Upload
ashishkotecha14
View
220
Download
0
Embed Size (px)
Citation preview
8/2/2019 Branding for b2b [p]
1/66
Prof. A. K. Biswas 1
8/2/2019 Branding for b2b [p]
2/66
Prof. A. K. Biswas 2
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
8/2/2019 Branding for b2b [p]
3/66
Prof. A. K. Biswas 3
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?
8/2/2019 Branding for b2b [p]
4/66
Prof. A. K. Biswas 4
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?
8/2/2019 Branding for b2b [p]
5/66
Prof. A. K. Biswas 5
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?
8/2/2019 Branding for b2b [p]
6/66
Prof. A. K. Biswas 6
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?
8/2/2019 Branding for b2b [p]
7/66Prof. A. K. Biswas 7
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?
8/2/2019 Branding for b2b [p]
8/66Prof. A. K. Biswas 8
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?
8/2/2019 Branding for b2b [p]
9/66Prof. A. K. Biswas 9
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?
8/2/2019 Branding for b2b [p]
10/66Prof. A. K. Biswas 10
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?
8/2/2019 Branding for b2b [p]
11/66Prof. A. K. Biswas 11
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?
8/2/2019 Branding for b2b [p]
12/66Prof. A. K. Biswas 12
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?
8/2/2019 Branding for b2b [p]
13/66Prof. A. K. Biswas 13
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?
8/2/2019 Branding for b2b [p]
14/66
Prof. A. K. Biswas 14
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?
8/2/2019 Branding for b2b [p]
15/66
Prof. A. K. Biswas 15
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.
What Is B2B Branding?
8/2/2019 Branding for b2b [p]
16/66
Prof. A. K. Biswas 16
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.
What Is B2B Branding?
8/2/2019 Branding for b2b [p]
17/66
Prof. A. K. Biswas 17
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.
What Is B2B Branding?
8/2/2019 Branding for b2b [p]
18/66
Prof. A. K. Biswas 18
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.
What Is B2B Branding?
8/2/2019 Branding for b2b [p]
19/66
Prof. A. K. Biswas 19
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.
8/2/2019 Branding for b2b [p]
20/66
Prof. A. K. Biswas 20
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
21/66
Prof. A. K. Biswas 21
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
22/66
Prof. A. K. Biswas 22
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
23/66
Prof. A. K. Biswas 23
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
24/66
Prof. A. K. Biswas 24
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
25/66
Prof. A. K. Biswas 25
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
26/66
Prof. A. K. Biswas 26
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
27/66
Prof. A. K. Biswas 27
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?
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
28/66
Prof. A. K. Biswas 28
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
29/66
Prof. A. K. Biswas 29
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
30/66
Prof. A. K. Biswas 30
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
31/66
Prof. A. K. Biswas 31
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.
Steps for Building StrongB2B Brand
8/2/2019 Branding for b2b [p]
32/66
Prof. A. K. Biswas 32
Elements Of Brand Trust
Brand TrustCompetence
Probity
Continuity
CaringalueResonance
8/2/2019 Branding for b2b [p]
33/66
Prof. A. K. Biswas 33
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.
Elements Of Brand Trust
8/2/2019 Branding for b2b [p]
34/66
Prof. A. K. Biswas 34
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.
Elements Of Brand Trust
8/2/2019 Branding for b2b [p]
35/66
Prof. A. K. Biswas 35
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
8/2/2019 Branding for b2b [p]
36/66
Prof. A. K. Biswas 36
Different Brand ElementsIn B2B And B2C Markets
TechnologicalDevelopment Fashion
Competence ValueResonance
Solution toParticularWell-definedproblem
QuantifiableFeedbackmechanisms
Life-styleaspirationLinear Progress Cyclical
Facts & figuresRational argument Personalpreferences
8/2/2019 Branding for b2b [p]
37/66
Prof. A. K. Biswas 37
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.
Different Brand ElementsIn B2B And B2C Markets
8/2/2019 Branding for b2b [p]
38/66
Prof. A. K. Biswas 38
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.
Different Brand ElementsIn B2B And B2C Markets
8/2/2019 Branding for b2b [p]
39/66
Prof. A. K. Biswas 39
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.
Different Brand ElementsIn B2B And B2C Markets
8/2/2019 Branding for b2b [p]
40/66
Prof. A. K. Biswas 40
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
8/2/2019 Branding for b2b [p]
41/66
Prof. A. K. Biswas 41
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
8/2/2019 Branding for b2b [p]
42/66
Prof. A. K. Biswas 42
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
8/2/2019 Branding for b2b [p]
43/66
Prof. A. K. Biswas 43
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
8/2/2019 Branding for b2b [p]
44/66
Prof. A. K. Biswas 44
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
8/2/2019 Branding for b2b [p]
45/66
Prof. A. K. Biswas 45
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
8/2/2019 Branding for b2b [p]
46/66
Prof. A. K. Biswas 46
Communications StrategyFor B2B Brand Building
TechnologicalDevelopment FashionDifferentiating characteristics
Machine tools Cosmetics
Contents
InstrumentalPedagogic Iconic
MethodsInteractive Broadcasting
Private cars
8/2/2019 Branding for b2b [p]
47/66
Prof. A. K. Biswas 47
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
48/66
Prof. A. K. Biswas 48
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
49/66
Prof. A. K. Biswas 49
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
50/66
Prof. A. K. Biswas 50
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
51/66
Prof. A. K. Biswas 51
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
52/66
Prof. A. K. Biswas 52
The main sources for informationabout B2B suppliers are asfollows: Based on personal relationships Based on media sources
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
53/66
Prof. A. K. Biswas 53
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
54/66
Prof. A. K. Biswas 54
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
55/66
Prof. A. K. Biswas 55
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
56/66
Prof. A. K. Biswas 56
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
57/66
Prof. A. K. Biswas 57
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
58/66
Prof. A. K. Biswas 58
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
59/66
Prof. A. K. Biswas 59
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
60/66
Prof. A. K. Biswas 60
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
61/66
Prof. A. K. Biswas 61
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
62/66
Prof. A. K. Biswas 62
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
63/66
Prof. A. K. Biswas 63
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.
Communications StrategyFor B2B Brand Building
8/2/2019 Branding for b2b [p]
64/66
Prof. A. K. Biswas 64
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
8/2/2019 Branding for b2b [p]
65/66
Prof. A. K. Biswas 65
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
8/2/2019 Branding for b2b [p]
66/66