Marketing strategy in creating of brand equity on internet.
Andrlic, Berislav ; Idlbek, Robert ; Budic, Hrvoje 等
Abstracts: Internet as medium enables business activity of the
company in virtual space. Companies nowadays cope with greater
difficulties arising from challenges of growing e-markets and rapidly
changing factor of customers' behaviour. With increase of number of
Internet users, branded products are constantly being attributed growing
significance, when compared with other media, channels and surroundings.
Internet should be considered from the right point of view as medium for
realisation of strategic marketing goals, used for strengthening of the
brand recognition, which finally results in acquiring of new customers,
higher loyalty, greater market quotas and increase of sale revenues. The
authors of this paper give review of theoretical views of product
brands. Finally, strategic marketing model for the process of creation
of brand equity has been reconsidered and discussed.
Key words: Internet, marketing strategy, product brand equity
1. INTRODUCTION
Brand management means management of product's tangible and
intangible values, and implies management of each contact of the
customer with brand, taking into account all possible contacts with
former and momentarily rival firms. However brand management can be
implemented also on Internet market. Traditional brand management
strategies cannot be directly and adequately transferred on Internet
market, without necessary modification. A great number of facts indicate
the increase of number of Internet users, number of corporative web
sites and financial means spent on web promotion. Although
investigations show Internet as very essential medium for development of
brands and creation of consciousness of branded products, some firms
still fail to use this medium and its potentials. Exactly because of the
aforementioned reasons verification of role of marketing strategy for
branded products deserves careful analysis.
2. THEORETICAL VIEWS OF BRANDED PRODUCTS
Although the notion of mark exists already for a long time, even
centuries, no sooner then at the end of the twentieth century strategic
marketing approach appears in the full sense of that what we call now
brand management. The impression is created that one of the fundamental
features of contemporary marketing lies precisely in orientation and
devotion of special attention to creation of strong branded products.
American Marketing Association defines mark as name, notion, sign,
symbol, design or combination of the aforementioned; which serves for
identification of the product and /or service of one producer or seller
towards other participants on the market. (Bennett,1988). Mark name is
part of the mark which can be pronounced and which contains letters,
words and numbers. To protect name or sign of the mark, firm must
register it as trademark at the corresponding institute. When defining
mark the following circumstances must be taken into consideration:
* Product mark depends on customer's perception;
* This perception is under influence of additional values of the
product itself;
* These additional product values must be sustainable as
competitive advantages.
Brand management suggests management with product's tangible
and intangible values and management of each customer's contact
with the mark, taking into consideration all potential contacts with
former and present rival marks. Difficulties of contemporary brand
management are reflected in the following circumstances: disturbing rate
of failure of new products on developed markets, generic products and
trade marks successfully compete with branded marks, profit rate
reducing even with famous marks (Agres S., 1997). Due to these reasons,
the following functions must be taken into consideration in building of
brand equity. Marks are for companies' means of identification and
determination of origin, means for legal protection, and signal of
quality level for customers, means to enrich the product with unique
associations, and the source of competitive advantages and financial
revenues. (Vranesevic T., Vignali C., Vrontis D., 2004.).
The crucial point in brand management is to become aware that
successful mark must be different in something from rival marks, it must
fulfil promise on something that's important for the customers,
customers must be proud or feel awarded in possessing of the mark. If
mark is attributed to products and services offering greater functional
and symbolic advantages, then recognition and understanding of the
meaning of the mark will result in greater market value of the branded
product.
3. PROPOSAL OF THE MODEL FOR DEVELOPMENT OF BRAND EQUITY ON
INTERNET
Firms creating new product for Internet or for sale through
Internet must bring several crucial decisions about product mark. They
must decide whether to use the existing mark or create new mark names
for products. In case they decide to use a new name, the following
marketing strategies can be used: individual mark names for each
product, common, family name for the product or for all products, and
trade name of the firm combined with individual names of the products.
(Ruzic, D., 2003.). Consequently, stages in creation of brand equity on
Internet can be identified which are used in practice, and are specified
below:
I. Benchmarking- The success of the mark on Internet is most
frequently compared by the users with achievements implemented by other
rival firms in the same branch using the method of benchmarking.
II. Creation of Web site--Web provides several advantages in
distribution of the products and services to the customers. It
represents low cost, 24 hours global service enabling presentation of
information in structured form, which can be easily renewed. Therefore,
it must be kept in mind during creation of the Web site, to whom the
site is dedicated, and what and how do we want to present us to
potential visitors.
III. Creation of program of online loyalty--The concept of presence
on Internet from the aspect of improvement of the influence of the mark
should be focused on improvement of loyalty with existing users (online
marketing mix). Usage of technological properties of Internet in
connection with high quality conceptual solutions in representation of
the mark contributes to improvement of loyalty of the users.
IV. Give meaning and implement online promotion campaign- Internet
techniques and technologies can effectively and qualitatively be used in
promotion of mark characteristics for the online environment. Online
strategy of promotion increasingly gives much greater effects then in
case of single--ad hoc actions. Desired synergy is also realised in
integration of the rest of marketing channels.
V. Assessment and improvement of the brand management effects on
Internet--The ultimate step in process of development of successful and
strong mark on Internet consists in supervision and measurement of the
realized effects. After establishment of the mark on Internet, easily
accessible effects (frequency of visits, ROI analysis) directly show
guidelines for improvement of the mark, which should be quickly
implemented due to growing competitiveness on the Internet.
4. ELEMENTS OF THE WEB PAGE REPRESENTING MARK VALUE
Although current research do indicate Internet as being very
essential medium in creation of branded products and brand recognition,
some firms still do not use its potentials. The basic starting point in
creation of the mark on Internet is drawing of the web site. Web site
yields the visitors certain message about product mark through its
design and functionality. Mark value and its message are communicated
through numerous elements of the web pages. They include: logo,
graphics, colour, text and news, shapes and interconnection of all these
features. Logo consists of letters or words representing product mark.
It should be present on the home page and on all other places where it
creates additional value. Logo can remind the visitor on the origin of
the Web page, and his return to certain spots on site can help in
positioning of the logo in his consciousness.
Graphics include pictures, graphs and similar. Pictures represent
visual representation of the value of the individual mark. The content
represented on pictures depends on the nature of the mark being
represented on that Web page. Animated contents on Web attract attention
of the visitors and make him more conscious of the logo. However, lack
of animated contents can be explained by the fact that too many movement
and dynamics on the web page may create confusion and irritation with
the visitors.
Use of colours in combination with pictures or text may exert
significant influence on the appearance and the entire impression of the
Web page. Special attention should be directed towards careful usage of
combination of colours, so as not to produce counter effect which would
evoke repulsion in the mind of visitors. Text determines whether message
on the Web page is intelligible and relevant. It can help in definition
of the personal traits of the mark and continual reinforcement of its
values.
The essence of Internet pages of every firm consists of
information, which must be fresh and thorough. Visitors need new
information, and they can be stimulated for revisiting of the pages, so
as to check up for any modification. Shapes and forms are used in
multiple ways on web pages, which includes pictures, graphs, web menus
etc. The shape of fonts and their consistency are also very important,
and help in differentiation of the mark on the Internet. The last
element is a mixture of previously mentioned features. This notion
includes those features and functions of the web page which are mutually
harmonized in an optimal way for the visitor. The experience of the web
visitors builds the value of the mark itself. This experience includes
speed of page opening, navigation, i.e. orientation on the page and the
way of responding to communication. Functions which stimulate further
visits include e-mail, chat, forum, special offers of products and
services, etc.
5. CONCLUSION
The increase in Internet use result that marks become more
important then they were in other medium channels and environments.
Creation of mark strategy on Internet represents one extraordinary
significant area of research. Mark represents very complex notion, and
challenge for its creation is connected with multitude of opinions and
association being placed in the consciousness of the customer. Taking
into consideration the organizational aspect, it can be concluded that
creation of the mark on internet is distinguished by the following:
globalization, need for integration of diverse communication channels,
increase of interconnection with public sector, etc.
The firms increasingly recognize values and significance of using
of their marks in creation of long term relations with their customers.
The reason is very clear. With growth of number of competitive firms and
their products, marks are becoming significant means in creation of
diversity, attachment and relevancy. These considerations propose to
focus speculations in marketing planning on Internet and creation of
product brand equity as the main competitive feature.
6. REFERENCES
Agres, S. (1997). Brands in the Fast Forward Future, Advertising
Research Foundation, New York
Bennett, P.D (1988). Dictionary of Marketing Terms, American
Marketing Association, Chicago, ISBN: 0-8442-3598-9
Ruzic, D. (2003). e- Marketing, Ekonomski fakultet u Osijeku,
Osijek, ISBN: 953-6073-81-1
Vranesevic T., Vignali C. & Vrontis D. (2004). Upravljanje
strateskim marketingom (Marketing planning : analysis, tactics and
strategy), Accent, Zagreb, ISBN: 953-99762-00
