SOCIAL MEDIA AND BRANDING Matti Helelä, Senior Lecturer Suvi Kalela, Senior Lecturer Tuula Kauhanen, Senior Lecturer HAAGA-HELIA University of Applied Sciences YOUR OWN TOP OF MIND BRANDS Please list five brands coming first to your mind. 2 WHAT DO YOUR BRANDS STAND FOR? Use one word to describe. For example Volvo = safety Fairy = efficiency 3 STRONG BRANDS CAN LIVE FOREVER … even if the physical product takes a new form 4 ANYTHING CAN BE MANAGED AS A BRAND 5 VIRTUAL BRANDS Habbo (Hotel) 6 CAN THESE BE BRANDS? Boullabaisse 7 Copyright Tuula Kauhanen May 2009 8 9 Interbrand 2010. http://www.interbrand.com/best_global_brands.aspx 10 BRAND VALUE CALCULATION (INTERBRAND) Financial analysis Forecasted current and future revenue specifically attributable to the brand Role of brand analysis A measure of how the brand influences customer demand at the point of purchase Brand strength analysis A benchmark of the brand’s ability to secure ongoing customer demand (loyalty, repurchase, retention) Brand value 11 MEJORES MARCAS ESPAÑOLAS 2009 (INTERBRAND) 12 CARACTERÍSTICAS DE LAS MEJORES MARCAS ESPAÑOLAS Internacionalización Innovación Adaptación a los nuevos patrones de consumo Haciendo una propuesta relevanta para el consumidor Etc. 13 FINNISH PEOPLE LOVE THESE BRANDS 14 THE WORLD’S STRONGEST BRANDS SHARE 10 ATTRIBUTES 1. 2. 3. 4. 5. 6. The brand excels at delivering the benefits the consumers truly desire. The brand stays relevant. The pricing strategy is based on consumer perceptions of value. The brand is properly positioned. The brand is consistent. The brand portfolio and hierarchy make sense. 15 …CONTINUED 7. The brand makes use of and coordinates a full repertoire of marketing activities to build equity. 8. The brand managers understand what the brand means to consumers. 9. The brand is given proper, sustained support. 10. The company monitors sources of brand equity. 16 VESPA(©2009 Matti Helelä) My Vespa es un vehiculo fabuloso Yo estoy orgulloso Mi Vespa es fantástica Casi mágica My Vespa is gorgeous Its beauty is enormous It's shiny and red With more beauty than can be said 17 WHAT IS A BRAND? 18 SOME BRAND DEFINITIONS Products are made in the factory, but brands are built in the mind. Brand is not just a product but a relationship with the customer. A brand is a promise. A brand is the sum of all intangible and tangible elements. The intangible elements connect products with people. 19 BRAND DEFINITION BY AMA Brand = name, term, sign, symbol, or design or a combination of them, intended to identify the goods or services of one seller o group of sellers and to differentiate them from those of competitors. 20 GREAT BRANDS TOUCH US Brands are about hearts and minds, feelings and emotions. They make us feel better, different, happier, bigger, smaller, more comfortable, warmer, more confident. Great brands stand for something that people believe in and that matters to them. 21 BRAND IDENTITY AND BRAND IMAGE Brand models Aaker (Brand identity) Gad (Four dimensions) Knapp (Brand mindset) Kunde (Brand religion) Kapferer Ind (Internal branding) Keller 22 BRAND CO-CREATION (© 2009 Matti Helelä) Think about co-creating the brand With stakeholders hand in hand Redefining the organization's mission Based on a new realistic vision 23 SOCIAL MEDIA REVOLUTION 24 MARKETING BEYOND CONTROL Fans, freaks, fakes and we others – marketing beyond control Alf Rehn 25 CHATTER “There is no manager more powerful than consumption, nor, as a result, any factor more powerful – albeit indirect – in production than the chatter of individuals in their idle hours.” Gabriel Tarde (1843–1904) 26 SOCIAL MEDIA Process where individual and groups build mutual meanings through content, communities and web technologies. (Wikipedia) 27 TARDE AND WORD OF MOUTH Small is big (Alf Rehn) 28 OK GO 29 Embedding allowed (against the principles of EMI) SHOULD THE COMPANIES BE INVOLVED? Fear of not being involved, when you should be Fear of being involved with nonsense, if you are there (Alf Rehn) 30 WHAT IS SOCIAL MEDIA GOOD FOR? 31 SOCIAL MEDIA BRAND “Social media can strengthen the brand if it is strong in the first place.” (Titus Arce 2010) 32 WORD OF MOUTH Average person: 114 discussions daily Opinion leaders: 155 discussions 15% of discussions include commercial topics 60% of all adults regularly share their opinions about products and services with friends and family (Mikko Siukosaari / Drum Communications Inc.) 33 WOM VS VOM MARKETING Word of Mouth = Customers or potential customers discussing (about the brand) face to face, over the phone or on the Internet WOM marketing = systematic influence on WOM (Mikko Siukosaari / Drum Communications Inc.) 34 NATURAL OR BOUGHT WOM Natural WOM Bought WOM Based on compensation (Mikko Siukosaari / Drum Communications Inc.) 35 NOT SO DIFFICULT Do more than you promise Start by promising less Be honest Don’t insist, don’t explain, and, above all, don’t lie (even a bit) Be bold Do something unusual, even once a year (Mikko Siukosaari / Drum Communications Inc.) 36 DO THIS Ask for help People will help you for free Ask for opinions People will explain for free Participate in the discussion Reply when asked Participate when they talk Clarify where, who and what 37 (Mikko Siukosaari / Drum Communications Inc.) 38 39 IMPORTANT In the past: Technology (steam engine / social media) Cultural change Now: Cultural change Technology Example: Artek is interested in people’s stories (Alf Rehn) 40 EVERYONE HAS A WORD Every consumer is a critic (“This is how I was treated”) The company can no longer control its marketing communications Involve people Stories Atmosphere of caring (Alf Rehn) 41 42 43 44 REVIEW SOCIETY What do people write about your company and brand? What does the community say about your company and brand? (Alf Rehn) 45 MEANINGFUL WORD OF MOUTH They (the public) define us, we don’t define them (Alf Rehn) 46 MACHO MARKETING Technology rules Macho garbage The logic is “The biggest is the best” winning, positioning, market share, penetration (Alf Rehn) 47 FEMINIZATION OF STRATEGY Caring (as opposed to controlling) Understanding the customers’ wishes and desires Aiming at partnership Allowing Softer strategy Example: EMI wanted to control the content OK Go had a softer, caring approach (Alf Rehn) 48 FROM MANAGEMENT TO FANAGEMENT Make it easy to be a fan People want to be fans Give the fans the tools to be a fan The fan becomes meaningful to your brand (Alf Rehn) 49 LADY GAGA Involve the fans in the creation of promotional material 50 BAKED IN Involving the fans in product/brand development (Alf Rehn) 51 TRANSPARENCY No censorship Creates trust The fans may respond and defend the company/brand: the fans are a resource (Alf Rehn) 52 LIVE WITH THE FANS Engage Equip Exit (Alf Rehn) 53 Visit Finland as the Challenger Brand of Travel Marketing Jaakko Lehtonen Director General, Finnish Tourist Board 54 THE FOUR CS Creative Technologically, academically and culturally attractive; architecture and design; with a touch of creative madness Contrasting Credible Cool Seasons, east/west, Efficient Nice, happening, cold/warm, midnight infrastructure, trendy, and refreshingly crisp . sun/winter darkness, services, safety and sauna/ice swimming . security, and technology. 55 SAMPLES OF PROMOTIONAL CAMPAIGNS 56 57 58 FINLAND 59 60 61 62 63 64 65 66 ENGAGE Weston Hotel beds Other hotel fish bowls / aquariums Small things matter (Alf Rehn) 67 EQUIP Give your fans the tools to create their stories (Alf Rehn) 68 EXIT Step out of the control Be brave Leave the communication where it happens anyway Don’t be afraid of what the fans are saying (Alf Rehn) 69 LOVING THE FREAKS Fan book in Facebook? Creating a page for anti fans? The chance to hate the company Who hates and who defends the company? Should the fans create the fan book? Involve the freaks (Alf Rehn) 70 MULTICHANNEL WORD OF MOUTH Cultural change Many channels Fans’ channel Anti fans’ channel The channel is a medium of its own, with its own genuine culture (Alf Rehn) 71 CHIEF CULTURAL OFFICER Marketing manager Chief Cultural Officer (Alf Rehn) 72 IMPORTANT The time of control is over Create a new world Involve (Lady GaGa) Feminize your strategy These are the keys to success. Enable the communication Make it possible to be a fan (Alf Rehn) 73 SELF-SEGMENTATION Customers segment themselves into communities, based on Common characteristics Passions Interests Needs Listen direct insights, product development guidance, shortcomings Participate in brand and other conversations (Nick Wreden) 74 PROSUMER Consumer Prosumer 75 FROM HOMO SAPIENS (Teemu Arina) TO HOMO CONNECTUS 76 (Teemu Arina) 77 FUTURE LEARNING In interaction Knowledge is not power Sharing the knowledge is power (Teemu Arina) 78 COLLABORATIVE CO-CREATION (Teemu Arina) 79 INTERACTIVE VALUE CREATION Complex value creation is not possible without interaction (Esko Kilpi) Products are discussions. (Teemu Arina) 80 SOCIAL MEDIA (©2010 Matti Helelä) I have an idea Of the social media It’s collaboration For interactive value creation Sharing knowledge is power Instead of holding the tower Involve your fans To build your brand 81 REDES SOCIALES (©2010 Matti Helelä) En las redes sociales Las interacciones virtuales Son colaboración Para crear valor Información no es poder El compartirla lo es Activa a los fans a construir La marca para subir 82 HOW TO EDUCATE FUTURE TEACHERS? 83 CO-CREATE THE BRAND WITH YOUR FANS (© 2009 Matti Helelä) Target audience activation Is the main consideration Inspire the fans to live the brand Creating it with you hand in hand The brand is created in the customer’s mind Business is the right kind When you live the brand in everyday life And the brand is truthful in the customer’s eyes 84 BRAND IDENTITY Brand Brand Brand Brand as as as as a product an organisation a person a symbol 85 Source: David A. Aaker BRAND IDENTITY Value proposition Functional benefits Emotional benefits Self-expressive benefits Credibility Relationship 86 Source: David A. Aaker FUNCTIONAL BENEFITS (WHAT IS THE BRAND?) VW: German engineering BMV: The ultimate driving machine Abbey National Bank: A special kind of security Xerox: The digital document company 3M: Innovation Banana Republic: Casual Luxury Compac: Better answers Lexus: Without compromise 87 EMOTIONAL AND SELF-EXPRESSIVE BENEFITS (WHAT DOES THE BRAND DO?) American Express: Do more Pepsi: The Pepsi generation HP: Expanding possibilities Apple: The power to be your best or Think different Sony: Digital dream kids Schlumberger: The passion of excellence Nike. Excelling or Just do it Microsoft: Hep people realize their potential 88 EMOTIONAL AND SELF-EXPRESSIVE BENEFITS Emotional The brand makes the person feel something during the purchase or use Self-expressive The brand provides a vehicle by which a person can proclaim a particular self image 89 Virgin 90 www.virgin.com VIRGIN BRAND IDENTITY Brand essence: Iconoclasm Core identity Service quality (best-of-category quality delivered with humor and flair) Innovation (first with truly innovative, value-added features and services) Fun and entertainment Value for money (in all its offerings, not just the high-priced option) 91 VIRGIN BRAND IDENTITY Extended Identity Underdog (fighting the established bureaucracy) Personality (flaunts the rules, sense of humor, even outrageous, underdog willing to attack the establishment, competent, always does good job, high standards) Virgin symbols (Branson and his perceived lifestyle, Virgin blimp, Virgin script logo) 92 VIRGIN BRAND IDENTITY Value proposition Functional benefits (A value offering with quality, plus innovative extras delivered with flair and humor) Emotional benefits (Pride in linking to the underdog with an attitude) Self-expressive benefits (Willingness to go against the establishment, to be a bit outrageous) Relationship: Customers are fun companions! 93 94 Thomas Gad: 4-D Branding 95 Copyright Tuula Kauhanen May 2009 BRAND MIND SPACE (BY THOMAS GAD) The functional dimension concerns the perception of benefit of the product or service associated with the brand. The social dimension concerns the ability to create identification with a group. Thespiritual dimension is the perception of global or local responsibility. The mentaldimension is the ability to support the individual mentally. 96 BRAND POSITIONING – THREE CORNERSTONES 97 THREE APPEARANCES OF THE BRAND 98 ALL THE TOUCH POINTS The brand should speak the same language and keep the brand promise. 99 BRAND COMMUNICATION Planned communication Advertising, sales promotion, PR, personal selling, direct marketing, social media Product communication Service communication Unplanned communication Remember the five senses! 100 VISUAL IDENTITY 101 VISUAL IDENTITY 102 www.finnair.fi BRAND STRATEGY 103 THE MOST POWERFUL IMPACT IS MADE PEOPLE BY 104 SOURCES Brands Aaker, David 1996. Building Strong Brands. New York: Free Press. Aaker, David and Joachimsthaler, Erich 2000. Brand Leadership. New York: The Free Press. Andrew, David 1998. Brand Revitalisation and Extension. In Hart, Susannah, and Murphy, John (eds.) 1998. Brands, the New Wealth Creators. Houndmills: MacMillan Press Ltd. Gad, Thomas 2001. 4-D Branding. Cracking the corporate code of the network economy. London: Financial Times. Prentice Hall. Ind, Nicholas 2004. Living the brand. Kogan Page. Kapferer, Jean-Noël 2004. The new brand management. Kogan Page. Knapp, Duane E. 2000. The Brand Mindset. New York: McGraw-Hill. Kotler, Philip and Pfoertsch, Waldemar 2006. B2B Brand Management. Springer Berlin Heidelberg. 105 SOURCES Kotler, Philip and Pfoertsch, Waldemar 2006. B2B Brand Management. Springer Berlin Heidelberg. Kotler, Philip and Pfoertsch, Waldemar 2007. Being known or being one of many: the need for brand management for business-to-business companies. Journal of Business & Industrial marketing 22/6. Kunde, Jesper 2002. Unique now…or never. Prentice Hall. Interbrand 2010. www.brandchannel.com. Interbrand 2010. www.interbrand.com. Helelä, Matti 2010. Senior Lecturer. Haaga-Helia University of Applied Sciences. Kalela, Suvi 2010. Senior Lecturer. Haaga-Helia University of Applied Sciences. Kauhanen, Tuula 2009. Senior Lecturer. Haaga-Helia University of Applied Sciences. 106 SOURCES Social Media Arina, Teemu 2010. tarina.blogging.fi. Helelä ,Matti 2010. Senior Lecturer. Haaga-Helia University of Applied Sciences. Kalela, Suvi 2010. Senior Lecturer. Haaga-Helia University of Applied Sciences. Kauhanen, Tuula 2009. Senior Lecturer. Haaga-Helia University of Applied Sciences. MarketingSherpa 2010. Social Media Marketing Benchmark Survey, Nov. 2009. Rehn, Alf 2010. www.alfrehn.com. Siukosaari, Mikko 2010 / Drum Communications Inc. Wreden, Nick 2009. The Promise of “Self-segmentation”. http://www.strategybusiness.com/article/00004?gko=1d7b1. 107 THANK YOU Gracias Danke Kiitos 108