The value of brands

in the digital world

E-health symposium 2011 Ronald Pastor GSKBy Brian Solis

History marketing/branding and the learning's for e-health

1956

1956-2000 Kotler Marketing/branding

2000-2010Jan Rijkenberg

Simple Marketing System 1956

any color is possible as long as it's black

What is marketing? After 1956

"Marketing is a dialogue over time with specific groups of customers whose needs you understand in depth and for whom you develop an offer with

a different advantage over the offer of your competitors."

What’s the brand?

Every little helps

Te apetece un dia redondo

Sterk spul he!

Alleen voor beschuit kom ik eruit

Het beste onder de zon

Por que tu lo vales

Busque, compare y si encuentra algo mejor comprelo

Vorsprung durch technik

Reassuringly expensive

Don’t leave home without it

Think different

We try harder

Takes a licking and keeps on ticking

Because I’m worth it

(Parce que je le vaut bien)

駆けぬける歓び

Weil Sie es sich wert sind.

…macht Kinder froh und Erwachsne ebenso

…macht mobil, bei Arbeit, Sport und Spiel!

Smelt in de mond, niet in de hand

(Melts in your mouth, not in your hands)

It’s all about perceptions…

"A brand is a collection of perceptions in the mind of the consumer."

Marketing is choosing between alternative segments

“Strategy is making trade-offs in competing. The essence of strategy is choosing what

not to do” (M. Porter)

?

Strategic marketing STP how does it work

Segmentation

Targeting

Positioning

Splitting the market into groups with similar needsand behavioral / motivational characteristics

Evaluating the attractiveness of the segments and selecting the segment(s)

Establishing the company’s offering and image in the mind of the target segment members

Segmentation & Targeting

Segmentation:

splitting customers into different groups so that customers with similar

characteristics have similar needs

Targeting:

evaluation of the attractiveness of the

different segments and selecting the segment to

cultivate

#1 #2

PositioningThe mental space that your brand owns in the customer’s mind

In building positioning, we seek to fulfill a higher-order benefit

Branding is the collection of elements that establish identity and meaning, win hearts and enhance value

Images, style, tone, vocabulary, values, associations…

Positioning vs. Branding

“A product is something made in a factory; a brand is something that is bought by a customer. A product is copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless.”*

As with messages, branding helps implement the positioning

*Stephen King, WPP Group, London

Brand Essence - what is the first spontaneous association that should come into a customer’s mind when they hear the brand name?

• “The ‘heart and soul’ of the brand”– The emotional benefit territory

felt as a result of delivery of the rational benefit

– The unchanging critical element of the brand’s identity

– The anchor of the brand over time

– One idea: single-minded

E.g. Disney – Magic,Volvo - Safety

Benefits of a Brand Essence1. Gives consistency and recognition

Over the long term Across activities / executions

Example: Volvo - Safety

Brand Essence Brand progression over time to concepting….

Italian style and luxury

Magic

Challenger “David vs Goliath”

Spirit of Freedom

Rugged masculinity

Innovative design

Gucci Saddle 1906

Disney Mickey Mouse

Virgin Atlantic

Harley Davidson Motorbikes

Marlboro clothing

Swatch Watch

Gucci Duffle Bag 1925

Disney Animation

Virgin Trains

Harley Davidson Cafés

Marlboro holidays

Swatch Car?

Virgin Bank Virgin Cosmetics Virgin Vodka

Marlboro cigarettes

Virgin Records

Harley Davidson clothing

Harley Davidson fragrance

Disney films/ publishing Disney retail Disney

DisneyworldDisney Epcot Centre

Gucci Loafers 1925

Gucci Wallet 1937

Gucci Clothing 1964

Gucci Homewear 1988

Swatch Phones

Brand essence allows to maintain consistency and recognition for the brand…

Brand Building to conceptingBrand Building to concepting

amsterdam– Thuiszorg Groningen kan beter tachtigduizend euro investeren in ’troetelminuten’ dan in voetbalclub FC Groningen. Dat vindt raadslid Thijs van Kleef van Gemeentebelangen Eemsmond.... VK

Sterk zorgmerk succesfactor voor zorgaanbieders! WhitePaperDe kernvraag van iedere merkstrategie is natuurlijk in hoeverre het gewensteimago (identiteit en positionering) daadwerkelijk overeenkomt met het gepercipieerde imago van de consument of afnemer.

We exeggerated branding Branding -- as a separate marketing activity -- is either a waste money (e.g. Xerox redesigning its logo) or an excuse for marketing groups to take credit for the work of other groups. Making a perfect beer.

Back to the basics,Or the next business model

History of marketing/branding or history of the business model

1956

1956-2000 Kotler Marketing/branding

2000-2010Jan Rijkenberg

Product organization

• Focus on (internal) business-process• Use of traditional marketing (4 p’s) and (mass media)

communication.• No direct contact with customer

Customer-oriented organization

• Separated front-office and back-office• Marketing en communication as integrated process• Direct contact with customer and use of customer-

database (knowledge on customers)

Network organization

• Focus on core business• Partnerships with supplier• Direct en automatized contact with customer and supplier

• Fully automatized business-process around the front-office.

Virtual organization

Beeckestijn Business school

The place of Marketing in the new organization

Productorganization

Costumer-orientedorganization

Networkorganization

Virtual organization

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gSend Interactive Dialogue

Classic organisation is decreasing

To a greater extend interaction with surroundings

“Classic” marketing 4P’s

4Ps

Value Creator Customer

Product

Place

Price

Promotion

No feedback and interaction. Lack of knowledge market and customer is high risk,

Marketing P’s included in dialogueInvolve customer in dialogue, create value and reduce risk

Value Innovator Customer

Product

Brand

Promotion

Flexible pricing

Product

Place

Price

Promotion

Shift in trust

Value Innovator Customer

Product

Brand

Promotion

Flexible pricing

Customer has confidence in consumer rather than in businesses.90% relied on a recommendation from someone they know.70% trust online reviews from customers

We must adapt to the new model the biggest driver is technology

Wordof

Mouth

CUSTOMER

Traditional Push model

MESSAGE

CUSTOMER

CHANNEL

Customer driven model

Future of marketing/brands

1956

1956-2000 Kotler Marketing/branding

2000-2010Jan Rijkenberg 3.0

Co-creationThe new way to create products and experiences.

Shift in marketing and the new brands

Marketing as a discipline

marketing concept now

marketing concept of the future

Product management

Customer management

Brand management

4P’sProduct, price, place,

promotion

STPSegmentation, targeting,

positioning

Brand building

Co-creation

communities will form

character building

Philip Kotler & Hermawan Kartajaya & Iwan Setlawan

C0-creation will build your brand, product and business

Co-creation

communities will form

character building

Cooperation of consumer, business partners, suppliers, channel all adding value

Tribalism = consumers feel connected with Consumer and work with you to develop your brand

Character is an authentic and recognizable brand DNA in social networks. Companies need to be "real", consumers immediately recognize fake

Example of Co-creation in the health care Every patient his own hospital

Jan Kremer/Bas Bloem Radboud Nijmegen

Health Effects 2.0 ?

• Organizations: from physical organizations to care networks• Patients: from passive object to active subject• Doctors: from all knowing paternalist to coach• Tasks: from doctors to other professionals• Innovations: from sustaining to disruptive innovation• Financial: from cost to the creation of value• Hierarchy: from boss to catalyst• Relationships: from competition to cooperation• Supervision: from control to trust• Control: from makeable to organic

Possible business modelsWho pays the creation of value?• Caregivers: pay for education, community building and other

services• Insurers: Encourage participation by caregivers using dual

pricing• Insurers: Pay for participation of citizens through a new

healthcare performance scheme• Patients: pay direct for community education or other services

Jan Kremer Radboud/Clayton Christensen Innovators Prescription

Healthgsk.nl

Clinical Trial app

Social Technologies

CommunicationSocial Networking

Knowledge transferSocial Media

Reputation valueSocial Relevancy

Operational valueCRM - Social enabled tasks - Recruiting