Week 5 - Branding+in+the+Digital+Era+

MBA
Online
Strategic Brand Management

OMBA Fall 2021
Leila Khauli
Week 5: Branding in The Digital Era
©2020 All rights reserved. American University of Beirut, Suliman S. Olayan School of Business.
“A brand is no longer what we tell the consumer it is – it is what
consumers tell each other it is.”
Key Issues for Branding in the Digital Era
• There are many important developments with branding in this digital

era
• Findings:
Ø Ninety-seven percent of consumers turn to a search engine like Google when they
are buying a product
Ø Ninety-six percent of consumers search for product information from their mobile
device
Ø Ninety-five percent of millennials expect brands to have social media presence
Ø Eighty-nine percent of consumers do online research prior to purchasing instore
Key Digital Era Trends with Implications for Branding and Brand
Management
1. Changes in the consumer decision journey

2. Sharp increase in buying via online retail channels
3. Shift in advertising and promotion expenditures toward digital channels
4. The rise of many-to-many communications
5. Dramatic increase in consumer touchpoints
6. Tremendous increase in data availability
7. The use of digital personalization
8. A loss of control over the brand message and the co-creation of brand meaning
9. The role of user experiences
10. The growth of brands as cultural symbols
Changes in Consumer Decision Journey
Digital marketing and social media has changed the consumer decision
journey
Evaluation Post-
Recognition Information Purchase
of purchase
of need search decision
alternatives decision
Expanded Consumer Decision Journey
Growth of Online Retailing
The popularity of online retailing can

be inferred from the following statistics:
• The global ecommerce market
is expected to total $4.89
trillion in 2021
• Most millennials prefer to not shop
in a crowded mall or store
• Seventy-one percent of
shoppers believe they will get a better
deal online than in stores
©2020 All rights reserved. American University of Beirut, Suliman S. Olayan School of Business. 8
Advertising and Promotions Using Digital Channels
• Advertising dollars are allocated differently now across online and offline
channels
Ø In 2021, online media in the United States were projected to attract advertising spending
of 198.3 billion U.S. dollars, nearly 30 billion more than in 2020, when the industry was
hit by the COVID-19 pandemic
Ø In 2021, offline media in the United States was projected to attract advertising spending
of 175.9 billion U.S. dollars, four billion more than in 2020, when the industry was hit by
the COVID-19 pandemic.
• The growth in digital media is expected to outpace growth of traditional
media channels
Ø By 2020, it has been projected that online channels were almost 50 percent larger than
TV advertising
Traditional
Marketing: One-
to-Many
Communications
New Media Environment: Two-Way and Many-to-Many
Communications
Increase in Consumer Touchpoints
Digital marketing and social media channels and the ability to communicate
with each other
Ø Has fueled an increase in touchpoints
Increase in Data Availability
Data, data everywhere!

• Clickstream data on users’ browsing behaviors on companies’ Web pages
• Advertising metrics
Ø Click-through rates
Ø Cost per clicks
• Information regarding the number of unique visitors to a brand’s Web
site
Digital Personalization
• Targeting individual consumers with varying offers

Ø To try to ensure that they complete a purchase
• Digital tools have allowed for unprecedented personalization
Ø Product as well as message
• Dynamic pricing
Ø The same product can become available at different prices based on expressed
customer interest
Loss of Control over Brand Message and Co-Creation of Brand
Meaning
The digital age has created conditions such that brand meaning is primarily
coproduced by three different forces:
• Firm-generated brand meaning
• Consumer-generated brand meaning
• Media and cultural influences
User Experience Is
the Key to Digital
Brand Success
• A seamless user
experience is crucial to
a success of a digital
brand
• Needs an interface that
consumers can
effortlessly navigate
Ø To maximize user
experience
Brands as Cultural
Symbols
• Brands have greater

impact as cultural icons
than ever before
• Brands help consumers
feel a part of
something
Ø Allows them to signal
and connect with others
Brand Engagement
Brand Engagement
Three levels of customer engagement:

• Low brand engagement
• Moderate brand engagement
• High brand engagement
Brand Engagement Pyramid
Negative Brand Engagement
• Hatred and dissatisfaction with a brand

Ø Companies can redress customer grievances
§ Brand ambassadors
• Boycotts or social movements
• Brands are more readily ridiculed and parodied due to the online nature
of the communication
Dave Caroll : United Breaks Guitars
https://www.youtube.com/watch?v=5YGc4zOqozo
Communication Channels
Digital Communication Channels
• Paid channel
Ø A marketer typically runs paid advertising
§ Facebook, TV, print, etc.
• Owned channel
Ø Sources of information for consumers about a company’s offerings
§ YouTube channel
• Earned channel
Ø Review sites and reviews posted online typically at no expense
§ Social media or blog post
Summary of Digital Marketing Communication Channels
Digital Communication C
hannels (1 of 2)
• Company Web Sites

• E-mail Marketing
• Segmenting, Targeting,
and Personalization
• E-mail Structure and Subject Line
• Timing and Industry Differences
• Entertaining and Engaging Content
• Testing and Monitoring
Digital Communication Channels (2 of 2)
• Search Advertising
• Display Advertising
Google
AdWords
Social Media and Mobile
Overview of Social Media Paid Channels
• Social media channels offer unparalleled access to communities of users

with similar demographic, geographic, and psychographic characteristics
Ø Facebook and Twitter, for example
• Roles of social media:
Ø Establishing a public voice and online presence
Ø Amplifying marketing message
Ø Helping monitor and obtain feedback from consumers
Ø Promoting customer engagement
Overview of Social Media Paid Channels
• Facebook
• Twitter
• Instagram
• Video
The World's Most-Used Social Platforms
The Latest Global Active User Figures (in millions)
Overview of Social
Media Paid
Channels
• Facebook
Overview of Social
Media Paid
Channels
• Twitter
• Instagram
• Video
Mobile Marketing
• Messaging services
Ø Short messaging service (SMS) and multimedia messaging service (MMS)
§ Offer customers unique offers based on time and location
• In-app advertising
Ø Way by which mobile marketing can help brands touch customers
• Proximity systems marketing, or geo-fencing
Ø Involves particular advertising messages delivered to mobile users with a defined
geographic area
Influencer Marketing and Social Media Celebrities
Influencer marketing involves utilizing key influencers

• Sponsored bloggers
• Celebrity influencers
Word of Mouth
Word of mouth marketing happens in 2 ways: organically and through the

use of marketing and advertising campaigns
1. Organic word of mouth: Organic WOM occurs naturally when people
become advocates because they are happy with a product and have a
natural desire to share their support and enthusiasm.
2. Amplified word of mouth: Amplified WOM occurs when marketers
launch campaigns designed to encourage or accelerate WOM in existing
or new communities.

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MBA

Strategic Brand Management

• There are many important developments with branding in this digital

1. Changes in the consumer decision journey

The popularity of online retailing can

Data, data everywhere!

• Targeting individual consumers with varying offers

• Brands have greater

Three levels of customer engagement:

• Hatred and dissatisfaction with a brand

• Company Web Sites

• Social media channels offer unparalleled access to communities of users

Influencer marketing involves utilizing key influencers

Word of mouth marketing happens in 2 ways: organically and through the

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