BRANDS: MARKETS, MEDIA AND MOVEMENT Sociology of Marketing Communication Zdeněk Sloboda Marion Dewaele Henry Houyvet TOPICS Branding in consumer culture History of branding Relation between markets, media and consumer culture Marketization : increasing role of markets and marketing Mediatization : increasing role of media « the increasing importance of information, image and media in the organization and expression of the economy, consumer culture and everyday life » For example, Nike : “the combined effect of marketization and mediatization is to make us ‘Just do it’” MARKETS AND BRANDING Branding 2nd half of the nineteenth century in the organization of production and consumption in industrialized countries Important increase over the following 150 years Aggressive competition between producers Worldwide markets Economic competition between nations 1880 : corporate logo Promote range of mass-produced products 1990 : Coca-Cola 20TH CENTURY Rapid growth of markets Producer able to « speak » directly to the consumer Presentation, packaging, media Development of corporate and product personalities Act as a guarantee of quality Replace the role of the retailer Conflicts between manufacturers and retailers Intensive development of mediation in the last 150 years New techniques in communicating Knowledge about the consumer Emergence of Marketing MARKETING New discipline Marketers initially described the ways in which products were brought to market Acquired an interventionist role Postwar period Rise of self-service systems in retail outlets In which brands, promotion and packaging coordinate selling 1950s “marketing revolution” Difference between selling and marketing in terms of their relation to the consumer Theodor Levitt in 1960 : « Selling focuses on the need of the seller, marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash, marketing with the idea of satisfying the needs of the customer » DEVELOPMENT OF MARKETING Role of marketing linked to the changing role of retail UK, USA Marketing becomes a complex and aggressive activity Information about the consumer is a necessity Retailers able to have better control of the supply chain Birth of « marketing science » to model and optimize market activities Birth of « consumer research » to map the target market and describe the market in terms of lifestyle Growing authority for marketers Greater emphasis on product differentiation Marketing played a role in the shift from Fordism to postFordism PRODUCER-CONSUMER RELATIONSHIP Products are not defined by their functional properties alone Product’s potential existence extends beyond being a physical good Maslow’s hierarchy of needs Define a product ‘essence’ Linked to a framing of the market in terms of consumer’s perceptions, needs and practices Change of view of the producer-consumer relationship Key stage in the emergence of today’s brand Advertising agencies Account planner : representative of the point of view of the consumer within the agency To offer the client a view of the consumer’s experience To make sure that the identity of the brand is maintained through the creative process CONSUMER’S DESIRES Rise of « creative advertising » - UK 1980s Use of new forms of consumer research Aimed to construct an imaginary lifestyle for consumers Lifestyle research, attitudinal and motivational research, psychodemographics Elaboration of the emotional and aesthetic values of the product Guy Julier notes that “market researchers could interpret better the desires of the consumer than the consumer himself” Exemple of Sony CORPORATE BRANDING Branding of product ranges Brand extension Increase in branding of services and corporate branding Hart – 1998 : « Many brands succeeds […] because they do not focus on a specific product, but instead communicate clear values which can extend across different products and services » Becomes central in internal firm’s organization Brand double role : Organizing the exchange between producers and consumers Organizing relations within the company itself, between employers and employees ‘Brand engagement’ – ‘internal marketing’ « A corporate stands for the relationship that an organization has with its employees, as much as it represents the relationship that it has with its customers through its product and service offering » (Interbrand Insights, 2001) MICHELIN In the ranking of the reputation of the companies of the CAC 40 (Paris Stock Index) from the point of view of the French people Michelin is : 111 090 employees in the world 176 million produced tires 17,9 billion euro turnover A commercial presence in more than 170 countries World Market share : 15,5 % 1st on products and services 2nd on the citizenship and the innovation 4th on the governance and 5th on the leadership and the performance (Challenges, french economic magazine) Bibendum elected “Logo of the century” in 2000 by the Financial Times Last quarter of the 20th century: Set of practices Distribution practices, media communication, product design, retail design, and point-of-purchase marketing Marketing + business strategy = branding (Moor, 2007) Emergence of brand consultancies Brand management Example : a consulting American agency made an extensive research into the racial aspects of the automobile market “African Americans are more likely to advocate vehicles that express their individuality and success to family and friends” In the last decade of the 20th century, companies start to care about values, personal branding SOCIAL MARKETING Marketing management model « social marketing » Brands play a fundamental role in society « companies should acknowledge their ‘strong social influence on a society’s sense of purpose, direction and economic growth’ » (Hart, 1998) Will the product improve the customer’s and society’s wellbeing? Non business organizations Universities, political parties, football clubs presented as brands MEDIA AND BRANDING The term « branding » appeared with the interplay between marketing and media. For Douglas Holt in 2004: branding is an icon For Martin Kornberger in 2010: It’s a new way of organizing production and managing consumption. For Celia Lury in 2004: Brand is a new media object. For Adam Arvidsson in 2006: Branding take part of the mediatization of the economy. Is there real importance attached to consumer in professional branding while is there a real increase in consumer power? What are the new forms of cultural capital in a media economy? For Douglas Holt: a brand and a product are different because of their “customer experiences”. In a brand, there are different actors or “authors” which represent: - companies, - the culture industries - intermediaries (critics, retail salesperson) - community of customers. Iconic Brands: Importance of the symbol which give identity value and self expression Example: Harvard’s became a brand at the beginning of the new century. - They voted for a new president: well known and for the globalization - They capitalized on the Harvard name - They Invested on technology 1) The brand as a market device >> Multiple levels of existence We cannot reduce brand to advertising or simples images. It emerges at the convergence of media and computing. >> “It’s a dynamic platform or support for a variety of practices” The brand is becoming a market device In the second half of the twentieth century: >>Marketers incorporate all the consumers’ activities in the processes, products and distribution. >> It creates marketing knowledge's, tools and information. >>In this way: The brand become a platform for products, activities and experiences. Consumers become unconsciously in a flow of products, services, promotion and events. The brands has to organized themselves in front of this movements: >>Create their own logo to secure their recognition. For Scott Lash and Celia Lury in 2007, branding can be “described as the mediation of things, the mediation of commodities”. >>The consumer create an open-ended relationship with the product and the brand. For Lee, branding contributes to the “fluidization of consumption”. Example: Sanrio (Japanese company that designs, licenses and produces products which focused on Japanese popular culture) >> receive 3 % of royalties every time a company sells a product with their characters. >> Hello kitty is everywhere (glasses, notebooks, phone cards etc…) Brands have an importance in the framing of communication between producers and consumers. Brands organize activities of the market by acting as interface for communication. They create a link between the inner and outer environments of the market. >>They can informed how consumers relate to producers and how producers relate to consumers. The communication of a brand have to deal with emotion, affect and qualities. >>The main goal is to create, indirectly a relationship between the brand and the consumer. 2) The role of the information Thanks to media and computing, marketers can collect data from the consumers. >> It help companies to predict future behavior, calculate the potential value or lack of value of a person’s custom Example: Sephora developed a system of daily promotion. They collect their consumer’s phone number and send them automatically SMS when the consumer is closed to the store. (In a determined area). In this way they can instantly proposed promotions about products that the consumer usually buy in their store Possibility to measure the « engagement » of the consumers with special tools: « Web analytics ». >> It can measure number of unique visitors, page views per visitor, time spent per user, frequency of visits… >> Brands uses these information to make themselves more valuable. >> They are actually focused on the emergence of blogs and social media in order to discover their potential consumers. Example: Harvest Report Server 2.0 claims to helping the company “to understand the value and sentiment of customer conversations” by analyzing what they are saying and understand their tonalities 3) The economic and political implications of the brand For Adam Arvidsson there is an “informational capitalism”. >> A blurring of the distinction between production and consumption >> Development of an online economy >> New importance of intellectual property rights >> The exploitation of labor of workers is becoming less important as a source of profit. >> While the private exploitation of public and social knowledge become more important. Distinction between advertising and media message is increasingly blurred. Advertising has lost capacity to persuade consumers >> The industry’s research has undetermined faith in the communication process. >> While there is a growing use of home computers, games and video games. Consumers become more active and reflexive in front of marketing and communication’s tools. For Arvidsson, consumers are believed by brand managers to be more concerned about finding meaning in their lives. >>That’s why new marketing have to fill the “great gaps of meaning that exist in people’s life” and to propose brands as “ideas that people can live by” (John Grant). Example: Event-based marketing such as Nike fun runs or PlayStation club nights or art events. 4) Informational Capitalism For Prahalad and Venkat Ramaswamy in 2004: “the interaction between the firm and the consumer is becoming the locus of value creation.” This encourage brands events , lauches and opening moments. Example: - Levi’s Personal Pair programme: introduced mass customization in 1995> All information are taken from the consumer (style, size, colours..) to delivered the personally fitted jeans. - “Bro-ing”: Giving clothes to selected people in inner-city neighborhoods and evaluate their reaction about the products Reflexive environments such as Niketowns or Sony showrooms : to encourage consumer activity in the space of the store and analyzed their reactions in front of the products. - Creation of social events to create links with the consumers and a - feeling of community: Harleys Davidson gathering. Importance to make the consumers think of the brand as something that inspires loyalty. For Michael Dell: « Our best customers are those we learn the most from ». For Arvidsson, the main goal is to make the consumer practice add value to the brand. >> Autonomous consumer practice Example: Boeing’s new Dreamliner was designed in part in collaboration with 120,000 volunteers who signed up to held through the corporation’s website. Brands management work with the freedom of the subject: not ‘you must’ but ‘you may’! >>They try to create socials relations around that. >> Importance of managing investments of consumer’s affects! Consumers are contributing to brand equity: >> This is the ‘immaterial capital’ « The surplus »value generated by branding is based on the « surplus » sociality generated by consumers around the brand. Importance of the logos which represent cultural capital and image-properties. It represents their recognizability, their value. Example: Disney corporation intended many time the law courts to ensure that only copyright-perfect images are circulated for public consumption. >> On the other hand, Nike didn’t react to the Nigo’s Japanese fashion label which redesigned the Air Force 1 because this competitor pushed them to innovate. CONCLUSION Branding takes place in a context in which consumers’ activities have become increasingly valuable for capital. Marketing has an expanded role in profiling these activities. Branding as a new form of valorization Informational capitalism: Social communicativeness Branding is increasingly taken up by governments and public institutions. Branding become a new form of power and a new logic for consumer culture. The consumer is active but doesn’t control everything. SOURCES www.marketing-etudiant.fr www.strategies.fr http://en.wikipedia.org/wiki/Theodore_Levitt www.e-marketing.fr