Prof. A. K.

Biswas

Agenda

Why B2B Branding? What is B2B Branding? Steps for Building Strong B2B Brands Different Brand Elements In B2B And B2C Markets B2B Brand Equity Communications Strategy For B2B Brand Building Difficulties in B2B Branding
Prof. A. K. Biswas 2

Why B2B Branding?

Many business marketing managers think that branding is not relevant to B2B markets. They argue that industrial products do not need branding as it adds little value to functional products and that customers knew a great deal about their products as well their competitors products. To them, brand loyalty is non-rational behaviour which do not apply to rational world of B2B products.
Prof. A. K. Biswas

Why B2B Branding?

The evaluation and selection process in B2B market can be described as being divided into several parts. First, buyers select a smaller number of suppliers among the total array of firms that are able to deliver what is requested. This group of selected firms may be referred to as the evoked set, the consideration set or, simply, the short list.
Prof. A. K. Biswas 4

Why B2B Branding?

Second, once further information has been gathered, this initial list can be reduced to form a choice set. Finally, buyers need to choose which suppliers in the choice set to engage. Various types of information and sources are used by industrial buyers in conducting an initial screening, evaluation and selection of available suppliers.
Prof. A. K. Biswas 5

Why B2B Branding?

Examples include internal files, official lists of suppliers, word of mouth, trade shows, brochures and advertising, reputation, quality of presentation and familiarity, personal contacts earlier performance, articles and other publications in the trade press, computerized services, buyers from other markets and trade fairs.
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Why B2B Branding?

While the initial screening provides the buyer with limited information about the company, B2B buyers normally need to know more about the supplier, as the products purchased are often critical to their operations. Hence, when the evoked set of suppliers is examined further, additional criteria such as production capability, quality control, age of equipment, electronic advances and financial stability can be used.
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Why B2B Branding?

Buyers can also evaluate production facilities, quality assurance programs and the companys management group. The criteria applied should be based on, for example, the role of the product/service (e.g. degree of criticality) in the buyers sourcing strategy.

Prof. A. K. Biswas

Why B2B Branding?

But, customers in B2B market are often to make buying decisions under a great deal of pressure, and buyers, under such situation, would like to evaluate and choose from reputed suppliers. Research on industrial buying behavior has indicated a wide variety of factors that can affect buyers during stages of supplier nomination, evaluation and selection.
Prof. A. K. Biswas 9

Why B2B Branding?

Research has shown that price is a minor issue when buyers evaluate suppliers of components and complex products. Quality, delivery and performance history are more important criteria The fact that history matters implies that the buyers image of a supplier can influence a decision regardless of the current offer.
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Why B2B Branding?

Buyers need security particularly when planning for long-term contracts and therefore vendors perceptions are more important higher the risk attributed to a purchase situation. New task purchasing is open to great brand influence, as the buyer has no experience of that particular purchase. The new task/new supplier situation is quite frequent and significant.
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Why B2B Branding?

Brands facilitate the identification of products, services, and businesses as well differentiate them from competition. They are a guarantee of quality, origin, and performance, thereby increasing the perceived value of the customer and reducing the risk and complexity involved in the buying decision.
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Why B2B Branding?

As a result business market managers are increasingly seeking to brand their products to differentiate themselves from their competition and thus to avoid their products being commodities. Microsoft, IBM, General Electrics, Intel, HP, Cisco Systems, Dell, Oracle, SAP, Siemens, FedEx, Boeing are vivid examples of the fact that that some of the worlds strongest brands are B2B brands. 13 Prof. A. K. Biswas

What Is B2B Branding?

For the B2B marketer then, a brand can be defined as a distinctive identity that differentiates a relevant, enduring, and credible promise of value associated with a product, service, or organization and indicates the source of that promise.
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What Is B2B Branding?

In B2B market corporate branding is pre-dominant. Corporate brands differ from product brands in that they represent the firm, and their image is potentially constructed by everything a firm is perceived to be doing. Thus, corporate brand image is synonymous with the companys corporate image.
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What Is B2B Branding?

Corporate branding constitutes ongoing value creation, which is central to the organization, but also important for its stakeholders, as it aids in identifying the organizations purpose and 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 consistent brand experience for their customers. To develop a consistent brand experience, the marketer must understand how the B2B customer defines the concept of value and then to work to deliver that value throughout all interactions with the customer.
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What Is B2B Branding?

When the product is delivered in a way the customer understands, desires, and is willing to pay for, the brand has a greater opportunity of having higher perceived value for that customer. Having a brand with high-perceived value will set the stage for a longlasting relationship to develop, and the depth of the relationship between the brand and its customers will be the foundation for the brand 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 with customers, and an association in their minds with specific product class or need. To do this the brand must have salience in the sense that how often and easily the brand is evoked under various purchase or consumption 19 Prof. A. K. Biswas situations.

Steps for Building Strong B2B Brand

The second step is to establish brand meaning by linking tangible and intangible brand associations. Brand meaning is characterized in functional (brand performance) and abstract (image related) associations. Brand performance relates to how the product or service meets customers functional needs.
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Steps for Building Strong B2B Brand

Functional attributes are primary ingredients and supplementary features; product reliability, durability and serviceability; service effectiveness; style and design; and price. Image associations relate to companys standing in the industry and their overall reputation.
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Steps for Building Strong B2B Brand

In a business market a brand represents a multidimensional promise of value that includes more factors than simply the performance of the physical product. A second factor integral to the success of a brand is the ability of the manufacturer to deliver the needed products and services in a timely manner, often through an intermediary who understands and communicates this value to the end users.
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Steps for Building Strong B2B Brand

The third factor that is important in industrial branding is company support services. All members of the organization must understand that their customers may define the value of the product by the way a company representative responds to their specific need at a specific point of time and they must therefore respond to customers in a reliable, timely, and efficient manner.
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Steps for Building Strong B2B Brand

Finally, because loyalty is often directed more towards the entire company rather than a specific brand, the companys standing in the industry and their overall reputation are also considered part of the brand. This may be due in part to the increased perceived risk industrial customers feel as a result with dealing with an ever-increasing number of technically complex product choices.
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Steps for Building Strong B2B Brand

The reputation a supplier company has can serve to reduce this risk. The company then must endeavour to create that positive intangible image for this brand through promotions, public relations, and in every interaction with their customers.
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Steps for Building Strong B2B Brand

In B2B market, the name of the company stand for many kinds of assurances such as:

Assurance of product quality. Assurance of service availability and dependability. Assurance of timely and reasonable upgrades. Assurance of priority attention to a relationship.
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Steps for Building Strong B2B Brand

In the pre-selection phase of the brand commitment, organizational decision-makers face three problems:
How to find eligible suppliers? How to judge which of them are most trustworthy? How to provide evidence to other concerned persons in the company to support the rationality of this choice? 27 Prof. A. K. Biswas

Steps for Building Strong B2B Brand

A B2B marketer must, therefore, promote the company and its products in all the right places. The role of the channel members is very important here. The good reputation of the prospective supplier is the evidence that will persuade first the individual decisionmaker and then the other members of the buying team about the trustworthiness of that firm.
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Steps for Building Strong B2B Brand

The next step to B2B brand building is to create favourable response to the brand (including the company) by managing customer experiences. Through their contacts with the brand and the company (its personnel, channel members), and the resultant experiences, the customers form their judgments about the brand (and also the company) which include its overall quality, credibility, consideration and superiority.
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Steps for Building Strong B2B Brand

Brand feelings are customers emotional responses and reactions to the brand and the company (including its personnel, and channel partners). As the customer experiences successful interactions in each of the components of product value product performance, distribution performance, support services performance, and company performance with a supplier over a period of time, the customer perceives there to be real benefit in continuing with that supplier.
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Steps for Building Strong B2B Brand

As the sense of value in these interactions continues to grow, customers develop a sense of trust that the supplier will continue to deliver that value, and the seeds of the meaningful relationship are sown. Brand relationships constitute the final step where brand response is converted to create an intense, active loyalty relationships between the customers and brand (including company). The brand relationship is based on trust and confidence.
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Elements Of Brand Trust

Probity

Competence

Brand Trust

Continuity

Value Resonance

Caring
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Elements Of Brand Trust

Competence: technical capability to completely make the product, or effectively deliver the service, they are offering. Probity: belief that the company will conduct its transactions with a customer in an honest and fair way.
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Elements Of Brand Trust

Continuity: belief that the company has the resources and commitment necessary to remain in the business area relevant to the customer. This is particularly important in relation to products which have a long lifetime. Caring: the companys employees are sufficiently motivated to care about the quality of service or performance they deliver.
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ELEMENTS OF BRAND TRUST

Value Resonance has two levels: A basic level of corporate good conduct in the sense that the company do not violate the value consensus on ethical and environment issues. A personalized level of life-style appropriateness and is concerned with whether or not the vendor company expresses values, which the individual consumer aspires to incorporate in their personal life style.
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Different Brand Elements In B2B And B2C Markets

Competence Solution to Particular Well-defined problem Value Resonance

Technological Development Linear Progress Facts & figures Rational argument

Prof. A. K. Biswas

Fashion Quantifiable Feedback mechanisms Life-style aspiration Cyclical Personal preferences

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Different Brand Elements In B2B And B2C Markets

Competence is the predominant element of branding trust for B2B purchases, where as for B2C fashion purchases it is value resonance. In order to develop and maintain longterm relationship, the vendor in B2B market has to provide the customer with continuing evidence of competence in the particular technical fields which are important to the customer.
Prof. A. K. Biswas 37

Different Brand Elements In B2B And B2C Markets

This is also true for individual consumer buying technology products, but B2B purchaser have the added pressure of other members of decision maker team and the users. Given that the transactions in the B2B relationship is likely to have a larger monetary value than those involved in consumer relationship, probity is more important in B2B market.
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Different Brand Elements In B2B And B2C Markets

Long-term continuity can be said to be more important for B2B buyers though in case of consumer durable products with long lifetime this element is also important. Caring is likely to be relevant to nurturing brand trust in both types of buyers.
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B2B Brand Equity

Brand equity is a set of assets linked to a brands name and symbol that add to the value provided by a product or service to a customer. Brand equity results in customers showing a preference for one product over another when they are basically identical. The extent to which customers are willing to pay more for the particular brand is a measure of brand equity.
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B2B Brand Equity

The creation of significant brand equity involves reaching the top of the brand pyramid, and will occur only if the right building blocks are put into place. Brand salience relates to how often and easily the brand is evoked under various purchase or consumption situations. Brand performance relates to how the product or service meets customers 41 Prof. functional needs. A. K. Biswas

B2B Brand Equity

Brand imagery deals with the manufacturers reputation in the market. Brand judgments focus on customers own personal opinions and evaluations. Brand feelings are customers emotional responses and reactions with respect to the brand (and the company).
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B2B Brand Equity

Brand resonance refers to the nature of relationship that customers have with the brand and the extent to which customers feel that they are in sync with the brand. Resonance is characterized in terms of the intensity or depth of the bond customers have with the brand, as well as the activity engendered by this loyalty.
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Brand Equity Pyramid

4. Relationships = What about you and me 3.Response = What about you? 2. Meaning = What are you?
Partnership Solutions
rce Fo hips s les Sa tion la Re
ts

Intense, active loyalty Positive, accessible reactions Strong, favorable unique brand associations Deep, broad brand awareness
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1.Identity = Who are you?

Salience of the Manufacturers Brand

Prof. A. K. Biswas

Re pu ta tio n

Communications Strategy For B2B Brand Building

In the B2B world, the most important characteristic is technical competence. The most effective strategy for the supplier firm should be case-based communications strategy, which will show how the firm has successfully applied their competence to the benefit of previous customers.
Prof. A. K. Biswas 45

Communications Strategy For B2B Brand Building

Instrumental Pedagogic Machine tools Technological Development Private cars Cosmetics Fashion Differentiating characteristics Contents Methods
Prof. A. K. Biswas 46

Iconic

Interactive

Broadcasting

Communications Strategy For B2B Brand Building

Communication can be divided into content and methods. For fashion-driven consumer products content can be characterized as iconic, i.e., the content is likely to consist largely with imagery aimed at eliciting emotional responses.
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Communications Strategy For B2B Brand Building

For technology-driven B2B products, however, the content can be described as instrumental and pedagogic, meaning that it is designed to communicate information targeted at people who are looking for a product to fulfill a specific, often welldefined need.
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Communications Strategy For B2B Brand Building

The ideal method of communication for fashion products is broadcasting, i.e., addressing a mass audience with messages designed for isolated individuals. The messages are likely to elicit direct emotional responses, i.e., people are going to respond favourably to them or they are not.
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Communications Strategy For B2B Brand Building

For technology-driven products, however, the initial telecommunication are more likely to initiate a formal group process within the targeted organization, and the message itself will be instrumental and/or pedagogic in nature directly referring to benefits which the product has to offer.
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Communications Strategy For B2B Brand Building

The purpose of such communications is to get the firms product included in the prospects list of options for evaluation. This will almost certainly require at least some discussions between individuals within the prospect organization, and personal contact between them and the supplier organization.
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Communications Strategy For B2B Brand Building

The main sources for information about B2B suppliers are as follows: Based on personal relationships Based on media sources

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Communications Strategy For B2B Brand Building

Previous direct positive experiences of the company and its products is certainly the firmest basis on which to build a relationship of trust with a customer. Moreover, all personal interactions, which the customer has with the company, must be consistently managed well.
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Communications Strategy For B2B Brand Building

After direct experience, the next strongest influence is word-of-mouth. The word-of-moth advice, which is acted on, is most likely to come from people who have high status within the relevant industry and /or organization, e.g., top managers, consultants, technical experts, etc. B2B marketer must influence them so that they in turn influence others.
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Communications Strategy For B2B Brand Building

Sales people can have a powerful influence over purchase decisions and brand commitment because their effect is based on a personal relationship. Sales force should not only communicate value, but must also create value by providing benefits at reasonable trade-off to costs. Value here can equate to problem solving providing innovative solution.
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Communications Strategy For B2B Brand Building

In most B2B markets, the primary form of brand communication is through the sales force and their ability to adapt sales strategies and messages to accommodate customer interactions. Successful B2B brand communication requires sales strategies that incorporate brand values appealing to the emotional and the rational concerns of organizational buyers.
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Communications Strategy For B2B Brand Building

Successful communication outcomes are dependent on sellers having a clear understanding of the motivations and behaviour strategies of individuals within buying centres and buying teams. Industrial buyers often have four categories of communication styles; Amiable, Expressive, Analytical or Driver.
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Communications Strategy For B2B Brand Building

Buyers classified as Amiable are high in responsiveness and low in assertive behaviour. They are strongly relationshiporiented, and will tend to view the salesperson as the embodiment of the brand's values and look for signals to make brand evaluations in terms of compatibility, future relationship commitment and willingness to meet their needs.
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Communications Strategy For 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 on intuition. The sales strategy for Expressive buyers should support their need for status and acknowledgement and sales person must emphasize emotional brand values stressing the achievement of personal dreams and goals.
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Communications Strategy For B2B Brand Building

Analytical buyers who are low in assertiveness and responsiveness. They are driven by logic and fact and actively seek detailed product information. They tend to be formal and precise in their interactions and their risk-taking approach is calculated. Salespeople dealing with Analytical buyers need to ensure that sales presentations are logical and objective and ideally backed up by expert testimonials and guarantees.
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Communications Strategy For B2B Brand Building

B2B purchasers categorized as Drivers demonstrate high levels of assertiveness with a low level of responsive behaviour. Brand value communication needs to be largely functional to satisfy the Driver's need for precise information on costs, performance and delivery. However, Drivers are also strongly motivated by results and achievements and therefore, emotional brand values that support their goal orientation should be emphasized.
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Communications Strategy For B2B Brand Building

For B2B companies, the trade press is the most effective of the conventional media channels. Advertisements awaken interest in the brand generally through a specific product offering. However, for B2B, as opposed to consumer brands, the next step is to deliver complex, objective messages for which trade press editorial is the ideal channel. Prof. A. K. Biswas 62

Communications Strategy For B2B Brand Building

Trade press editorial can influence the 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 circulating copies of articles which have interested them.
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Difficulties In B2B Branding

Building strong brand equity is a relatively long-term process that revolves around building value for customers first, from which comes positive associations about the product and the company, and building broader associations. The most powerful associations come from customers direct experiences.
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Difficulties In B2B Branding

Every time customers interact with a supplier, with its products, or interact with customer service person, impressions are formed about the company, the products, and its employees. Strong B2B brands are, therefore, built one customer at a time.
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Prof. A. K. Biswas

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