Analysis of the paper:
“When totems beget clans: The brand symbol as the defining marker of brand communities.”
Student: Babel Alexey
Course: MBA (internal)
Subject: Marketing Management. Code: LB5202:03
Subject coordinator and lecturer: Dr. Breda McCarthy
In the last decade, there has been a vast increase in the number of different varieties of brand communities. There is no doubt, that this aspect has an extremely significant influence on a modern marketing process and the whole business properly. As a consequence, to create the successful business, contemporary managers should bear in ...view middle of the document...
g. Coca-Cola vs Pepsi, Mercedes vs BMW, etc.).
Nowadays, the Internet expansion has resulted in the shift of the global market from material towards on-Line distribution and sale, creating new opportunities for companies to use new sources of competitiveness. As a result, a large amount of online brand communities have emerged for a five years period.
Practical Implication of Brand Community.
First of all, a highly competitive global market dictates to find innovative approaches to business. The one of the most significant ways of this innovation is a accurate market segmentation. According to Malcolm McDonald and Hugh Wilson (2014, p.98) a market segment consists of a group of customers who share a similar level of interest in the same or comparable set of needs. So, the segmentation of market has a striking resemblance with the idea of brand communities, due to both of them have similar attitudes in terms of brand values. Of these, this strong connection between brand communities, which also have a focus on the symbol and market segmentation of products and services leads to the necessity of the development of those ties. In other words, firms should follow the concept of segmentation, because it can satisfy the needs of brand community; as a result, it leads to the better profitability of business.
Secondly, in recent years, there has been a vast translocation in to the virtual market. Needless to say, that it also provides an extremely attractive way for the evolvement of business. At the same time, managers should find out and communicate with new online brand communities. Moreover, online community leads users and potential customers to become a powerful source for the growth of sales. The example of www. Dropbox comes to mind and the idea “Get more space”. The offer distributed for all users, who invited their friends to participate. In the case of an appearance of a new customer, a person who recommended this online service (Dropbox), gained a free 500 MB of cyber space. This was a magnificent result of the idea to use the online brand community, because the number of users rose rapidly, by 60% during the next three months, and it was about 2,8 million people mailing a proposal per month. Communication quality insight online brand community may affect positively on to purchase decisions through the reduction of the associated degree uncertainty and this is positively influenced by the presence of members with high level of competence (Adjei et all, 2010). However, managers have to comprehend, that the Internet has a totally mutable behaviour with a constantly changeable background (Stefano Brogia, 2014). So, to keep online communities under control around brands (symbols) and remain successful, it demands the use of a vastly different set of “marketing tools”.
The next important aspect, is the appearance of specialists, so-called growth hackers (Sean Ellis, Patrick Vlaskovits, 2012), who can recognize and find the way to satisfy...