B2B BRANDINGB2B BRANDINGBy By

Ashutosh AgrawalAshutosh Agrawal

INTRODUCTIONINTRODUCTION

• What is B2B ?What is B2B ?

• How B2B differ from B2C?How B2B differ from B2C?

• What is B2What is B2B B branding?branding?

ESTABLISHING A B2B BRAND ESTABLISHING A B2B BRAND

• Establishing brands in a B2B environment Establishing brands in a B2B environment is differentis different from from

branding to the general public. The role and the mechanism of branding to the general public. The role and the mechanism of

an industrial brand strategy have to be more focused than an industrial brand strategy have to be more focused than

those pursued and implemented in consumer markets.those pursued and implemented in consumer markets.

• The main difference between B2B and B2C The main difference between B2B and B2C markets can be markets can be

found in the found in the nature and complexity of industrial products nature and complexity of industrial products

and servicesand services, the nature and diversity of industrial demand, , the nature and diversity of industrial demand,

fewer customers, larger volumes per customer, and last but not fewer customers, larger volumes per customer, and last but not

least, closer and longer-lasting supplier-customer-least, closer and longer-lasting supplier-customer-

relationshipsrelationships..

• A A holistic branding approachholistic branding approach is required, that everything from the is required, that everything from the

development, design, to the implementation of marketing programs, development, design, to the implementation of marketing programs,

processes, and activities is recognized as intersecting and processes, and activities is recognized as intersecting and

interdependent.interdependent.

• The The buying situations of B2B companiesbuying situations of B2B companies can be broken down into can be broken down into

three recurring types: the straight re-buy, modified re-buy, and new task.three recurring types: the straight re-buy, modified re-buy, and new task.

• The The members of the buying centermembers of the buying center can be classified can be classified

according to their role in the buying decision: the user, buyer, according to their role in the buying decision: the user, buyer,

decider, and influencer. They all have to act considering the decider, and influencer. They all have to act considering the

complex influential dimensions on and in the buying center.complex influential dimensions on and in the buying center.

• An An organizational buying processorganizational buying process can encompass the can encompass the

following stages: problem recognition, general need following stages: problem recognition, general need

description, product specification, search for and evaluation of description, product specification, search for and evaluation of

potential suppliers, proposal solicitation and analysis, supplier potential suppliers, proposal solicitation and analysis, supplier

evaluation and selection, order-routine specification, evaluation and selection, order-routine specification,

performance review.performance review.

• Interpersonal and individual factorInterpersonal and individual factor of the buying center members are human of the buying center members are human

factors in business decisions.factors in business decisions.

• Establishing B2B brandsEstablishing B2B brands encompasses creating trust, confidence and comfort encompasses creating trust, confidence and comfort

for all partners in the buying processfor all partners in the buying process

• Even commodities Even commodities can be brandedcan be branded as our examples of as our examples of AcmeAcme BrickBrick or or TataTata

SteelSteel show. show.

• Emotions in B2B BrandingEmotions in B2B Branding play a major role in business decisions, even if play a major role in business decisions, even if

they are easily recognizable.they are easily recognizable.

GUIDING PRINCIPLEGUIDING PRINCIPLE

TO BRAND OR NOT TO BRANDTO BRAND OR NOT TO BRAND

• Brands cannot be created over nightBrands cannot be created over night. The decision to . The decision to

brand a product, line of products, or company needs to be brand a product, line of products, or company needs to be

based on evidence that based on evidence that brands do actually matterbrands do actually matter in the in the

respective area. respective area.

• The environment for establishing and managing brands is The environment for establishing and managing brands is

complex and dynamiccomplex and dynamic.. Brand management is Brand management is

challenging challenging – whether you are in the consumer goods, – whether you are in the consumer goods,

services or industrial products sectors. services or industrial products sectors.

B2B BRANDING DECISIONB2B BRANDING DECISION

• Branding is just as relevant in B2BBranding is just as relevant in B2B as it is in B2C. as it is in B2C.

Brands like Brands like MicrosoftMicrosoft, , IBMIBM, , IntelIntel, , DellDell, , SAPSAP, , SiemensSiemens, ,

FedExFedEx, , BoeingBoeing are vivid examples of the fact that some of are vivid examples of the fact that some of

the world’s strongest brands do exist in B2B.the world’s strongest brands do exist in B2B.

• Branding is not about stirring people into irrational buying Branding is not about stirring people into irrational buying

decisions – it is rather an decisions – it is rather an effective and compelling effective and compelling

meansmeans to communicate to communicate the benefits and value a product the benefits and value a product

or service can provide.or service can provide.

• Branding is about Branding is about taking something common taking something common and improving uponand improving upon it in ways it in ways

that make it more valuable and meaningful.that make it more valuable and meaningful.

• Trusted brands actTrusted brands act as touchstones as touchstones, offering orientation the flood of , offering orientation the flood of

information, and many other benefits and advantages to buyers.information, and many other benefits and advantages to buyers.

• A brand is much more than a productA brand is much more than a product, a brand name, a logo, a symbol, a , a brand name, a logo, a symbol, a

slogan, an ad, a jingle, a spokesperson; these are just tangible components of a slogan, an ad, a jingle, a spokesperson; these are just tangible components of a

brand – not the brand itselfbrand – not the brand itself

• A brand is a promise, the totality of perceptionsA brand is a promise, the totality of perceptions

• Branding should always start at the top of a businessBranding should always start at the top of a business. Building, championing, . Building, championing,

supporting and protecting strong brands is everyone’s job, starting with the CEO.supporting and protecting strong brands is everyone’s job, starting with the CEO.

• Brands do pay off.Brands do pay off. Companies with a strong brand can benefit tremendously from it. Companies with a strong brand can benefit tremendously from it.

• The most important brand functions in B2B are The most important brand functions in B2B are increased information efficiency, risk increased information efficiency, risk

reduction and value addedreduction and value added/image/image benefit creation. benefit creation.

BRANDING DIMENSIONS BRANDING DIMENSIONS

• Stop underestimating the power of brandsStop underestimating the power of brands in B2B! in B2B!

• Make a consistent impressionMake a consistent impression with all your stakeholders at with all your stakeholders at

every single point of interaction.every single point of interaction.

• Build a strategic brand architectureBuild a strategic brand architecture that supports and that supports and

enhances the type and nature of your company and distinguish enhances the type and nature of your company and distinguish

between Corporate, Product, and Family Branding.between Corporate, Product, and Family Branding.

• The most The most common brand strategy in B2Bcommon brand strategy in B2B is a corporate is a corporate

brand in combination with a few product brands.brand in combination with a few product brands.

• Ingredient Branding Ingredient Branding as a form of multi-stage branding, as a form of multi-stage branding,

becomes increasingly relevant for supplies and OEMs.becomes increasingly relevant for supplies and OEMs.

• The The major communication instrumentsmajor communication instruments in B2B in B2B are are

Direct Sales, Direct Marketing, PR, Specialized Press, Direct Sales, Direct Marketing, PR, Specialized Press,

Sponsorships, Trade Shows and Exhibitions, Advertising, Sponsorships, Trade Shows and Exhibitions, Advertising,

Sales Promotion, and E-Marketing.Sales Promotion, and E-Marketing.

• It is It is essential for every brandessential for every brand to implement a to implement a

comprehensive and adequate measurement system to comprehensive and adequate measurement system to

gauge and guide brand success.gauge and guide brand success.

• It is It is crucial to effectively communicate the values of crucial to effectively communicate the values of

your brandsyour brands to your own people. to your own people.

• Online BrandingOnline Branding is a crucial part of B2B brand building.is a crucial part of B2B brand building.

• Building Brand through Word-of-MouthBuilding Brand through Word-of-Mouth is a common approach in the is a common approach in the

industrial world. Recently, this old fashioned method has been enhanced industrial world. Recently, this old fashioned method has been enhanced

by Internet technology called Weblogs (blogs)by Internet technology called Weblogs (blogs)

ACCELERATION THROUGH ACCELERATION THROUGH BRANDING –BRANDING –

• The brand building process consists of brand planning, The brand building process consists of brand planning,

brand analysis, brand strategy, brand building, and brand brand analysis, brand strategy, brand building, and brand

auditing.auditing.

• Brand building startsBrand building starts

• Mastering brand stability, brand leadership, Mastering brand stability, brand leadership, andand

international presenceinternational presence

• The The power of a brand lies in the customer mind setpower of a brand lies in the customer mind set – –

ACCELERATION THROUGH ACCELERATION THROUGH BRANDING –BRANDING –

• Brand analysisBrand analysis • Branding refer to the indispensable conditions that Branding refer to the indispensable conditions that

precede successful precede successful brandingbranding: Consistency, : Consistency, Clarity, Constancy, Visibility, and Authenticity.Clarity, Constancy, Visibility, and Authenticity.

• Brand strategy Brand strategy consists of developing a strong consists of developing a strong mission, posi tioning, brand promise, and value mission, posi tioning, brand promise, and value proposition. proposition.

• Successful brands don’t just sell products; they Successful brands don’t just sell products; they communicate communicate clear valuesclear values stretched across a stretched across a number of products.number of products.

• Brand auditingBrand auditing seeks to measure the strengths seeks to measure the strengths and weaknesses of a brand and the overall brand and weaknesses of a brand and the overall brand portfolio. portfolio.

SUCCESS STORIESSUCCESS STORIES

Case Principle

FedExFrom a House of Brands to a Branded House“How FedEx communicates one brand promise in B2C and B2B in several businesses.”

SamsungLeveraging the brand from B2C to B2B“How to successfully leverage B2C brand strength to B2B business.”

Cemex

Dual branding to create brand equity“Cemex dual branding concept of branding for B2B clients and individual branding for B2C clients with specific country needs.”

SUCCESS STORIESSUCCESS STORIESCase Principle

Successful turnaround through brand communications “Strengthening IBM brand by an integrated marketing communication approach.”

IBM

SiemensBranding for cross-selling initiatives “Effective and efficient brand communication of Siemens’ cross-business activities.”

LanxessBrand communication of a spin-off “Successful build up of brand positioning and alignment of communication activities to lead the business into independence.”

LenovoBuilding a global Brand from China “Leveraging the excellent reputation on quality and services of IBM’s PCs to Lenovo’s own brand.”

Tata Steel

Branding steel based on customer focus“How Tata Steel successfully branded its products and moved to high value added products (through internal Marketing focused on customers).”

BRANDING PITFALLS BRANDING PITFALLS

• Branding in general is a delicate matter. Branding in general is a delicate matter. Branding in B2B can be even more delicate Branding in B2B can be even more delicate if one doesn’t understand what it is all if one doesn’t understand what it is all about. There are some general pitfalls about. There are some general pitfalls generated by common misunderstandings generated by common misunderstandings related to branding. related to branding.

• Brands are just as fragile as they are Brands are just as fragile as they are profitable if well managed.profitable if well managed.

BEWARE OF BRANDING PITFALLSBEWARE OF BRANDING PITFALLS

• Pitfall No. 1: Pitfall No. 1: A Brand Is Something You OwnA Brand Is Something You Own

• Pitfall No. 2: Pitfall No. 2: Brands Take Care of ThemselvesBrands Take Care of Themselves

• Pitfall No. 3: Pitfall No. 3: Brand Awareness vs. Brand RelevanceBrand Awareness vs. Brand Relevance

• Pitfall No. 4: Pitfall No. 4: Don’t Wear BlindersDon’t Wear Blinders

• Pitfall No. 5: Pitfall No. 5: Don’t Let Outsiders Do Your JobDon’t Let Outsiders Do Your Job