Branding for b2b

7/31/2019 Branding for b2b

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AgendaWhy 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 B2B BrandBuilding

Difficulties in B2B Branding

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Why B2B Branding? Many business marketing managers think

that branding is not relevant to B2B markets.

They argue that industrial products do notneed branding as it adds little value tofunctional products and that customersknew a great deal about their products as

well their competitors products.

To them, brand loyalty is non-rationalbehaviour which do not apply to rational

world of B2B products.

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The evaluation and selection process in B2Bmarket can be described as being dividedinto several parts.

First, buyers select a smaller number ofsuppliers among the total array of firmsthat are able to deliver what is requested.

This group of selected firms may be

referred to as the evoked set, theconsideration set or, simply, the short list.

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Why B2B Branding?


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Second, once further information hasbeen gathered, this initial list 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 buyers inconducting an initial screening,evaluation and selection of availablesuppliers.

Why B2B Branding?


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Examples include internal files, officiallists of suppliers, word of mouth, trade

shows, brochures and advertising,reputation, quality of presentation andfamiliarity, personal contacts earlierperformance, articles and other

publications in the trade press,computerized services, buyers from othermarkets and trade fairs.

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Why B2B Branding?


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While the initial screening provides thebuyer with limited information about thecompany, B2B buyers normally need to

know more about the supplier, as theproducts purchased are often critical totheir operations.

Hence, when the evoked set of suppliers is

examined further, additional criteria suchas production capability, quality control,age of equipment, electronic advances andfinancial stability can be used.

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Why B2B Branding?


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Buyers can also evaluate productionfacilities, quality assurance programs

and the companys management group. The criteria applied should be based on,

for example, the role of theproduct/service (e.g. degree ofcriticality) in the buyers sourcingstrategy.

Why B2B Branding?


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Why B2B Branding? But, customers in B2B market are often to

make buying decisions under a great deal ofpressure, and buyers, under such situation,

would like to evaluate and choose fromreputed suppliers.

Research on industrial buying behavior hasindicated a wide variety of factors that can

affect buyers during stages of suppliernomination, evaluation and selection.

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Research has shown that price is a minorissue when buyers evaluate suppliers ofcomponents and complex products.

Quality, delivery and performance historyare more important criteria

The fact that history matters implies thatthe buyers image of a supplier caninfluence a decision regardless of thecurrent offer.

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Why B2B Branding?


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Buyers need security particularly whenplanning for long-term contracts andtherefore vendors perceptions are moreimportant higher the riskattributed 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 is

quite frequent and significant.

Why B2B Branding?


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Why B2B Branding?

Brands facilitate the identification ofproducts, services, and businesses as welldifferentiate them from competition.

They are a guarantee of quality, origin, andperformance, thereby increasing the perceivedvalue of the customer and reducing the riskand complexity involved in the buyingdecision.

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As a result business market managersare increasingly seeking to brand their

products to differentiate themselvesfrom their competition and thus toavoid their products being commodities.

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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What Is B2B Branding?

For the B2B marketer then, a brand can bedefined as a distinctive identity that

differentiates a relevant, enduring, andcredible promise of value associated with aproduct, service, or organization and indicatesthe source of that promise.

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In B2B market corporate branding is pre-dominant.

Corporate brands differ from productbrands in that they represent the firm, andtheir image is potentially constructed byeverything a firm is perceived to be doing.

Thus, corporate brand image issynonymous with the companys corporateimage.

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Corporate branding constitutes ongoing valuecreation, which is central to the organization,

but also important for its stakeholders, as itaids in identifying the organizations purposeand positions it in the market.

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What Is B2B Branding?Without great products and services there

can be no successful brand.

The companies that thrive are the ones that

create the most compelling and consistentbrand experience for their customers.

To develop a consistent brand experience,the marketer must understand how the B2B

customer defines the concept of value andthen to work to deliver that value throughoutall interactions with the customer.

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When the product is delivered in a way thecustomer understands, desires, and is

willing to pay for, the brand has a greater

opportunity of having higher perceivedvalue for that customer. Having a brand with high-perceived value

will set the stage for a long-lasting

relationship to develop, and the depth ofthe relationship between the brand and itscustomers will be the foundation for thebrand loyalty.

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Steps for Building Strong

B2B Brand The first step in building a strong brand

is to ensure correct brand identity. The purpose is to create an

identification of the brand withcustomers, and an association in theirminds with specific product class orneed.

To do this the brand must have saliencein the sense that how often and easilythe brand is evoked under variouspurchase or consumption situations.


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The second step is to establish brandmeaning by linking tangible and

intangible brand associations. Brand meaning is characterized in

functional (brand performance) andabstract (image related) associations.

Brand performance relates to how theproduct or service meets customersfunctional needs.


B2B Brand


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Functional attributes are primaryingredients and supplementary

features; product reliability,durability and serviceability; serviceeffectiveness; style and design; andprice.

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


B2B Brand


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Finally, because loyalty is often directedmore towards the entire companyrather than a specific brand, the

companys standing in the industry andtheir overall reputation are alsoconsidered part of the brand.

This may be due in part to the increased

perceived risk industrial customers feelas a result with dealing with an ever-increasing number of technicallycomplex product choices.


B2B Brand


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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.


B2B Brand


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In B2B market, the name of thecompany stand for many kinds of

assurances such as: Assurance of product quality.

Assurance of service availability anddependability.

Assurance of timely and reasonableupgrades.

Assurance of priority attention to arelationship.


B2B Brand


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In the pre-selection phase of thebrand commitment, organizational

decision-makers face three problems:How to find eligible suppliers?

How to judge which of them are mosttrustworthy?

How to provide evidence to otherconcerned persons in the company tosupport the rationality of this choice?


B2B Brand


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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 is veryimportant 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.


B2B Brand


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The next step to B2B brand building is tocreate favourable response to the brand(including the company) by managingcustomer experiences.

Through their contacts with the brand andthe company (its personnel, channelmembers), and the resultant experiences,

the customers form theirjudgments aboutthe brand (and also the company) whichinclude its overall quality, credibility,consideration and superiority.

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B2B Brand


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Brand feelings are customers emotionalresponses and reactions to the brand and thecompany (including its personnel, and

channel partners). As the customer experiences successful

interactions in each of the components ofproduct value product performance,distribution performance, support services

performance, and company performance with a supplier over a period of time, thecustomer perceives there to be real benefit incontinuing with that supplier.

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B2B Brand


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As the sense of value in theseinteractions continues to grow,customers develop a sense of trust that

the supplier will continue to deliver thatvalue, and the seeds of the meaningfulrelationship are sown.

Brand relationships constitute the finalstep where brand response is converted

to create an intense, active loyaltyrelationships between the customers andbrand (including company).

The brand relationship is based on trustand confidence.


B2B Brand


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Elements Of Brand Trust

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Brand TrustCompetence

Probity

Continuity

CaringValueResonance


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Competence: technical capability tocompletely make the product, or effectivelydeliver the service, they are offering.

Probity: belief that the company will conductits transactions with a customer in an honestand fair way.

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Continuity: belief that the company has theresources and commitment necessary toremain in the business area relevant to thecustomer.

This is particularly important in relation toproducts which have a long lifetime.

Caring: the companys employees aresufficiently motivated to care about thequality of service or performance theydeliver.

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Value Resonance has two levels:A basic level ofcorporate good conduct

in the sense that the company do not

violate the value consensus on ethicaland environment issues.

A personalized level of life-styleappropriatenessand is concerned with

whether or not the vendor companyexpresses values, which the individualconsumer aspires to incorporate intheir personal life style.

ELEMENTS OF BRAND TRUST


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Different Brand Elements

In B2B And B2C Markets

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TechnologicalDevelopment

Fashion

CompetenceValue

Resonance

Solution toParticular

Well-definedproblem

QuantifiableFeedback

mechanisms

Life-style

aspirationLinear Progress Cyclical

Facts & figuresRational argument

Personalpreferences


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In B2B And B2C Markets Competence is the predominant element of

branding trust for B2B purchases, where asfor B2C fashion purchases it is valueresonance.

In order to develop and maintain long-termrelationship, the vendor in B2B market hasto provide the customer with continuingevidence of competence in the particulartechnical fields which are important to thecustomer.

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In B2B And B2C Markets This is also true for individual consumer

buying technology products, but B2Bpurchaser have the added pressure of othermembers of decision maker team and theusers.

Given that the transactions in the B2Brelationship is likely to have a largermonetary value than those involved inconsumer relationship, probity is moreimportant in B2B market.

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In B2B And B2C Markets Long-term continuity can be said to be more

important for B2B buyers though in case ofconsumer durable products with long lifetimethis element is also important.

Caring is likely to be relevant to nurturingbrand trust in both types of buyers.

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Brand equity is a set of assets linked to abrands name and symbol that add to thevalue provided by a product or service to

a customer. Brand equity results in customers

showing a preference for one productover another when they are basicallyidentical.

The extent to which customers are willingto pay more for the particular brand is a

measure of brand equity.

B2B Brand Equity


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The creation ofsignificant brand equityinvolves reaching the top of the brandpyramid, and will occur only if the rightbuilding blocks are put into place.

Brand salience relates to how often andeasily the brand is evoked under variouspurchase or consumption situations.

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 the

market. Brand judgments focus on customers

own personal opinions andevaluations.

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 nature ofrelationship that customers have withthe 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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Prof. A. K. Biswas43

Brand Equity Pyramid

1.Identity =Who are you?

2. Meaning =What are you?

4. Relationships =

What about youand me

Deep, broadbrand

awareness

Positive,accessible

reactions

Intense,

activeloyalty

Salience of theManufacturers Brand

Strong, favorableunique brandassociations

3.Response =What about

you?

PartnershipSolutions


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In the B2B world, the most importantcharacteristic is technical

competence. The most effective strategy for the

supplier firm should be case-basedcommunications strategy, which will

show how the firm has successfullyapplied their competence to thebenefit of previous customers.

Communications Strategy

For B2B Brand Building


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Communications Strategy For

B2B Brand Building

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TechnologicalDevelopment

Fashion

Differentiating characteristics

Machine tools Cosmetics

Contents

InstrumentalPedagogic Iconic

Methods

Interactive Broadcasting

Private cars


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B2B Brand Building

Communication can be divided into contentand methods.

For fashion-driven consumer products contentcan be characterized as iconic, i.e., the contentis likely to consist largely with imagery aimedat eliciting emotional responses.

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For technology-driven B2Bproducts, however, the content can

be described as instrumental andpedagogic, meaning that it isdesigned to communicateinformation targeted at people

who are looking for a product tofulfill a specific, often well-definedneed.




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B2B Brand Building

The ideal method of communication forfashion products is broadcasting, i.e.,addressing a mass audience withmessages designed for isolatedindividuals.

The messages are likely to elicit direct

emotional responses, i.e., people aregoing to respond favourably to them orthey are not.

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B2B Brand Building

For technology-driven products,however, the initial telecommunicationare more likely to initiate a formal groupprocess within the targetedorganization, and the message itself willbe instrumental and/or pedagogic in

nature directly referring to benefitswhich the product has to offer.

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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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B2B Brand Building

The main sources for information about B2Bsuppliers are as follows:

Based on personal relationships

Based on media sources

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B2B Brand BuildingPrevious direct positive experiences of

the company and its products is

certainly the firmest basis on which tobuild a relationship of trust with acustomer.

Moreover, all personal interactions,which the customer has with thecompany, must be consistently managedwell.

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B2B Brand BuildingAfter direct experience, the next strongest

influence isword-of-mouth.

The word-of-moth advice, which is acted

on, is most likely to come from people whohave high status within the relevantindustry and /or organization, e.g., topmanagers, consultants, technical experts,

etc. B2B marketer must influence them so that

they in turn influence others.

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B2B Brand Building Sales people can have a powerful influence

over purchase decisions and brandcommitment because their effect is based

on a personal relationship. Sales force should not only communicate

value, but must also create value byproviding benefits at reasonable trade-off

to costs.Value here can equate to problem solving

providing innovative solution.

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B2B Brand Building In most B2B markets, the primary form of

brand communication is through the salesforce and their ability to adapt sales

strategies and messages to accommodatecustomer interactions.

Successful B2B brand communicationrequires sales strategies that incorporate

brand values appealing to the emotionaland the rational concerns of organizationalbuyers.

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B2B Brand Building Successful communication outcomes are

dependent on sellers having a clearunderstanding of the motivations andbehaviour strategies of individuals withinbuying centres and buying teams.

Industrial buyers often have four categoriesof communication styles; Amiable,Expressive, Analytical or Driver.

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B2B Brand Building Buyers classified as Amiable are high in

responsiveness and low in assertivebehaviour.

They are strongly relationship-oriented,and will tend to view the salesperson as theembodiment of the brand's values and lookfor signals to make brand evaluations in

terms of compatibility, future relationshipcommitment andwillingness to meet theirneeds.

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B2B Brand Building Expressive buyers exhibit high levels of both

responsiveness and assertiveness.

They are extrovert, creative approval seekers,

who work quickly and rely heavily onintuition.

The sales strategy for Expressive buyersshould support their need for status and

acknowledgement and sales person mustemphasize emotional brand values stressingthe achievement of personal dreams andgoals.

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B2B Brand BuildingAnalytical buyers who are low in

assertiveness and responsiveness. They are driven bylogic and fact and actively

seek detailed product information. They tend to be formal and precise in their

interactions and their risk-taking approachis calculated.

Salespeople dealing with Analytical buyers

need to ensure that sales presentations arelogical and objective and ideally backed upbyexpert testimonials and guarantees.

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B2B Brand Building B2B purchasers categorized as Drivers

demonstrate high levels of assertiveness witha low level of responsive behaviour.

Brand value communication needs to belargelyfunctional to satisfy the Driver's needfor precise information on costs,performance and delivery.

However, Drivers are also strongly motivated

by results and achievements and therefore,emotional brand values that support theirgoal orientation should be emphasized.

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B2B Brand Building For B2B companies, the trade press is the

most effective of the conventional mediachannels.

Advertisements awaken interest in thebrand generally through a specific productoffering.

However, for B2B, as opposed to consumerbrands, the next step is to deliver complex,objective messages for which trade presseditorial is the ideal channel.

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Trade press editorial can influencethe people who are opinion leaders

within their particular field. In addition, opinion leaders may well

use trade press editorial to influence

others, by for example circulatingcopies of articles which haveinterested them.

Communications StrategyFor B2B Brand Building


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Difficulties In B2B Branding

Building strong brand equityis a relativelylong-term process that revolves aroundbuilding value for customers first, from

which comes positive associations aboutthe product and the company, and buildingbroader associations.

The most powerful associations come fromcustomersdirect experiences.

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Difficulties In B2B Branding

Every time customers interact with a supplier,with its products, or interact with customerservice person, impressions are formed about

the company, the products, and its employees.

Strong B2B brands are, therefore, built onecustomer at a time.

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