Digital Brand Strategy. MKTG5605: Digital Brand & Product Management
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1 Digital Brand Strategy MKTG5605: Digital Brand & Product Management February 15, 2017
2 Discuss (20 minutes) From reading Building a Brand Online, what are some of the key takeaways? Carnival Cruise Line Case, can it control the conversation? And are there negative consequences that cannot be overcome? How did Taco Bell become part of the conversation? Building Brands: The Power of Social Media, how does a local shop work to be part of the consumers lives?
3 Carnival-Decision Brief Question What does Carnival Cruise Lines do to stabilize the brand position, maintain brand equity, in addition to stabilizing topline revenue in light of the current and significant multiple ship challenges? What can be done to keep current customers and drive repeat visitation / purchase? Can Carnival use service/disaster recovery to improve brand position? Can Carnival possibly consider taking competitive share at this moment?! Think in terms of the Digital Space 3
4 Feedback Loop Get feedback from customers at different adoption stages. Heavy Cruiser Non-cruiser, Unaware Non-cruiser, Aware Light Cruiser 4
5 Managing the Brand A company is more than a collection of its tangible assets. It is even more than the intellectual capital of its employees. How a corporation is perceived by the public can be worth more to a company than all its other tangible and intangible assets put together. When you lose your reputation, you lose a whole lot more than your reputation. 5
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7 Consumer behavior and expectations have forever changed. With connected devices within our reach, we do more than just check the time, check s or catch up with friends. We turn to our devices with intent and expect to have immediate answers It's in these I-want-to-be informed(entertained), I-want-to-know, I- want-to-buy, I want-to-use moments that decisions are made and preferences are shaped.
8 Digital Brand Strategy must understand how people are behaving on digital platforms Digital Brand Strategists are Hybrid Thinkers
9 Role of Digital Communications in Building Brands Source: Aaker on Branding The 20 Principles that Drive Success
10 The Brand Building Role of Digital Communications Source: Aaker on Branding The 20 Principles that Drive Success
11 Role of Digital Communications Support the Brand Offer Amplify the Brand Offer Brand Building Platform Source: Aaker on Branding The 20 Principles that Drive Success
12 Taco Bell Goes Loco for Snapchatting Millennials
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14 Digital channels, and assets are used to communicate a brand s positioning (or purpose). It is not about digital marketing, it is about marketing effectively in a Digital World -Ivan Menezes, CEO Diageo
15 Positioning Answers to these questions are the building blocks of your positioning: What is your category? Who are your competitors? How do your price and quality levels compare to competitors? How do you provide value to consumers? What is your point of difference? (POD, USP)
16 Positioning Positioning is essentially determining and executing how your brand is different from alternatives, in a way that matters to your target customer. Basic elements 1. Category Definition 2. Target customer 3. How you provide Value 4. Relative Points of Difference
17 Positioning in a way that matters to your target customer. Providing Good Reason Why (to buy) Consumers are motivated to change their behavior if there is a reason why a Brand will (i) improve their situation or (ii) save them money - better than alternatives.
18 Positioning Consumers will have reason that their situation has been improved if they 1. Have problems solved real & perceived 2. Receive incremental benefits rational & psychological 3. Satisfy needs and wants logical & emotional
19 A Planning Framework Opportunity Assessment Growth Priorities WHERE TO PLAY Portfolio Strategy Segmentation From: Digital Branding Guide,
20 Source: Digital Branding Guide A Planning Framework Brand vision, Strategy, Proposition & Positioning HOW TO WIN Targeting Strategy Innovation Strategy Channel Strategy
21 A Planning Framework Integrated Activity Plan Execution, Evaluation & Learning HOW TO WIN In MARKET
22 Remember The Brand Brief Brand Idea What are you? Personality Who are you? Driving Purpose - Start with why Desired People - Who cares about you? Distinct Offering - What makes you unique? Differentiated Process - How are you unique?
23 Who Are Your Customers? Implicit What users are doing? Where they are spending most of their time on your site? What ad channel they came from? What actions they take or don t take, including purchase data? What they share to social media? Explicit What users are telling you? address Name Zip Code Demographic Info
24 Building a Perceptual Map Produce a visual representation of the differences and similarities of brands, products, or customers
25 I Want To Moments
26 Positioning Start With Why Simon Sinek, Ted Talk
27 Getting to Why
28 Getting to Why
29 Getting to Why
30 Positioning Source: Positioning-The Battle for Your Mind
31 Positioning What matters to a customer Q1. How do you provide value to consumers? Derived Value Emotional Benefits Functional Benefits Attributes 1. Have problems solved real & perceived 2. Receive incremental benefits rational & psychological 3. Satisfy needs and wants logical & emotional 31
32 Positioning How do you provide value to consumers? Derived Value Emotional Benefits Functional Benefits Attributes Q2. How are any of these are different from competitors or alternatives? 32
33 Positioning Who are (and who are not) your competitors? If this cannot be easily answered, then positioning is not clear Positioning is, by definition, relative to competitors within your category Consumers make purchase decisions based on comparisons of alternative products If positioning isn t defined relative to competitors, it s just a vision statement and not really a market strategy 33
34 Positioning What is your point of difference? A point of difference (POD) may be based on a product attribute, a consumer benefit, or an aspect of brand identity. Strengths are not automatically PODs. PODs are the strengths that are also unique from competitors in a way that matters to consumers What are the brand associations for your product? 34
35 Positioning What is your point of difference (POD)? The best points of difference are brand associations that are strongly held by customers, are favorably evaluated, and are unique the brand. e.g. Natural, Loaded, Indulgent, Inexpensive, Fun, Sophisticated, Imported, Comfort food, Hard core 35
36 Points of Difference Positioning based on a single dominant POD may be so clear and relevant that is can be expressed and understood in a few words. Evidence should be demonstrated / noticeable to the consumer that supports the POD claims. What builds, maintains, and reinforces the POD? 36
37 Positioning Communicating Positioning Positioning Statements Positioning is often communicated through a formula Positioning Statement based market scope and major point of distinction. Brand Statements An overall summary brand statement is possible that encompasses the main ideas of the Brand Architecture. 37
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51 How Does This Impact Our Strategy? At the strategic level, all digital activity should help some Moment of Truth At an functional level, the brand should offer information, brand utility or fun At an executional level, brands should use the most appropriate channel or touch-point to deliver the functionality
52 Tactical Development Imagine we have created a plan to help Frito Lay with their repositioning of potato chips as not so unhealthy What were tactics that they did or could do?
53 Tactics as Marketing Mix Elements Product Package Price Assortment Distribution Merchandising Service Promotion Advertising 1. Good: keep, expand, protect, leverage strengths and points of difference 2. Bad: remove, stop, reduce, minimize weaknesses and threats 3. Missing: add, create, change, borrow, combine, adapt
54 Tactical Development How do you move from strategy thinking to tactical thinking? How do you create a lot of new thinking and ideas to fill in a tactical matrix? How do you do this as a group? 1. Ideation 2. Brainstorming
55 Ideation Methodology Idea Development Borrow someone else s idea The best ideas can be borrowed ideas. The most creative ideas might be right in front of you. The key is to adapt others solution to your problem. Step outside of your role Be a customer Assume a third person view Cast of Friends, Google, Modern Family
56 Brand Equity A well-developed Brand creates Consumer Equity (value consumers attribute to your brand) that drives Consumer Behaviors (purchasing your products) that drives ongoing profitable sales that create Brand Market Equity (value of your company) 56
57 Case Study: Lady Gaga 1. If you were Troy Carter, which of the three touring options would you pursue for Lady Gaga? Why? 2. How much money does Gaga stand to gain (or lose) under each option? In your view, do the potential rewards justify the investment? And can Carter do anything to mitigate the risks of pursuing a solo tour? 3. Are Gaga's main partners-live Nation, WME, and her recording label Interscope-likely to have the same preferences regarding the three options? Are their incentives generally aligned with Gaga's? 4. How would you evaluate Gaga's launch as an artist up to September 2009? How can her team best go about further developing her touring and recording career going forward? And how can team Gaga best leverage her social-media presence? 5. How important are the concert-ticket sales versus recording-music sales for an artist like Gaga? Where should team Gaga focus its efforts in the future?
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59 For Next Class (March 22): Read Most Engaging Brand Content Sephora Case Meet Up (February 19).. Brian Livell (Big Sofa Technologies) Looking ahead
60 Acknowledgements Edelman, David C., Dec 2010, Branding in the Digital Age: You re Spending Your Money in All the Wrong Places, Harvard Business Review Edelman, David and Salsberg, Brian, November 2010, Beyond paid media: Marketing s New Vocabulary, McKinsey Quarterly Critchlow, Will, 21 April 2014, Building a Brand Online: The Golden Age of Digital Ries, Al and Trout, Jack, Positioning: The Battle for Your Mind
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