Introduction to e-marketing and the
branding process
E-marketing refers to the marketing
processes that are advanced through electronic means (Buss, 2009). Electronic
media has in recent times been synonymous with the internet even though other
means such as the use of mobile phones equally applies. However, it would be
worth noting that e-marketing is largely conducted over the internet with over
80% of the activities in e-marketing conducted over the medium (Dann, 2011). Marketing and branding go hand in hand and it
is therefore expected that any changes in the marketing processes are to impact
the branding process significantly. Whereas marketing brings the existence of a
product or company to the attention of customers and motivates them to take the
desired actions; branding aims at creating a lasting relationship with the
market and therefore reinforces the marketing efforts. In most cases, the two
processes are not separable. Branding is part of the marketing process and
messages aimed at enhancing the brand image and in most cases intertwined with
the marketing message. The internet impacts the cost of communication, the
style of communication and the effectiveness of the messages conveyed (Hamidi,
2011). The internet also impacts significantly on the consumer buying behaviour
and how they view the concept of the brand. This paper conducts an analysis of
how the internet impacts marketing and the branding process.
The internet and its impact on
consumer behaviour
One of the most important
characteristics of the internet is that it has made it possible for people to
post information on the internet (James, 2006). This makes the internet very
rich in information with virtually any piece of information that anyone would
need being readily available. It has necessitated what analysts would call the
information explosion. The internet is borderless and this makes it possible
for one to collect information needed from the farthest end of the world. This
allows comparisons and determination of the best product features that one
would need to opt for. The process of retrieving the information is equally
easy. As opposed to the traditional models of information search where one
would need to physically scout around the markets or at the very least conduct
a tedious search for information on magazines, newspapers and catalogues,
information over the internet is available at the click of the button (Haugtvedt, Machleit and Yalch, 2005).
The search engine technology makes it extremely easy for an internet user to
obtain the information required with very little effort.
The internet also
impacts consumer behaviour by shortening their memory spans. With the vast
information available over the internet, the consumers often have more
information than they can store in their memories (Trainor, 2011; Aspray and
Ceruzzi, 2008). The end result is that they will in many cases forget something
as soon as it is out of sight. The end result is that more and more consumers
are reducing their reliance on internal information search and instead opt to
go for the easy to use internet.
The information clog in
the internet also makes it difficult for consumers to concentrate and pay
attention to the details contained in most of the marketing communication
messages. Surveys indicate that internet users tend to be attracted to catchy
messages whose presentation is not only simple but is also designed in a manner
that enhances visibility (Cunningham,
Gerlach, Harper and Young, 2005). The average user of the internet is an
impatient person and is likely to shift attention to other messages if the one
under scrutiny is unclear or unattractive. Graphically done messages tend to be
more effective.
The other manner in
which the internet impacts consumer behaviour is through the growing preference
for active participation in the marketing communication processes. In the
traditional models, consumers are passive listeners to the advertising messages
(Cunningham, Gerlach, Harper and Young,
2005). The marketing agencies channelling the information have sole
control over what is said about products. However, with the entry of the
internet and accompanying technologies such as the social media, consumers
prefer to play and active role in the communication processes (Baumgartner and
Steenkamp, 1996). This implies that the consumers can now have a direct impact
on the brand image and contribute to its credibility or to its corrosion.
The internet, like most
other channels of communication is not without hazards. To begin with, the
internet provides all users with the opportunity to publish information. It
therefore becomes difficult to determine which sources are reliable (Rouse,
2000). This makes consumers quite wary of the information available with most
internet users tending to rely only on information from official websites and
other reliable sites. This scrutiny does not apply to the extent to which
negative sentiments are regarded. Consumers who tend to express dissatisfaction
with a brand or product tend to discourage potential customers even where the
credibility of their claims is in question (Neil, 2010). This tends to make
internet users marginally suspicious of information obtained from the internet
and are only convinced where there is a level of consistency in the manner and
content of messages obtained.
Implications for e-marketing and
branding processes
In order to understand the implication
of the internet on e-marketing and the branding process, it is important to
understand the consumer buying decision process. This is a five-step process
that begins with the problem recognition and culminates into the actual
purchase decision and post purchase evaluation (Ellis-Chadwick, Doherty and Anastasakis 2007). The problem
recognition stage only implies that the consumer realises that there is
something that they would like to have that is not in their possession. The
problem recognised should be big enough to make the consumer want to seek for a
solution for the purchase decision making process to be triggered (Ellis-Chadwick, Doherty and Anastasakis 2007).
The second stage is the information search and this is subdivided into two
stages: internal search and the external search. In the internal search, the
consumer draws from their memory by recollecting how similar situations have
been dealt with in the past or recalling information they have come across in
the past regarding various products or services (Hart, Doherty and
Ellis-Chadwick, 2000). If the internal search proves to be insufficient, the
consumer turns to external search where they scan through advertisements,
recommendations from friends and relatives, the internet and others.
The creation of a
consumer with short memory spans as a result of information clog minimises the
impact of internal search and encourages consumers to search for information
more often (Voinea and Filip, 2011). The volatility of the market characterised
by constantly changing prices and frequent innovations has also had the
consumers accustomed to conducting fresh searches whenever they need to buy
products in the hope of getting better deals than they have had in the past. The
information search process is closely linked to the next stage where the
options identified are evaluated. The evaluation process considers factors such
as price, product features, availability and others. The processes of
evaluation and information search are conducted concurrently in most situations
and only stop when the consumer is ready to make a decision. The internet plays
a critical role in the 2nd and 3rd stages where
information on different products and brands are obtained with ease and
evaluated appropriately (Pant, 2007).
The 4th
stage is the actual purchase decision. The decision on what to buy and when to
buy it is made at this stage. In the 5th stage, the post purchase
behaviour sets in. In this stage, the consumer evaluates the product to
determine whether or not they have obtained value for money (Moon, 2004). This
is the stage that plays a critical role in influencing brand loyalty. Branding
helps shape the psychology of the consumer and bring out the feeling that they
desire to have about the product.
Branding helps create a
perception about products and provides an avenue through which a relationship
can be created between the consumers and the products in question. The brand is
a representation with a full set of personalities that the consumer can
identify with and relate to (Bernie, 2010). This is unlike products which are
only gauged on the functionality and features. For instance, a brand can be
reliable, enjoyable or it can be a reflection of human attributes such as
sophisticated, simple and other attributes. In branding, there are two main
perceptions: the brand identity and the brand image. The brand image refers to
the manner in which an organisation perceives itself (Jay, 2010; Dobele,
Toleman and Beverland, 2005). It refers to the perception that an organisation
would want the market to have about their products. The brand image on the
other hand refers to the manner in which the consumers perceive a brand. In
brand management, the brand managers aim to align the brand image to the brand
identity and the process is considered to be a success when the two are
identical (Bernie, 2010).
The branding process is
mainly characterised by marketing communication and the internet therefore
plays a major role in such a process. For branding to be successful, the
marketing message needs to be consistent with the dominant theme remaining
constant over a period of time. The symbols and name used for the brand should
also be catchy, easy to remember and where possible, reflective of the brand
image to be projected (Christodoulides, 2009). The internet impacts the cost of
communication positively. It reduces the cost of communication hence making it
possible for organisations to engage n frequent e-marketing and brand awareness
exercises with more frequency. Surveys conducted on the marketing practices in
the UK economy reveal that the internet continues to be one of the cheapest
mediums of conveying advertisements and other marketing messages (Chorafas,
2011). In most cases, the cost of hosting websites is low and this allows
organisations to host several websites which may be aimed at capturing
designated segments of the market. As has been mentioned, branding becomes more
successful where the messages are frequent and consistent. The internet makes
it easy for organisations to make their marketing messages frequent and this
enhances brand awareness. With continued efforts, the brand awareness generates
actual sales and may culminate into brand loyalty.
As has been mentioned,
the internet contains a lot of information on any given field and product. The
average internet user is spoilt for choice on which pieces of information to
consume. This makes it difficult for particular messages to attract their
attention unless where they have features that could enhance visibility and
ease of understanding (Christodoulides, 2009). The marketers should therefore
consider coming up with messages that can easily bring out the intended
meanings and designed in a manner that not only attracts the attention of the
audience, but one that also ensures ease of memory. Several surveys have been
conducted on online marketing communication with an aim to establish which
designs are most effective when marketing online. At the bottom of the list was
simple texts written in scholarly fashions. Texts accompanied by graphic images
and in attractive colours tended to score the highest (Simmons, 2007; Brown,
Broderck and Lee, 2007). The internet has revolutionised the need for business
to embrace graphic design. The display of the information should also be done
in a manner that generates interest. Once the attention of the consumer has
been obtained, they can follow the links presented in order to obtain further
information. This brings to the fore the ease with which information can be
interpreted and the ease with which the internet user can seek for further
clarifications. The use of links should be employed to ensure that all the
information about a product can be obtained without strain (Jansen, Zhang,
Sobel and Chowdury, 2009). Consumers only tend to search for more products only
when dissatisfied with the product they are viewing or where the information is
inadequate. Such information should therefore be provided to yield the greatest
impact.
The other manner in which the internet impacts
the branding process is that it redefines the role of those involved in the
branding process. Under the traditional models, the consumers are passive
participants. They merely take note of the marketing communication messages and
either adapt them as they are or ignore them (Jansen, Zhang, Sobel and
Chowdury, 2009). With the internet, this process allocates a more significant
role to the consumer. Through forums such as the social media, blogs and other
avenues, individual consumers can describe their brand experience and express
their satisfaction or dissatisfaction with the brand (Charlesworth, 2009). The
information fronted can then be viewed by other consumers who may reinforce
such perceptions. This process is in many cases beyond the control of the
organisations and it heightens the risk of the brand management process being
out of control. It calls for vigilance and timely interventions to forestall
the spread of negative sentiments about the brand.
The effectiveness of
the branding process depends largely on the extent to which an organisation
knows the targeted customers. By making use of systems and technologies available
in the internet, the organisations can capture crucial information on clients
(Chernatony and Christodoulides, 2004; Sinialo, 2007). The information obtained
can then be analysed and used in a manner that could improve the effectiveness
of subsequent direct marketing efforts.
Application to Tesco and the UK
retail sector: opportunities and threats
Tesco is among the leading retailers in
the UK and runs a comprehensive marketing program which makes use of both the
traditional mediums of communication and the internet. The company runs
official websites and avails information on its products through other internet
forums such as blogs and the social media (Onesource information services,
2012). In addition to these, the company runs an active online retail outlet
which helps in facilitating not only the online transactions but also the
marketing and branding exercises conducted online. The company has a strong
presence online and endeavours to offer as much information as possible for
online consumption (Onesource information services, 2012). Information on
product range, offers available at any particular time, health and lifestyle
tips, information of their business practice and others can be obtained with
relative ease. As analysts would put it, internet users tend to feel more
attached to companies and brands on which they have sufficient information
(Yousept and Li, 2004; Waitrose, 2004). The approach taken Tesco is therefore
likely to be effective in enhancing its strong brand in the UK market. Similar
approaches have been taken by companies in the sector such ASDA, other leading
supermarkets and specialised retailers. Analysts observe that over 80% of
retailers in the UK consider the internet as a crucial marketing medium
(Zablan, 2011). Another internet technology that has been implemented by Tesco
and other leading supermarkets with remarkable success is the feature that
allows for information on customers and potential customers to be captured and
used for future marketing endeavours. Tesco maintains a comprehensive data base
that ensures that the consumers targeted for the direct marketing exercises are
likely to be interested in the products being fronted.
The internet presents
various opportunities for e-marketing and branding in the UK retail sector. To
begin with, it allows for ease of communication. It lowers the cost of
communication and organisations are able to send numerous messages at only a
fraction of the cost they would normally incur when using the traditional
mediums (Darley, Blankson and Luethge, 2011). This presents organisations with
an excellent opportunity to strengthen their brands. The internet allows for
avenues through which consumers can interact with the organisations in a
meaningful manner. Where such systems are in place, continuous interaction
yields a self of attachment that eventually translates into sales and brand
loyalty. It is only through the internet that such interactions can be
facilitated at relatively low cost. As has already been mentioned, the internet
also allows for the applications of systems that help in analysing market
sentiments using the nature of enquiries that are made (Darley, Blankson and
Luethge, 2011). Such analyses help in gauging the manner in which a brand is
perceived and this in turn aids in the development of measures to ensure that
any deviations from the intended image are remedied swiftly.
While the internet may
have numerous advantages, it presents a number of threats to brand managers.
Firstly, the lower cost of marketing and branding makes it easier for new
entrants to penetrate the market. An organisation that embraces aggressive
marketing online could actually stand a chance of success and this increases
the market rivalry. The internet also takes away the sole responsibility over
the branding process from the companies (Thorbjornsen and Supphellen, 2004).
Consumers have the opportunity to shape opinions over the brand through their
interactions in the social media and other forums available online. This means
that the companies that less control over the branding process and there is
always the risk of the process getting out of hand. The brand management
process therefore gets complicated.
Conclusion
The growth in the usage of the internet
makes it necessary for marketing and brand managers to realign their practices
to the changing lifestyles and perceptions. The internet impacts the cost of
communication and makes it easy for organisations to communicate with increased
frequency. It also influences perceptions and approaches to information search.
With increased information clutter, consumers whose memory spans are
increasingly short tend to be easily attracted by catchy messages whose display
has been creatively done. Tesco is among the companies in the UK retail sector that
have embraced e-marketing and online branding as an integral part of its
marketing program. The company advertises through its websites, commercial
sites, blogs and they even participate actively in debates in the social media.
It also makes use of information systems to capture information in the market
which helps in gauging consumer sentiments on their brands and also in the
design of effective direct marketing campaigns. The internet on the other hand
heightens the risk of brand management getting out of hand where consumers are
an integral part of the process. It also promotes increased rivalry by making
it easy for creative entrants into the market to spread their brand and capture
the market through the increasingly cheap advertising space available online.
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