b2b branding

BUILDING A STRONG B2B BRAND

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EMBA 2K12

Lecture Plan

Importance of Brand in B2B Buying Behavior How do Manufacturer’s Brands Become

Standard? Brand & Brand Equity Customer-Based Brand Equity Model (CBBE) The Branding Triangle The Brand Customer Relationship Branding Checklist

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Importance of Brand in B2B Buying Behavior

“A recognized brand name with positive customer perception has advantage at

all stages of decision making”

Determine that a need exists Determine product specifications Acquire solution providers Cull the bids/proposals to a short list Evaluate the short list, or get revised

proposals/bids

Building a Strong B2B Brand

Companies need to ask:

1. What do you want your company name to stand for?

2. What do you want it to mean in the customer’s mind?

B2B Branding and ..

Understanding of the role of marketing as being different in the short versus the long-terms, with strategic marketing and operational marketing being two distinct activities.

Brand management therefore is the organizationalframework that systematically manages the planning,development, implementation, and evaluation of the brand strategy. The development of a holistic brand strategy has to involve

all levels of marketing management.

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How do Manufacturer’s Brands Become Standard?

First with new technology

Being the best with Service

Innovating to meet the need

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Brand & Brand Equity DefinedBrand

Name, sign, symbol, logo or anything that identifies and differentiates the product from competitors

Brand equitySet of brand assets and liabilities linked to a brand; it can add to – or detract from – the value of the brand

65.3

33.7

29.4

23.6

58.7

32.1

29.2

$ B

% of B2C sales % of B2B salesLegend:Source: Interbrand 2008

BRAND VALUE OF TOP 10 COMPANIES

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Coca

Cola

Micro-

soft

57.1

IBM

51.6

GE Mc-Donald’s

Nokia Toyota

30.9

Intel Mercedes-

Benz

Disney

Customer-Based Brand Equity (CBBE)

Kevin Lane Keller defines CBBE:The effect that customer brand knowledge has on their response to market activities and programs for the brand.

Brand Power relies on: What customers have learned, felt,

seen and heard about the brand over time.

How customers link their thoughts to feelings, perception, imagination and experience of the brand.

The concept behind the Brand Equity Model is simple:

in order to build a strong brand, you must shape how customers think and feel about your product.

You have to build the right type of experiences around your brand, so that customers have specific, positive thoughts, feelings, beliefs, opinions, and perceptions about it.

When you have strong brand equity, your customers will buy more from you, they'll recommend you to other people, they're more loyal, and you're less likely to lose them to competitors.

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CBBE Pyramid CBBE model lays out 4 steps for building a

strong brand:

1. Develop deep brand identity

2. Establish unique brand identity by highlighting differences

3. Employ marketing programs to elicit positive brand responses

4. Build brand relationships with loyal customers

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The model, illustrates the four steps that you need to follow to build strong brand equity.

CBBE PYRAMID

Step 1: Brand Identity – Who Are You?

In this first step, your goal is to create "brand salience," or awareness – in other words, you need to make sure that your brand stands out, and that customers recognize it and are aware of it.

You're not just creating brand identity and awareness here; you're also trying to ensure that brand perceptions are "correct" at key stages of the buying process.

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Step 2: Brand Meaning – What Are You? Your goal in step two is to identify and communicate

what your brand means, and what it stands for. The two building blocks in this step are: "performance" and "imagery."

"Performance" defines how well your product meets your customers' needs. Performance consists of product reliability, durability, and serviceability; service effectiveness, efficiency, and empathy; style and design; and price.

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"Imagery" refers to how well your brand meets your customers' needs on a social and psychological level. Your brand can meet these needs directly, from a customer's own experiences with a product; or indirectly, with targeted marketing, or with word of mouth.

A good example of brand meaning is Patagonia®. Patagonia makes high quality outdoor clothing and equipment, much of which is made from recycled materials.

Patagonia’s brand performance demonstrates its reliability and durability; people know that their products are well designed and stylish, and that they won't let them down. Patagonia’s brand imagery is enhanced by its commitment to several environmental programs and social causes; and its strong “reduce, reuse, recycle” values make customers feel good about purchasing products from an organization with an environmental conscience.

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Step 3: Brand Response – What Do I Think, or Feel, About You?

Your customers' responses to your brand fall into two categories: "judgments" and "feelings" These are the two building blocks in this step.

Your customers constantly make judgments about your brand and these fall into four key categories: Quality: Customers judge a product or brand based on its actual and

perceived quality. Credibility: Customers judge credibility using three dimensions –

expertise (which includes innovation), trustworthiness, and likability. Consideration: Customers judge how relevant your product is to their

unique needs. Superiority: Customers assess how superior your brand is, compared

with your competitors' brands.

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Customers also respond to your brand according to how it makes them feel. According to the model, there are six positive brand feelings: warmth, fun, excitement, security, social approval, and self-respect.

Step 4: Brand Resonance – How Much of a Connection Would I Like to Have With You? Brand "resonance" sits at the top of the brand equity

pyramid because it's the most difficult – and the most desirable – level to reach. You have achieved brand resonance when your customers feel a deep, psychological bond with your brand.

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Keller breaks resonance down into four categories:

Behavioral loyalty: This includes regular, repeat purchases. Attitudinal attachment: Your customers love your brand or your

product, and they see it as a special purchase. Sense of community: Your customers feel a sense of community

with people associated with the brand, including other consumers and company representatives.

Active engagement: This is the strongest example of brand loyalty. Customers are actively engaged with your brand, even when they are not purchasing it or consuming it. This could include joining a club related to the brand; participating in online chats, marketing rallies, or events; following your brand on social media; or taking part in other, outside activities.

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CBBE Pyramid

The Branding Triangle

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Company

Collaborators Customers

General Public

Building the basis for competitive advantage and long-term profitability through understanding branding triangle

The Brand Customer Relationship

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Publications

Technical Support

Trade shows/ Presentations

Web Site/ Web Banners

BrandProducts and

Services

Networking

Word of Mouth

Proposals

Customer Care

Innovation, R&D

Packaging

Business cards

Training

Service & Delivery

Sales Collateral

Pre-SelectionOngoing

Relationship & Referral

Purchase & Usage Experience

Publicity PR/Advertising

Sales Representative

Product Performance

Brand Strategy Guidelines

• The “Brand Mantra”• Develop a coherent branding strategy and then build on the

reputation of that brand• A firm with a strong brand can command a price premium

for its products or services. However, to sustain that premium, important points of differentiation must be clearly communicated to target customer segments

• Successful branding requires a well-conceived market segmentation plan

BRANDING CHECKLIST (1)

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Brand Identity Are you conveying a consistent brand identity to your

target audience? (logo, colors, designs etc.)

Does your brand identity accurately reflect the company/product’s key attributes?

Does your staff understand what your brand stands for and their role in delivering on your brand promise?

Do you always deliver on your brand promise?

Is your brand identity protected – do you have a set of guidelines on how the various brand elements should be used?

Source: Nick Pauley Design Brand Check (2008) download under http://www.pauleydesign.co.uk/PD_gd_brandcheck.pdf


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Brand Awareness Is your brand easily recognized by your

target audiences? Is your brand top of mind when your target

audiences consider purchasing? Does your brand feature on all relevant

marketing material? Competitive Positioning/Market Awareness

Do you understand your brand positioning in the marketplace?

Do you have a competitive edge in the marketplace?

Are you aware of potential opportunities in the market?



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Looking to the Future – The Process

Is your organizational structure, operations and culture aligned with your brand values?

Do you review your brand and what it stands for each year?

Do you have systems in place to continually monitor your brand internally and externally?


b2b branding

Documents

brand management

brand value

brand salience

brand power

strong brand equity

customer brand knowledge

holistic brand strategy

strong b2b brandcompanies