“According to De Chernatony (2000) a brand is a brand regardless of its environment. Therefore, there is no need for a new theory of branding for the online environment, but merely a different approach to executing the brand’s essence”.
The aim of this paper is to conclude whether brands in a mortal and bricks environment are different from brands in a ‘click’ environment, and therefore, if a new theory of branding is required. De Chernatony (2000) believes that a “brand is a brand regardless of its environment”, which he substantiates by analysing the assumptions about migrating brands to the Internet, and the impact of online communities. In order to test De Chernatony’s idea, it is necessary to define and understand a ‘brand’, its components and functions.
For the consumer, a brand provides orientation in the ‘product jungle’, and facilitates the identification of a specific product among competitive ones. Furthermore, it lowers the purchasing risk, as the customer can trust the functional and emotional quality of the brand (Biel, 2000). Lasty, a brand allows the customer to transfer the brand image to himself. Bugdahl (1998) describes this as a personalisation function or ‘snob syndrome’, for example, a BMW owner has the physical and emotional experience of “being sporty and having friends” (Herrmann, 2000). Understanding the meaning of a brand, its components and functions, the following section discusses if the essence of a brand changes in an online environment.
Table of Contents
1 Introduction
2 Discussion
3 Conclusion
Objectives and Research Focus
This paper examines whether the emergence of the internet as a commercial environment necessitates a fundamentally new theory of branding. By contrasting traditional "bricks and mortar" branding concepts with the dynamics of the "click" environment, the author investigates whether the core functions of a brand—differentiation, identification, and the delivery of a promise—remain constant despite changes in communication vehicles and consumer behavior.
- Analysis of the definition, components, and functions of a brand.
- Evaluation of how the internet environment impacts consumer behavior and brand interaction.
- Review of contemporary branding strategies in the digital space.
- Investigation into the validity of traditional marketing principles in online business.
- Synthesis of expert perspectives on the necessity of a "new theory" for online branding.
Excerpt from the Book
1 Introduction
“According to De Chernatony (2000) a brand is a brand regardless of its environment. Therefore, there is no need for a new theory of branding for the online environment, but merely a different approach to executing the brand’s essence”.
The aim of this paper is to conclude whether brands in a mortal and bricks environment are different from brands in a ‘click’ environment, and therefore, if a new theory of branding is required. De Chernatony (2000) believes that a “brand is a brand regardless of its environment”, which he substantiates by analysing the assumptions about migrating brands to the Internet, and the impact of online communities. In order to test De Chernatony’s idea, it is necessary to define and understand a ‘brand’, its components and functions.
According Duncan (2002) a brand is defined as a “perception of an integrated bundle of information and experiences that distinguishes a company and/or its product offerings from the competition”. A similar definition is given by Kotler (in Esch, 2000); a brand is a “name, term, sign, symbol, or design or combination of them which is intended to identify the goods and services of one seller or a group of sellers and to differentiate them from those of competitors.” This means that the function of the brand is mainly differentiation and identification. To reflect the importance of the brand influence on the buying decision, and to put the customer into the centre of branding, Bruhn (1999) defines a brand as a “promise to the customer”. This promise stands for a continuous supply of standardised quality to the customer. A further element of a brand is its added emotional value, the emotional notion leads to a psychological product differentiation.
Summary of Chapters
1 Introduction: This chapter defines the core concepts of branding and establishes the research goal, which is to determine if a unique theory of branding is needed for the online environment.
2 Discussion: This section analyzes the changes brought by the internet, such as interactivity and information overload, and debates whether these environmental shifts alter the fundamental essence of a brand.
3 Conclusion: The author concludes that the essence of a brand remains consistent across all environments, suggesting that while execution strategies must adapt, a new theory of branding is not required.
Keywords
Branding, Online Environment, Bricks and Clicks, Brand Essence, Customer Loyalty, Consumer Behavior, Brand Differentiation, Internet Marketing, Virtual Communities, Brand Promise, Information Overload, Strategic Branding, Brand Positioning, Cybermarket.
Frequently Asked Questions
What is the core subject of this paper?
The paper explores whether the digital environment—specifically the internet—renders traditional branding theories obsolete or whether these theories remain applicable in a new context.
What are the primary themes discussed?
The main themes include the definition of a brand, the impact of internet interactivity on consumer behavior, the validity of traditional marketing principles, and the strategic adaptation of brand management to cyberspace.
What is the central research question?
The primary research question is whether a brand in a "clicks" environment is fundamentally different from one in a "bricks and mortar" environment, thereby requiring a new theory of branding.
Which scientific methodology is applied?
The paper utilizes a literature review and a critical discussion approach, synthesizing existing branding definitions and expert studies to derive a logical conclusion.
What is addressed in the main body of the text?
The main body examines environmental changes caused by the internet, evaluates the changing power dynamic between consumers and vendors, and reviews various expert arguments concerning the continuity of branding functions.
Which keywords characterize this work?
Key terms include Branding, Online Environment, Brand Essence, Customer Loyalty, Consumer Behavior, and Brand Differentiation.
Does the internet change the fundamental definition of a brand?
No, the author argues that the essence of a brand—as a promise of quality and a tool for differentiation—remains stable regardless of the medium.
How has the role of the consumer changed online?
The internet has shifted the consumer from a passive recipient of value to a more active, informed participant, often characterized by increased power and interaction through virtual communities.
What advice does the author give regarding search engine visibility?
The author emphasizes that because consumers use limited keywords to find products, brand positioning must be "razor sharp" to ensure the brand is discoverable and meaningful.
- Quote paper
- Volker Schmid (Author), 2005, A New Theory of Branding for the Online Environment?, Munich, GRIN Verlag, https://www.grin.com/document/38125
