Do people still need BRANDS?

1. Added Value Marketing
Do people still need BRANDS?
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2. BIG !!!
Internet, social networks, mobility, economical,
political, social and cultural changes
= new challenge for the marketers
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3. Old marketing is not efficient
anymore. WHY?
3

4. In the beginning it was simple.
We had a simple choice of goods.
We could experience everything ourselves.
Our trusted suppliers themselves were the Brands.
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5. I. BREAKTHROUGH
The massive influx
of products and brands
(fast growth after World War II)
= difficulty in choosing.
The brands took over the
role of guides in the
chaos of
products multitude.
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6. II. BREAKTHROUGH
Mass communication
(TV, radio)
- big ones can do more,
market polarizations,
global brands, brand
image management.
6

7. III. BREAKTHROUGH
Internet and media
multi consumption.
New generations consume
information differently,
internet increases our
knowledge about brands
and products. Brands
become transparent
- not necessarily of their
own volition…
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8. IV. BREAKTHROUGH
Brand can no longer rely on the
strength of their image, what counts is
the real strength of the product / service.
Millions opinions of consumers may build
up or ruin the new kind of brand value
based on reputation.
Reputation now results from the REAL
benefits of the product or from other
values added to the product.
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9. IV. BREAKTHROUGH
Today - before consumers buy the product - they check
other peopleʼs opinions in the Internet.
It is the ZERO MOMENT OF TRUTH
about the brand, its products or services.
We face a new kind of marketing practice:
marketing of recommendation.
ZeroMomentOfTruth
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10. LAST BREAKTHROUGH - CHANGING THE RULES
COMPLETELY...
Society 3.0
social networks, mobility,
consumer power, context,
products convergence,
generations Y and Z, new
social trends: „authenticity”,
„cocooning”, „sense and
sensibility”, „life under time
pressure”, „everything on
demand”...
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11. LAST BREAKTHROUGH - CHANGING THE RULES
COMPLETELY...
Opinions in the Internet - level of trust
Trust in the opinions of friends Trust in the opinions of anonymous users
NO YES
YES NO
42% 46%
58% 54%
Source: TNS Digital Life
Information clutter, also in reference to
recommendations, first attempts to unethical manipulation
of opinions in the Internet. Customers increasingly trust
friends - not anonymous internet users.
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12. LAST BREAKTHROUGH - CHANGING THE RULES
COMPLETELY...
Free from offline media
consumers also expect
brands to communicate
in a context - when they
use the brand, when they
need it, when the brand and
its product have a meaning
to them, when there is an
important reason for
having / using it.
12

13. A new era begins
- era of consumer social
networks
13

14. New challenge!
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15. Products of different brands are similar
The convergence has
made products of different
brands similar on the http://ski-boots.findthebest.com/
functional level.
The brand has lost the
possibility of competing
on the product level.
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16. Private labels of
distribution networks
offer similar functional
features
private
at a much lower price.
They are very often
produced in the factories
owned by the „big” brands.
label
For a long time it was a
secret.
However the social
networks are inquisitive...
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17. Customers stopped to listen...
...what brands have to say
Ex cathedra
in a mass communication.
Who cares about a new
shower gel while watching his
favourite show on YouTube?
Who wants to listen how he
feels or should feel while heʼs
feeling totally different or
feeling
nothing at all...
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18. However they still want to be able
to connect with the brands.
But only with those, which
are needed, which offer
them real values: product
features (answering their
more and more precise,
individual needs) or any
other aspects on the level
of values, e.g. building their
private image,
PERSONAL BRANDING!
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19. OLD personal branding
PERSONAL BRANDING
is a new dimension of what
weʼve known for years in a
relationship customer - brand.
What we buy or not, defines us
in our society. It says who we
are, and what values
we stand for.
It is a form of a symbol,
a communication shortcut,
some kind of simplified message
letting others "read" and classify
in our common social relations.
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20. NEW personal branding
What has dramatically
changed is
THE SCALE OF INFLUENCE
of the personal image of
each single customer.
Today their "ME" non-stop
reaches hundreds,
and sometimes thousands
of their friends, friends of
friends and friends of friends
of friends. connect 24/365
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21. NEW personal branding
REPUTATION
The image and
resulting from it
reputation in the
network becomes a
currency in social
relations.
NEW CURRENCY
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22. NEW personal branding
What people say, what
they rate and how they
rate it, but also, WHAT
THEY BUY OR NOT
it all builds their personal
image which BUILDS
THEIR FUTURE! your
TURE
What job they will have,
what kind of friends, what FU
life or business partner
etc. is h ere!
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23. New expectations towards the brands
Brands are still
needed and important
for people.
Consumers need them to build
their own reputation.
Therefore they need
trustworthy brands to tie up
with for years in a mutually
beneficial relationship.
CREDIBILITY
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24. How to do it?
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25. NEW STRATEGY FOR NEW TIMES
1 2 3 4
BROADER ADDED Cooperation
Product with
CONTEXT VALUE
is the King! consumers
for the brand to the brand
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26. 1 PRODUCT IS THE KING!
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27. Step one - Product is the king
Make sure you have
a good starting point.
New situation requires
new strategy, but still the
base must be stable.
Without good USEFUL
product /service the
marketing itself will not
achieve anything.
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28. 2 CONTEXT
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29. Step two - context
So far the brand
appeared in its own
context of the product/
service, in the context of
needs it was satisfying, in
the context of the image it
had created , and could
have offered to those who
wanted to use the brand
for their self-branding.
29

30. Step two - context
So far it was
THE BRAND THAT
DECIDED, when and controlled
how the consumer may
have experienced it.
It created a virtual
experience through
storytelling
(advertising/PR).
30

31. Step two - context
THE REAL
EXPERIENCE
with the brand and its
product will always be
„stronger”
than any storytelling,
however endearing
it is.
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32. Step two - context
Customers do not need
brands as navigators in the
sea of products, they may not
experience themselves.
They can now evaluate the
PRODUCT in the Internet
thanks to friendsʼ
recommendations.
32

33. Step two - context
Therefore if the brand is
consumed today, it is
consumed in a BROADER
CONTEXT.
Always FOR A REASON
(useful, self-branding) brand
and „ON DEMAND” context
(when the customer wants it).
It is embedded in the culture,
everyday life, not just in the broad brand
product/service. context
33

34. Step two - context
Today the brand has
to take care, to be
in that place and
time, when the
customers needs
just arise
(wide outbound
marketing).
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35. [example]
When I am healthy, I
donʼt care for adverts
of a nasal spray.
But when I have a cold,
the first thing I do, Iʼm
looking for a solution
to my problem.
I am looking for a 88% of the Internet users derives knowledge on
health issues from the Internet first of all
product/brand, that I can 2/3 do this at least once a month
trust, that advises me, 68% start with Google
how to do it best.
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36. Step two - context
Today the brand has to
understand THE
CONTEXT, in which it
is „consumed” by the
client and
ADD VALUE to this broad brand
context, so that the context
context becomes part
of the brand value.
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37. 3 ADDED VALUE
37

38. Step three - added value
The broad brand
ADDED
context must be +
VALUE
constructed based
on VALUES ADDED
to existing attributes
(product and image).
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39. [EXAMPLE]
Danone is not only about yoghurts.
Danone is about healthy life style, childrenʼs sports activities and about Fair Play.
This is the broad context of the Danone Nations Cup.
Education and promotion of such attitudes build added value to yoghurts,
which a mother buys for her kids.
Thanks to this her decision making process happens
in a broader context of benefits,
not just the product dimension.
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40. Step three - added value
WARTOŚĆ
+
DODANA
Added values can be created
on different levels of
consumer needs:
starting with convenience,
safety, up to community shared
values (ecology, changing social
attitudes and behaviours),
or values connected with
self-development.
Who knows the needs better
than the consumer himself?
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41. 4 COOPERATION
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42. Step four - cooperation
The brands need to turn
themselves in the hands of
their consumers, so they
can co-create brand value
again...
42

43. Step four - cooperation
...find the most dedicated ones
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44. Step four - cooperation
...and allow them to co-create the brand
and its products
44

45. to achieve its new goal:
be needed...
in order to survive...
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46. The author of the presentation hopes it made added value to You :)
Jarosław Goławski
Strategy Director (Brand Support)
jarek.golawski@brandsupport.pl
www.brandsupport.pl
Enjoy your day:)
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