MAR 6936902

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MAR 6936-902

• E-Commerce Marketing
• Fall 2002Tampa--MBA
• Communications Branding
• Rich Gonzalez
• November 14, 2002 (Week 12)

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URLs

• amazon.com
• www.useit.com
• www.lexus.com/showroom/model/pda/index.html
• www.websitesthatsuck.com
• Several, see slides

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Agenda November 14, 2002

• Final Exam
• Amazon.com
• Brand CommunicationsCH. 7
• Site/Model Evaluation Assignment
• Due For November 21
• eBay Video/Discussion

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Final Exam

• Part 1SUBJECTIVE
• Take Home
• 3 Essay questionsPick 2
• Based on readings, text, discussions and papers
• Due Dec 9, Noon
• 2-3 pages each

• Part 2OBJECTIVEOnline
• 25-30 QuestionsMC, FIB, T/F
• Based on same
• Done on Dec 12 about 500 PM,
• 1 hour

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For Today November 14

• Chapter 7Marketing Communications Branding
• The Last Laugh, Chip Bayers, Business 2.0,
  September 2002
• www.useit.comBe ready to tell us what Jakob
  Nielsens philosophy/guidelines are.

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Amazon
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Business 2.0 The Last LaughAmazon.com

• A REAL Profit In 4Q 01
• Marketing And Operational Success
• Important Revenue Stream Marketing Operational
  ModelTo Competitors?

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Recent News October 25, 2002

• Amazon.com Loss NarrowsOn Revenue Surge in
  Period
• It is beginning to look like a green Christmas
  for Amazon.com Inc...
• Pricing Strategy...Cuts and Free Shipping...

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Amazon.com 2002 Revenues
Millions
C
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Amazon

• Stock Performance?
• Total Customers ?
• Marketing Costs ?
• StrategyGet Big First, Then Leverage
  SizeEmphasize Cash Flow

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Amazon

• Coopetition?

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Partners/Customers

• BordersTargetToys R UsVirginCircuit City

• Apparel For Xmas 2002GapNordstromLandsEnd

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Quotes To Compare?

• There is no reason for any individual to have a
  computer in their home.Ken Olsen 1976

• 40 of households will have 6 computers...connecte
  d to the Net.Jeff Bezos 2002

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For November 21

• No Reading Assignment

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Last Time

• Digital Based InnovationYours
• Why Porter Is Wrong About the Internet
• 7 Cs of Interface Design

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Nielsen

• www.useit.comSite Visit

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Customer Interface 7

• Virtual Representation of Firms Value
  Proposition
• Information
• Navigation
• Is the site worth spending time at?Should I
  flee?
• i.e., Download Time
• War Developers vs. Marketers(Customers)

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For November 14

• www.useit.com
• Be ready to tell us what Jakob Nielsens
  philosophy/guidelines are.
• Pick a Site That You Can Say Something About and
  Forward To ListservWhat would Nielsen say about
  the site?

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Jakobs Law of Internet User Experience

• Users spend most of their time on sites other
  than on yours.

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Jakobs Nielsens Homepage Guidelines

• Generally apply also to the entire website.
• Has Several. Well Use Only 8.

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Site/Model Evaluation Assignment

• Paper
• 2 Pages Bullets With One Summary Section
• Cover Sheet
• 15 Copies
• In Class Presentation
• 5 to 10 Minutes Overview, Pick a Few Main Points
• Due November 21, 6 Presentations on November 21

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Jakobs Nielsens Homepage Guidelines

• 1. Communicating the Sites Purpose
• 2. Communicating Information About the Company
• 3.Content Writing
• 4. Navigation
• 5. Search
• 6. Graphics and Animation
• 7. Customization
• 8. Fostering Community

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Components of a Business Model
Developing a business model in the networked
economy requires four key choices on the part of
the senior management
Value Cluster

• Specify the value proposition or the value
  cluster for the business

Marketspace Offering

• Articulate the online product, service and
  information offer

Resource System

• Define how the company needs to align its
  resources to deliver the value proposition

• Define and select the most appropriate revenue
  model to pursue

Financial Model
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Value Proposition/Cluster
The first step in the articulation of the
business model is clearly specifying the value
proposition or the value cluster for the
business

• Defining the value proposition or the value
  cluster requires answering the following
  questions
• Which target segments should the company focus
  on?
• What is the combination of customer benefits
  that is offered?
• What makes the firm and its partners better
  positioned to deliver the offering than anybody
  else?

Value Cluster
Marketspace Offering
Resource System
Financial Model
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Site/Model Evaluation Assignment

• 100 Points
• 50 Summary Paper
• 50 Presentation

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eBay Video

• Video, about 12 minutes long.
• Time Permitting...

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Brand Communications start
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Brand
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Brand
A name, term, sign, symbol, design, or some
combination that identifies and informs about the
products of a firm.
Information pill.
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Brand Recognition
The stage at which the consumer knows of a brand,
but does not prefer it to competing brands.

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Brand Recall
The consumer can, without prompting, retrieve the
brand name from memory.
Lots is spent on advertising to make this
happen?
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Brand Preference
The stage of brand acceptance at which the
consumer selects one brand over competing
offerings based on previous experience with it.
AOL vs. MSN
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Brand Insistence
The stage of brand acceptance at which the
consumer refuses to accept alternatives and
searchers extensively for the desired good or
service.
Brand loyalty
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Brand Equity
The added value that a certain brand name gives
to a product. Generated by performance, social
image, value, trustworthiness of the brand.
What job website do you always consider when
publishing a resume online?
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Brand Equity
A combination of consumer responses and benefits
A set of assets linked to brand name and symbol
that add to the value of the product or service.
David Aaker
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Elements of Brand Equity

• Brand Awareness
• Brand Loyalty
• Quality
• Brand Affiliations

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Class Exercise

• Blank Sheet of Paper

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Class Exercise

• OK. Think.
• Name the first brand of handheld computer you
  think of.
• Name one brand (OUTSIDE OF COMPUTER/SOFTWARE)
  that Palm could affiliate with to increase Palm
  brand equity.

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Class Exercise
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PalmBrand Affiliation

• Lexus
• Sales Teams Equipped With Palms(3,000)
• Lexus Vehicle Software
• Customer DrivesSalesperson Infos

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PalmBrand Affiliation

• InformationInterior/Exterior OptionsPhotosPric
  ing
• "We think Palm technology is very innovative and
  that it will add to the Lexus dealership and
  purchase experience. Lexus VP Marketing
• Also, Customers Can Download PDA Files
• www.lexus.com/showroom/model/pda/index.html

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What Is a Good Brand?

• Mix of offline and online advertising
• Emphasizes advantages to AAdvantage membership,
  including non-expiring miles and online services

• Market Communications

• Wraparounds

• Superior service
• AAdvantage frequent-flier club
• Award-winning Admirals Club lounges
• Comfortable chairs
• Portable defibrillators on every flight

• CoreProduct /Service

• Safe, on-time transportation from Point A to
  Point B

• Brand

• Prestige

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What Is a Good Brand?

• Banner adsonline
• TV, Direct mail
• Word of Mouth

• Market Communications

• Wraparounds

• Insurance for power sellers
• Rating system---Trust
• Community
• Huge Selection of Products
• Sale Insurance

• CoreProduct /Service

• Auction
• Connect buyers and sellers

• Brand

• Prestige

In Class Exercise
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Conceptual Model of Brand Equity

• provides positive consumer responses...

• and benefits both target customers and
  the firm

• A good brand...

• Customer Benefits
• Confidence
• Loyalty
• Satisfaction

• Brand Awareness
• Depth
• Breadth

• Market Communication

• Wraparounds

• CoreProduct /Service

• Brand Associations
• Strength
• Relevant
• Consistent
• Valence
• Uniqueness
• Memorable
• Distinctive

• Firm Benefits
• Lower marketing costs
• Increased margins
• Opportunity for brand extensions

• Rayport Jaworski framework

• Source Keller (1996), Aaken (1996), Strategic
  Market Research Group, Marketspace Analysis

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Types of Brands
Traditional Brands
Online Brands

• The product / service with which the brand is
  associated was established in the online world.
• Examples
• Amazon
• Yahoo
• ZDNet
• AOL
• Priceline
• CDNow
• WingspanBank
• ETrade

• The product / service with which the brand is
  associated was established offline in the
  bricks-and-mortar world.
• Examples
• The Gap
• UPS
• Dell
• J. Crew
• McDonalds
• OfficeMax
• Ragu
• Coca-Cola
• Disney

• Brands were categorized as purely offline or
  online. Here are samples of such brands.

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Similarities and Differences in Offline vs.
Online Branding
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Offline vs. Online Branding (contd)
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Monster.com

• Site Visit
• Meta Market Switchboard
• Brings together many buyers and sellers based
  upon the activities that customers engage in to
  achieve particular goals

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Monster.com

• Positioning Lifelong Career Network
• Market Share?
• 50 Of Online-Recruitment Advertising
• Risky Ads In Super Bowl

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Key Branding Elements
Comparison
Online Branding Best-in-Class
Monster.com
Hotjobs.com
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Brand Communications finish
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End Here