Branding for b2b [p]

8/2/2019 Branding for b2b [p]

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Prof. A. K. Biswas 1


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Agenda Why B2B Branding? What is B2B Branding? Steps for Building Strong B2B Brands Different Brand ElementsIn B2B And B2C Markets B2B Brand Equity Communications Strategy For B2BBrand Building Difficulties in B2B Branding


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Many business marketing managersthink that branding is not relevant toB2B markets. They argue that industrial products donot need branding as it adds little valueto functional products and thatcustomers knew a great deal about their

products as well their competitorsproducts. To them, brand loyalty is non-rationalbehaviour which do not apply to

rational world of B2B products.

Why B2B Branding?


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The evaluation and selection processin B2B market can be described asbeing divided into several parts. First, buyers select a smaller numberof suppliers among the total array offirms that are able to deliver what isrequested. This group of selected firms may bereferred to as the evoked set, theconsideration set or, simply, the shortlist.

Why B2B Branding?


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Second, once further information hasbeen gathered, this initial l ist can bereduced to form a choice set. Finally, buyers need to choose whichsuppliers in the choice set to engage. Various types of information andsources are used by industrial buyersin conducting an initial screening,evaluation and selection of availablesuppliers.

Why B2B Branding?


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Examples include internal fi les, officiall ists of suppliers, word of mouth, tradeshows, brochures and advertising,reputation, quality of presentation andfamiliarity, personal contacts earlierperformance, articles and otherpublications in the trade press,computerized services, buyers fromother markets and trade fairs.

Why B2B Branding?


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While the initial screening provides thebuyer with limited information aboutthe company, B2B buyers normallyneed to know more about the supplier,as the products purchased are oftencritical to their operations.

Hence, when the evoked set ofsuppliers is examined further,additional criteria such as productioncapability, quality control, age ofequipment, electronic advances andfinancial stabil ity can be used.

Why B2B Branding?



Buyers can also evaluate productionfacil it ies, quality assurance programsand the companys managementgroup.

The criteria applied should be basedon, for example, the role of theproduct/service (e.g. degree ofcriticality) in the buyers sourcingstrategy.

Why B2B Branding?



But, customers in B2B market areoften to make buying decisions undera great deal of pressure, and buyers,under such situation, would like toevaluate and choose from reputedsuppliers. Research on industrial buying behavior

has indicated a wide variety of factorsthat can affect buyers during stages ofsupplier nomination, evaluation andselection.

Why B2B Branding?



Research has shown that price is aminor issue when buyers evaluatesuppliers of components and complexproducts. Quality, delivery and performancehistory are more important criteria The fact that history matters impliesthat the buyers image of a suppliercan influence a decision regardless ofthe current offer.

Why B2B Branding?



Buyers need security particularly whenplanning for long-term contracts andtherefore vendors perceptions are moreimportant higher the risk attributed to apurchase situation. New task purchasing is open to greatbrand influence, as the buyer has no

experience of that particular purchase. The new task/new supplier situation isquite frequent and significant.

Why B2B Branding?



Brands faci l itate the identif icationof products, services, andbusinesses as well differentiatethem from competit ion.

They are a guarantee of quality,origin, and performance, therebyincreasing the perceived value ofthe customer and reducing therisk and complexity involved inthe buying decision.

Why B2B Branding?



As a result business market managersare increasingly seeking to brand theirproducts to differentiate themselvesfrom their competition and thus toavoid their products beingcommodities.

Microsoft, IBM, General Electrics,Intel, HP, Cisco Systems, Dell, Oracle,SAP, Siemens, FedEx, Boeing are vividexamples of the fact that that some ofthe worlds strongest brands are B2Bbrands.

Why B2B Branding?


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For the B2B marketer then, abrand can be defined as adistinctive identity thatdifferentiates a relevant,enduring, and credible promise ofvalue associated with a product,service, or organization andindicates the source of thatpromise.

What Is B2B Branding?


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In B2B market corporate branding ispre-dominant. Corporate brands differ from productbrands in that they represent the firm,and their image is potentiallyconstructed by everything a firm isperceived to be doing. Thus, corporate brand image issynonymous with the companys

corporate image.



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Corporate branding constitutesongoing value creation, which iscentral to the organization, butalso important for itsstakeholders, as it aids inidentifying the organizationspurpose and positions it in themarket.



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Without great products and servicesthere can be no successful brand. The companies that thrive are the ones

that create the most compelling andconsistent brand experience for theircustomers. To develop a consistent brand

experience, the marketer mustunderstand how the B2B customerdefines the concept of value and thento work to deliver that value throughoutall interactions with the customer.



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When the product is delivered in a waythe customer understands, desires,and is will ing to pay for, the brand hasa greater opportunity of having higherperceived value for that customer. Having a brand with high-perceivedvalue will set the stage for a long-

lasting relationship to develop, andthe depth of the relationship betweenthe brand and its customers will be thefoundation for the brand loyalty.



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Steps for Building StrongB2B Brand

The first step in building a strongbrand is to ensure correct brandidentity. The purpose is to create anidentification of the brand withcustomers, and an association in theirminds with specific product class or

need. To do this the brand must havesalience in the sense that how oftenand easily the brand is evoked under

various purchase or consumptionsituations.


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The second step is to establish brandmeaning by linking tangible andintangible brand associations.

Brand meaning is characterized infunctional (brand performance) andabstract (image related) associations. Brand performance relates to how theproduct or service meets customersfunctional needs.



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Functional attributes are primaryingredients and supplementaryfeatures; product reliability,durability and serviceability; serviceeffectiveness; style and design; andprice.

Image associations relate tocompanys standing in the industryand their overall reputation.



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In a business market a brand representsa multidimensional promise of value thatincludes more factors than simply theperformance of the physical product. A second factor integral to the successof a brand is the ability of themanufacturer to deliver the needed

products and services in a timelymanner, often through an intermediarywho understands and communicates thisvalue to the end users.



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The third factor that is important inindustrial branding is company supportservices. All members of the organization mustunderstand that their customers maydefine the value of the product by theway a company representative

responds to their specific need at aspecific point of time and they musttherefore respond to customers in areliable, timely, and efficient manner.



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Finally, because loyalty is oftendirected more towards the entirecompany rather than a specific brand,the companys standing in the industryand their overall reputation are alsoconsidered part of the brand.

This may be due in part to theincreased perceived risk industrialcustomers feel as a result with dealingwith an ever-increasing number oftechnically complex product choices.



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The reputation a supplier companyhas can serve to reduce this risk. The company then must endeavourto create that positive intangibleimage for this brand through

promotions, public relations, and inevery interaction with theircustomers.



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In B2B market, the name of thecompany stand for many kinds ofassurances such as: Assurance of product quality. Assurance of service availabil ity anddependability. Assurance of timely and reasonableupgrades. Assurance of priority attention to arelationship.



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In the pre-selection phase of thebrand commitment, organizationaldecision-makers face threeproblems:

How to find eligible suppliers?How to judge which of them aremost trustworthy?How to provide evidence to otherconcerned persons in the companyto support the rationality of thischoice?



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A B2B marketer must, therefore,promote the company and its productsin all the right places. The role of the channel members isvery important here. The good reputation of the prospectivesupplier is the evidence that will

persuade first the individual decision-maker and then the other members ofthe buying team about thetrustworthiness of that firm.



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The next step to B2B brand building isto create favourable response to thebrand (including the company) bymanaging customer experiences. Through their contacts with the brandand the company (its personnel,channel members), and the resultant

experiences, the customers form theirjudgments about the brand (and alsothe company) which include its overallquality, credibil ity, consideration andsuperiority.



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Brand feelings are customers emotionalresponses and reactions to the brandand the company (including itspersonnel, and channel partners).

As the customer experiences successfulinteractions in each of the components ofproduct value product performance,distribution performance, supportservices performance, and companyperformance with a supplier over aperiod of time, the customer perceivesthere to be real benefit in continuing withthat supplier.



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As the sense of value in theseinteractions continues to grow,customers develop a sense of trust thatthe supplier will continue to deliver thatvalue, and the seeds of the meaningfulrelationship are sown.

Brand relationships constitute the finalstep where brand response is convertedto create an intense, active loyaltyrelationships between the customers andbrand (including company).

The brand relationship is based on trustand confidence.



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Elements Of Brand Trust

Brand TrustCompetence

Probity

Continuity

CaringalueResonance


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Competence: technical capabil ityto completely make the product,or effectively deliver the service,they are offering.

Probity: belief that the companywil l conduct its transactions witha customer in an honest and fairway.



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Continuity: belief that the companyhas the resources and commitmentnecessary to remain in the businessarea relevant to the customer. This is particularly important inrelation to products which have a longlifetime. Caring: the companys employees aresufficiently motivated to care aboutthe quality of service or performancethey deliver.



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Value Resonance has two levels: A basic level of corporate goodconduct in the sense that the

company do not violate the valueconsensus on ethical and environmentissues. A personalized level of l ife-styleappropriateness and is concernedwith whether or not the vendorcompany expresses values, which theindividual consumer aspires toincorporate in their personal l ife style.

ELEMENTS OF BRAND TRUST


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Different Brand ElementsIn B2B And B2C Markets

TechnologicalDevelopment Fashion

Competence ValueResonance

Solution toParticularWell-definedproblem

QuantifiableFeedbackmechanisms

Life-styleaspirationLinear Progress Cyclical

Facts & figuresRational argument Personalpreferences


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Competence is the predominantelement of branding trust for B2Bpurchases, where as for B2C fashionpurchases it is value resonance. In order to develop and maintain long-term relationship, the vendor in B2Bmarket has to provide the customerwith continuing evidence ofcompetence in the particular technicalfields which are important to thecustomer.



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This is also true for individualconsumer buying technology products,but B2B purchaser have the addedpressure of other members of decisionmaker team and the users. Given that the transactions in the B2Brelationship is l ikely to have a largermonetary value than those involved inconsumer relationship, probity is moreimportant in B2B market.



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Long-term continuity can be saidto be more important for B2Bbuyers though in case ofconsumer durable products withlong l ifetime this element is alsoimportant.

Caring is l ikely to be relevant tonurturing brand trust in bothtypes of buyers.



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Brand equity is a set of assets linked toa brands name and symbol that add tothe value provided by a product orservice to a customer.

Brand equity results in customersshowing a preference for one productover another when they are basicallyidentical. The extent to which customers arewill ing to pay more for the particular

brand is a measure of brand equity.

B2B Brand Equity


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The creation of significant brandequity involves reaching the top of thebrand pyramid, and will occur only ifthe right building blocks are put intoplace. Brand salience relates to how oftenand easily the brand is evoked undervarious purchase or consumptionsituations. Brand performance relates to how theproduct or service meets customersfunctional needs.

B2B Brand Equity


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Brand imagery deals with themanufacturers reputation in themarket.

Brand judgments focus oncustomers own personal opinionsand evaluations. Brand feelings are customersemotional responses and reactionswith respect to the brand (and thecompany).

B2B Brand Equity


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Brand resonance refers to the natureof relationship that customers havewith the brand and the extent to whichcustomers feel that they are in syncwith the brand. Resonance is characterized in terms ofthe intensity or depth of the bondcustomers have with the brand, as wellas the activity engendered by thisloyalty.

B2B Brand Equity


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Brand Equity Pyramid

1.Identity =Who are you?

2. Meaning =What are you?

4. Relationships =What about youand me

Deep, broadbrandawareness

Posit ive,accessiblereactions

Intense,activeloyalty

Salience of theManufacturers Brand

P e rf o r

m an c e

Reputat ionStrong, favorableunique brandassociations

Ju d

gmen

ts3.Response= Whatabout you?

Sa les Fo rce

Re la t ion ships

PartnershipSolutions


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In the B2B world, the mostimportant characteristic is technicalcompetence.

The most effective strategy for thesupplier firm should be case-basedcommunications strategy, which willshow how the firm has successfullyapplied their competence to thebenefit of previous customers.

Communications StrategyFor B2B Brand Building


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TechnologicalDevelopment FashionDifferentiating characteristics

Machine tools Cosmetics

Contents

InstrumentalPedagogic Iconic

MethodsInteractive Broadcasting

Private cars


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Communication can be dividedinto content and methods. For fashion-driven consumerproducts content can becharacterized as iconic, i.e., the

content is l ikely to consist largelywith imagery aimed at el icit ingemotional responses.



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For technology-driven B2Bproducts, however, the contentcan be described as instrumentaland pedagogic, meaning that it isdesigned to communicateinformation targeted at peoplewho are looking for a product tofulf i l l a specif ic, often well-defined need.



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The ideal method of communicationfor fashion products isbroadcasting, i.e., addressing amass audience with messagesdesigned for isolated individuals. The messages are likely to elicit

direct emotional responses, i.e.,people are going to respondfavourably to them or they are not.



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For technology-driven products,however, the initialtelecommunication are more likely toinitiate a formal group processwithin the targeted organization,and the message itself will beinstrumental and/or pedagogic innature directly referring tobenefits which the product has tooffer.



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The purpose of such communicationsis to get the firms product includedin the prospects list of options forevaluation. This will almost certainly require atleast some discussions between

individuals within the prospectorganization, and personal contactbetween them and the supplierorganization.



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The main sources for informationabout B2B suppliers are asfollows: Based on personal relationships Based on media sources



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Previous direct positive experiencesof the company and its products iscertainly the firmest basis on whichto build a relationship of trust witha customer.

Moreover, all personal interactions,which the customer has with thecompany, must be consistentlymanaged well.



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After direct experience, the nextstrongest influence is word-of-mouth. The word-of-moth advice, which is

acted on, is most l ikely to come frompeople who have high status withinthe relevant industry and /ororganization, e.g., top managers,consultants, technical experts, etc.

B2B marketer must influence them sothat they in turn influence others.



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Sales people can have a powerfulinfluence over purchase decisions andbrand commitment because their effectis based on a personal relationship.

Sales force should not onlycommunicate value, but must alsocreate value by providing benefits atreasonable trade-off to costs.

Value here can equate to problemsolving providing innovative solution.



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In most B2B markets, the primary formof brand communication is through thesales force and their abil ity to adaptsales strategies and messages toaccommodate customer interactions. Successful B2B brand communicationrequires sales strategies thatincorporate brand values appealing tothe emotional and the rationalconcerns of organizational buyers.



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Successful communication outcomesare dependent on sellers having aclear understanding of the motivationsand behaviour strategies of individualswithin buying centres and buyingteams. Industrial buyers often have fourcategories of communication styles;Amiable, Expressive, Analytical orDriver.



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Buyers classified as Amiable are highin responsiveness and low in assertivebehaviour. They are strongly relationship-oriented, and will tend to view thesalesperson as the embodiment of thebrand's values and look for signals to

make brand evaluations in terms ofcompatibil ity, future relationshipcommitment and will ingness to meettheir needs.



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Expressive buyers exhibit high levels ofboth responsiveness and assertiveness. They are extrovert, creative approval

seekers, who work quickly and relyheavily on intuition. The sales strategy for Expressive buyersshould support their need for status and

acknowledgement and sales person mustemphasize emotional brand valuesstressing the achievement of personaldreams and goals.



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Analytical buyers who are low inassertiveness and responsiveness. They are driven by logic and fact andactively seek detailed productinformation. They tend to be formal and precise intheir interactions and their risk-takingapproach is calculated. Salespeople dealing with Analyticalbuyers need to ensure that salespresentations are logical and objectiveand ideally backed up by experttestimonials and guarantees.



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B2B purchasers categorized as Driversdemonstrate high levels of assertivenesswith a low level of responsive behaviour. Brand value communication needs to belargely functional to satisfy the Driver'sneed for precise information on costs,performance and delivery. However, Drivers are also stronglymotivated by results and achievementsand therefore, emotional brand valuesthat support their goal orientationshould be emphasized.



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For B2B companies, the trade press isthe most effective of the conventionalmedia channels. Advertisements awaken interest in thebrand generally through a specificproduct offering. However, for B2B, as opposed toconsumer brands, the next step is todeliver complex, objective messagesfor which trade press editorial is the

ideal channel.



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Trade press editorial can influencethe people who are opinion leaderswithin their particular field. In addition, opinion leaders maywell use trade press editorial to

influence others, by for examplecirculating copies of articles whichhave interested them.



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Building strong brand equity is arelatively long-term process thatrevolves around building value forcustomers first, from which comespositive associations about the productand the company, and building broaderassociations. The most powerful associations comefrom customers direct experiences.

Diff iculties In B2BBranding


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Every time customers interactwith a supplier, with its products,or interact with customer serviceperson, impressions are formedabout the company, the products,and its employees.

Strong B2B brands are, therefore,built one customer at a time.

Diff iculties In B2BBranding


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