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How affiliate programs may help improving your brand equity
Céline Brandt, Ph.D
Affiliate Marketing
• Affiliate Marketing is performance-based advertising
• The affiliate promotes the merchant’s product/ service and get remuneration for every sale, visit or subscription
• Pay-per-sale, pay-per-lead (newsletter sign-up), pay-per-call or pay-per-click
• One of the most powerful customer acquisition tool
• The merchant pays only when the results are there
• Almost no research
• Dealers or partners, who promote our brand, investing their own money to sell our products/services
• Independent intermediary choose what affiliate programs to promote, what merchants to push more aggressively and on what merchants to spend less efforts
• Preferential treatment for superaffiliates
Consumer-based brand equity (KL Keller)
• BE: the differential response to the marketing of a product or a service that is only due to the brand
• In short, when you have strong brand equity, your customers will buy more from you, they will accept to pay a price premium, they'll recommend you to other people, they're more loyal, and you're less likely to lose them to competitors.
Consumer-based brand equity (KL Keller)
Consumer-based brand equity (KL Keller)
KnowledgeAwarenessRecallRecognitionFamiliarity
Promotes the merchant’s product/service
AFFILIATE MKT
How does affiliate marketing contribute to the publisher’s brand salience?
Encourage affiliates: push strategy: Special offers (top affiliates),
commissions, e-mails, blogs, newsletters,
contestsMake them proud respect and
trust
Platform to reach and engage with new audiences (site + e-mails)
Increase the availability of the brand for more
familiarity
Content displayed on affiliate sites:
awareness-driving tool/ high quality enough in order not to erode the
brand image
Examples of affiliates: focus on awareness
Agreement with TradeTracker to provide some unique voucher codes to some affiliate in exchange of a permanent referral during a defined period
Push strategy: Newsletter for the affiliates in the NL and for the CJ affiliates
Consumer-based brand equity (KL Keller)
Image: primary characteristics and features; product reliability, durability, and serviceability; service effectiveness, efficiency, and empathy; style and design; and price
Leverage secondary associationsReputation buildingA different experience
AFFILIATE MKT
How does affiliate marketing contribute to the publisher’s brand performance and imagery?
Leveraging secondary
associations
Reputation building
(throughout the affiliates network)
Design of an experience
based on the affiliate’s consumer knowledge
Invite pertinent affiliates in
terms of image (snowballing
effect)
Examples of affiliates: focus on image
How to profile affiliates in term of image?
WebsiteTarget
Audience
Promotional methods
Marketing Focus
Competitors promoted
Associations that could impact negatively the publisher’s brand image
• Inapropriate content
• Misuse of the trademark
• Negative feedback
• Incentive
• Monitoring
• Enforcement (coercive measures)
Consumer-based brand equity (KL Keller)
Quality, credibility, relevance, superiority warmth, fun, excitement, security, social approval, and self-respect
Brand defense Information
sharing
AFFILIATE MKT
Brand defense and information sharing – what drives the affiliate to enlarge their role?
Brand defence: indicator of the quality
of the relationship
Information sharing: preference, experiences,
discussions, problems
2 types of performances: technical and
relational focus on the relational performance
Drivers:
Financial dependence of the affiliate
Relational performance of the
publisher
Applications:
Segmentation of the affiliate network
Examples of affiliates: focus on brand defence and information sharing
What would drive the affiliates to enlarge their role?
In a special edition of HBR on how to motivate people, Fryer wrote in her article called “Moving Mountains”:
There is no trick to motivating others. It requires a clear, unbiased understanding of the situation at hand, deep insight into the vagaries of human nature at both individual and group levels, the establishment of appropriate and reasonable expectations and goals and the construction of a balanced set of tangible and intangible incentives
Delegating Participating Selling Telling
Delegating Participating Selling Telling
Superafiliates(generating significant volumes of
sales)
Skilled and experienced affiliates but
insecured
Capable affiliate but
lack of education or confidence
Affiliates has very low level
of maturity
External rewards Internal motivators
Cash bonuses, tangible prizes
Autonomy, prestige, sense of enjoyment
1
2
Consumer-based brand equity (KL Keller)
Behavioral loyalty, brand love, sense of community, active engagement
Facilitate Brand value
creation Co-innovation Customer
support
AFFILIATE MKT
Brand value creation and co-innovation– what drives the affiliate to enlarge their role?
The affiliate will facilitate the common research of new ideas
Discussions on how to improve the experience
Motivates visitors to take part to the value
creation (creativity and ideas generation)
Drivers:
Creativity of the affiliate’s website
open to roleenlargement
Community aspect open to roleenlargement
Drivers:
Congruence between the publisher and the
affiliate (complements)
reinforce the affiliate’simage and increases
the value of the content
Examples of affiliates: focus on brand value creation and co-innovation
What’s in for me? 1. Superaffiliates are vital at the beginning of the BE building process
to create the awareness
2. For the next 3 steps, bloggers are as interresting as superafilliates as they offer image complementarity and they consider easily role extensions
3. From the affiliate side, financial dependence plays the strongest role in the acceptance of roles enlagement
4. From the merchand side, relational performance has to be the focus number one to motivate role enlargement
5. The higher in the pyramid, the more relationnal the merchand should be
6. Create a special structure to manage the relationship with bloggers
7. Identify the high potential affiliates based on financial dependence, congruence, creativity and community-orientation
Thank you for your attention
Q&A?
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