沃顿商学院全套笔记-十五-

沃顿商学院全套笔记（十五）

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P27：26_信息交付的颠覆.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

In the previous lecture we talked about how technology disrupted money， books and music。

mainly by changing a hard good into a soft good and in that way changing the logistics。

Now let's talk a little bit about how disruption happens in information delivery。

If we think about our day-to-day purchases， every product or service that we buy is a。

bundle of attributes or benefits。 Some of these benefits researchers have called as digital attributes or digital benefits。

and others have been classified as non-digital attributes。

So what do we mean by digital and non-digital attributes？

Think about Professor Raju buying a new iPhone。 There are so many digital attributes。

The price of the product， the warranty， the screen size。

I can go to the website and see what the size of the screen is， how long is the warranty。

what's the price of the product， we'll call all these digital attributes。

Then there are non-digital attributes。 The feel and touch of the screen。

the real brightness of the colors， the speed with which， one can open or close apps。

So the non-digital attributes you can see are a little bit different than digital attributes。

Digital attributes are easy to convey using online channel or even catalogs in old days。

For non-digital attributes， the customer prefers to touch and feel the product。

Now some products are predominantly consisting of digital attributes。

Say a printer cartridge from a well-known company， an accessory for my iPhone， a book。

whose abstract I can read online or a pair of socks that I purchased before and I'm sure。

you can come up with many more examples like that。

And there are other products that are mostly non-digital。 A new jacket that you're planning to buy。

a pair of running shoes that you're going， to spend a lot of time running and you're worried about how they're going to affect your。

knees。 Your choice of a channel can depend on whether the product has mostly digital or non-digital。

attributes。 For non-digital product experience is important。

so there is a need for bricks and mortar。 Like trying a new pair of basketball shoes。

Go look at the Nike store these days。 See how an outdoor grill actually works as opposed to claiming that it'll cook burgers。

very nicely。 Sleep or a mattress for at least 15 minutes as consumer reports recommends。

Depending on your product and service， whether it has more digital or non-digital attributes。

you can think of whether you should use online channel or a bricks and mortar channel。

But here again， there is creativity that's important。

There are creative solutions that companies have used to manage non-digital attributes。

in an online world。 So let's look at an example of R。B。 Parker。

A company started by Wartan students a few years ago。 This industry is very large。

over 60 billion dollars and the margins in this industry were， extremely high。

There are different types of providers。 People who provide only glasses。

people who provide fashion goods， people who have insurance， or have retail stores。

all these fell under one group called Laxortica。 They owned everything。 Therefore。

they were able to command high premiums， high price cost margins。

So Wartan Parker comes out and says， "We'll offer a eyewear online。"。

What's the problem with eyewear online？ Most of us who buy a pair of glasses want to try it out。

Now these people can't afford to open retail stores at the time they started。

So how did they beat the non-digital attribute issue？ They said， "Why don't you try these at home？"。

So what did they do？ They said， "You can try five pairs at home depending on whether you like or not。

You can keep one， send the others back。"， So what they're trying to do is using their online world but yet offer the customer an。

ability to try the product through in-home experience。

So they started with that but now more recently they've opened their own stores。

In fact， I referred to this earlier。 They've opened over 100 stores。

But this is one way of making sure that a company predominantly in online world takes。

care of the non-digital attributes of the product。 Mattress Industries is another example。

It's a very large market dominated by two major companies。

The very little growth in the industry， people don't replace their mattresses that often。

It's driven primarily by new home formation。 The adoption online was very limited because it's an unpleasant shopping experience but。

more importantly， you don't want to buy a mattress online because you can't experience。

whether it's going to be hard or soft or medium。 You need to actually go sleep on it。

That's what consumer reports suggest is at least spend 15 minutes sleeping on the mattress。 In fact。

we are in the process of buying a new mattress。 I read consumer reports。

It strongly recommended me to go buy to this， to go to the store and sleep on the mattress。

for 15 minutes on each side， one side， other side on the back。

Now that's an example of a product with very high non-digital attributes。 So what did Casper。com do？

Well， it's a retail online retail store。 But they let you try at home for close to 100 days。

What that does is it removes the anxiety。

It creates a product which has non-digital attributes。 You don't deny it。 You don't fight it。

You say it to the customer， "Okay， you try it。 If you don't like it， we'll actually go pick it up。

You don't have to send it back。"， It started in 2013 and it's now valued at 750 million。

As we look at other opportunities in retail， it's important to understand the effect of。

repeat purchase on digital and non-digital attributes。

Repeat purchase reduces the weight a customer puts on non-digital attributes。

Once you purchase the product， next time in many cases， the touch and feel becomes less。

critical because you already know。 So think about socks。

When I'm buying a pair of socks the first time from a new company， I want to get a sense。

of how soft they are， whether they'll stay up or they fall down。 But once I purchase them。

then I know how they feel。 So I can always repeat by the socks from online retailer。

So there are opportunities online in products that are primarily purchased again and again。

Think about flowers。 Can there be a product that is more touch and feel than flowers？

But yet we buy flowers online。 Why？ Because we know that once we bought it from flowers。

com or one of these stores， we know， what kind of products they deliver and then we are comfortable sending them again。

We know what kind of flowers they send， even though ideally I would like to go and touch。

and feel these flowers。 It's really not worthwhile because I'm sending them again and again。

Thank you。 [BLANK_AUDIO]。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P28：27_管理渠道冲突.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

In this lecture， we will focus on a very important concept called managing channel conflict。

Anytime you have a partner who helps take your products or service to the market to， the consumer。

there are opportunities for conflict。 And it is good to understand when this conflict occurs and how you can mitigate it。

There are two types of conflict that are possible。

The first one is between us and our channel partners。 We often refer to that as vertical conflict。

And the second is a possible conflict among star various channel partners that then perturbs。

the channel as a whole。 So think of vertical conflict。 Some years ago。

Costco decided not to carry Coca-Cola in its stores。 That's a conflict between Coca-Cola。

the company and Costco its retailer。 Horizontal conflict comes in different shapes and sizes。

But broadly speaking， a dominant form of horizontal conflict that we need to think about is what。

we call as free-riding。 This is problems amongst your channel partners。

Typically free-riding occurs when a low-service low-price retailer hurts a high-service high-price。

retailer。 So a consumer can go to a high-service high-price retailer。

They are high-price because they provide the higher service。 Get educated about the product。

get all the information about the product， and then go， to a low-service store to buy the product。

A typical example of that we refer to as showrooming。 So Best Buy， for example。

argued that they were the showroom for Amazon。 So people came to Best Buy。

they studied all these high-end televisions， see how the picture。

was or amplifiers and other audio equipment。 They experienced it there。

understood what they were going to buy， but then clicked the， button。

went to Amazon and purchased it from there。 Amazon responded back by coming up with the concept of what we call as web rooming。

which， is I have so much information on the web about various products and services。

We'll come to the website， look at these products， try to understand them， compare them with。

other products， we have comparison engines， but then because they need it tomorrow， they。

go to your store and then buy it right away and take it home because they want to watch。

the Super Bowl the very next day and we can't deliver the next day， at least at that time。

they couldn't。 So I think these are both examples of what we call as horizontal conflict。

either show， rooming or web rooming。 How do we manage such conflict？

I think the first thing for all of us to do is to understand what are the underlying drivers。

of conflict。 The best way to manage conflict in my view is through good design of the channel。

Be clear on who will do what， whose job is it to provide information， whose job is it。

to provide logistics and then what is the appropriate compensation for their activities。

And also put up right away and up front what actions will be taken when infringement occurs。

Eliminating conflict is not the goal， managing it so that it's healthy and not disruptive。

is a more reasonable objective in channel management。

[BLANK_AUDIO]。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P29：28_网上零售和电子商务.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

In this lecture， we'll talk about online retailing and e-commerce， an area that has been growing。

rapidly over the years。 Let's start by looking at some data。 If we look at global e-commerce sales。

they've been growing since 2014， these data shows， started at 5。9% of total retail sales globally。

and in 2018 it's 8。8%。 By many estimates， actually this is an underestimate of the activity。

By some other estimates， it's as high as 10% of all global sales are now e-commerce sales。

By the way， this does not include transactions overall。 For example。

banking transactions or airline ticket transactions。

This is what we'll call as regular retail sales。

If we look across countries， you see some interesting differences。 Let's focus on China， where 16。

6% of total retail sales are online。 Compare that with the US， which is 8。9% in 2018。 So China has。

in terms of percentage of sales that have gone online， is much higher than， the US。 In fact。

I was in China just a few days ago。 It is very hard to actually make payments by cash。

All payments have moved online， and much of the stores sales have also moved online。

What is interesting also is that UK is as high as China， or even in fact， even higher。

than China when it comes to retail sales。 So understanding these differences across countries is interesting and important。

Our focus today is going to be predominantly on what's going on in the US。

If we look at how frequently people shop online， you see some interesting differences。

Now please note that these data look at given that people shop online， how frequently they， shop。

So when you look at men， 30% of men shopping is at least once a week online。

And shop once a week per month is 32%， at least once a year， 38%。 On the women's side。

it is a little bit less when it comes to frequency of shopping online。

If you add these numbers in any row together， you'll get 100%。

Now these data are not saying who shops more often。 It's saying given that they shop online。

how frequently there's a shop once a week versus， once per month or once a year。

If you look at differences across ages， it's not surprising that younger people are more。

frequent shoppers。 But that is not to say that older people do not shop online。

Even those who are 65 plus at least make one purchase every year， 58% of them make one。

purchase every year online。 So what this all indicates is that online shopping is now become commonplace。

It's not just for a few people， but more people are buying products online。

You look at a little bit more in terms of how they buy online and this gives some interesting。

ideas on what's going on behind the scenes。 If you look at traffic。

percentage of traffic on the PC is e-commerce traffic is about 54%。

But if you look at percentage of sales， it's close to 77%。 What does that mean？

It means more percentage conversions happen on the PC。 On smartphone， it's 33。7% e-commerce traffic。

but only 10。7% retail sales。 What that means is people are browsing on the smartphone。

but when it comes to buying， they probably shift to the PC。 Same way for tablet。

It's about the same。 So tablet is somewhere in between the PC and the smartphone as we would expect it。

So again， PC is the dominant conversion channel when it comes to actually buying the product。

But yes， smartphone is more for browsing， but these numbers are likely to change as smartphones。

become better as we've come more used to buying on the smartphone。

But this is where it stands today。 Now let's ask a broader question。

which is why is this trend happening？ Why are we shifting more towards e-commerce？

And there are many reasons for that。 It's convenience， it's ease。

it could be some people say it's lower prices， but let's go。

a little deeper and try to understand why we are all shifting towards online purchases。

Any one of us， when we are buying a new product， our first task is to get more information。

about the product。 So in marketing terms， we think of each product as a bundle of attributes。

benefits or features。 So think of a notebook computer。

A notebook computer has features such as screen size， it's memory， whether it has a。

touch screen or not。 And whether the， you know， what's the feel of the keyboard？ Is it soft？

Is it hard？ Those are the kinds of features or benefits we are looking at a notebook computer。

We can classify these attributes into two types。 Let's say screen size and memory。

we'll call them digital attributes。 Why would we call them digital attributes？

Because these are just numbers。 We can actually just get as much of a sense of this by looking at online website or looking。

at actually going to a store。 But there are non-digital attributes such as feel of the keyboard or the feel of the mousepad。

We'll call these non-digital attributes。 Now if you look across products。

some products are predominantly consisting of digital attributes。

and the other products consist of non-digital attributes。 So let's look at some examples。

US Open is going on and tennis balls from a well-known brand， I would say are mostly digital。

attributes。 I know what it is， you know， whether it's hard or soft， the brand is there， I've known。

it， so I know I don't need to go open the box and feel the tennis balls to find out what， they are。

But then compare that with a card。 We are thinking of buying a new car， we look at all the features。

engine size， car size， on the web， but both my wife and I would like to actually go and test drive the car before。

we buy it because you want to get a better sense of the feel of the car。

How comfortable are the seats？ When I put my foot down， does the engine， does the car move or not？

Is it smooth？ All those are non-digital attributes。

Products that are predominantly digital attributes can be purchased via the internet more easily。

So these products can more easily shift to online sales。

Products that have more non-digital attributes， I would say less so because the consumer has。

to touch and feel the product to get a sense of the product。

So I'd like to test drive a car before buying， I'd like to try a pair of shoes before I buy。

even though I know what the size of the shoe is。 So those are the kinds of the products examples where I would like to actually touch the product。

feel the product before I buy。 Now let's super impose on this another important aspect。

That's the aspect of repeat purchase。 If I bought a product before。

some of the non-digital attributes get converted to digital attributes。

So let's look at another example。 Once I bought a pair of socks of a particular brand and tried them on and used them。

I know， what they feel like。 First time when I bought them， I didn't know what they feel like。

whether they're soft， or rough， whether they're stretched nicely or not。

whether they fitted on my foot。 But once I've tried them。

I've used them for a month or so and I need to buy them again， I can reorder them online。 Why？

Because all the non-digital attributes get converted to digital attributes once I've tried。

the product or once I bought it。 So the next purchase will be similar to what I bought before。

The same may be true of a shirt。 I usually wear a blue shirt。 I buy it from the same company。

First time when I tried this， I had to go to the store to see the fit of the shirt。

But from this part onwards， I just order it online。 Why？

Because I know exactly what it feels like and how that particular size fits me。

So the first purchase is made in a bricks and mortar store and then re-purchase gives， goes online。

And if you really think about this， this whole process of digital and non-digital attributes。

and how non-digital attributes over time gets converted to digital attributes is a major。

driver of increase in e-commerce sales over time。 Because many of the products we buy again and again。

first time we can buy it to bricks， and mortar store when we buy the same product again。

the non-digital attributes become digital， attributes and we are very comfortable buying them online。

This particular phenomenon is giving a dramatic boost to online sales over time no matter。

which country we live in， whether we are male or female， no matter how old we are。

Let's now talk a little bit about competition between online and offline detail。

This is an interesting topic and anyone who is starting an online store or an offline。

store needs to keep this in mind。 Consumers can shop offline to get a feel for the product。

look at all the digital and， non-digital attributes and then often go buy online at a cheaper price。

This phenomenon is referred to as showrooming and I have studied this quite deeply in my， research。

One way to minimize showrooming is to price match。

The other way is to offer a unique selection in your offline bricks and mortar store。

Best Buy at one time was very concerned about showrooming but tackled it by improving its。

own online store。 Look at the reverse pattern and this is what Amazon often complains about。

Consumers can search online and buy offline。 This is referred to as web rooming。

How does a company like Amazon take care of web rooming？ Well。

they can improve the speed of delivery， they can improve the cost of delivery or reduce。

the cost of delivery or bundle delivery or have better return policies or a larger assortment。

that can help against web rooming because people will be worried whether they go to the offline。

store whether the product will be in stock or not。

So I think both offline and online stores have to worry about not just competition between。

online stores but between online and offline also through the process of showrooming and。

web rooming and there are ways to tackle both。 I think what we are leading towards these days is what we call as omni-channel detail。

Many online detailers are setting up physical bricks and mortar stores where people can buy。

the product。 Wabi Parker is a good example and there are several online matter stores that are also。

opening offline stores。 Many offline stores have already set up online stores。

We talked about Best Buy earlier。 Walmart and Macy's are other good examples。

Having both online and bricks and mortar presence creates what we call as multiple channels。

Some consumers may have preference for one channel， other may have preference for another， channel。

No matter which channel you have a preference for， we have both channels。

This is called multi-channel detailing。 The difference between multi-channel and omni-channel detailing is how well a particular brand aligns。

the two channels。 So brands such as Starbucks have created what we call as integrated multi-channel experiences。

resulting in omni-channel detailing。 A customer can order offline and buy online or customer can order online and buy offline。

and the two channels are well integrated。 As we go forward。

omni-channel detailing is no longer an option but is becoming a necessity。

for success both for online commerce as well as bricks and mortar commerce。 Thanks for watching！

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P3：2_战略营销.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

[MUSIC]。

So in this section， what I want to focus on is an introduction of a framework that I think you'll find very useful。

For figuring out how to think competitively to become a leader in your market。

And what I'm going to go over is based on a book that was written by Tracy and， Vereseman。

it's called Market Leadership。 And it's based on their framework， although I've adapted it some。

And the framework， or what I'm going to think of it as kind of a graph or。

the strategic tool is based on a set of principles。

These principles have to be true and you have to believe in them in order for。

this framework to work。 And they're very strong principles。 They're very strong assumptions。

I don't think they're that controversial， but they're not vague。 They really are very strong。

And in order for this technique to work， you really need to abide by them。

And the first one is that you have to know your markets。 Now， before I mentioned。

most businesses are now in customer focus marketing。

That is the type of marketing most businesses are doing。

Because most businesses are very competitive， they're global。

There's a lot of competition out there。 And the only way they're going to win in their marketplace is to focus on the。

customer。 So that's a very important principle in this framework。 It says。

in order to use this framework， we are going to assume that you know what， your customers want。

And furthermore， you know how your competitors are likely to react。

And so what you're trying to do is what I mentioned， that principle of， differentiation。

you're trying to find a way to provide customer value better than， the competition。

And the only way you can really deliver this is to know your markets。 And you can't just guess。

You have to do market research and you have to really understand what your。

customers want and how your competition is likely to react。 So that's the first principle。

The second principle， and this is where it's pretty， it's a pretty defined and， pretty。

it's a definite assumption that's being made。 And the assumption says。

and what I've written here is customers have the final， say。

And what that means is the customers are going to choose what they want。

But the assumption is a strong assumption because we assume that the。

customers go through this decision process。 They look at all the data and all the values and all the attributes and。

all the products in the market and there's so much information out there that。

they can't consider everything。 And so what they do is they kind of chunk a bunch of different things together。

into kind of three bundles。 And the three bundles are one is all sorts of operations factors which。

includes price and cost but delivery， service， reliability， all those kind of。

things are considered operational things。 The other bundle is product features are designed。

So product attributes， style， innovation technology and they put that in， another bundle。

And the third bundle is whether or not it meets my needs。 So is it customized to meet my needs？

And what the customers have the final say says is that customers look at these， three。

they kind of classify the products into these three bundles and。

they kind of give them a score on each one of these three dimensions。

And then they decide which one of those dimensions is the most important to them。

And they pick the product that's the best on one of those dimensions and。

good enough on the other two。 So it says you can't be pretty good in all three of them because then the。

customer won't pick you。 But the customer is going to pick something not that's kind。

if they care about， price， they're not going to pick something that's kind of a good price。

They're going to go for the lowest price。 Or if they care about design。

it's not going to be something that's kind of， good design。

They're going to go for the very best design that they like the most。

Or if they care about how much it meets their own needs。

they're going to go for something that meets their needs the best。

As long as the product delivers satisfactorily or good enough on the other， two dimensions。

So that's a very strong assumption。 But if you think about it。

it kind of approximates the way customers make， decisions。

If you believe that assumption that the customers have the final say and。

they choose the product that delivers the best on the bundle of attributes they。

care the most about， that suggests that if you want to be the first in the markets， that you serve。

you better be the best at something and good enough at the other， two things。

And that should be your market strategy。 And once you decide on which type of thing you're going to be the best at。

the market leader at， then that has implications for the way you structure your， business。

the way you prioritize resources， the way you allocate resources。

the type of people you hire into your company。 It has all sorts of implications for your business organization so。

that you can deliver total value and total quality and guarantee the customer。

satisfaction on this dimension。 So those are the assumptions。 Now before I show you the framework。

I have to introduce one other concept。 And this concept is what I'm going to call their value。

And what I have on the screen here is a value map。

And you have on the vertical axis relative cost to the customer and。

on the horizontal axis relative benefits。 And what the map says is that if you offer more benefits。

customers are willing to pay a higher price。 If you charge a lower price。

customers will expect fewer benefits。 As long as what you offer appears to be there。

If you offer something inferior and it's not fair value， then customers won't buy that。

So you won't make it in the market。 You'll be canceled out of the market because you're not offering a fair value。

And what the framework says is that you need to offer fair value on two of。

those bundles but offer something better than fair value on one of the bundles。 On the bundle。

you're going to be the leader of。 So if you can imagine a marketplace where everybody's trying to deliver fair value and。

somebody's delivering something superior value， think about what's going to happen。

in that marketplace in a very competitive market。 Somebody comes out， let's say Apple。

comes out with a better design。 And so the iPad comes out and it's a much better design。

It's fair price on these other axes but their tablet is better than everything else。

What happens in the marketplace？ And what happens is everybody tries to copy and mitigate the advantage。

And so what happens is what perceived to be fair value， that fair value line is not a static line。

It's constantly moving up， moving to the lower right， as the market gets more and more competitive。

So what's fair value is constantly changing over time。

So although I say what you need to do in this framework is to deliver the best at。

something and stay fair value on the other two bundles。

the problem is fair value is not a static concept。

It's constantly changing as a function of competitive reaction。 So with that said as background。

here's the framework。

And here are the three bundles。 One of them is operational excellence， the others。

performance superiority。 That's the bundle that delivers on product design and style。

And third is customer intimacy， which says give the customers what they want。

You're intimate with customer needs and， you try to deliver something that's responsive to their needs。

And so the three cross hatches here are fair value lines。

Now I had them draw on symmetrically on this axis， but， it doesn't have to be symmetric。

What you need to do if you want to use this framework is in your marketplace。

figure out what are the product attributes that relate to， operational excellence in your market。

And define that dimension so， that you understand what operational excellence is in your market。

You have to do the same thing， what are the product attributes that matter to， the customer。

they design， technology， whatever it is， what are those attributes and define that dimension。

And then you have to figure out how much customization is there in your。

market and define that dimension。 That's the first thing you do。

The second thing you do with this framework is anticipate where fair value is。

This is the trickiest part of this framework。 What are customers expectations on each。

think of these as axes like an X， Y and Z axis。 And where is the reference point or。

the fair value line on each of these axes points？

Sometimes people think about fair value as the average of what everybody offers。

Sometimes fair value， nobody offers。 Like for example。

I would say in the airline business people expect an operational， excellence。

constant on time arrival。

And we know very few airlines deliver to that fair value。 But that is what I think people expect。

And I would say most of the competitors in the market are below fair value。

Sometimes everybody's above fair value。 In some mature markets。

people don't care about some of the bells and。

whistles that come out。 And everybody's delivering at least what they need and some people more。

but people don't even care about that。 So figuring out exactly where fair value is on each of these axes is a very tricky。

thing and you need market research to do that。 Once you figure out where your fair value is on these。

the next part is to plot where your company is delivering on each of these。

axes relative to fair value。 Are you above fair value in operations？

Are you meeting fair value or below fair value on each one of these axes？

Then you figure out where your competition is on each of these axes。

And then you start playing the market strategy game。 You think about a short term strategy。

a long term strategy， and， you figure out what should you be doing right now in order to beat the competition。

And what you're ultimately looking for in a long term strategy is to be the best。

at one dimension and good enough on the other two。 That's the long term strategy。 In the short term。

it might be that， let's say， your long term strategy is to be， customer intimate。

but you're not at fair value in operations。 So in the short term。

you might be looking to hit fair value in operations， but in the long term。

you're looking to be the leader in customer intimacy。

And once you decide what your leadership strategy is。

then that has implications for everything you do in your firm。

So for example， if you're an operational company and。

that's what you want to be your leadership strategy。

that tends to be a very hierarchical strategy that with allocation of resources。

prioritized to information technology， etc。 If you're a performance superiority company。

that tends to be more of an R&D company。 You tend to hire kinds of people that are very innovative。

They don't like structure。 They don't like top down organization。

You really need to give them a lot of free reign。

And in the customer intimacy， you really have to focus on prioritizing， market research。

customer knowledge。 And you kind of have a consulting， a yes culture。

You have to let the customer come first。 So once you decide on your leadership strategy。

it has a lot of implications for the rest of the firm。

[MUSIC]。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P30：29_数字营销基础.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

In this lecture， we will discuss digital advertising foundations in more detail。

Digital advertising is not just for companies that are in online retail， but for every company。

no matter what business you are in。 Let's start with consumer in mind。 A consumer。

as they decide to buy a new product or a new service， goes through a series of。

steps from becoming a non-buyer to a buyer。 Psychologists and marketing professionals have studied this process in great depth。

no matter， which model you look at。 All of us agree that a consumer does not go from being a non-buyer to a buyer in just。

one step。 There are a series of steps。 First step is attention。

The next step is potential interest in the product of the service。 After one goes through that step。

there is a possible desire to buy a product or a service。 And finally。

the consumer takes action and either buys the product or doesn't buy the， product。

In any one of these stages， you may lose the consumer。

So I think it's very important that we carry the consumer through all these stages of the。

decision-making process。 Attention， interest， desire， action。

Oftentimes this is referred to as the AIDA model。 If we split this process into two key steps or two key parts。

the first three steps can， be classified as creating demand。

And the last step can be put as capturing demand。 If we think of classic marketing。

the demand is created by TV advertising through billboards， through newspaper ads。

And then the demand is captured or harvested through the use of coupons and a wild display。

shelf talkers in the store， or an in-store salesperson trying to convince a potential。

buyer to buy a car or buy a new appliance。 When we look at digital marketing。

we have a set of tools available to us that are different。

than the tools available to a traditional marketer。 And it has to influence a number of decisions。

It has to influence the decision on whether to buy， which brand to buy， when to buy， and。

where to buy。 So whether to buy is whether I should buy this car or not。

which brand to buy is whether， I should buy a Mercedes or a Toyota， when to buy。

should I buy it today， this week， or， should I just postpone it till a month later。

and then where to buy it could be， should I， go to my local Mercedes dealer。

or should I put a note out on the web to all Mercedes。

dealers in the area to see which one has the lowest price。

All these are parts of the consumer decision making process。

The tools available to the digital marketer are different。

So let's try to look at what those tools are first and then see which part of the demand。

process they fit in， whether they fit in more and create demand or capture demand。 So search ads。

an example of a search ad could be a person is buying， thinking of buying。

a shoe and puts in the search words in either the Google or any other search engine of choice。

and say I want to buy a pair of shoes and some results show up。

Search engine optimization is the process by which a company improves its website so。

that their rank order in Google's mind is hired。 You can put up display ads。

you can put up social media ads， you can engage in retargeting。

campaigns and we'll talk about each of these as we go on。

And many of you may already be aware of some of these email marketing。

A company can put up a video of a person trying a new shoe and feeling good about it。

You can have blogs and social media posts， you can have mobile apps and then you can also。

improve your conversion rate by trying different types of messages。

Now let's look at each of these tools that are at the disposal of the digital marketer。

and see whether they fall under creating demand or capturing demand。

Social Charts is predominantly to capture demand。 Person is already thinking of buying a shoe。

we are encouraging or optimizing the person， to buy our shoe。

Search engine optimization is very similar。 We want our search result to show up higher。

Display ad is very similar。 If you look at social media ads。

it probably in my view does a little bit of both。 But again， more towards capturing demand。

Marketing campaigns again is designed to capture demand。

Email marketing can probably do both create demand as well as capture demand。 Videos。

blogs and social media posts are more towards creating demand but probably not， as strong as TV ads。

Apps can do both and conversion rate optimization is clearly to capture demand。

Now if you look at each one of these tools available for the digital marketer， it's not。

hard to see that much of digital marketing is geared towards capturing demand。

As we think about this， there are some advantages of that。 If we focus on capturing demand。

we are focusing on results which is what most companies are， concerned about is sales。

We also have better measures because we are focusing on some end goal and if done properly。

can be very cost effective。 If not done properly， of course no method is good。

But it also has many disadvantages。 It does not expand the market。

People have argued through careful research that it is often poorer at brand building。

It may not impact loyalty。 And it also is what we'll call as a waiting game。

It's the customer has to figure out whether they want to buy a shoe or not and then we。

influence their behavior by bringing them to our side。

But we are not urging the customer it's time to buy a shoe。

It's mostly when they have decided to buy a shoe， they come towards our side。

So I think one of the challenges in digital advertising is how does one go about designing。

holistic campaigns from start to finish that don't just focus on capturing demand but also。

focus a little bit on creating demand。 If we put it that way then if we look at a sample customer journey in the buying process。

a customer probably let's say there is a banner ad， the person clicks on the ad， visits。

the website， maybe fill a lead form and then we'll follow up with a sales call。

This is more for a business to business product or a service。

But same thing could be done for a consumer product。

A holistic campaign must include some top of the funnel messaging。

It should also focus on conversion rate optimization through better A/B testing。

So what do we mean by A/B testing？ We try one messaging versus another。

We can have one message which is more emotional。 Another message that is more rational。

A rational message could focus on price comparisons， an emotional message could focus on how good。

the person looks in a shoe or how well does the shoe match with their other clothes。

You can also instead of doing A/B testing which is testing one variable at a time。

There are instances where you can do multi-variant testing and then you can also do campaign segmentation。

A holistic campaign also includes retargeting。 In other words。

those who have expressed interest by clicking on that can be sent and there are。

very many methods to do that。 There are many technologies available for us to do retargeting and then emails to those。

who submitted forms could also be used。 Typical digital advertising is designed towards capturing demand。

There is nothing wrong in that。 Capturing demand is very important。

But one of the things we are trying to do through improved digital advertising is to create a。

better balance between creating demand and capturing demand。

This is something that can be done in traditional marketing a little bit better and the aim。

is to do the same in digital marketing also。 [BLANK_AUDIO]。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P31：30_总结.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

In summary， creating the right customer access for your product or services is extremely important。

You may have a great product， you may have developed a great advertising campaign。

have a great brand， priced at right， but if customers do not know where to buy it。

when to buy it and as product is available in a convenient way， nothing will happen。

It will just sit and there will be no positive results。

So please make sure you do this appropriately， carefully based on what we have learned。

It's also an area where companies have to spend quite a bit of money。

30 to 40% of the price is often captured by the channel。

whereas the company spends no more than 10% of their budget on advertising。

It's also a more permanent decision。 We can change our advertising campaigns。

but changing channels of distribution is not that easy。 It has to be thought through very carefully。

It's also an opportunity for innovation and disruption。

Many new ideas and businesses have been created by disrupting existing channels of distribution。

So please do keep in mind， how will you reach your customer？

Make sure they get the right information and the logistics they need。

Allocate your functions thoughtfully。 What will you do？ What will your channel partner do？

Who will get what is your compensation mechanism consistent with the activities that you assigned to yourself。

and to your channel partner？ And also anticipate conflict。

It's better to anticipate conflict and handle it in the design stage as opposed to having to manage it later。

I always end this session by showing these four examples to my students。

And I ask them what is common across all these four examples。 And I get different answers。

But the right answer here is all these four businesses were started by Wartan students。

And they were innovators and disruptors and some continue to disrupt the industry that they are in。

It was a great way to make money for all these Wartan students。

And I think innovations and disruptions in this area are a great way to make money for many entrepreneurs like yourself and business people。

[BLANK_AUDIO]。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P32：31_品牌交流.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

[MUSIC]。

So today， we're going to talk about brand messaging and communications。

We're not going to start at the strategic level， but。

we're going to go a little bit further down into the implementation and tactical level。

And talk again about the way the consumers perceive your brand messaging and marketing。

So let's first start out with what are perceptions。

Perceptions is probably one of the most important aspects in consumer behavior。

in an understanding consumer behavior。 What is a perception？

The perception is the process of developing an interpretation of a stimulus。 Or in other words。

deciding exactly what the stimulus means。 This is really。

really an important crucial area in consumer behavior for two reasons。 First。

whatever customers perceive is what affects their subsequent actions and， behavior。 And second。

and this is what's interesting， what they perceive is not necessarily what's true。

Why is that？ Well， the process of perception is constructive。

People construct their interpretations on the fly。 And this process is inherently biased。

It contains， the process of perception comes in several different stages。

The first two stages are the stages of attention and exposure。

Before you can form any kind of perception， you need to be exposed to the stimuli。

And you need to pay attention to that stimuli。 Pay attention to what's salient to you。

And we know that that process is very biased。 You only expose yourself to things。 Well。

there's sometimes there's accidental exposure， but when you're consciously exposing。

yourself to things。 Many times it's a function of what you believe， what your prior beliefs are。

Let me give you an example。 Say you think that a part of town is not safe。 Well。

you won't go to that part of town。 You'll stay away from that part of town。

So you won't expose yourself to something you don't think is safe。 As a result。

you never have ability to change your perception of that area of town because。

you don't collect new data。 So we know that exposure can be selective。 Similarly。

even if you are exposed to something， if you don't pay attention to it， again， it。

can affect your perceptions。 And we know that there's two kinds of attention。

There's voluntary attention and involuntary attention。

So involuntary attention is something like big bang， and you pay attention to it regardless。

of whether you had intended to。 But for voluntary attention， that again is selective。

So we have the possibility of selective exposure and selective attention。

That means you're not collecting data on things that might be able to change your perception。

So that's the first stage of bias。

The second stage of bias is once you are exposed to something and pay attention to it， well。

then you have to interpret it。 And we know that you interpret data subject to what you already believe。

So for example， most people know if you watch a presidential debate， it's important to have。

representatives who interpret what happened in the debate from both parties because we， know。

a priori， that interpretations are going to vary based on their prior beliefs。

And that's the same thing for any kind of consumer behavior。 You're exposed。

pay attention to certain stimuli， but you interpret it subject to your， prior expectations。

As a result of this， perceptions are frequently biased and they don't necessarily represent。

what's true。 So what's the overview of the perceptual process？

There are sensory inputs that the marketer puts out。 We're going to talk about it。

brand communication， there's advertising， there's packaging， all， sorts of different sensory inputs。

And then you are exposed to them or you're not。 And sometimes the exposure， as I mentioned。

is in a bias way。 And then even if you are exposed to these inputs。

and you're exposed to thousands of marketing， cues every single day。

but how many of them do you pay attention to？ So first there's the issue of exposure。

then there's the issue of whether or not you pay， attention to it。 And finally。

there's the issue of interpretation。

Let me give you an example here。 This is a psychological test。 It's called a Stroop Test。

And what I want to show you is that your perceptions， and I just explained to you your。

perceptions could be biased。 But your perceptions affect your subsequent behavior。

It's almost an automatic reaction。 You have a certain perception。

And then you automatically respond to that。 And it's very hard to control that。 Even if you think。

well， I understand that my perceptions might be biased and therefore。

I'm going to try to do something to control that so I don't react inappropriately。

But these perceptions are automatic things and it's very hard to block their effect。

So let me just give you a little test here。 I'm going to show you several words on the screen。

And what I want you to do is tell me the color of the font。

So there's going to be four words and I'm going to just put them up on the screen and。

to yourself tell me the color of the font。 So here are the words。 There's the second one。

The third one。 And the fourth one。 Now by the fourth one you probably got what was going on。

I mean the first one maybe you were a little bit surprised and you saw that the word was。

blue but the color of the font was red so the answer was red。

By the fourth one you understood the pattern but it was still hard to break it。

You couldn't stop yourself from reading the word and reading the word affected your subsequent。

behavior。 It slowed you down。 That's actually the purpose of the Stroop test。

It's a stress manipulation。 It makes people feel a little bit uncomfortable because of that dissonance。

If I put the words up where the words match the color of the font the task is much simpler。

So here's four words where the color matches and you can see it's much easier much faster。

to say the words。 This is the same thing in the way marketing。

I'm going to show you that color has an effect。 Brand name has an effect。

And you cannot block this effect。 It affects your subsequent perceptions and subsequent behavior and it's an automatic reaction。

that's difficult to stop。 So let me just give you here's an example。

If I told you this is Luscious Chocolate and I show you a picture of it in the shape of。

a cow pie it's very hard to stop that first initial feeling of "Oh I don't want to eat， this。"。

That disgust feeling。 And you know that it's good chocolate but the shape has an involuntary effect on you。

And that's a very important thing to understand。 So marketers need to understand how these things affect your perceptions and your subsequent。

behaviors because as I say these are automatic reactions。

There's some visual illusions you may have seen these before。

I can show you these two lines on the screen。 I will tell you you can measure them。

They are exactly the same length。 However， one looks longer than the other and you just can't stop that feeling。

Even though I tell you they're exactly the same length and I can prove it to you you still。

have the perception that the one on top is longer。 Here's another example。

here's an example of how your prior expectations influence your， perception of the stimulus。

So if I ask you what is this that I put on the screen， you'll answer differently if。

I show it to you this way versus when I show it to you this way。

And so that shows you what you perceive that stimulus is。

It's a function of your prior expectations。 Here's another one that we know and this one I'm going to take a little bit closer to。

the beginning。 There's a perception bias that's called the proximity bias。

And what the proximity bias says is that things are close to each other。

You assume they're more similar。 So if I ask you which lines are similar to each other。

most people will say the two lines， that are clustered together are similar。

So that they'll cluster the two lines that are close to each other rather than say the。

two bold lines or the two thin lines because you make this inference of things that are。

close to each other must belong together。

And you can see this in the supermarket， in stores， say in the salad section where there's。

vegetables marketers may put or grocers may put salad dressing near those salads。

There's an implicit assumption that if the product is near another product， they belong， together。

That's a perception that physical distance affects whether things are similar or belong， together。

In the mall stores that are close together are seem to be more similar。

And there's a lot of use of this particular bias。

Another one is a similarity bias。 Things that look alike， people assume have the same quality。

So this is the underlying theory behind， say， store brands。

If a store brand makes itself look very similar to the national brand， you assume the quality。

is the same， even though you haven't tested it， you don't know if that's the case， you're。

making an assumption of perceived quality based on this process of similarity。

And so these perceptual inferences are very， very strong at influencing your perception， of quality。

the way you consume the product， the way you experience the product， the price。

you're willing to pay， et cetera。 And it's a very。

very important consumer process for marketers to understand。

It's particularly important in branding。 So we know that if you take a glass of cola or a bottle of cola and you slap on a brand。

say the Coca-Cola brand， people will have different perceptions about that product than。

if the brand wasn't there。 With the Coca-Cola brand on it， people will think it tastes better。

they're willing to， pay a higher price， they'll make all sorts of other inferences。

even if the product's， exactly the same， once we put a brand on it。

it changes the perceptions of the product。

And people think， I'm not subject to that。 I know I can judge certain products by the quality。

I'm not influenced by brand names。 And we know from experiment after experiment after experiment that that's just not true。

People are very much influenced by the brand name that's put on the product independently。

of the product quality。 It's the same way in the Stroop test。 You just can't stop it。

Once you see that brand name， you have certain perceptions， you make certain inferences about。

that brand name and those perceptions are translated to the product。

We know that brand is such a powerful brand， as we mentioned before。 It has so much influence。

the Coca-Cola brand name has been estimated to be worth $70 billion， as an asset。

Just putting that brand name on a product will change， as I said。

Price premiums people are willing to pay， the quality， et cetera。

When you know that that brand is worth so much， many times people look for ways to leverage。

the brand for growth。

So for example， you know Coca-Cola is associated with the Cola soft drink。 In 1982。

Coca-Cola took that brand name and put it on a brand new product at the time。

that no one had tasted before， a diet soft drink。 They call it diet coke and automatically。

even though that product was not on the market， before， people assume it has a better taste。

It's a higher quality product and again they're willing to pay a higher premium price for。

that product。 This is a brand new product but the perceptions of it are so high because of the brand name。

that's stamped on the can。

(soft music)， (logo chiming)。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P33：32_品牌要素-选择品牌名称.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

[MUSIC]。

So now that we see how important a brand is at creating perceptions of quality。

let's get into some of the inner workings of a brand and。

talk about the different elements of the brand。 And let's start with how do you choose a brand name？

But first let me define what the different elements are。

So there's a variety of brand elements that can be chosen。 You can use some， not use others。

And they will totally identify or enhance the brand awareness。 And if you choose them right。

they can help facilitate the formation of strong， favorable and unique brand associations。

And so the things we'll talk about are the brand name， which is the first one， the anchor。

different brand logos， symbols， brand characters， packaging， brand slogans and brand colors。

When you're looking at all of these brand elements， you gotta ask a couple of questions。

First of all， you have to make sure all the brand elements work together to。

create a unique identity for the product and service。

So make sure that everything you've chosen is of one thought。

one belief and work together in unison。 And the second thing to think about is if people see a brand elements or。

whatever you do create for that brand identity independent of the product。

what would people think of just that brand label？ And so think about those kinds of things in general as we discuss some of。

the more tactical issues of choosing these different brand elements。

And when we consider each of the different ones and， I'll go over all of them in various detail。

not some of them are more obvious or， more， you can figure them out for yourself more easily than others。

But when you think about all of them， you should think about these criteria for。

choosing a good one。 The first thing， when you think about choosing different brand elements。

you really want them to be memorable。 You want people to be able to recognize it very easily， and。

you want them to remember what they've seen。 The other thing you want to have happen when you choose these elements is that。

they're meaningful。 And they can be meaningful in two different ways。 One in a descriptive way。

which is how do they describe the attributes of the product， or the benefit of the product。

or the customer segment。 And the other thing that we're looking at is remember this brand label is forming。

a perception。 So you also want these brand elements to work together to persuade the customer。

of something， usually of something positive。 The other thing you're thinking about is how they look。

And you want them to be fun， interesting， aesthetic。 You want it to be rich visual imagery。

And you also， if you have visual and verbal imagery， you have to think about。

how those two things work together。 Again， you want to congruent unified vision here。

Another good thing to think about， and this is very important， is can you protect， your identity？

There's two ways to protect it。 One is legal it。 And so many times if you have a good brand name。

you trademark it。 And then it's against the law for people to copy your brand name。

But there's other things that are more subtle。 And remember I told you about that perception of similarity。

People may not be copying exactly what you do， but。

they may do something that looks similar and they can kind of steal your identity。

by just looking similar。 And so you not only want to have legal protection。

but you want to try to identify， a brand image and brand elements that work together that are hard to copy。

So that you have some sustainable competitive advantage in addition to。

the legal protection that you may have。 When you're thinking about this brand。

remember it's very expensive to create， a strong brand name and it's an extremely valuable asset。

And so the other thing you want to think about is how adaptable is this brand name。

to go to stay modern。 Times change， consumers taste change， competition changes。

And so you don't want a brand name that's so static that it can't adapt with。

changing times and it's not flexible and it's not updateable。

And along this line you also want a brand name if you can or。

a brand image with all these elements that work together that you can use them to。

go on different products if you introduce new products。

So I mentioned Coke started out on a regular full calorie collard drink and。

they stretched that brand name to go to a diet collard drink。

So you want to think of brand images that can go not just on your initial product。

but could perhaps go on other products in the future as the company grows。

And similarly you want a product that can go across cultures。

And that's a brand name I mean that can go across cultures so。

you don't want something that won't be understood or。

be interpreted differently or inappropriately in other cultures。

So more and more as brands are becoming global。 Even if you start out very locally。

when you choose your brand elements， you should choose brand elements that can go global should your business get big enough。

And each element in thinking about this brand image are going to play a different。

role in creating those overall perceptions。 They all have different strengths and weaknesses。

But you really want to think about how you can use them strategically to。

achieve some kind of balance and overall impact。 And again， as I mentioned before。

they have to work together to form a unique， consistent image。

So let's look at some of the different brand elements and。

just think about on the face of it what some of the advantages and disadvantages are。

We start out the name is obviously a crucial。 It's the anchor and it's very。

very important that you can choose a good brand name。

Sometimes there's legacy brand names and you have a great deal of awareness with。

a particular brand name and maybe it wasn't the best one to choose， but。

you have to use some of the other ones to build it up。 Like for example。

the brand name Affleck or Geico。 Both of those were brand names that were acronyms。

They actually weren't such great brand names because they don't have the advantage of。

a good brand name of being quick， easy to process， easy to remember。 And in both of those cases。

the marketers used other elements to help with the brand name。

So Affleck came up with the duck image and Geico came up with the Gecko image。

So that you can kind of remember those brand names better。

But if you can choose it in the beginning， it's better to choose one that's easy to。

process and recall。 Because the disadvantage of a brand name is once you bring up that there。

or develop that brand awareness and people really understand what it is。

it's pretty difficult and expensive to change。 It's not impossible。

but a lot of the whole brand imagery is really anchored on the name。

So the name and I'm going to spend some time thinking about that going forward。

is extremely important to think about。 Once you have a brand name。

then you can start thinking about logos and， symbols like the Nike swoosh or McDonald's arches。

These are attention getting， they can be emotional， they can reinforce any of your brand identity。

But again， symbols and logos can get out of date。 They can be ambiguous。

they can be interpreted differently across cultures。

So you again just have to think about how those work。 Not all brands have a character。

but a character if you do have one can be very， quick， very attention getting。

Think about what happens if you see Mickey Mouse on something。

I mean that's a world famous character recognized everywhere and， people understand it's fun。

it's kids， it's exciting。 And so characters can work very well， but they can get outdated or。

they can be culturally bound。 And certainly not all brands have a character。 A slogan and a jingle。

if it's done well， gives you a few more words and， can give you music to add to the brand element。

So it can be used to convey meaning。 Nike's just do it is an extremely strong slogan that adds to the Nike brand name。

But again， sometimes it's difficult to translate。 Sometimes if you do jingles。

musical tastes are different and， not everybody likes it。

Some people think some of these jingles are annoying。 So there's advantages and disadvantages。

Packaging also is extremely advantageous。 And I'm going to show you some examples of brands that were built on。

their package design。 And we go back to this notion of perceptions。

There's a lot of research that shows， and I'm going to talk about that。

That people form perceptions of the quality of the product， not by the product itself。

but by the package it's in。 So this has a very， very strong effect on creating perceptions。

The difficulty with packaging is many times you don't control how it。

ultimately reaches the consumer。 So the manufacturer builds a product in a package。

But then it's the channel or the retailer that delivers that package to the consumer。

So for example， if you want the package oriented in a certain way like front on。

it may not appear that way on the shelf。 Or if it's supposed to be refrigerated。

it may not be at the right temperature， etc。 So the problem with packaging is that there's these channel issues。

But all of these elements have advantages and disadvantages， is you choose them strategically。

they can work very well to create a very strong brand image。

Let's look specifically at this notion of brand names。

Now the brand name is extremely important for many， many audiences。 Obviously。

in what we've been focusing on here， it matters to consumers and， customers。 And it can。

as I mentioned before， seriously affect the likelihood of purchase。

It also affects people who work for you for employees。

So that you really want to do branding externally to your market， but。

internally to your employee base too。 People can be very proud of the company they've worked for。

And the reputation and brand name of the brand may make it easier or， harder to hire people。

to retain people， and may affect their morale and productivity。 It also。

the brand name affects growth opportunities。 Like I mentioned。

if the brand name is not adaptable and not transferable。

it may be difficult for the firm to go into new markets or， to go into different products。

And so it affects the growth potential of the firm and it affects investors。

So just investors are people too and they can be very much affected without even。

realizing it by the brand name and using the value of the brand name to infer。

make inferences about the merits and strength of the firm as an investment opportunity。

So the brand name matters a lot in lots of different ways。

So what are the different types of brand names？ There's lots of examples and I'll just go through this kind of quickly。

We can look at this chart here。 There's a descriptive brand name where it just basically describes the product or。

service。 Lean cuisine is like that。 It's about non-fatening food。

You know exactly what the product is by the brand name。

There can be brand names that are metaphors that represent some kind of。

symbolism like Nissan's Infinity。 A lot of the legacy brand names are based on people's names。

So Ford or Ralph Lauren， those are real people and。

the brand name was chosen because it's based on a particular person。

Sometimes there's brand names where the word means something but。

it's not really clear how it applies to the product。

Apple's a great example of that kind of or camel。 What are those？ Those are brand names。

you know what the words mean and， now certainly they're very famous brand names so you understand what they are。

But they really don't have any direct connection with the product。

Then there can be brand names that are altered。 They kind of sound like they're a real word but。

actually they're not like loosened or Spotify。 You kind of have a sense what those brands mean and。

you think you know what those words are but they're not real。

Or you can have a new word that's created by blending together， to other words。

Facebook is a great example of that。 That's not a real word but， you know what it is。

a book of faces。 And then of course there can be invented words that are not at all real and。

you have no idea what it means and you can't even guess like something like Exxon。

Let me give you just three examples of some modern brand names that follow all。

of these things and you can see these brand names were extremely strong choices。

And they worked very， very well and they're all very different。

So I'll start with Richard Branson's Virgin。 He explains that the origin of that brand name was when he was 15。

He was sitting in a room with other 15 year olds and they were trying to think of a name。

for a record company。 And a couple of the girls said， well we're all virgins here。

And somehow or another that name just seemed to spark interest and。

they said well if we started a record company we'd be virgins in that business so。

let's use that name。 And apparently that's how that name was chosen。

He mentioned that at the time it was considered pretty risky brand name and。

it was hard to register for a while。 But now it's become an extraordinarily strong brand name and。

it's a funness to it that actually works really well with a lot of his products and markets。

Price lines a different type of brand name。 That's a brand name that's quite descriptive。

If you know what that business is you know it's absolutely about establishing a line of prices。

It's quite clear what it means and has been very useful in that way。 In a different way than Virgin。

And finally Google which is now become a very people Google things。

It's interesting that brand name was chosen by mistake。

They meant it to be the word Google which is not spelled the way the brand is spelled。

And that that's a very very large number。 It's one with 100 zeros after。 So this was a mistake。

They meant to spell it right and they didn't。 Google is a very very interesting brand name from a marketing point of view。

Because one of the things that we argue is extremely important in brand names is consistency。

And Google has met because it is so well known and people identify and。

just little pieces of the brand name。 They identify the colors， they identify the typeface。

That Google plays around as I've shown you on this screen where they'll show you which。

trademark differently every time you see it。 Whenever you go to the browser you'll see a different version of the brand name。

That's a sign of an extraordinarily strong brand name that has very very high brand awareness。

That you can see it even when it's not exactly the same every single time。

But these are all fairly new brand names that have been very very successful。

When you look at new startups now a lot of the trend in the new startups and。

there was a recent Wall Street Journal article about this。

The new startups are making up brand names and so a lot of the new businesses come up。

with brand names that aren't just these invented words like Miblio or Kaggle or， Showdog or Zarly。

You don't even know how to pronounce some of these words。 Why is that happening？

Part of the part of the reason is in today's world when you have a brand new business you。

need a website right away。 And most of the recognizable URLs have already been taken。

And so one of the ways to get a URL that's uniquely identified with your business is。

to invent a new word。 Then you're going to have to use the other elements of the brand mix to try to give some。

kind of identity to this brand name。

Let me talk about an interesting thing that happened with brand names。

Not recently the gap brand name a few years ago now I'm not sure exactly when。

But gap wasn't doing very well with their same store sales。 Revenues were down。

They really needed to do something to turn the business around。

And one of the things they were trying to do to modernize it was to change the trademark。

or change the brand logo。 So the original brand logo as shown on the screen is a blue square with the word gap。

in white on that blue square。 And you can see the new logo that they put out is very different。

The blue square has shrunk。 The typeface has changed。 It's now on a white background。

And they put that brand name out into their social media marketing and instantly a very。

very negative reaction to that brand name。 The consumers hated it。

Within that brand name was out there just tentatively as a test for one week。

The reaction was so negative that the company pulled it back and that was the end of that。

So it ended up actually being a pretty it was you know they got a lot of publicity at， the time。

But it was a pretty inexpensive way。 A lot of times if you try to change your brand image it's extremely expensive to change。

it especially for a retailer。 There's signage。 There's bags。

You know the packaging and all sorts of things that would be very very expensive。

So actually that this got such a negative reaction that they found out so quickly was。

a benefit for the company。 But because this was somewhat of a famous incident some market research was done and。

some FMRI studies and neural studies were done to figure out what was so bad about that， image。

Why did people not like it？ And there's a couple things that they identified that when I show you you can see make sense。

One of them is if you have visual and verbal things in conflict with each other people。

read the visual first。 And so where that blue box is behind the P it actually kind of not blocks out the P。

And you can see a hole in the P and the P is not as strong because you're attracted。

first to the vision。 So that weakened the whole idea of the brand there because the P was kind of weakened because。

of the visual block on it。 The other thing that that's different between the two logos is that instead of being all。

caps which is in the original one now this is an initial cap and then smaller letters。

and what that ended up doing was making people think of it as a word rather than a brand， name。

And if you think about it the word gap that means a hole that's not so positive。

So when we're looking at these things in hindsight you can kind of see why that wasn't a good。

choice。 And people just didn't have a very strong emotional reaction to it also。

There were negative emotions to it that were kind of more on a visceral level and what。

I'm explaining here is more thoughtful。 And the last thing I want to mention in thinking about brand names is a lot of people now you've。

got to think about global business and a lot of the business the future business is in。

China。 And that's tricky to think about how your brand names might translate into Chinese。

And there's a number of issues there and a number of different ways to do it。

One way is to keep your brand name in the English or the French letters or the English。

letters or the non-Chinese letters。 Some of the luxury brands do that so Chanel or LVM。

Louis Vuitton will do those kinds， of things。 They keep them in their native language。

But other brands try to change their brand name into Chinese。

And this is tricky because you can do it Coca Cola for example。 What does Coca Cola mean？

How do you translate that？ And if you just go and look for the Chinese characters that kind of sound like Coca Cola。

well the characters themselves name means something。

So when Coca Cola first did that and tried to pick Chinese characters that sounded like， Coca Cola。

it had a very bad brand meaning and they had to take that one off the market。

The one they currently have means tasty fun。 So it kind of sounds like Coca Cola and it means something that at least makes sense with。

a drink。 Reebok did the same kind of thing。 The Chinese characters that they chose kind of sound like Reebok and it means quick steps。

which again makes sense。 Colgate did something different。

Colgate picked Chinese characters that they thought was consistent with their brand image。

which meant superior cleanliness。 And then the Chinese characters if you said them didn't sound very much like the word Colgate。

And Cadillac did it the opposite way。 They took Chinese characters that sounded like Cadillac but they didn't mean anything。

in Chinese。 So when you're translating to a very very different language and an important language。

like China because of the size of the market， there are some big issues and there are a。

lot of agencies now that are developing to help you choose a name that will make sense。

in China。 [Music]。

[BLANK_AUDIO]。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P34：33_品牌要素-颜色标语.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

[ Music ]。

Now that we discuss brand name， let's think about some。

of the other elements that could go around to brand name。

And I'm going to talk about two that are extremely important。 One is choosing a color。

And color has very， very strong perceptual cues。 We'll show you some of those things。

but people associate a lot， with different colors。

And the other is this notion of choosing a slogan or a tag line。

which can add additional meaning to the brand name。

So let's start with color first。 There's a few rules about color that you should think about。

First of all， the best use of color， if you can possibly get it， is to own a color。

And that's not very many brands can do it。 There aren't that many colors out there。

and to really own a color， is pretty hard to do， but when you do it， it's extremely powerful。

If you think about Tiffany's and they own the light blue color box， you know。

this is a globally known， this light blue box， this is such an important cue that the Tiffany empty boxes are sold。

on eBay and people will purchase those boxes and then put another product。

maybe not a Tiffany piece in that product， but people getting a gift， in a Tiffany box。

this just shows you how strong the perception is。 We'll think the product inside that box is higher quality。

But Tiffany's light blue box is extremely valuable brand image for their， means very high quality。

and many times with jewelry， unless you're an expert。

it's kind of hard to necessarily judge quality， so people will use this light blue box as a cue for high quality product。

Mary Kay owns the pink color。 It's a very feminine business， cosmetics。

Mary Kay gives away pink catalax to their salespeople。

and she has really used that bright pink to symbolize her business， and it's been very strong。

Color can also be used within a brand to separate product lines。

so different American Express has different colored cards， the green card， the black card。

the silver card， all these different kinds of cards。

And you infer different qualities to the card as a function of its color。

and that's used in lots of different products as well。

You have to be careful with color because color can be experienced differently。

It can be experienced differently across different platforms。

so a lot of times if you're going to test a color， you want to test it on a computer， on a phone。

in real life， and the colors may vary a little bit。

and when you want a color to really be identifiable， with a particular brand。

you want to make sure you have that consistent color across。

And colors also can create very strong perceptions。

If you look at a product line and you see some of the products。

or it's gold or silver or black and white， that cues luxury。

and you just assume that that product is more expensive， than more basic colors like red and blue。

so that those colors can just signal high quality just because it's gold and silver。 Similarly。

you see something that's blue or pink， you think female or male。

Just by the color can be the exact same product， but the color changes。

and you think it's for girls versus boys。 So we know some theory about color。

We know that there's two basic axes of color。 There's arousal access， you know。

how stimulating it is versus how calming it is， and there's the affect access。

which means how much people like it or don't like it。 The affect access is extremely important。

but it does vary a little bit by cultures。 Some colors are better liked and some cultures than others。

But what I'll show you here is kind of the way the U。S。 looks at it。

and it may be different in different cultures。 It is true that higher arousal colors are like red and orange。

Those create much more attention， much more excitement， and calming colors are more blue and green。

That's pretty universal。 But then also if you think about on that affect or that liking dimension。

the blues and greens tend to be better like colors in the U。S。

where oranges and yellows are a little bit less liked in the U。S。

And this may be different in other cultures， for example， orange is a very popular color in India。

There's other rules about colors。 It's color's an interesting thing and there's been a lot of research on color。

And so there's certain things that we know about the way people automatically react to these colors。

going back to that perception。 So red， for example， as I mentioned， it's an exciting color。

It gets attention。 It's part of the reason why fire engines are red， or sometimes they're yellow。

Both of them are very attention-getting colors。 Red also means love， it means passion。

But red also stimulates appetite。 And so you'll see a lot of food logos like McDonald's， Pizza Hut。

KFC， Windows， Chipotle， Wendy's， Chipotle。 They all stimulate appetite and they all have a lot of red in their logo。

Blue， on the other hand， is a calming color and it is not a good color for food。

Blue actually is a color that curves appetite。 And some people have said that if you're on a diet and you want to try not to eat as much。

having blue plates can curve your appetite a little。 Blue， as I mentioned。

is also a color that's frequently preferred by men。 Green is a color that's tranquil， means health。

it can mean money， it can mean nature。 A lot of environmental companies use the green color to give you that green notion。

But green also means fertility， and if you've seen some of the recent M&M's ads and you know。

Miss Green， she's a pretty sexy M&M。 And that's also that green color。 Brown is reliable。

a little bit boring， practical earth。 White is an interesting color because white can mean purity。

it can mean innocence。 People play around with white space， it can be high design。

if there's a lot of white space。 The spacious issue， people。

there's a lot of things that are done with white。 White's a very interesting color。 Black。

on the other hand， sometimes it's seen as evil， you know。

it can symbolize and some cultures death or mourning。 But you know。

people wear a lot of black because they think it creates the perception that they're thinner。

Yellow is a very bright color， creates a lot of energy。 It has been shown。

and this is so much interesting， that yellow can sometimes make babies cry。

So it's kind of maybe not the best color to paint for a newborn's room。 Orange is exciting， warm。

it's an enthusiastic color。 Lavender， on the other hand， is calming， more relaxing。

Purple is associated with royalty， with wealth， with wisdom。 And pink， as I mentioned。

is more of a girl's color， it's warm， it's a calming color， very feminine。

And so one of the things you can look at is look at some of these different colors and see which companies use these different colors。

So， you know， the bright yellow color is used on Nike， on Shell Oil， on Best Buy， on McDonald's。

to get on DHL to get a lot of attention。 The friendly， fun orange color is used on Hooters。

on Nickelodeon， on Firefox。 The red color， as I already mentioned。

is used on a lot of food companies like Kellogg's， Coca-Cola。 It's also used to get attention。

CNN uses it， Netflix has used it， I showed you before， Virgin uses it。

Purple is more of a creative color， so you see Yahoo using it， Barbie uses it， Hallmark， Taco Bell。

Blue is this trust color， so companies like Oral B， Walmart， IBM， Pfizer。

You don't American Express， GE。 A lot of really solid companies， not a lot of food companies。 Again。

green is more of this natural color， Whole Foods uses it， Starbucks uses it。

Some of the oil companies have used it to show that they have environmental leanings。

BP has tried to use it。 And then the gray， black and white colors are more of a balanced color。 So。

you see New York Times is a black logo。 Apple sometimes says that Silver Apple。

Mercedes-Benz is a silver kind of color。 So， those colors。

silver and things like that are more balanced。 But if you look at the logos and start thinking about them and thinking about how the colors are working。

you can kind of get a sense of what's going on here。 So， let's look now at symbols。 And symbols。

as I mentioned， Mickey Mouse is a very famous symbol。 Symbols can add a lot of fun。

a lot of attention to a brand。 I have some symbols here on the slides。 Mr。

Clean is a symbol that communicates certain kinds of associations。 Mr。

Clean is a product for cleaning up and what they show is a strong muscular man。

so it's assuming that you can have a lot of strength in this product。

The next one I showed you here is Wells Fargo。 There's a lot of multiple associations with the Wells Fargo。

that shows independence， the Wild West， adventure。 And so。

there's other kinds of things that you can associate with it。 Charlie DeTuna is the last one。

It evokes positive feelings， liking。 Pillsbury's "Dole Boy" is kind of like that。 And so。

you can just have fun with these different symbols。 But， symbols can get out of date。

and in the last section in this， we'll talk about how you can reposition。

and re-change these symbols， because they can get dated and they can be very much tied to a particular error。

So， you have to be careful with symbols。

Slogans can be tailored to help the positioning strategy we talked about earlier。

so that you have a brand name and you want to really communicate that brand mantra。

One way you can do it is through your positioning strategy。

And sometimes if you just have these brand elements。

you may want a slogan or a tagline that can help remove。

some of the ambiguity that's associated with the brand or the symbol。 And also。

the taglines can create its own emotion， like "reach out and touch someone" or can create its own kind of warmth and emotion。

And finally， the tagline can reinforce the name or the symbol。

and can just， because if you have these redundancy in the tagline。

is reinforcing the imagery or the brand name， you're seeing this multiple times that makes for a very strong message。

Some of the basics about taglines， you want them short。 It's similar to a brand mantra。

they have to be very short。 You really want them differentiated。 If they all sound the same。

they don't do anything， so you have to make sure it's not the same or would be confused with the competition。

Similarly， it should be unique。 It should be easy to say and easy to remember。

You don't want it to have any negative interpretations， so you have to market test it。

particularly when you go across cultures。 And again， if you have a really great tagline。

like "just do it，" you want to trade market so that it's protected。 And as I mentioned。

if you can evoke an emotion with your tagline， that will make it much stronger。

So what are the different types of taglines？ Well， there's imperative， just do it。 Think， invent it。

You know， those kinds of things。 So they're telling you what to do。 There's descriptive。

which adds more information。 Moving at the speed of business， bullish on America。

you're in good hands。 They can be superlative， so the ultimate driving machine。

There's no better way to fly those kinds of things。 Or they can be provocative and kind of clever。

Got milk was one of those。 And clever， another clever one is what VW Volkswagen has done with their slogan "Drivers Wanted。

"。

[Music]。

(buzzing)。

沃顿商学院《商务基础》｜Business Foundations Specialization｜（中英字幕） - P35：34_品牌要素-包装.zh_en - GPT中英字幕课程资源 - BV1R34y1c74c

[ Music ]。

Okay， so let's talk about packaging。 Packaging， as I said。

has very strong effects on perceptions， and it's a very interesting category。

So let's kind of look at packaging。 We started learning a lot about packaging here in the US in the 1930s。

and what happened in the 1930s was that the grocery store was moving。

from the person behind the counter where you would go to a grocer。

you'd go to a butcher or bakery and you talked to somebody behind the counter。

and they were moving to self-service supermarkets。

So that the consumers were going to go up and down the aisles。

of the supermarket by themselves and pick out products without any help。

When this started happening， it was very clear that the packaging the product was。

in was going to matter a lot。 And so the question was how will people use packaging cues。

to choose what they're going to choose in a supermarket？

And so one of the early famous experiments was done with detergent。

and they put the same detergent in two different boxes。

because what we were testing here was the differences in the packaging。

And in one package they had a design that had circles。

and in the other package they had a design that had triangles。

and they wanted to see which one people would choose。 And it turned out it was very reliable。

People preferred the detergent that was in the box with circles。

So then they let people take both of these detergents home。

Now remember the detergent in both boxes was the same。 What was different was the package。

And so the consumers took both packages home。 They much preferred the package with the circles on it。

And they used the detergent from both boxes and then were asked。

which detergent did you like better。 And this is what was really surprising。

Not only did they like the package better with the circle。

but they believed that the detergent in the box， with the circles worked better。

That was astonishing at the time。 People couldn't believe it because it was exactly the same detergent。

So they redid the study a few times with larger sample sizes， and consistently got the same result。

That was the beginning of understanding， that the package absolutely influences the perception of the product。

And now today if you look at tie for example still has those circles。

on its product even when it goes in different countries， things will change in the package。

but you will still see those circles which we know were really preferred。

by consumers for choosing the detergent。 And they're in that bright yellow that really pops out at you。

So packaging is very interesting because it can influence， at the point of purchase。

It helps you choose what you're going to choose。 But as these experiments showed you。

it continues to have an influence， at the point of consumption。

So it not only gives you a reason to choose when you're purchasing。

but it also influences your perception of the product experience itself。

And there are multiple objectives in a package。 You can identify the product。

You can present some kind of information。 The package can be used to protect the product。

It can be used to store the product。 It can aid in consumption。

It can give you more information on how to use the product appropriately。

So the package not only using perceptual cues， the packaging not only uses a lot of color。

but the packaging is also pretty informative。 I've talked a lot about color before。

And so you have to know that packaging aesthetics are --， and the function are very， very critical。

The colors are used to help grab consumers' attention， in a sea of competing messages。

And it also though has to be used so that you want to buy the product again and again。

So you want to choose the variations of colors and designs。

so that they'll make for an impactful package。 But you have to， as I mentioned earlier。

know your distribution channels， because you don't necessarily control the way the package is ultimately distributed。

And there are certain -- you might do some really cool things with your package。

and then the retailer doesn't necessarily abide by the way you want those --。

that package is exhibited。

And that's just the reality and you have to think through that when you're doing it。

Let me go over some iconic packages， and how they really changed customer perceptions。

and really helped build market share。 I've talked about color and color is extremely important。

So let me say that colors on packaging can really do the same kinds of things。

but I'm not going to be redundant and mention color again。 So let me focus now on shape。

So one of the new products that came out， Calvin Klein came out a number of years ago。

tens of years， decades ago， I think actually， was one of the first products that came out with a fragrance。

that was designed for both men and women。 It was unusual in that case。

And a lot of the ads showed -- very designy ads and they showed models。

that the gender was kind of ambiguous。 And so it was a very interesting campaign。

and they really wanted the product to be seen as etching。

And so if you look at this package of the CK clone that they came out with。

you can see that edginess in the package。 The shape of the clone was in the shape of a flask。

which is an interesting thing for a clone。 You know。

it's not usually the shape of a product you think for a clone。

And you can also see that they used asymmetry in their logo。

which again really gave this notion of edginess。 And a lot of times when people choose fragrance。

this is one thing we know for sure， they're not really experts at choosing different scents。

And so the packaging in the brand name is very influential。

in what people choose as the fragrance they like。 Another famous。

famous shape of a bottle was absolute。 This was one of -- this campaign I don't think is being used anymore。

but it was used for about 10 years。 It's one of the most famous print campaigns around。

And the whole print campaign was predicated on the shape of the bottle。

So vodka a lot of times people have difficulty telling different baccas apart。

That's not to say they're not different， but some people have difficulty time。

especially after the tenth drink。 And so the bottle really， really is important。

The brand name in the bottle is establishing brand loyalty。

The absolute bottle was interesting because most of spirit bottles have a longer neck。

because bartenders or people use a product。 They hold the neck to pour。

So actually this wasn't as easy a bottle to use， but it's because it was so distinct that the shape of the bottle was so important。

And they really， really focused on the shape of the bottle and the ads。

The ads went through different stages。 Some of the ads just showed the bottle。

Some of the ads showed other things in that shape。

Like I remember a famous one where they had an LA ad。

and they had the swimming pool in the shape of an absolute bottle。

And they did a lot of -- they used celebrities， they used artists。

they did a lot of creative things， but it was always around the shape of the bottle。

Another iconic shaped bottle is Coca-Cola。 So Coca-Cola， as I mentioned， is a very， very。

very strong brand name。 But part of that brand imagery comes not only in their logo。

and their red color in their famous polar bear ads and other types of ads they have。

but also in the shape of their six and a half ounce bottle。

That was their first product and it was a very distinctive shape。

that people could tell it was a Coca-Cola from all the other soft drinks out there。

When the bottle went from glass to plastic， originally when Coca-Cola came out。

with their plastic bottle， they lost their unique shape。 And that was a decided disadvantage。

And so they managed to figure out how to recreate their iconic glass shape in plastic。

And I remember I was a marketing professor when they did this and they sent out。

to marketing professors an empty bottle or an empty plastic bottle of Coca-Cola。

in their iconic shape because they were so happy that they had managed。

to reproduce this in this new medium because they understood how important that was。

And another very famous bottle， of course， is the Heinz Ketchup bottle。

I've been told this is in the Smithsonian and I'm not sure that's true， but it could be。

because it's a museum piece people recognize the quality of the ketchup because of the shape。

of the bottle。 And this again kind of like the absolute bottle is pretty interesting because that shape。

in that glass bottle makes it difficult to get the ketchup out of。

So it's not even a product that helps the product use the product。

It actually gets in the way of using the product and yet still it really。

really defined the quality of that ketchup by the shape of the bottle。

So shape is extremely important at causing， at creating brand imagery and brand identity。

And shape also can be in and of itself an excuse for a new product。

One of the most successful new products in the soft drink industry was the refrigerator pack。

They did some market research and they found out that if the cans of soda were in the back。

of the refrigerator people did not consume it as much。

So if they wanted people to consume the product they needed some mechanism to bring the cans。

to the front of the refrigerator so people could drink it。

And that these refrigerator packages were designed that way。

And that package design single handedly increased market share for the companies。

that started doing it。 It was a very successful new product introduction and it didn't have anything to do。

with the actual product but just the packaging。 And similarly。

Hunt came out with a package for getting ketchup out。 That's easier。

And so you turn the product upside down it's easy to get the ketchup out。

And again that was a successful packaging innovation。 [ Music ]。

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