Chapter 6
Marketing Today: Branding for Digital Marketing and Social Media
Transformative Shifts in the Marketplace, Consumer Tastes and Media
The goal of branding is to form an emotional, loyal relationship with the target customer. Engaging your customer is critical for this goal, and the internet today presents extraordinary opportunities to start a conversation with target customers due to its interactive capabilities.
Since World War II, we have been living in a world of mega brands like Tide, Coca-Cola, and Crest, which were designed to appeal to a mass market. In the past decade, this world had changed dramatically. Mass marketing has evolved into micro marketing. This fundamental change reflects both the nature of the marketplace as well as new opportunities to cost efficiently reach specific segments of the market.
Years ago, consumers wanted to belong and keep up with the crowd. Today they want to stand out from the crowd. American society is far more diverse and commercially self-indulgent. It has splintered into countless market segments defined not only by demography (e.g., Hispanic, Asian, Gay, etc.), but also by product preferences driven by a feeling that “it is so right for me”. At the same time, the clutter is immense and still growing. There are over 2 million products in supermarkets today, with more than 700 new introductions each day. In retail outlets, scanning equipment is constantly providing marketers with tons of personal data on consumers’ attitudes, desires, habits and purchase preferences.
Concurrent with this accelerating fragmentation and expanding overload of product options, the changes in the media vehicles for reaching our target audience are just as significant. In the 1960’s an advertiser could reach 80% of U.S. women with one spot aired simultaneously on CBS, NBC and ABC. Today an ad would have to run on 100 TV channels to get even close to this target. The big change is in the spread of digital and wireless communication channels, consisting of focused cable TV and radio channels, specialized magazines, and millions of computer terminals, video-game consoles, personal digital assistants and cell-phone screens. The use of media has become far more targeted to reach these special interest segments and to form new brand relationships with consumers:
•Households received 27 TV channels in 1994, today over 200 TV Channels
•Share of prime time: cable—52% , broadcast—44%
•All new magazine introductions are “specialty” oriented and targeted
•Total ad revenue for mass media is growing 3.5% per year, for micro media,13.5% per year
How the Internet Has Changed the Way Consumers Buy
Perhaps the most revolutionary change involves the purchasing habits of consumers. Trust is crucial. According to ACNielsen, 85% of consumers trust the recommendation of another person, whereas only 14% of people generally trust traditional advertising. In light of these trends, you can appreciate more the power of word-of-mouth (WOM) marketing for finding and leveraging credible sources of information. Product areas that are natural fits for WOM include the entertainment and electronics industries, do-it-yourself projects, food, beverages, packaged goods, and home products.
Internet engagement is especially pronounced among high-potential purchasers. Educating oneself for such purchases online has become pervasive, with many high-powered consumers religiously following social platforms such as blogs, websites, and specific product forums that discuss all relevant details of a product category. According to research from BlogHer and Compass Partners, 35% of women aged 18 to 75 participate in the blogosphere weekly, 53% of women read online blogs, 37% post comments, and 28% write or update blogs. Another important consumer group is the millennials, a market segment (born after 1980) of 79 million people with projected spending power of $170 billion in the next 5 years. Of these millennials, 91% say they will buy a product based on a friend’s recommendation. Also, studies by comScore, ACNielsen, and Harris Interactive show how dominant the internet has become for influencing these purchase habits:
•90% of all purchase decisions begin on the internet.
•75% of people shop online before they buy offline.
•85% are looking for an independent review.
The Rise of “Content Marketing”
My experience with most of my students at NYU in their 20s and 30s is that they are so much more interested and skilled than I am in social media and other forms of digital communications (especially mobile), but they severely lack a genuine understanding of the importance of the message itself. This is why I constantly emphasize that branding is so critical for success—if researched and developed properly, it will help you create content that is compelling, relevant, credible, and distinctive.
The Content Marketing Institute defines content marketing as a “marketing technique of creating and distributing relevant and valuable content to attract, acquire, and engage a clearly defined target audience.” Much of the content is education-based, so naturally it is becoming very common in B2B circles as well. The most pervasive communication vehicle for content marketing is social media (79%), yet paradoxically it is also perceived to be the least effective (69%) of all platforms (Source: 10/10 compendium survey from the Content Marketing Institute). The main reason for this apparent contradiction is that there is a general lack of confidence in social media for this purpose, since research experts don’t know yet how to effectively measure social media and its impact on brands.
The biggest challenge for marketers is producing engaging content (36%), followed by producing enough content (21%). Another key issue is how to protect brand integrity, as 40% feel that social media creates special challenges for this important task.
The use of social media for branding is still in an embryonic stage of proven, quantified effectiveness, despite the enormous potential for reaching and engaging customers. Like so many challenges rising from our new online world, plus the upheaval of traditional business principles from the recent recession, the attributes of creativity and innovation will be the most important weapons for marketers in the future. For example, there is statistical evidence proving that the “creative” element of new content is four to five times more important than the communication vehicle itself (e.g., a social medium like Facebook) (Source: “Insight Express” research firm).
In November 2011, David Dunn wrote an article on “30 Ways to Make It Easier for Your Customers to Buy,” which provided helpful tips on how to market content. He points out how internet technology has dramatically increased the number and efficiency for producing and then delivering content formats. David refers to six pillars or types of marketing, the main benefit and common ways to market content for each:
•Traditional (Awareness)
∘Magazines and newspapers
∘Press releases on availability, submit to newswires, etc.
∘Mail content to clients and key prospects
∘Handouts at events (e.g., trade shows)
∘Add to corporate press/information packets
∘Comarket with other brands
•Content (Education)
∘Cross-link and reference various content marketing formats, as appropriate
•Web (Interaction)
∘Place content on website in various locations
∘Optimize metatags for search engines
∘Offer webinars to promote white papers, booklets, e-books
∘Employ keyword advertising on search engine sites
∘Banner ads to drive traffic to website
∘Submit to websites that specialize in distributing articles
∘Buy and send to a third-party email list
∘Put link to your content in your email signature block
∘Add content to an online press kit
∘Translate content into a podcast
∘Submit to online syndications services
•Social (Conversation)
∘Set up Facebook page for your content
∘Post availability on your blog and Twitter accounts
∘Invite readers to forward to a friend
∘Convert/adapt content to video version (e.g., YouTube)
∘Make content available through RSS
∘Forward to bookmarking sites (e.g., Digg)
∘Mention in online communities
•Mobile (Convenience)
∘Develop app for content download from the web
∘Adapt content for e-readers and smart phones
•Personal (Peer-to-Peer)
∘Present at speaking engagements—slides, white papers as leave-behinds
∘Use WOM marketing
∘Get on business radio to discuss your content
∘Get testimonials to promote your content (e.g., for LinkedIn)
∘List web URL of content media on your business card
Importance of Integrated Marketing
Despite our obsession with digital marketing, the use of traditional marketing and communication vehicles has not disappeared. One theory is that online communications lacks strong emotional or experiential impact, especially compared to a vehicle like television. It is called the “Lean Back” versus the “Lean Forward” argument. Proponents of traditional advertising (e.g., TV) argue that this medium offers entertainment, which makes one “lean back” to enjoy, so the interruption of commercials essentially jolts the mind with more impact. Hence the “passive” consuming medium of TV can stir up emotions more easily in the limbic part of the brain, which is the main receptor of emotions.
Meanwhile the main use of the internet is to get information or contacts, thus stimulating one’s attention level so much that he or she “leans forward.” As a result of this focus, any advertising appearing alongside the core content is often viewed as an annoyance, that is, the preoccupying content drowns out the ad impact. These online ads therefore rarely impact the limbic system, but instead remain as “cognitive cortex” thoughts that lack emotional resonance.
The conclusion from this theory is that it is best to use a combination of traditional and online advertising, or “integrated advertising.” Both used prudently with the right target consumers can enhance the emotional appeal of brands while also creating a buzz and sharing relevant brand messages or content.
How the Role of “Marketing” Is Changing in Corporations
In light of these seismic transformations caused mainly by the internet, the role of the marketer in most progressive companies is becoming broader and more visionary. One noteworthy change is the blurring of the marketing and sales responsibilities, especially in B2B industries. The task of learning even more about the customer and how to fully engage him or her is becoming more important and will be the key for defining the future role of marketing. Here are five critical opportunities that will help marketers become more visionary and influential in this new world of social media:
1.Today’s marketer must go beyond developing the marketing plan and focus more on the key drivers for a broader business strategy. Becoming the master of customer insights will be vital, as this will enhance his or her trust and credibility within an organization.
2.Recognize that brand building will be different. It used to involve primarily controlling the brand message, but now it must emphasize engaging customers online, encouraging transparent conversations, creating content that offers genuine value, and inspiring sharing with friends.
3.Initiate innovation. Instead of emphasizing incremental improvements, focus on innovative strategies and actions that optimize customer experiences, alternative distribution channels, new pricing policies and transformative business models.
4.Redefine and practice a new version of “marketing excellence.” This should build on traditional marketing communications, and embrace all levers of digital marketing (and sales) that will maximize the added value derived from marketing investments.
5.Create a broader innovative culture that is more customer centric, developing new ways to enhance customer experiences and drive growth.
Impact on Branding
Given this rifle shot approach to marketing (e.g., figuring out the right way to send the right message to the right person), what does it mean for branding? Basically the ground rules for brand development don’t change so much as the degree of thoroughness and creativity that will be required to make brands stand out and cut through the clutter. Here are the major implications for brand marketing in the future:
•A greater challenge for accurately defining each target customer segment and more fully understanding the market potential, the demographics and all subtle nuances of their emotional needs and usage habits.
•Strong brands will become even more important for penetrating the clutter, differentiating from competition, and building loyal customer relationships.
•At the same time, an emergence of niche brands, product extensions and mass customization will lead to an abundance of new variations
•Marketing productivity should improve for the savvy marketer. P&G spent 10% of its sales on advertising five years ago, and achieved a 4% bump in sales, whereas last year this same ad/sales level generated a 9% increase in unit volume.
•The emotions for brand selection and product use will become even more vital for building a strong brand personality, sustaining a competitive advantage and nurturing consumer loyalty.
•Positioning a brand to be compelling and truly relevant, and also customizing the marketing to send a personalized message (and product) to each user, must become more sophisticated
•Good brand marketing will require more creativity to engage the customer in each market segment.
•The biggest difference between this new digital marketing and traditional marketing is that the former is interactive, and the brand manager is no longer in control of his/her brand. Hence integrity, transparency, and credibility are crucial for successful branding today.
•Managing a brand, especially with integrated marketing programs (e.g., both traditional and digital) is today more complicated, yet more critical since the power of online communications is more in the hands of the consumer.
Five Issues to Determine Whether/How to Market Your Brand in Social Media
1.Target Customer—who and what is most relevant for your target, and can you offer a meaningful value proposition via social media?
2.Point of Difference—the permission to talk and engage will depend on the credibility and trust of the brand benefit and its support features.
3.Brand Personality—all content and use of social media should be consistent with the brand personality. People will want to engage with a brand if they view it more like a human being, especially with an appealing emotional dimension.
4.Relevant Message—smart research will be essential to identify customer insights that will ensure development of a distinctive creative hook, to offer enough value and newsworthiness so people will want to talk and share.
5.Defining Success—quantitative measurements of ROI must reflect all marketing initiatives, traditional and digital, and relate to key business goals.
Conclusion: 20 Key Principles for Developing Strong Brands
1.Branding Is a Tool: Everyone wants to believe they have the ideal brand. It’s not an “end-all” situation. A brand is a tool to build consumer loyalty and brand equity. Branding is more than a name or logo. It is a core message and impression—what you want a product (or service, corporation, country, university, or even yourself) to mean to your customer, something special and valuable.
2.The Customer Is the “Authority,” Not You: Work hard and you may feel like an expert, but you’ll always be surprised; what the consumer tells you is more important than what you think you know about a brand.
3.Perceptions Are Reality: How the consumer views your brand and the competition is what counts, more than what the apparent “facts” indicate. You are competing for a share of your customer’s mind.
4.Start with the Market Opportunity: Begin any expansion effort with an analysis of the marketplace, to understand how consumers perceive their own problems/needs, and the competition in a category, and to identify new opportunities for brand positioning and future growth.
5.Competition Changes, So Must You: We live in a dynamic world in which competition is constantly trying to take business away from you with new promises or claims. You must stay one step ahead by constantly talking to consumers and monitoring your competition.
6.Consumer Insights Are the Best Source for Ideas: Start with the consumer, be creative, develop hypotheses, and go back to the consumer again and again for feedback, until you discover that elusive insight that will enable you to touch that critical “hot button” and distinguish your brand.
7.Positioning Makes You Focus: A diligent consumer research and creative ideation can help you identify and focus on the two essential elements of the positioning statement: How to meaningfully address a consumer need and be different from competition.
8.You’re Not There Until You Have an Emotional Brand: It’s not just what you can do for the customer (added value or the “benefit”), but also how you make him/her feel that will determine your success.
9.Positioning Can Change, but Not the Brand Essence: To remain relevant to consumers and different from competition, elements of a brand positioning may be refined (carefully), but the core essence of the brand is its soul and should rarely change, if prudently developed and defined.
10.A Brand Must Add Value to Capture Consumers’ Interest: With competition intensifying in almost every category, the challenge is to maximize the brand value as viewed by consumers, a function of the perceived benefit and pricing. Good creativity is essential for this.
11.Work Doesn’t Stop When You Finally Define Your Brand: The world is not static, so just when you think you have finally developed (and tested) the ideal positioning and brand identity, you must then manage the brand creatively and proactively to strengthen its brand equity and to keep up with competition and evolving consumer dynamics.
12.Brand Equity Doesn’t Just “Happen”: Another term often misused and/or improperly measured. Actually, brand equity simply represents how your customer values your brand. It takes a long time and smart, consistent marketing to cultivate a strong emotional connection with the customer, which is the essence of brand equity.
13.Strong Brand Equity Offers Many Advantages: It allows for premium pricing, higher profits, economies in spending, customer loyalty, and a platform for brand expansion, but not without risks of undermining the integrity of the core brand when the link to the brand heritage is questionable.
14.Umbrella Branding Is Not So Easy: A strong brand identity doesn’t necessarily open doors to new market segments or target customers, but it can enhance the credibility (reason-to-believe) and emotional attachment for a sub-brand or brand extension, if properly positioned.
15.A Brand Is the Emotional Compass for Growth: The power of a good brand is the direction it provides, by leveraging the same emotions for new extensions, new uses, new customers, and new marketing practices.
16.Consider All Possible “Weapons” to Distinguish Your Brand: Start with the brand name and packaging design, the basis for all immediate (and lasting) impressions, plus the possible added value of the corporate name for separating your brand from the pack.
17.Advertising Is Execution, Not Branding: Work with ad agencies and other creative suppliers, but developing the brand message is the first and most critical step, a strategic responsibility that should not be delegated.
18.Think of a Brand as a Person: Branding is about emotional relationships with a human, not a thing, so the best way to create a captivating brand is to describe it like a person, often mirroring the profile/ personality of your heavy or ideal customer, which will also help guide all creative efforts to communicate and establish the brand in your target customer’s mind.
19.Delivering on Your Promises: A benefit is a promise—would you ever make a promise to a friend that you couldn’t keep? A brand promise is a mark of integrity, and creates a certain expectation of performance. Your customer wants a predictable experience, so your product must be able to deliver the brand’s benefit/promise.
20.Good Branding Never Ends: There are several ways to communicate and leverage the essence of a brand, but there must be a corporate culture of innovation that understands the importance of a constant dialog with consumers and has a team of marketers who truly appreciate and know how to sustain an emotional connection with their customer, one that is consistent, relevant, and aspirational.