WORD COUNT CHARACTER COUNT

4086 2507 0

TIME SUBMITTED PAPER ID

21-APR-2012 01:29PM 24383 1898

RUNNING HEAD: BRAND MARKETING

Brand Marketing

BRAND MARKETING Brand Marketing During the last three years, the market place for personalized marketing applications and web design have exploded. For a market that barely existed only a few years ago, personalized

marketing has made a huge impact on the way businesses operate and interact with consumers. The growing baby boomer generation has a strong preference of individualism that leads them to seek personal, customized products (Russell, 1993). The authors intent is to demonstrate and investigate this new medium of advertising including ways that are being utilized, the effects of personalized marketing, and the impact on the future changes and their effects on the efficacy of the approach. Strategies such as word of mouth (WOM) advertising have become the new strategy with a significant impact on the consumer's purchasing preferences (Michelle, 2006). The author plans to explore this emerging trend including the new forms of reaching consumers effectively while meeting their preferences influencing them to make purchases to measure retum on investment. Finally, the author will examine how the new strategies will force companies to adapt or face obsolescence. The Intem et, Email, and Fa cebook The dilemma facing businesses is the requirement of a new approach to marketing to a new, more informed consumer. Many companies do not know where to begin when addressing their target consumers' needs. Jacob Savage, Founder of Speak Creative in Memphis, Tennessee stated, "In the last seven years, the web has really dominated the type of work that we do" (personal communicatio n, March 30, 2012). Studies show that as much as45 - 60% (Graham, 2009) of consumer's will use the web to research and seek out additional information prior to making a purchase. It is at this point that companies face the critical decision to create a new

BRAND MARKETING personalized approach transforming an inquiry into a relationship (Graham, 2009) capturing personal information and buying preferences to grow a more in-depth personalized approach. Two marketing trends have begun to emerge including one-in-one marketing, with an increased emphasis on value and satisfaction, while the second comes from the application of technology including the creation of databases (Kotler and Armstrong, 2000). The strategy involves more than just the creativity or the amount of technical expertise a company has. It is the ability to achieve balance between creative acumen and technical expertise that are keys in the creation of effective personal branding. The effort must include a product with a slick and appealing presentation that speaks to the individual. Mastering new platforms such a video online marketing and smart links in newsletters can enhance workflow, tutorials, and individualize advertising efforts (Anonymou s, 20I 0). Presentation style in general can essentially become the link that brings the personal, one-on-one brand design to life. The question of Internet branding is a perplexing proposition. The question becomes does a company take a shotgun or more personalized (Graham, 2009) approach? Although the Internet serves a purpose, it is the ability to directly market to either large numbers or pinpoint accurate messages. The method allows for access and delivery of a final product as a page turning application (Graham, 2009) sent to the mass market or a dedicated, personalized page sent to a consumer utilizing a personalized URL. The key paradigm is the various environmental stimuli such as the use of color and music that induce the emotions of consumer purchasing decisions (Mehrabian and Russell, 1974).
Fa cebook

Some of the most recent developments include the development of the weblog (blog) system of personal marketing sharing news and knowledge (Sanjaya, 2009). Although blogs

BRAND MARKETING themselves have existed for some time with examples such as Linkedin, MySpace, and Friendster, in 2009, Facebook revolutionized the creation of personal brands, product and business promotions (Sanjaya, 2009). The use ofFacebook is undeniable reaching I S O million users in January 2009. In November of the same year, the total jumped to 316 million users (Gonzales, 2009). Although Facebook was conceived as a place for friends to find one another and share infonnation it has evolved into a product promotion and public relations (Sanjaya, 2009) website. Starbucks stands out as a personal marketing example collecting more than five million

(Sanjaya, 2009) fans on Facebook. The Starbuck's example demonstrates personalized marketing including their followers input in development of new products. The approach provides a personalized connection to the brand while diiving St ubucks to be their very best. Facebook serves as a social utility that connects people and marketers into a highly interactive social network (Cioete, Vill iers, & Roodt, 2009) allowing for personalized profiles, groups, fan pages, notes, photos, and applications. The open nature of the application allows developers to create applications that serve the consumers purpose including creative, personalized brands that appeal to the large and varied audiences while increasing marketing efficacy. PeJ'Sonal Bnndi ng <md the Mobile Use1 Online Marketing research firm International Data Corporation (IDC) predicts that the number of mobile application downloads will grow from an already impressive II billion in 2010 to and an astounding 80 billion by 2014 (VanGrove, 2010). The firm also expects the
mon ey in the mobile personal branding market space will pass $35 billion by 2014 (VanGrov e,

20I0). The challenge is balancing the needs of the mobile user against a specific, yet personalized approach. Farb (20 II) supports IDC stating that mobile marketing revenue will

BRAND MARKETING increase from $368 million in 20 I 0 to one billion in 2013, an increase of more than $600 million.

The increase will come from and increase in mobile utilization of over 6.7 billion devices and large number of applications in 2014 (Farb, 2011). One clear fact is the mobile user is a much different consumer than one who sits in fiont of computer screen. Researchers have highlighted the role of marketing practices specifically dedicated to the use oflnteme t, smartphones, and tablets has made information sharing easier than ever (Ha & lm, 2012). Mobile users are less patient when waiting for information, often motivated to make a purchase, or proceed directly to a retail outlet to make a purchase. Downloading and installing a well designed, fluid, and personalized application begins the individual experience that starts as the foundation of building a regular, repeat consumer base. The same mobile apps allow for the creation of marketing that attract consumers. Using tablets and mobile phones salespeople and marketers can create individualized presentations on the spot while generating an agreement for purchases at the consumer's site. The direct, personalized approach proves to the consumer that the salesperson represents a company that values a personalized approach while staying focusing on increasing market penetration, sales, and personal connections. Social Media; An Altemative View Although the sentiment amongst marketers and consumers appear to lead one to believe that social media marketing is the path toward success there is research that contradicts this widely held belief. Recent predictions state social and mobile media will i n fluence 80% of
discretionaty spending by 2015 (Far b, 20 II). Despite the large number of technical

advancements in recent years, especially in the social media arena, a recent, yearlong study conducted by Procter & Gamble comprised of more than 32,000 participants (Bellicove, 20II)

BRAND MARKETING tells a much different story. The study found 91% of respondents' felt that the best infonnation came from face-to-face or phone conversations via word-of-mouth (Bellicove, 20II) versus the online social community. Conversely, only seven percent (Bellicove, 2011) reported online conversations as a prefened method of word-of-mouth advertisement. The Procter & Gamble research study tells a much different story contrasting the power of the social community. Offline RetailerMarketing Although the power of the Internet is undeniable, one-stop shopping and the convenience of having everything come from one consolidator is an attractive option. Providers such as Amazon.com provide and attractive single source solution. This and other digital channels are not the only answer (Farb, 2011) as offline and mass marketing campaigns only generate two

percent response rate that is steadily declining (Farb, 20II). Regardles s, offline stores must find a way to connect the Internet and their retail locations to generate more in-store traffic and purchases. The key is to realize that no maner where the storefront exists, mass marketing is no longer a viable long-term strategy (Farb, 20 II). The prevailing research shows a consumer focused strategy of digital channels will continue to increase engagement, response, and sales revenue. Website Resource Stra tegy It all begins with a content rich website that delivers more than a walk-through of a few products, pricing, and static pictures. Opportunities for two-way engagement and digital access will provide unparalleled customer views, precise metrics, and increased campaign management (Farb, 2011). Retailers can demonstrate expettise and authority in their industty creating robust

knowledge management resources implementing videos and educational white-papers to help the

BRAND MARKETING consumer find service after the sale, otherwise known as A1ticle marketing that includes free content and support reminding consumers providing a signature presence both on and offline. The prevailing need create bonus clubs and newsletters allow for the collection of customer infonnation to create specific one-on-one marketing campaign. Farb (2011) realized the new channels couldn 't be the outlets for traditional campaign methods. Finally, retailers can continue to offer online purchases and in store pickup programs while trading interruptive advertising focusing on two-way conversational advertising (Farb, 20 II). Optim ization and Affiliate PJogtams Unstable levels of demand, increased consumer power, and competitive intensity (Pine,

1993) create a critical need for search engine optimization (SEQ) on search sites such as Google
and Yahoo. Although optimization delivers consumers to tl1esite must meet personalized needs providing contests, money saving coupon codes, samples, and promotional giveaways increasing individualized value and customer support. Advanced techniques such as site searches, SEQ optimization, product recommendation, and web-based consumer reviews are not enough. To be competitive realizing the minimum acceptable standard while becoming the brand leaders needs to master the individualized online marketing strategy (Anonymou s, 20 I 0). Simultaneously the creation of affiliate alliances can create the kind ofWQM advertising that drives business. The incentive based system has the advantage of offering cash for each customer who is refened and subsequently sold. The investment from the retailer is small including such items as banners, window stickers, advertisement of affiliation and web images
promote the exchange of business. Bryan Moultri e, Comcast Business Account Executive

stated, "The Comcast affiliate program provides me with at least 50% of my goal eve1y month.

BRAND MARKETING The affiliate receives an amount equal to the first month's bill of the customer, which can be large. They love it!"(personal communication , Aptil 2, 2012).

Online RetailetM keting n It is becoming more evident that online stores are capable of capturing and exploiting the
market opportunities. As the online virtual markets continue to enhance revenue streams competitive advantage becomes the key to success. It all begins with an understanding of the consumers demand and purchasing behaviors that define marketing strate gies and brand distinction (Tsao & Chang, 20 I 0) as key factors in the e-commerce environmen t. The marketing and branding challenge in the virtual world include s organizational value pwposition s, linkage between developed brand position s, and globalization (Rowley, 2004). Consumer s are influenced by the way information is presented and the incorporation of consumer input increase customer satisfaction (Goldsmith & Freide n, 2004). The variance in strategie s includes advertising appeal, lower pricing strategie s, and branding (Shih, 2011). The key to online marketing is a campaign approach that may include tweet s, online communitie s, and Facebook; the idea is the new trends toward multichannel campaigns (Farb, 2011).

Low Cost Pticin g

Determination of the role of pricing and the effect that is has on purchasing has been the subject of many ongoing studies (Sivakuma r, 1996). As a result, lower pricing has become the online retailer strategy as many stores define themselves based on a low pricing strategy (Shi h, 20II) that in comparison to offline stores provides a greater discount or combination sale items.
The consumer perception of lower pricing provides a stimulus toward online purchases while

creating consumers who relate positively to the store forming positive brand impression s as a result of a coordinate d, strategic marketing direction.

BRAND MARKETING Although the Intemet can deliver lower cost, customized products, personalization of web sites is a costly endeavor. Regardless of the extent of customization, it is a time-consuming and expensive activity (Goldsmith & Freiden, 2004). The average cost of personalization costs $1.5 million (Eads, 2000) with thousands of vendors offering solutions. While Amazon.com has emerged as the leader the cost of development ha limited legitimate competition. Advetising Appeal Unlike the ofJline market, the online environment requires a positive relationship between online brand advertising and consumer preferences (Woodside &Wilson, 1985). The uses of emotional and non-emotional appeals are two of the most prevalent factors (Albers Miller et al., 1999) that provide rationale for purchases. While the appeal itself needs to match the product (Shih, 20 II) using rational advertising that is suited to match product features including value, quality, economy, and performance (Albers-Miller et al., 1999) with customer needs. Emotional advertising is geared toward stirring negative or positive emotions using rationale, forward thinking and infonnation to drive consumer behavior. A factor such as simplification of choices increases satisfaction (Goldsmith & Freiden, 2004). In the end, both the rational and emotional approach creates positive associations (Shih, 201 1) while consumers prefer customi zation over personali zation by a wide margin (Goldsmith & Freiden, 2004). Brandi ng Although online and offline retailers have recognized the power of brand building (Feuer, 2005) online retailers continue to face the daunting challenge of creating brand equity in a virtual world. Online brand equity can be defined as brand awareness or the consumer's ability to recognize the online retailer associations that keep the online retailer in the consumer's memoty leveraging perceived quality and the overall buying experience creating online retailer loyalty

BRAND MARKETING (Pappu & Quester, 2006). The research also indicates online environment loyalty is directly linked to perceived online store quality, online brand awareness, and retail image (Shih, 2011). Mass vs. Pe1sonalized M aJ"kting e During the last two decades the market has driven mass customization (Pine, 1993), otherwise known as WOM marketing (Peppers & Rodgers, 1993). The strategy of this relatively new approach is the customization of products while maintaining a mass production approach (Goldstein & Freiden, 2004). WOM refers to infonnal interpersonal communication regarding the evaluation of a stor e, its produc t, and service (Ha & IM, 2012). One example of the new models include the online and offline customization of Luck-y Brand Jeans that started with one store in 1990 expanding to 209 stores in2011 (Luckybrand, 2012). In contrast, Dell Computer had delivered $6 Million in mass customized computers in 1998 alone (Falkenberg, 1998). It is the ability to offer variations of the same basic model that provides the

10

product balance that consumer's desire while creating supply chain continuity allowing production of customized products and on-demand orders (Alexander, 1999). Marketing the online business focuses on satisfaction of marketing needs including the four critical marketing elements often referred to as the four P's (Ehmke, Fulton, & Lusk. 2005). Although the medium has changed the market demands that products, price, place, and promotion create the mix that attracts consumers (Goldsmith & Freiden, 2004; Ehmke et al., 2005). Products demand satisfaction of the needs of the target market (Ehmke et al., 2005). Price demonstrates the value proposition that justifies paying for the product (Ehmke et al., 2005). Place incorporates the right price and site that consumers feel comfonable making a purchase from a trusted provider (Ehmke et al., 2005). Finally, the promotion provides

BRAND MAR KETING availability of product to the consumer-incorporating price and place (Ehmke et al., 2005). Online retaile rs require balance, an effective mix, and control of the marketing mix that continu es to athact consumers while working in harmony as often a strong focus one element affects the balance of the others. The P1oli fention of Wo1d of Mou th: Dan ge1ous OI' P;u of the Online t Revolutio n'! WOM advert ising has become an important and influential marketing strategy due to its influence on the consume r's purchasing decision s (Michelle, 2006 ). The transition to online stores and the virtual environment have made WOM advert ising a significant and trustwort hy source of information including the origination of trust and behavioral intent in the online environment (Awad & Ragowsk y, 2008). The shift toward online shoppers and retailers is developed by visual cues presented onscreen (Ha & lm, 2012) that develop interest and behavioral intentio ns (Park & Kim, 2008) including elements such as color and music elements building a posit ive level of arousal and pleasure (Ha & Jm, 2012). Consumer satisfaction is the intentional positive response tied to emotion and satisfaction (Ha & lm, 2012). WOM satisfaction will be balanced by the hends as social marketing research indicate s that less than four out of five people will actually connect or purchase based on social marketing in 2015 (Farb, 2011 ). The Bala nce of Powe1; Has the Custom e1 Taken Connol? The age of the seller is quickly turning toward the age of the consumer (Blasingam e, 2011). The same marketing functions that have been created by the Internet have increased consumer access to information while allowing consumers to share their opinions in the social media forum sharing their experiences both good and bad. The changes have brought a need to

I I

BRAND MARKETING
train salespeople to connect with consumers realizing the biggest challenge is not being competitive it is the war against becoming irrelevant (Blasingame, 2011 ). The second element is the asse1tion, "Ifl make consumers happy they will cany it

12

forward via WOM," if the retailer fails research indicates they will tell a minimum of I0 people (Blasingam e, 20 II). The idea is the customer is the judge and the jury, the motivation to create positive consumer experiences or face the indictment ofWOM conviction s shared across platforms. Consumers can use the power of the Intemet to express their opinions to millions of people across the global marketplace (Blasingam e, 20 II) either encouraging others or tearing down the reputation of the online retailer. The age of the consumer has arrived and the shift of power is the difference that requires an immediate marketing response.

What Ate The Conun etcial lmpt ications on Matketing Decisions?

The significant shift toward Intemet technology has changed consumer behavio r, relations with one anothe r, decision-makin g, and the way of doing business (Sharma, 20 II). The reality is that consumer s can click several websites to conduct a comparison of the various plices of a desired product. There are two competing strategie s including consumers who want to purchase in their local store while conducting research online and second, those that use the retailer to see the product whil e price shopping and making purchase s online. The undeniable fact is that with changing lifestyles has come the convenience of purchasing at any time from anywhere (Sharm a, 20 II) moving from a push to pull strategy.

An Adapt ive Matketing Shategy

Marketers in 2012 and beyond have to ready themselves with competent sbategie s to gain competitive advantage. The strategies include moving outside of their traditional comfort zone toward the shifting dynamic. The contiguous practices should include:

BRAND MARKETING
Online marketers must remain dynamic adapting their campaigns to the needs of their audience with a fresh, flexible approach matching the market orientation (Shanna, 2011).

13

Selection of the right media vehicles to deliver personalized advertisement. Placing a banner ad on the wrong website can dilute the efficacy of their campaign. Banners that appeal to their personalized customer base as consumers only click on ads that appeal to their personal interests. Shanna (2011) concludes that mismatched advertisements turn consumers off. Consumers find value in utility, or in other words what you see is what they actually get. Directional advertising should lead the consumer to the product being advertised. This principle is about leading consumers toward saving time and money while creating loyalty. Web-based strategies call for evaluation of hvo factors: retum on investment (ROI) and increasing the customer base (Sharma, 20 II). Web analytics become the lead indicator of ROI and measurement of consumers visiting their site with a focus on those that make purchases. There is also an increased focus on social sites as a shot1-tenn indicator of the shortcoming that keeps consumers from making purchasing decisions. It is these systems that need to develop in a way that demonstrate the advertising direction that is favored by consumers (Sharma, 2011). Conclusion The author has demonstrated along with previous research (Ha & Lennon, 2010) that web-site design positively influences consumer purchases yet, it does not stop there. It is the consumer's perception of quality (lm & Has, 2012) and satisfaction of personalized communication that turns effort into ROI. Web site design encourages utilization through enhancement of the information provided. Therefore, development of a quality web sites, store

BRAND MARKETING
image, and general positive impressions of the online resources encourage purchases. Therefore utilizing all of the design elements is c1itical in creating a pleasurable and exciting shopping experience (Sharma, 20 II) with websites that improve consumer tmst demonstrated by repeat visits and purchases. Further research is warranted to increase the reality of online shopping regardless of the uncontrollable online conditions using factors including limited design factors,

14

interactivity, one-on-one efforts, and different types of design that affect the customer satisfaction models while encouraging positive WOM advertising and furthermore, increased purchases and ROI.

BRAND MARKETING References Albers-Mille r, N.D., & Stafford, M. R. (1999). An international analysis of emotional and

15

rational appeals in services vs goods advertising. Journal of Consumen'vfarketing, 16(1 ), 42-57. DOl: 10.110 8/07363769910250769 Anonymous, (20I0, December). Electroni c, Internet commerce; Vzaar rolls out new marketing initiative for business video hosting. Marketing Weekly News, 857. Rettieved from http:/Iezp .walde nuli brary.orgllogin?url=http:/Isearch .proquest .com.ezp.waldenul i brmy.or g/docvie w/8153150?6?accounti d=14872 Bellicove, M. E. (20 II , November). Measuring offline vs. online word-of mouth marketing . The

Daily Dose. Retrieved from http://www.entrepreneur.com/blog/220776

Blasingam e, J. (2011, May). The customer is now in control - get over it! Fortune Magazine . Rettieved from http:f/wv<w.forbes.co m/site s/jimblasingame/2011/0 5/02/custome r-in control/ Cloete, S., Villiers, C., & Rood!, A. (200 9, June- July). Facebook as an academic tool for ICT lecturers. Proceedings of the 2009 Annual Conferences of the Southern African Computer

Lecturers' Association. In J. McNeill (Chair ), Symposium conducted at the meeting of

the Special Interest Group on Computer Science Education, Eastem Cape, South Africa. Eads, S. (200 0, August4). The We b's still-unfulfilled personalization promise. Business Week

Online. Retrieved from w w w . ma k o v i s i o n . c o m / a r c h i v e s l w e b s entrepreneurs.

stillunfulfil.html

Ehmke, C., Fulton, J., & Lusk, J. (2005). Marketing/our P's: First steps/or new

Purdue Extension Knowledge to Go. Retrieved from Purdue Universit y, Department of

Agricultural Economics website: www.ces.purdue.edu/extmedia/ec!ec-730.pdf

BRAND MARKETING Farb, B. (2011, July). The digital age of marketing. Customer Relationshi pManagement, /5(7), 16. Rehieved from

16

http:l/search.proquest.com.ezp.waldenulibrary.org/abicomplet e/docview/87564086 0/fullt ext/135FSA5D7BD208F DF42/9?accountid=14872 Feuer, J. (2005). Retailing grows up, looks to image-building. Adweek,/6 (9), 8. Retrieved from http://www.adweek.com/contributor/jack-feuer Goldsmith, R. E., & Freiden, J. B. (2004). Have it your way: consumer attitudes toward personalized marketi ng. Marketing Intelligence & Planning, 22(2), 228-239. DOl:

I 0.1108/02634500410525887
Gonzales, N. (2009). Facebook marketing statistics, demographics. Rehieved fiom w w h c fa e o k o / w .c e k c b o .c m Graham, C. (2009, December). Technology to connect: personalized or shotgun. Ad media, 8. Retrieved from http://ezp.waldenulibrary.org/login?url =http://search.proquest.com.ezp.waldenulibrary.or g/docview/907105465?accounti d=14872

Ha,Y, & lm, H. (2012). Role of web site design quality in satisfaction and word of mouth generation. Journal of Service Management, 23( I), 79 - 96. DOl: 10.1108/09564231211208989
Jm, H. and Ha, S. (2011). An exploration of the cognitive-affective model of satisfaction in a shopping context: a testing of competing models. The Service Industries Journal 31( 13), 2273-2288. Retrieved from http://www.emeraldinsight.eom.ezp.waldenulibrary.org/search.htm'?stl =Jm%2C+H.%2C

BRAND MARKETING +%26+Ha%2C+S.+%282 0I I %29.+An+exploratio n+of+th e+cogni tive-

17

affective+model+of+satisfaction+in+a+shopping+conte:d% 3A+A+testin g+of+competing +models .+The+Servic e+ Industrie s+Journal .+31%281 3%29%2C+2273228.&ct=all&e c= I &bf= l&g o=Go Kotler, P. & Armstron g, G.(200 0). Principles ofMarketing. Upper Saddle River, NJ: Prentice Hall Luck-y Brand Jeans. (2012). A very luck-y history. Retrieved from http://www.luckybrand.com/About-Lucky-Brand-Jeans/about,default,pg.ht:ml Mehrabian , A. & Russell, J.A. (1974). An Approach to Environmental Psychology, Cambridg e, MA: MIT Press Michell e, H. (2006). Web word of mouth. Marketing Magazine, I I I(25 ), 4-5. Retrieved from http://www.marketingmag.ca/news/media-news/web-word-of-mouth-19733 Pappu, R., & Quester, P. (2006). Does customer satisfaction lead to improved brand equity? An empirical examination of two categorie s of retail brands. Journal ojProduct &

Brand Managemen t, I5(1): 4-14. DOl: 10.110 8/10610420610650837

Pine, J. B. (1993) .1'vfass customization. Boston, MA: Harvard Business School Press Russell, C. (199 3, October). The master trend. American Demographic s, 28-37. Sanjaya, R. (200 9, December). Collaboration of blog and social networking for eLearning.

Special Issue of the lnlernational Journal of the Compute1: the Internet and Management, I 7(SP3 ), 20.1-20.4. Retrieved from www.elearningap.com/eLAP2009/.../20_Full_Ridwan
%20Sanjaya.pdf Shanna, A. (20II). Take-off of online marketin g: casting the next generation strategies. Business

Strategy Series, I2(4), 202-208

DOl: IO.I I08/l751563lllll55160

BRAND MARKETING Shih, T. (2011 September 16). Detenninants of finns marketing strategies on consumer s' loyalty intention toward online stores. African Journal of Business Management, 5(20), 80698078. Retrieved from http://www.academicjournals.org/AJBM/PDF/pdf2011/16Sept/Shih.pdf Vangrove, (2010, December). Mobile app market to grow to $35 billion by 2014. Mashable Tech. Retrieved from http://mashable.com/20 I 0/12/13/idc-mobile-apps-study/

18

Woodside, A.G., & Wilson, E., 1. (1985). Effects of consumer awareness of brand advertising on preference. The International .Journal of Retail & Distribution Management, 25(4), 4148. 001: 10.1108/09590550510581476