Technology as a cutting edge tool in corporate communications – creating power brands through the internet

Electronic commerce is giving rise to new brand opportunities, along with new challenges. It is rather myopic to regard the opportunities as being solely enhanced sales and profi,sinceit is important to appreciate howtheseareachieved. This paper explores howincreased sales and profit comes through new forms of customer behaviour and revised business models. The paper also considers how branding principles can be used to help brands marketed on the Internet. It opens by considering the new mindset that managers need to acquire while developing Internet-based brand strategies. It argues that the brand concept is the same as that in any other medium, though the enactment is different. A framework is presented toappreciate the elements of the brand's on-line experience. The opportunity to develop more powerful brands through building genuine relationships, tailoring and greater interactivity are reviewed. Some of the Internet challenges, and approaches to circumvent these and in particular the shift of power, comparison-shopping, pricing and service are explored. The paper concludes by considering the need for more loosely controlled brands on the Internet. Moving to the virtual environment enhances performance from listening to communitiesrather than telling customers; recognizing that communities co-create brand value, rather than passively consuming brands; becoming more community focused and rapidly responding to new suggestions; relaxing control over brands. Brands that have succeeded on the Internet, be they traditionally based bricks and mortar brands or ‘pure'Internet brands, for example, Amazon, Google and Yahoo, have thrived because they view the Internet as a force that levels imbalanced playing fields to favour customers. These brands are based on revised business models, significantly improving the value equation through greater customerinteractivity, enhanced consumer experiences, tailoring and rapid responses. Furthermore, successful brands on the Internet show commitment to web-based branding and they take a long-term viewabout brand building. The above issues areaddressed in thispaperelaborately through data based on secondary research.