most well
                                                                                      

                                        advertising have allowed                       known online career services on the
                                        Monster.com to cement itself as                web, has not been as successful as
         4. Memorable
                                        the best known online career site              Monster.com in creating a uniquely
                                        on the web                                     memorable advertising campaign and
                                                                                       message


                                                                 1
                                                                 9




September 2001                Chapter 7: Market Communications and Branding                                                     35
                   Case Study: MarketWatch.com

  Overview of MarketWatch.com branding efforts
           • General online approaches
                 • MarketWatch.com advertises on sites with broad reach, such as
                   Yahoo, Lycos, and Excite
                 • MarketWatch.com is a recommended link on the CBS site and
                   the sites of CBS partners
                 • MarketWatch.com is the premier provider of business and
                   financial news for AOL’s Personal Finance channel, with links
                   on the AOL site leading to MarketWatch.com
                 • MarketWatch.com has a content-licensing agreement with
                   online brokers such as E*Trade and Fidelity.com
                 • In addition to agreements with other parties, MarketWatch.com
                   offers the majority of its content and tools for free, encouraging
                   users to explore the site and to return to it regularly

September 2001           Chapter 7: Market Communications and Branding                  36
          Case Study: MarketWatch.com (cont’d)

  Overview of MarketWatch.com branding efforts
           • Traditional mass marketing media
                 • MarketWatch.com features its own weekly show CBS
                   MarketWatch Weekend
                 • MarketWatch.com provides content for popular CBS News
                   programs such as the Early Show, CBS Evening News and CBS
                   NewsPath
                 • MarketWatch.com contributes content that is aired through the
                   Westwood One radio syndication company across the country
                   (154 stations, including the top 10 markets in the nation , with a
                   reach of 11.5 million unduplicated listeners each week)
                 • MarketWatch.com provides financial content to newspapers,
                   such as the Daily News Express


September 2001           Chapter 7: Market Communications and Branding                  37
         Table 7-6: MarketWatch.com Marketing Communications
                                                 Direct                                                           Personalized
                                                                                              Permission marketing emails sent to groups from opt-in lists




     Individualized




   Audience
    Focus
                                       Traditional Mass Marketing                                              General Approaches
                         Television                                                          Advertising on major portals (e.g., Yahoo!, Lycos, Excite,
                            – Advertising on CBS                                               Alta Vista)
                            – Mentions and scrolls during CBS shows
                            – CBS Marketwatch Weekend                                         Advertising on CBS site and other CBS internet partners
                            – Contributions to CBS NewsPath                                    (e.g. CBS SportsLine, CBS HealthWatch)
                         Outdoor Advertising                                                 Advertisements on targeted sites (e.g. other online financial
                            – Outdoor placards                                                 sites)
                            – Bus advertisements in target cities                             Provision of content and tools to sites (e.g., AOL,
                         Radio                                                                Quicken.com)
              Broad
                            – Contributions to Westwood One Radio Network                     Licensing content arrangements
                            – Spots during NFL radio broadcasts
                            – Mentions on CBS owned and operated radio stations               CBS Marketwatch Survivor contest
                         Print                                                               Free information onsite
                            – Limited ads in trade journals
                         Conferences
                            – Participation in online finance, online journalism and
                                internet-related conferences



                                                 Offline                                                               Online
                                                                            Communication Needs
                                                                                       2
                                                                                       0



September 2001                              Chapter 7: Market Communications and Branding                                                                      38
     Exhibit 7-14: Assessment of Key Branding Elements for MarketWatch.com

                                                                                                      MarketWatch.com
                    Key Elements                     Rating                                                   Rationale

                                                                Three target groups cover a wide range of the population: savvy investors, financial information
    Clearly Define the Brand Audience                             seekers and ―dabblers‖ (users with little financial knowledge)

                                                                Understands the different needs of savvy investors versus less sophisticated investors and provides
    Understand the Customer                                       offerings accordingly

                                                                Focuses primarily on providing breaking news and analysis, rather than enabling investors to make
    Identify Key Leverage Points in Customer                      transactions
    Experience
                                                                Has developed a community that shares knowledge and encourages frequent returns to the site
                                                                Continuously tracks studies on demographics, behavior and brand awareness of its users versus
    Continually Monitor Competitors                               competition

                                                                Message of ―Get the Story Behind the Numbers‖ captures most of the value offered to users: relevant
    Design Compelling and Complete Brand
                                                                  and in-depth financial information and analysis; it does not fully capture the tools and education that
    Intent                                                        the site offers
                                                                The message of the CBS MarketWatch brand is trustworthy; its credibility is enhanced by the
    Execute with Integrity                                        association with the CBS News brand name and the staff of over 90 experienced journalists and
                                                                  editors
                                                                Initial branding message was: ―Your eye on the market‖; switched to ―Get the Story Behind the
    Be Consistent Over Time                                       Numbers‖ in 1999. The new message was designed to appeal to a broader user group

                                                                Rigorously tested site and message effectiveness with focus groups half-way through the new
    Establish Feedback Systems                                    marketing message campaign, at a time when the market was in turmoil; results were highly positive

                                                                Establishing CBS MarketWatch brand over a number of different media, including web, TV, radio,
    Be Opportunistic                                              print and wireless

                                                                Investing a large percentage of the company budget to sales and marketing activities — patiently
    Invest and Be Patient                                         waiting to become profitable, even with a market that currently demands profitability



       = Very Low         = Low         = Moderate       = High          = Very High
                                                                                       2
                                                                                       1



September 2001                              Chapter 7: Market Communications and Branding                                                                                   39
        Exhibit 7-15: Assessment of Key Brand Attributes for MarketWatch.com
                                                                                     MarketWatch.com
                     Key Attrributes              Rating                                   Rationale
                                                           Directly addressing the needs of different user groups; for savvy
                                                             investors: providing real-time quotes, in-depth analysis and tools; for
     1. Relevant
                                                             financial information seekers and users new to financial concepts:
                                                             providing headline news and analysis as well as education tools
                                                           Brand message ―Get the Story Behind the Numbers‖ is distinct from
     2. Distinct                                             competitor messages; it focuses on the unique MarketWatch.com
                                                             capability of providing new-to-the-world, relevant, in-depth content
                                                           The  initial brand message was ―Your eye on the market.‖ This changed
                                                             to ―Get the Story Behind the Numbers‖ in mid 1999. The intent was to
                                                             appeal to a wider group of users, shifting the focus toward less
     3. Consistent                                           sophisticated investors and people new to financial information
                                                           The main offering message of providing quality market analysis has
                                                             remained relatively consistent
                                                           The  Marketwatch.com brand message is highly memorable
                                                           This has been aided by appealing and memorable TV advertisements,
                                                             which start with the end market result of a news announcement and
     4. Memorable
                                                             trace it back to the unlikely events that actually led to it
                                                           As a result, the CBS MarketWatch brand rose 10 points in aided
                                                             awareness in one year


        = Very Low       = Low     = Moderate   = High     = Very High




                                                                         2
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September 2001                          Chapter 7: Market Communications and Branding                                                  40

				
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