The use of NFT technology in brand marketing

There are more and more typical blockchain events out of the circle. NFTs and traditional brands are small hotspots in the industry recently, and events of well-known brands issuing NFTs break out from time to time.

This paper describes the theoretical and practical application methods of brand + NFT technology in the field of marketing.

Let me talk about some theoretical knowledge of brand marketing. These have nothing to do with blockchain web3. I copied it from the Internet.

The main functions of the brand are:

1) To transmit the quality signal of the product.

2) Sending market position signals.

Nowadays, the social material is extremely rich, and the signal transmission changes brought by Internet informatization have brought new challenges to the transmission of the two signals of this brand:

1) For consumers, the quality of products is more and more dependent on reviews and trust KOLs.

For example, when we eat, we read public reviews, and when we buy things on Taobao, we must look at negative reviews. Live streaming is a typical KOL guiding role for consumers.

2) More and more consumers are consuming certain brands or products because they need to express personalization or convey certain values ​​to the outside world. Buying something might just show that I’m not like you.

The classic is the Tesla electric car. The first consumers to buy the expensive and poor-quality Model S were mainly to express their environmental protection ideas.

3) Consumers are more and more hung up, requiring brands and enterprises to cooperate and listen to their voices. In other words, companies and brands are paying more and more attention to consumer feedback and co-creating brands with consumers. The consumer and business side becomes a partnership, not just a supplier-consumer relationship. By supplying consumers to become the co-creators of the brand, consumers will defend the brand with the company, and this type of user has strong loyalty.

Xiaomi’s early mobilization of users to jointly create MIUI is a classic case.

The latter two are the theoretical basis for the current relationship between NFT and traditional brands.

Now let’s take a look at the cases of how traditional brands have used NFT and other web3 technologies for marketing that have appeared in the market.

The first way is for traditional brands to issue NFTs and give them specific rights and interests, either in the form of consumer gifts or by selling them to users, and users can obtain corresponding rights and interests.

This method involves the technology of issuing NFT development company. Traditional brands need to write a contract to deploy to the chain, and users need to mint or claim specific NFTs. Users can also trade NFTs in the secondary market.

This NFT can be traded, which is the biggest innovation compared to the cards issued by traditional brands for users to collect.

A classic case is the NFT creative work “Big Mac Rubik’s Cube” released by McDonald’s at the end of last year.

In this way, consumers who practice the above brand marketing theory need to express personalization and map values.

But this method is more about using NFT to hype, speculate, and attract traffic. A positive understanding is to send NFTs to advertise.

The second way is to cooperate with traditional brands and well-known NFTs.

A typical case is the monkey out of the circle. Such as Li Ning issued #4102 boring ape NFT clothes and hats. The same goes for the recent Tiffany x Crypto Punks.

This cooperative approach involves the knowledge of copyright privatization of NFTs. Monkey BAYC is a set of NFT. After the user purchases a specific NFT, the copyright corresponding to the NFT belongs to the user, and the user can conduct commercial operation without the official authorization of the BAYC project.

This kind of case often has no technical problems with NFT and blockchain. For traditional brands and well-known NFT projects, it is a simple business cooperation and mutual empowerment.

This approach is to practice the brand theory that consumers want to express personalization and brand co-building.

The third way is to use NFT technology to build a special membership system.

Using NFT technology to implement a membership system will have some advantages over traditional web2 building a membership system.

1 Bring a secondary market to members. Because NFTs are tradable.

2 The brand side cannot delete the user’s membership, which gives the member a higher status.

The second point is actually very important.

The Coca-Cola Company, such a powerful company, once released a product with a new formula, but it was sprayed by its own users, and the company was forced to give up this flavor. This is a very top case of brand co-building and user loyalty.

Using NFT as a membership status allows members to trade, and brings about an improvement in membership status, which is more conducive to brand owners and users to build brands together, and is more conducive to building brand loyalty.

The fact that members cannot be deleted by the brand side will force the brand side to listen to the voice of users and let users participate in the building of the brand. This method may be to issue coins to users, and the method that users are shareholders is a step further. Because users are shareholders, this kind of shareholder status is more for dividends and profits. And NFT Generator members are rushing to build a brand together.

One of the more successful ones using this scheme is Flyfish Club, a restaurant whose NFTs trade well in Opensea.