BRAND POSITIONING IN THE B2B ONLINE ENVIRONMENT: A CONCEPTUAL FRAMEWORK

Transcription

1 BRAND POSITIONING IN THE B2B ONLINE ENVIRONMENT: A CONCEPTUAL FRAMEWORK Nicolas Virtsonis, Research Director, PRiNTELLIGENCE nicolas.virtsonis@printelligence.com Sally Harridge-March, Senior Lecturer in Marketing, Oxford Brookes University This paper was published in the proceedings of the Academy of Marketing Conference 2007.

2 BRAND POSITIONING IN THE B2B ONLINE ENVIRONMENT: A CONCEPTUAL FRAMEWORK KEYWORDS: Brand positioning, online branding, Business-to-Business (B2B) INTRODUCTION A brand s positioning is intended to be conveyed through various integrated media, one of which is the Internet. Modern technology enables company websites to be more than online notice-boards or contact points as they were in the early 90 s. Instead, they can be a means for the delivery of a vast variety of communications objectives to a very wide and diverse audience. The Internet offers a wider coverage today than ever before and has great scope for interactivity. Many of the issues faced by B2B marketers can be addressed through the Internet s interactivity and availability. Service quality, which is difficult to evaluate particularly in the B2B environment, is an example of one of these issues. The nature of services does not allow for the assessment of quality without first-hand experience of a service (Frieden and Goldsmith 1989, cited in Green 1998). In addition to this, in the B2B environment, there are fewer buyers to share experiences and the complexity of customised services hinders comparability. Green (1998) suggests that the only way (besides experience) by which service quality perceptions can be shaped is through marketing communications. Hence, the Internet is a means to enable the flow of information which in turn can alter the perceptions that buyers may have regarding a brand in the B2B environment. The Internet, besides serving as a medium for communications, is often used as a service extension for a particular offering through which service can be dispensed. An example of this is the downloading of market data from a data provider. On this basis, the online marketer has the opportunity to influence consumers perceptions of a brand, based on their online experience. Visual appeal and content are not the only important elements in website communications. As in traditional advertising, one may stray away from objective criteria and follow the alluring path of design for creativity s sake. Kim et al (2003) produced a review of literature covering a very wide range of website aspects such as speed of loading, navigability, usability and intuitiveness of interface, currency of information, structure and support, However, Alper (1999) as cited in Kim et al (2003) found that website viewers are more concerned with information content and ease of use. While the impact of other website communications elements such as those mentioned is recognised, the focus of this paper is on the text that organisations use in an attempt to position themselves. As technologies and ideas develop rapidly in the online arena, this paper posits the need to strengthen the link between media technologies, content and integrated communications strategy. Brand positioning is an area researched extensively by academic and practitioner researchers and is recognised as a critically important and influential component of corporate strategy. Theory has concentrated on what constitutes a brand, (e.g. Christodoulides and De Chernatony, 2004; De Chernatony and Dall Olmo Riley, 1998), what makes a brand different, and how a brand s positioning can be 1

3 communicated through the marketing mix (Wise and Sirohi, 2005), and disseminated through the marketing communications mix (Graeff, 1996). Yet, in many industries, brands are not developed on the lines of suggested theories and practitioner guidelines. According to Gattiker et al (2000) and Rowley (2004a), online branding and transactions for technical products, particularly in the area of B2B marketing, has been under researched. This paper examines the way in which brand positioning is manifested in the online B2B environment. The objective of this paper is to develop a conceptual framework of the elements of B2B brand positioning online. The order of this paper is as follows: firstly, the research design is discussed, secondly a review of the literature on online branding is presented, which is distilled in to the third section, the discussion of the conceptual framework. In this discussion the elements are presented and finally the paper ends with suggestions for areas of future research. BRANDING ONLINE Okazaki (2006) researched online brand personality as part of positioning, and stated that despite the abundant literature on brand personality in general, little attention has been paid to how companies attempt to formulate brand personality on the Internet. Okazaki s (2006) study aimed to explain how multinational corporations attempted to formulate brand personality on the Internet for the consumer market. Online branding has gained recent research attention (e.g. Christodoulides and De Chernatony, 2004; Okazaki, 2006; Rowley, 2004a, 2004b). There have been attempts to address brand positioning components, for example Christodoulides and De Chernatony s (2004) online brand equity components, but there has not been any research into the manifestation of these components online, with the exception of Okazaki s (2006) exploration of online brand personality. Literature regarding other media such as television, radio and print is widespread and has been covered in a variety of marketing academic sources, be it in journals or textbooks. The familiarity of these media allows practitioners to consider the use of few and important variables generally understood in the industry, such as message, copy, images, sounds, sequences and timing. The fact that traditional media tend not to be interactive simplifies their planning process, which has allowed theory to develop. There is a research interest in the Internet as a medium for branding, but it has been rather limited. Relatively few researchers have been active in the online arena since the delivery of the Internet to the public. Online retailing research is still in its infancy. Research in offline retail - covering areas such as in-store design, layout and point of sale promotion - has been widespread (Bitner, 1992; Carpenter and Moore, 2006; Peattie, 1998; Smith and Burns, 1996;) and disseminated through academic journals and university textbooks. Online retail market research has tended to remain privy to the researcher s organization and is not widely disseminated, due to trade sensitivity. 2

4 Components of brands, or brand elements, are parts of the brand broken down from the marketer s perspective to aid the process of branding. Customers do not perceive brands broken down into elements; rather they view them in a holistic approach. Brand components have been researched by various academics (for instance De Chernatony and Dall Olmo Riley, 1998). According to Rowley (2004a), experiencing a website conveys the brand positioning to the website user. This brand positioning can be analysed in two ways; the meaning of this message can be analysed, or the vehicle through which messages are manifested can be the object of analysis. In this paper, the latent content of the message is considered, and the aim is to understand the brand impacting messages. These messages form brand positioning elements. Studies of website elements have been conducted, such as those by Ghose and Dou (1998) cited in Okazaki (2006) and Kim et al (2003). These differ from this research in three ways. Firstly, they are concerned with the consumer market and not the B2B environment. Secondly, they are concerned with the message vehicle and not the message content. Thirdly, they aim to confirm and not to explore. The method used in their papers is that of measurement of occurrence of predetermined factors. RESEARCH DESIGN This research is of an exploratory nature with the aim to develop a framework that describes the various positioning elements that are manifested in B2B websites. In order to build a literature body from which a framework could be derived a number of academic resources was used to produce a very inclusive and all encompassing review of literature. This analysis was concerned only with the textual content and interaction elements (primarily forms). Graphics, aesthetics, structural design, navigability, semantics, imagery, sound, animation, functionality and ergonomics were omitted because although they have an impact on website user perceptions (Rowley, 2004a; Kim et al, 2003) they are outside the scope of this study. Acknowledging that positioning is not what is done to the product or brand, it is what is created in the minds of target customers as quoted by Ries and Trout (1981) in Dibb and Simkin (1993, p.31), the focus of the research is specifically on the textual elements of communications. The focus in the research is on the textual themes through which perceptions are attempted to be altered. This limitation which admittedly omits a variety of graphical communications that are rich in content focuses on the more objective interpretation of arguments, and positioning statements. Textual elements through which positioning can impact are: brand taglines, structural elements such as company profiles, case studies, product and service information and corporate standard copy such as mission statements and so on. The reason for focussing on the textual elements is predominantly that a quantitative content analysis study is planned to take place by the researchers at a later point in time to measure the occurrence of these themes in the business to business print industry. The search process involved a wide range of peer reviewed academic journals and aimed to address the issues that are faced in communicating through text in the online environment. The criteria used for the inclusion or exclusion of an element were the necessity for an element to have an impact on website user s perceptions of the brand. Elements have been derived from traditional marketing theories such as the 3

5 marketing mix, services marketing, relationship marketing, to more specific areas such as brand components. Literature was not limited to research in the online environment but included elements of offline communications that can be evident in online textual copy. As the availability of research on online textual copy was rather limited, the consideration of a wider gamut of marketing theories such as those previously presented was necessary. The relevant literature has been organised and presented in the framework according to coherent themes that were derived during the review. These themes form the components presented in the proposed framework. THE ONLINE BRAND POSITIONING ELEMENTS The literature pertaining to textual themes found in websites was considered and the themes were grouped on the basis of their capacity to alter audiences perceptions of brand positioning. The following figure depicts the various elements that have been identified in the literature reviewed and have been documented in academic research. Figure 1 The online positioning framework WEBSITE POSITIONING ELEMENTS 1. Benefits and features 2..Pricing and value statements 3.Competitive advantage 4.Information on products and services (including technical specifications) 5.Information on processes 6.Partnering and relationships 7.Leadership claims and corporate power 8.Corporate social responsibility DEMONSTRATION OF CREDIBILITY Website Elements Website user / Audience The brand positioning elements are depicted in Figure 1. The brand positioning elements take the form of textual content of a webpage. The positioning is manifested through website elements and reaches interaction with the browsing audience. In order for these messages to be accepted by the website visitor, as in other media, the messages must be believable and underpinned by demonstrated credibility. The credibility of the messages on the right side of the box affects all elements and claims a supplier makes. Each of the elements in the website positioning framework is described in the following section. 4

6 Links to marketing theories Some of the elements described are found in the traditional marketing literature regarding the marketing mix. Product information, distribution, pricing, communications are all elements that are identifiable in the elements described below. In addition, elements from the extended version of the marketing mix are also noted: processes (Booms and Bitner, 1981) also form online branding elements. In its simplest form, the P s of the marketing mix are used as a platform for conveying positioning information. As media for communication are constantly changing, so should the approach to their use evolve with them. Despite the fact that little attention has been directed towards communicated textual content of websites in the B2B environment, it is interesting to note that the meaning of the arising themes is documented in other research. The following describes the conceptual framework elements of online branding and points out the similarities in the research and the literature, including elements of the marketing mix P s. Benefits and features By benefits and features what is meant is the use of text to make statements relating to the benefits of using a particular product, service or supplier. The use of benefits in advertising copy is addressed in marketing and sales literature. Benefits are key to shaping expectations of service and perceptions of brands, as they can only be described through communications or service encounter (Green, 1998). Benefits are recognised as an important element in communications and it is for this reason that benefit segmentation is of particular value. Benefits have been identified with rational backing in Okazaki s (2006) study as well. Pricing and value statements Pricing and value statements are promises of value, price that are explicit and not implicit by means of the price. Price and value are also documented in vast amounts of academic literature as important aspects of an offering (Rowley, 1997). This is also portrayed by their role in the marketing mix as one of the P s. Price and value statements can be more than price indications, as pricing may be complex and hard to estimate for B2B products or services, making comparisons harder without the existence of actual quotes for comparable products. The online environment can foster statements of pricing approaches, promises, examples and comparative statements and demonstration of value. Competitive advantage Competitive advantage relates to the textual demonstration of a unique set of capabilities that enable a supplier to claim superiority in providing the benefits and features previously mentioned. Competitive advantage is addressed as a theme in advertising copy. Okazaki s (2006) study in the consumer market, which identified competitive, unique and rational stimuli as elements of brand personality confirmed 5

7 the use of competitive advantage in copy as an emerging theme. Having a competitive advantage support a benefit or feature of superiority claimed by a supplier increases the credibility of the message communicated. Green (1998) suggests that statements must be made believable through relevant competencies. For instance, a larger firm may make claims of resource as a source of competitive advantage whereas a small firm can claim that they are closer to their customers. Both these sources of competitive advantage can be used to underpin the same benefit: better customer service. Information on products and services As websites are a medium that predominantly are used for the transfer of information on products and services (either technical or not) they are elements considered in this mix of website positioning elements. Product has historically been regarded as a critical element of brand positioning as it constitutes one of the four marketing mix s four P s. Green (1998) stated that in the B2B environment, advertising plays an informative role as business audiences seek information more actively in order to improve their business. Information on individual types of service and products can also be provided at a deeper level of detail and allowing interactive searches. Product and service information can be traced back to the P s as well. Processes By processes what is meant is the description of any process that occurs between the buyer and supplier, such as the ordering process, for instance. Processes constitute one of the three extended P s of the marketing mix (Booms and Bitner, 1981) and therefore are academically recognised as an impacting variable on brand positioning. Processes can be viewed by buyers as an indication of a supplier s underpinning customer service philosophy. Case studies can be used as a demonstration of processes in action, allowing website visitors to assess potential suppliers on any information that is relevant to their own needs. Processes can also indicate levels of integration between suppliers and buyers in a relationship, allowing the development of perceptions and expectations. Partnering and relationships Relationships and partnering are themes that relate to the description of a relationship between a supplier and customer. Case study sections in websites sometimes can carry such content. Relationships have been identified to play a role in online marketing in other research (Rowley, 2004a). Relationship marketing is contrasted against the marketing mix as a different viewpoint through which communication can be facilitated. Leadership claims and corporate power The term leadership claim refers to any claim of superiority by a supplier that is alleged to be leading in this particular area. Literature on the effect of claimed brand leadership and its manifestation in communications is relatively limited, however, brand performance characteristics have been addressed by Harris and De Chernatony (2001, p.444) who suggest that a set of functionally distinct capabilities 6

8 that differentiate a brand should be derived from the brand s core values. On this basis, a firm that has a relatively unique value chain position that differentiates their brand can use this to leverage a leadership claim. Corporate power refers to the leadership of certain firms in terms of size; for instance the financially strongest, or the supplier with the largest market share. Corporate social responsibility Finally, corporate social responsibility is a rather wide term that refers to the use of a website to list a supplier s altruistic efforts to help society in one way or another or acknowledge responsibility for their actions. With reference to corporate social responsibility, Hartmann et al (2005) suggest that green brand positioning has a positive overall effect on brand perceptions in the consumer market. This has not been confirmed in the B2B environment; however there is no reason for it not to be applicable in the B2B environment, as derived demand often sets requirements for corporate social responsibility throughout a B2C firm s supply structure. Credibility and believability All the elements carry a component of believability which is partially under the message sender s control. By enhancing the credibility of each statement, a supplier can make their statements more credible. Examples of such credibility are the use of third party statements (i.e. client quotes, awards, and accreditations), the use of standards and examples of real life cases. Source credibility is an area researched relatively thoroughly, and the remedy of using third parties to build message credibility is common practice (Pollach, 2005). Credibility is important in the B2B environment as experiences cannot often be shared easily between buyers. Credibility is also recognized in Okazaki s (2006) study as a critical component of online communications without which messages are less believable. Discussion of the elements The existing literature supporting the individual elements of the proposed model is relatively fragmented and doesn t provide a holistic view of the online themes through which positioning can be achieved. This is the area that this paper addresses. B2B suppliers can use their websites to alter their brand image through positioning their offerings and brands in the marketplace. As a strategic tool, there may be a failure to make full use of the opportunities the Internet offers in terms of positioning and communications. The model proposed can act as a checklist for planning website communications. Audiences and website users may also require stronger academic and practitioner consideration. The existence of corporate social responsibility elements could indicate derived demand for such information through consumers or end users that form the market for business clients. The process of developing an optimized website for a variety of brand and communications objectives is an iterative one that requires gathering information from existing site visitors, analysing this information and using it. Many methods may be used to gather site visitors information. Some are qualitative, such as participant 7

9 observations, eye tracking studies, in depth interviews, focus groups and feedback forms. Others are quantitative means such as website tracking analytics, surveys and comparative experiments. Using information on visitors can aid practitioners to understand the information requirements that need to be fulfilled, as well as the experiential aspects of the website that may need redevelopment. Web designers sometimes test websites for ergonomic aspects, usability and other functional variables. Part of a webmaster s duties is often the creation of the copy for a website. Without an understanding of marketing concepts, an IT specialist webmaster may fail to create the positioning image that is so crucial in communications. Similarly, the outsourcing of the copy to a design agency can have the same effect. Textual content of copy is directly linked to positioning and a firm s offering and therefore should be viewed as a priority and not second to graphic presentation. Academics can direct more research towards the online branding arena. Despite the existence of so many technologies and new research methods, little research into online branding and communications is published, and there is scope for practitioners to adopt online branding and communications research techniques to evaluate more than just website usability and ergonomics. Limitations and further research Further research through quantitative content analysis of websites could point out whether there is similarity in the content of websites in terms of vocabulary, structure and the recurring themes, or whether there are significant variations in textual content. The above elements are supported by literature as the discussion shows, but the measurement of their existence in websites could indicate the level of importance or unimportance that these may carry. Most importantly, elements may be added to this conceptual framework and it can be tested in practice. Relationships could benefit from further testing in order to provide additional grounding for the model under the various circumstances of different industries. The framework requires measurement, refinement and development to further determine the nature, relationships and extent of the online brand positioning elements and their manifestations. Some variables have not been accounted for in this study due to the relatively limited available literature. These could form the basis of the website, the flow, the experiential aspects, the interpretation of colour, structure, images and sounds, speed and design. This would be an interesting area for future qualitative research to demonstrate the transferability of the findings in retail literature to the online environment. Further research can also be directed towards understanding which website elements are used in practice for the delivery of each positioning component and where browsing prospects seek to find such information. Content analysis as a research tool is a promising method for analysing website content; an adaptation of Altheide s (1996, quoted in Bryman, 2001) method of content analysis which allows for the inclusion of variables through reiteration of the framework could form the basis to confirm the findings of this research. 8

10 The authors of this paper intend to follow up this paper with a quantitative content analysis of the discussed elements and expand this research further by producing another follow-up research paper on the website elements through which the content is manifested. 9

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