NONE: Re: ONLINE-ADS>> P&G/branding

Re: ONLINE-ADS>> P&G/branding
Mon, 31 Aug 1998 18:27:36 -0500 (CDT)

Precedence: bulk

I believe branding is very important to any business--both
offline and online. Why? Because it is the bottom line of a
business. Only when your customer chooses your product, will you
realize your profit. However, when your customer chooses your
product, he/she is choosing your brand. That's why brand choice
study is very popular in marketing research. If you read academic
marketing research literatures, you will see that about 1/3 of
the papers is about customer's choices.

However, branding is rather an abstract concept. It might include
many different meanings. The most common and most referred
meaning is brand awareness. But branding should be more than
merely increasing a brand's awareness. Strictly speaking,
branding means market segmentation and positioning. That's why we
see P&G has many different brands for the same product. (For
detailed information about online branding, please read "Online
Branding" at

Can we measure branding effects? My answer is Yes. We may measure
the branding effects of an ad campaign by comparing the brand
awareness between those who have seen the ad and those who
haven't seen the ad. But there are several drawbacks in this
measurement. First off, as I said, the fundamental goal of
branding is to have people choose your product. If your branding
effect is not strong enough to have people include your brand in
their choice sets and choose your brand (It might be that you
have targeted the wrong segment or have an incorrect positioning
strategy), your branding effect is equal to zero in terms of your
bottom-line. The second drawback is that by using this method,
you can only get the awareness difference between the two groups
of people instead of the absolute awareness in the population. It
is because that you ask the respondents whether they have heard
of a brand by telling them the brand name!

There is another way to measure the branding effect. It is called
Discrete Choice modeling. In this method, a researcher put
consumers in a real shopping situation and let a respondent
choose from different brands with varied prices. By estimating
the choice model, a researcher is able to identify the relative
brand strength (or brand equity) of each brand in the study. We
can really call this brand effect as brand equity because we are
able to calculate exactly how much brand A is higher (in terms
of money) than brand B.

If you want to know how such Discrete Choice model works and how
we calculate the branding effects, please visit and participate in the
survey "how do you choose laundry detergent". We will send you
the survey report when it is done. Although the survey results
include brand equity analysis, it is not our survey purpose. We
have designed this survey to prove one of our branding
strategies. In other words, we want to use this survey result to
prove that one of a common branding practice is incorrect. We
happened to choose laundry detergent and P&G is a big player in
this industry.


Tim Lee
Director of Research
A site dedicated to web marketing research.

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