Sorry, guess I'll have to break my promise again.
I'm only now responding to intelligent attempts to engage
in thoughtful conversation....not ugly name calling.
This post is largely an article below discussing and
supportive of the premise of "branding". While reading
this article, keep in mind Cdnow while asking yourself
what has this successfully branded name done for
the viability of the company.
"Branding" on the internet is a borrowed off line premise
as to how to create a "presense" (ie. a recogniziable
brand name) or "position" in your market sector that
people will immediately associate
with your product or service and, therefore,
later mitigated the sustained marketing expenses paid
to establish that brand identity in the first place.
After this posted article I will post another couple
messages contradicting what has been proving to be
a much more difficult and costly endeavor, if not an
outright fallacy- that is branding.
====================================================
"Branding"
E-Branding is More Important Than Ecommerce. Here's Why
zdnet.com
Annette Hamilton, Executive Producer
ZDNet AnchorDesk
Let's try a little free-association. I'll say a word,
and you note which company comes
to mind first:
Jeans. (Company:________)
Overnight. (Company:_________)
Clothes. (Company:________)
Software. (Company:________)
Your answers reveal how well-branded a consumer you are. I bet your list looks something like this:
Levi's
FedEx
The Gap
Microsoft
In traditional marketing, "branding" campaigns are
designed to embed a company or product name in your
consumer psyche. Firms often use a combination of
persuasive, emotional advertising campaigns and public
relations to encourage a link between a positive "feeling"
and a product. If it works, it can make you want to spend
your hard-earned money as fast as possible.
Online companies are putting branding to work with
remarkable success. Research shows the brand names of
seven Internet companies are already recognized by more
than 50 million U.S. adults, giving them 'mega-brand'
status. According to Opinion Research Corporation
International, the following Net names are top-of-mind
with Americans regardless if they have used the
Internet: America Online, Yahoo!, Netscape, Amazon.com,
Priceline.com, Infoseek and Excite.
And when Intelliquest asked 10,000 randomly selected
Internet users -- unaided by a list of possibilities --
to name brands they associate with the following products,
the following Net companies sprung to mind:
Books: Amazon.com (56%)
Music: CDNow (24%)
Computer Software: Microsoft (30%)
Computer Hardware: Dell (20%)
Clothing: The Gap (12%)
Travel: AOL, Yahoo!, Travelocity (each 8%)
Autos: Yahoo! (6%)
Still, a debate rages in the business departments of
many Internet companies over the importance of branding.
How much effort should they spent on e-branding initiatives,
that is, building up an online brand? Wouldn't those
resources be better spent promoting ecommerce efforts --
which offer tangible returns?
Let me lay that controversy to rest right now. In short,
e-branding is more important. And it must come first.
Because few people will buy your stuff -- online or off --
unless you are top-of-mind.
We all know that ecommerce is taking off. But people
still shop online more than they buy online. According to
Intelliquest there are four times as many online shoppers
as purchasers. And they are making their buying decisions.
In the first quarter of '98, more than 60% of U.S. business PC buyers used the Internet in the brand selection
and purchase process.
So if you are in ecommerce, the challenge facing you
is to build enough unaided brand awareness so customers
(and prospects) have you in mind when they go online to
find reviews and look at product configurations.
When you think of the Web, which brand names leap to mind?
Branding is about harnessing the free-association game
to your advantage. Building an ecommerce powerhouse may
be your company's stated objective. But it won't get
far unless it puts e-branding first. |
