Managing Brands in the Social Media Environment

The dynamic, ubiquitous, and often real-time interaction enabled by social media significantly changes the landscape for brand management. A deep understanding of this change is critical since it may affect a brand's performance substantially. Literature about social media's impact on brands is evolving, but lacks a systematic identification of key challenges related to managing brands in this new environment. This paper reviews existing research and introduces a framework of social media's impact on brand management. It argues that consumers are becoming pivotal authors of brand stories due to new dynamic networks of consumers and brands formed through social media and the easy sharing of brand experiences in such networks. Firms need to pay attention to such consumer-generated brand stories to ensure a brand's success in the marketplace. The authors identify key research questions related to the phenomenon and the challenges in coordinating consumer- and firm-generated brand stories.     

Managing the Brand in a Corporate Advertising Environment: A Decision-Making Framework for Brand Managers

Abstract

Corporate advertising has become a significant business activity. That fact is important for brand managers because consumers' knowledge formed from corporate advertising may influence the way they think about brands the company markets. Brand managers must understand how such potential influence may occur and manage it to their advantage. The authors explore four key questions brand managers should consider in that context. In presenting answers, they integrate several literatures and propose a conceptual framework with a set of research propositions. Finally, they describe general directions for future research.     

Brand Orientation: A Mindset for Building Brands into Strategic Resources

Learning to see intangible values and symbols as resources is the necessary step in brand orientation. At certain companies, this can mean a step into a new reality - brand reality. A new way of approaching brands within companies. This is the heart of the discussion that will be pursued in this article. In the research field that deals with strategic brand management, considerable steps forward have been taken through the development of such concepts as brand equity and brand identity. Nonetheless, there has as yet been no fundamental discussion about the way in which brands are mentally approached or about the overarching conceptual frameworks that are used by companies that compete primarily via their brands. Based on experiences from case companies, including Nestlé, DuPont, Tetra Pak, Volvo, and Pharmacia Upjohn Nicorette, the critical question will be examined of how an organization's approach is affected when its brands become to an ever greater degree the hub around which operations and strategies revolve. The organization's overall goals, values, and positions come to be expressed through brands, and thus acquire an identity. Does this changed mindset mean that we must begin to rethink the market concept and challenge the assumption that "the customer is always right"? Should the guiding light of brand development always be that of "unreservedly satisfying the customer's wants and needs", no matter what the price? Experiences from the above companies show that integrity and brand competence are required in order to create, develop, and protect brands that have an identity, and not just an image.     

The interplay of social influence and nature of fulfillment: Effects on consumer attitudes

Sales promotional activities account for a significant portion of the integrated marketing communications budget of most companies because brand managers realize the effectiveness of these activities in meeting certain marketing communication objectives. However, there are times when promotional plans backfire, and promotions go unfulfilled. Much of this is reported in the media, and these reports are likely to trigger discussions about the companies involved in the nonfulfillment. Although much research has focused on the impact of sales promotional activities on consumers' responses and attitudes, not much has focused on how nonfulfillment of promotional promises and social influence might operate to color consumers' perceptions of a company. This article reports on an experimental study that was conducted to investigate this issue. Results indicate significant effects of the nature of fulfillment on corporate credibility, brand attitude, and patronage intentions; significant social influence effects on brand attitude, patronage, and switching intentions; and an interaction effect of social influence and fulfillment on switching intentions. The implications for brand managers and marketing communications managers are discussed, and areas for future research are proposed. © 2004 Wiley Periodicals, Inc.     

Drivers of Brand Extension Success: What Really Matters for Luxury Brands

The use of brand extensions has become fundamental to the business model of most luxury brands. Many traditional luxury brands such as Louis Vuitton or Chanel have expanded into traditional luxury sectors beyond their core business. Some brands such as Armani or Prada even crossed boundaries to nontraditional lifestyle segments to pursue new business opportunities. Given the high practical relevance of brand extensions for luxury brands and the importance to understand the success factors for their extendibility and potential backward effects on the parent brand, surprisingly little research has addressed these issues for luxury brands in comparison to nonluxury brands. The current research reveals extension‐related differences between luxury and nonluxury brands by simultaneously analyzing key dimensions of parent brand value, fit, and extension category involvement on the consumer's attitude toward the brand extension, which in turn influences the postextension image of the parent brand. Results of a structural equation model based on a survey among 492 participants show that the predominant driver of brand extension success for both luxury and nonluxury brands is overall extension fit, followed by the consumer's involvement in the extension category. The influence of functional value of the parent brand on the extension evaluation is more important for nonluxury brands. The hedonic value of the parent brand is found to be of relevance only in case of luxury brands. Moreover, a reciprocal spillover effect between the extension evaluation and the parent brand evaluation is observed. The degree of luxuriousness of the parent brand moderates this relationship. This effect is weaker for luxury brands.     

On the Extendibility of Brands with Subordinate versus Basic Category Concepts

In this paper, we use a series of experimental studies to show that consumers’ response to the extension of a brand associated with a basic versus a sub-category depends on the closeness of the brand's parent and extension categories. When the two categories are close, consumers respond more favorably to the extension of a brand with a basic category concept, but the pattern reverses when the categories are far apart. However, a brand with a basic category concept can mitigate its disadvantage in a distant category by first launching an intervening line extension. Our results suggest that brands with sub-category concepts are not limited in their ability to extend, and can help retailers meet the twin objectives of leveraging the high growth of specialized categories and rationalizing their brand portfolio. They also suggest that managers should aim to extend brands with sub-category concepts into distant categories where the modifier in the brand concept is relevant rather than into close categories.     

Brand Power Relationships: A Co-Evolutionary Conceptual Framework

Abstract

In the era of the Internet and networking, stakeholders increasingly acquire power by influencing brand value and meanings. However, this does not imply that marketing managers have lost their power over brand creation and management. Thus, the aim of this study is to explore brand power relationships taking the co-evolutionary perspective as conceptual lenses. In particular, this article seeks to address the competitive relationship between the corporation and its stakeholders in determining the corporate brand evolution over time, suggesting that corporate brand management is successful when co-evolving power relationships are established. The relational interplay between managers and stakeholders is framed into the Brand Power Relationship Model that suggests four potential evolutionary paths. It offers new brand typologies supported by examples from business practices, which mirror four different ways of managing and adapting brands over time; namely, through the None’s Brand, the Managers’ Brand, the Stakeholders’ Brand, and the Co-Evolutionary Brand. Focusing on the latter, this study depicts managers and stakeholders as having reciprocal influences and co-determining themselves, thus triggering interrelated relational effects that influence corporate brand evolution over time. The bilateral power of managers and stakeholders is framed into a further model, focused on corporate brand co-evolution. It is proposed that corporate brands can successfully co-create their value and meanings over time only if corporations co-evolve with their environment—in this study, multiple external stakeholders.     

Branding and design management: a brand design management model

As brands have become one of firms' most valuable assets, the search for new ways to build brands that achieve a differentiated status in the minds of customers has become of central importance for companies. If design is guided by the brand, it can serve as the cohesive factor for all elements that configure a brand experience and represent an unequivocal source of differentiation. 37 owners and/or top managers of 28 Spanish companies acclaimed for their design were interviewed in order to build a model that integrates branding and design management. The resulting model integrates the innovation process with different kinds of design, in order to build consistent brand experiences.     

Alliances Between Corporate and Fair Trade Brands: Examining the Antecedents of Overall Evaluation of the Co-branded Product

This research investigates the potential for a “fair” co-branding operation. A major corporate brand is fictitiously allied with a Fair Trade labelling organization brand. The sample for the study is composed of 540 respondents, representative of the French population. By considering commercial brands and Fair Trade labels as dissimilar in terms of customers’ perceived Fair Trade orientations, this article studies (1) how this lack of similarity impacts perceived congruence between both entities (i.e. perceived relevancy and expectancy of the alliance) and (2) how prior brand attitudes and congruence influence customers’ evaluation of the co-branded product. The results of this research demonstrate that: (1) Consumer prior brand attitudes toward the partner brands influence very little customers’ evaluation. (2) Perceived similarity of the partner brands has a strong influence toward congruence of the co-branding operation. Results also indicate that congruence (measured as relevancy and expectancy) has a strong influence upon customers’ evaluation. (3) An inverted U-shaped relationship exists between perceived similarity and relevancy of the alliance, and between expectancy and customers’ evaluation. The results obtained through the test of a partial least square model, and inverted U-shaped hypothesis, represent a new insight into co-branding theory. The high discursive power of fair co-branding is a key issue: the corporate brand provides the alliance with its leading position, while the Fair Trade brand provides the ethical attribute.     

Why Consumers in Developing Countries Prefer Foreign Brands: A Study of Japanese Brands in Vietnam

ABSTRACT

Building on social-identity theory, the research develops a model for understanding of the impact of consumer identification with a nation on consumers' brand evaluations. It posits that developing-country consumers' identification with a foreign (developed) nation influences three factors—consumer-based brand equity, consumer-based country image, and consumer-based brand credibility. The research was informed by data from 400 Vietnamese consumers in relation to two Japanese brands Sony and Honda and analyzed using structural equation modeling (SEM). The findings show that Vietnamese (developing-country) consumers prefer Japanese (developed-country) brands over domestic brands, when these consumers identify with the developed nation.     

Tweet this,not that: A comparison between brand promotions in microblogging environments using celebrity and company-generated tweets

Despite the popularity of social media in general and Twitter specifically, little empirical research exists to assist marketers in how to successfully connect with consumers in these environments. The purpose of this study was to identify the ways in which brands can connect with consumers through Twitter and to examine how the category of Tweet impacts brand engagement. Findings reveal that whereas celebrity Tweets may be successful at capturing attention and disseminating brand information, they have minimal impact on changing brand opinions. What influence celebrities do have may be best served with unfamiliar brands rather than familiar ones – results suggest that not unlike in traditional offline media, in social media celebrities may be influential in drawing attention to unfamiliar brands. Our results also suggest that companies with established familiar brands should be cautious about paying to seed their own Tweets using Twitter's ‘Promoted by’ option, particularly if the brand is one that consumers have a neutral opinion of, as this can lower consumers' opinion of the brand. Instead, these companies should encourage consumers to follow them on Twitter as this will enable the brand to interact directly with consumers.     

The Retailer's Perspective on the Link Between Logistical Resources and Perceived Customer Loyalty to Manufacturer Brands

The objective of this study was to investigate the relationships between logistics and brand‐related resources, and assess their impact on the retailer's perceptions of customer loyalty to manufacturer brands. On the basis of theoretical underpinnings of the resource‐based view, this study explores the relationships among four main variables: (1) variety of collaborative logistics technologies shared between retailers and manufacturers, (2) manufacturer's logistics operations quality provided to retailers, (3) retailer's brand differentiation orientation, and (4) retailer's perceptions of customers loyalty to manufacturer brands. An online survey was conducted on 313 senior marketing and supply chain managers from retailer firms. The results of the structural equation analysis support a mediated relationship between logistical resources and perceived loyalty to manufacturer brands. The retailers believe that shared logistics technologies enable manufacturers and retailers to offer higher levels of availability and visibility of preferred brands to their end‐user customers. In turn, the end‐users become more confident with their decisions to repurchase the same brand offerings.     

Functional and Social Value of Chinese Brands

An increasing popularity of Chinese brands around the world suggests that Chinese brands are beginning to overcome unfavorable country-of-origin (COO) effects. However, whether the perception of the functional and/or the social value of Chinese brands has improved remains unclear. Based on the theory of reasoned action, this study develops a theoretical framework to explain how consumers' perceptions of functional and social attributes affect purchase intentions of Chinese brands. Survey data were collected from an individualistic (US) and a collectivistic (Mexico) country. Results show that perceptions of functional value antecede attitudes towards the brand while perceptions of social value antecede social norms. The effect of social norms on purchase intention is stronger in the US than in Mexico. Recommendations for managers of Chinese brands, and brands from other emerging markets, are provided.     

The Buying of Private Brands and Manufacturer Brands in Grocery Retailing: A Comparative Study of Buying Processes in the UK,Sweden and Italy

Private brands in grocery retailing have evolved from a way to compete on price by selling low quality products at a low price, into a brand category in their own right, with a wide range of positioning options open to retailers. The buying and selling of private brands means that retailers' add new activities and processes to those that are traditionally associated with retailing. This paper compares the buying processes for manufacturer brands and private brands across three European countries in an attempt to analyse how the extension of the buying process inherent in private brand ranges, and the organisational contexts within which these processes operate impact upon complexity in the retail buying process     

Managing brand extension via licensing: An investigation into the high-end fashion industry

Brand managers are increasingly confronted with the option of licensing their brands when pursuing brand extensions. Such decisions are typically based on evaluation of the risks associated with such a contractual form, and with the nature of the asset at stake, i.e., the brand. Drawing on transaction cost economics and the brand extension literature, the authors investigate how managers balance the advantages of rapidly accessing new product categories through licensing with the risk of negative reciprocal effects and licensees' opportunistic behavior. Our results suggests that firms tend to be strategically conservative when examining how to extend their brands, as managers see the risk of negative effects on the parent brand as outweighing the advantages associated with licensing.     

Kraft's acquisition of Cadbury: Was it an amicable transatlantic merger or a hostile takeover?

This case‐based research evaluates and discusses Kraft's 2009–2010 acquisition of the UK‐based Cadbury, which turned into a bitter fight and a hostile takeover. As both firms have a rich history and distinct brand identities, the merger came to the attention of the global media and public on both sides of the Atlantic. Drawing on the merger's lengthy negotiations and the two companies' distinctive corporate cultures, this article analyzes the merger and its chaotic negotiations and developments. The merger was opposed in the United Kingdom because of Kraft's harsh approach of targeting an iconic British brand that had been in business for over 150 years. Eventually, both companies did compromise in an amicable manner and concluded a friendly tie‐up. The postmerger period reveals that Kraft's acquisition was a part of its future reorganization and expansion in global markets. This case‐based research also provides academic and practical implications for international business managers as well as multinational corporations.     

Managing destination brands: establishing a theoretical foundation

There is general agreement in the literature that the marketing of places as brands requires “a special type of marketing” (Ashworth 1993, p. 648). But while the problems inherent in place marketing are well documented (see for example Karavatzis and Ashworth 2005) very little attention has been given to the development of a theory of destination branding which can be used to guide destination brand managers and form the basis of future research. The conclusions from a review of the literature are tested against the experiences of practitioners (Churchill 1979) by means of 25 depth interviews with Senior Managers in 20 Destination Marketing Organisations. Five critical antecedents of successful destination branding are identified: stakeholder partnerships, brand leadership, departmental coordination, brand communications and brand culture. Two key mediating factors are also identified: brand reality and brand architecture. The managerial implications of these findings are discussed.     

Global Brands: Taking Stock

Global brands have never quite delivered on their promise. This article focuses on why this may now be about to change. The author first addresses three basic issues: why global brands matter more now than in the past; what distinguishes them from national brands; and the main building blocks for a global brand. He then moves on to some of the key problems which face managers of international brands today: the new Euro-zone, instability in emerging markets, the problem of diversion, and management of global relationships with advertising agents and market researchers. He concludes with a discussion of the issues involved in deciding whether brands should be taken global.     

New Brands: Near-Instant Loyalty

It is widely thought that loyalty to successful new brands or line-extensions evolves slowly.

An unexpected but striking finding therefore is that loyalty to the new brand was near-instant in some 20 cases examined so far: the new brands' average purchase frequency at launch is already normal, i.e. at the same level as a year or two later and also as for competitive established brands.

The finding was unexpected but now makes much sense with hindsight. More empirical work is in hand.