Sunday, September 29, 2013

Branding: Building a Great Reputation Online

This week in one of my graduate courses, we learned about online branding. What is branding, you may ask? According to Geoffrey O. Simmons, branding is “the process of creating value through the provision of a compelling and consistent offer and customer experience that will satisfy customers and keep them coming back” (Simmons, 2007, p. 544). Why is branding important? While thinking about the discussion topic for this week, I kept thinking about the effects of having a good reputation and a bad reputation. Just as it is important to have a solid and generally favorable reputation, so is having the right branding strategy, but proper strategic communication is key.

Think of all of the different brands of products out there. Everywhere we look we see ads from popular companies like Coca-Cola, Aflac, AT&T, Lexus, McDonald’s, and Wells Fargo promoting their products. In these numerous ads, each company claims that their products are far better than their competitors’ offerings, and we believe them. Why do we believe in the products these companies offer? Take Allstate Insurance Company, for instance. Their recent television commercials feature “Mayhem,” who offers us viewers different scenarios in which having insurance is indispensable. For example, Mayhem has portrayed heavy snow on a roof, a faulty water heater, a test driver who crashes a person’s motorcycle, and a maid who fell down her client’s staircase while on the job. After each scenario, the commercials always end with their signature slogan, “With Allstate, you’re in good hands.” (Here is a link to a video featuring a majority of all of Allstate’s Mayhem commercials: http://www.youtube.com/watch?v=aw9hQNdXYbI. Enjoy!) Mayhem presents each scenario in a comical way, and maybe this is why I and many other viewers love watching Allstate’s commercials so much. Mayhem shows viewers how it is important to have the best insurance available on the market, which he believes is Allstate. Through comedy, Allstate has found a way to draw customers in to research their products and give them a try. Allstate has figured out a great strategy for branding itself as the go-to insurance company for worst-case scenarios.

Branding, specifically effective branding, is important to every business and to every professional individual that wants to have a solid foundation in the economy and in the digital world. Without the proper communication strategies, businesses will fail to reach their targeted audiences. In recent news, Guido Barilla, the head of the Barilla pasta brand, stated that his company will not feature any gay actors in its commercials, a controversial statement which set off several LGBTQ activists in Italy and elsewhere. He made the following statement:

We have a slightly different culture," Barilla said, per a Huffington Post translation of the interview. "For us, the 'sacral family' remains one of the company’s core values. Our family is a traditional family. If gays like our pasta and our advertisings, they will eat our pasta; if they don’t like that, they will eat someone else’s pasta. You can’t always please everyone not to displease anyone. I would not do a commercial with a homosexual family, not for lack of respect toward homosexuals – who have the right to do whatever they want without disturbing others – but because I don’t agree with them, and I think we want to talk to traditional families. The women are crucial in this. (Sieczkowski, 2013, “Barilla”)

Despite Barilla explaining his reasons for stating this and affirmed that he respects all people despite their sexual orientation, activists have called for a worldwide boycott of the pasta brand, “which is the world's largest pasta producer, according to Italy's Gazzetta del Sud” (Sieczkowski, 2013, “Barilla”). A similar controversy surrounded Dan Cathy, the president and CEO of Chik-Fil-A, who stated, “We are very much supportive of the family -- the biblical definition of the family unit” (HuffPost Gay Voices, 2012, “Dan Cathy”). Barilla and Cathy’s statements prove how the proper communication can make or break a company. Despite the predictable backlash and drop in sales Barilla will have, I’m sure the brand will still remain popular, because it produces quality products that people and restaurants have come to rely on in their kitchens.

Branding is everywhere, whether it is good branding or bad. Our discussion question for this week asked us how can we help Troy University, our school, improve its branding. Troy has a myriad of phrases that define what the school stands for and believes in. Everywhere I go in Montgomery, AL, I see some symbol or slogan for Troy, especially the closer I get to the downtown area. I recommended that Professor Donna Schubert, Troy University's Associate Vice Chancellor for Marketing and Communication, increase the radio and television output of Troy’s brand to accommodate for the changes in media and for the transition from traditional media platforms to digital ones. I also recommended that Troy use only one of its many slogans: “In class, online, within reach.”

I stated that this was the best slogan because Troy truly is a university that is within reach to any student that is willing to reach out and grab on to what Troy has to offer. When prospective students see this slogan, they know that Troy is a university that they can gain access to from anywhere in the world. In addition, for those prospective students who are considering a college or university but cannot attend in the traditional sense, Troy offers online degree programs in different fields that will appeal to any prospective student. In my academic career, I have found that I can take Troy with me wherever I go. When I am not on the Montgomery campus, I can still access Troy through my laptop, cell phone, and/or tablet. It is because of this wide accessibility that I chose Troy as the place to grow as a student and as a person.

How are companies like Chik-Fil-A and Barilla able to survive controversies and the subsequent backlashes from the controversies? How do we as consumers become loyal customers to particular brands, schools, artists, etc.? Larry Chiagouris and Brant Wansley argue that this is possible because of four key stages that consumers go through when building a consumer-producer relationship with the businesses they frequent: awareness, familiarity, trust, and commitment (Chiagouris & Wansley, 2000, p. 1).

Consumers become aware of the companies and their products and services, and they develop a familiarity by “acquiring an appreciation of the products or services offered” (Chiagouris & Wansley, 2000, p. 2). They begin to trust the company and its brand “because of the perceived benefits derived from particular features,” and they commit to the brands through “transaction[s] that consummate the relationship[s]” these companies have with their customers (Chiagouris & Wansley, 2000, p. 2). Through these four stages, consumers develop loyalties to brands, and as long as companies continue to deliver quality products, consumers will remain faithful. But how can companies transfer the relationships they have with their customers in the traditional market online?

The answer is simple: these companies must be able to offer the same products and services online in a convenient, user-friendly way that will not require too much effort or time on the consumers’ parts. Consumers want to be able to follow their favorite brands wherever they go, including online. As technology and media continue to transition to digital formats, companies must be able to maintain the same levels of service they offer in the traditional markets. Chiagouris and Wansley argue that brands must “capture the attention” of consumers and “build [customer] awareness” of their products by making sure that the consumers’ “Internet experience is being branded, not the product” (Chiagouris & Wansley, 2000, p. 4). They state that “companies that grasp the power of the Internet and its relationship building capability will discover an accelerated path to prosperity” (Chiagouris & Wansley, 2000, p. 5).

When customers fail to transition through all four stages of brand bonding, companies lose their credibility and eventually fall by the wayside. To ensure their places as “the best” of what they have to offer, companies must learn how to communicate strategically and effectively to improve and maintain their respective customer bases. This includes being able to navigate both the digital and traditional markets, and being able to utilize the resources that current and emerging media have to offer.

References

Chiagouris, Larry & Brant Wansley. (2000, January 1). “Branding on the internet.” Cleary University. Retrieved from ftp.cleary.edu/mkt/mkt415/mkt_415_m2_branding_on_the_internet.doc

HuffPost Gay Voices. (2012, July 26). “Dan Cathy, Chick-Fil-A president, on anti-gay stance: ‘Guilty as charged.’” TheHuffingtonPost.com. Retrieved from http://www.huffingtonpost.com/2012/07/17/dan-cathy-chick-fil-a-president-anti-gay_n_1680984.html

Sieczkowski, Cavan. (2013, September 26). “Barilla pasta won't feature gay families in ads, says critics can 'Eat another brand of pasta.’” TheHuffingtonPost.com. Retrieved from http://www.huffingtonpost.com/2013/09/26/barilla-pasta-anti-gay_n_3995679.html

Simmons, Geoffrey O. (2007, June). “i-Branding”: Developing the internet as a branding tool.” Marketing Intelligence & Planning 25(6): 544-562. DOI: 10.1108/02634500710819932

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