Tag Archives: Digital strategy

Web 2.0 and the Brand

Marketing is evolving toward a new thought-framework where the intangible experiences, transactional processes and relationships are becoming central to the brand and the customer has become a ‘co-creator’ of the brand rather than simply just a ‘user’.

The logic of branding is shifting from the conceptualisation of brand as the collection of attributes determined by the organisation, to the brand as collaborative, value creation between all stakeholders including organisations, employees and customers. This shift in logic is important when considering the Internet as a brand-building medium because its modern interactivity or web 2.0 places the user as a co-creator of the content and therefore the brand.

A strong brand provides a series of benefits to both buyers and sellers, simplifying the buyers’ search process and simplifying some of the sellers’ tasks, and enabling competitive advantage through preferential pricing.

Branding is defined as 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 back1 . Companies are beginning to realise that brands are among their most valuable assets.

The Internet has had a transformational impact on business shifting the balance of power from companies towards customers  adding further complexity and dynamism to branding strategy. These days brands are socially constructed by consumers who are actively involved in brand creation.

Consumers respond to brands within communities, where the members of the community have a sense of shared consciousness, personal stories, morals and traditions that are all associated with a branded good or service. A great example of this is the new mums community on the Pamper’s community platform. Their brand conversations are not limited to nappies and creams, they are part of building the Medical Aid brands as they share experiences and provide advice on which Medical Aid to choose.

Brand communities have the ability to influence members’ perceptions and actions and can lead to a socially embedded and entrenched loyalty. Although negative implications involving brand communities exist, such as the ability for negative rumours to pervade the community, competitors gaining information through the community’s internal communication and normative community pressure, brand communities offer an effective method for building brands. Companies are able to advance customer engagement with the brand, foster the creation of stronger brand relationships and in so doing mitigate customer exit barriers resulting in increased competitive advantage.

The development of a strong brand community significantly influences brand loyalty and as a result positively impacts on a company’s financial performance and competitive advantage. Online community members potentially have stronger commitment to the brand and are more likely to buy the brand repeatedly, spread more positive word-of-mouth information and provide useful information to the company.

Web 2.0 simplifies the development of an online brand because it facilitates the creation of user-generated content by the community and the interactions of its members around this content.

1 Aaker, D. (1991) Managing Brand Equity: Capitalizing on the Value of a Brand Name. New York: Free Press

About Digital Bridges

Digital Bridges creates high performance organisations by unlocking the business value of the web. We create digital strategies, user requirement and functional specifications for Intranets, websites and web applications. We also develop and implement social media strategies and create powerful digital brands using eMarketing and Communication.

Digital Bridges approaches the web from a management consulting position and relies heavily on rigorous academic thinking as well as business experience. It is headed up by Kate Elphick who has a Law degree and an MBA from GIBS. Kate has spent the last fifteen years of her career on the business side of the IT industry with companies such as Datatec, Didata, Business ConneXion and Primedia.

Digital Bridges has a broad range of experience working with significant, successful clients in the Financial, Gaming, Tourism, Pharmaceutical, ICT, Legal, Airline, Professional Services, Media and Public Sectors.

To find out more about Digital Bridges, please visit www.digitalbridges.co.za or contact Kate Elphick on katee@digitalbridges.co.za.


Filed under Business, Digital Communities, eMarketing, Enterprise 2.0, Semantics, Web 2.0, Web Marketing