Description
The ppt on branding in typical B2B scenarios.
Branding in Business to Business Markets
Brand, What is it?
?
? ?
?
?
A Brand is a distinguishing name and/or symbol, logo, trademark or package design) intended to identify the goods or services of a seller, and to differentiate these from those of competitors. A brand thus signals to the customers the source of the product. Protects both sides from the competitors who would attempt to provide products apparently identical.
Successful Brands : criteria
?
?
?
?
At Product level: Should deliver benefits Should offer intangibles besides tangible benefits Benefits on offer should be consistent with the personality Benefits offered must be relevant to the customer
History of Brands
?
?
? ?
?
During 1st century AD ,brands were used to identify the work of different potters. Earthware was fired in common ovens holding large quantity of work One firing lasted two weeks Around 20 potters used the same oven at one time Consequently way had to be found to distinguish the work of different craftsmen
Is Branding relevant to B2B?
?
When faced with a buying need, what one looks out for A competitor approaches the client to ask if he would be interested in changing supplier? The response would be dependent on their perception
This shared common understanding is a consequence of consistent communications about company's reputation, thus the company's Brand.
Reasons for Building B2B Brand
? ? ? ? ?
Recruitment Low risk for decision Makers Combating Price pressure Differentiate products &services Globalization of industrial markets
B2B Brand Relevance
FACTORS BOOSTING BRAND RELEVANCE
Proliferations of similar products
BRAND
Risk reductions
GLOBALIZATION Increasing complexity
Brands differentiate, reduce risk & compensate price pressures by offering additional value
Information efficiency
HYPER COMPETITION Price pressures Value added/image benefit creation
Reasons for Building B2B Brand
?
?
? ?
Concentration of sectors of activity & competition Ease in building Customer - Supplier relationship Search engines Vendor development.
Role of B to B Brands
?
?
Risk Reduction, Information & value addition Differentiation Creating Brand Loyalty Create Preference Create Brand Image Increase Sales Secure Future Business Command Price Premium
Importance of Brand Functions
B to B 14 % 41% 45 %
B to C
40 %
37 %
23 %
Image Benefit
Information Risk Efficiency Reduction
Basics for a Strong Brand
?
? ?
At The Core an impeccable value A promise fulfilled Quality of Experience
( Dynamic Between the promise and the felt experience)
? ?
Employees ( after all some one has to deliver) Loyalty, counts more than cost but less than Awareness
The Branding Triangle
Company
Internal Marketing interactive marketing External Marketing
Collaborators
Customers
Push & Pull Strategy Communication Promotional Promotional Communication
Efforts
Ingredient Manufacturer
Efforts Push
Incentives to purchase the products
Demand
Supply
Pull
Incentives to demand an Ingredient brand in finished goods
Finished goods Manufacturer
Demand
Supply
Supply
Marketing efforts of downstream stages
Consumer Final User
Creating Brand Power
Brand Loyalty Brand Stretch Brand Coverage Brand Dominance
Brand Power
B2B: basic target audience issues
1.The target audience’s demand is usually derived, rather than direct.
2. The purchase isn’t for themselves it’s for a company. 3. Often the target audience is a small tight group of buyers who have almost identical professional backgrounds, regardless of nationality. 4. Decision-making is hard to define. Company politics, national politics, technical politics and a dozen other types of politics can ankle tap a deal worth millions.
B2B issues (cont’d)
5. Selling big turn-key projects involves a more complex buying process. 6. Buying motives tend to be more rational, because there are a lot more factors to consider. 7. Initial costs are sky high and careers could be on the line. 8. They have to live with for a long time. After sales, service for a hydroelectric power station will make any PC agreement look elementary.
Six Steps to Creating and
Developing B2B Brands
?
Get inside the customer’s business.:-
?
How does our brand create value?
Which dimensions of value are most important?
?
?
Which brand attributes are most important?
Creating and Developing B2B Brands
?
Carefully segment existing customer base and prospect pool.
With B2B branding, it is necessary to segment customers according to what they want product/service offering to do.
Until one understands very clearly what product/service attributes each different segment values, any attempts at branding will be hit or miss at best.
?
?
Five Key Elements of B2B Branding
?
?
?
?
?
Targeted : Your value proposition must be relevant to your target market, Value Based: Association with a clear value proposition is a requirement for a strong B2B brand. Differentiating:. It is also an opportunity to position yourself against the competition that helps you clearly demonstrate your advantage,. Coherent: Translating your value proposition and differentiation into a coherent message is what makes your brand stick in your customers' minds Memorable: This is the ultimate test of your brand strength.
Brand awareness level
?
?
?
The Maximum awareness:-Highest degree of Brand Recall (Usually the Existing supplier) The Second awareness level. The Third level:-Brand recognition.
Brand Building : a model
Assessm ent Inputs Outcomes
Inputs
?
?
? ?
Identification of Key customer groups or segments. Understanding customer expectations, needs and aspirations. Assessing competitive offerings, including substitutes Building Customer confidence by
-customising the product -establishing key image of the brand -dealer support-easy availability and push -innovative communication and promotion schemes -elegant packaging
?
Total brand management-both hardware and software as
Assessment
?
?
Continuous feedback from customers and channels Inquiring customer satisfaction
-profiling the target segment -defining the constituents -measuring the satisfaction after designing the scale -trend analysis and pointers for management of customer satisfaction
?
Brand Strength Score
Outcome
? Market
Share ? New Customers attracted ? Customer loyalty ? Increased profitability ? Brand Knowledge
Brand Image
?
Totality of Impressions about the brand, includes physical, functional and psychological aspects of the brand
How the Brand is perceived by the Consumer, thus Brand Personality is the cause and the Image the effect
?
The Different status of Brand
Brand Status Role Of the Brand Example
Product Brand
One Name & a Lycra,Nutrasweet( specific promise for Monsanto) one product A product which is identified by its Brand A Brand for set homogeneous product Rubafix(Bayer); PostScript(Adobe) Scotchgard(3M)En ergy(Michelin)
Branduit(Branded product) Brand-Range
The Different status of Brand
Brand Status Role Of the Brand Example
Umbrella Brand
A Brand for set heterogeneous product Linked to several product lines(Dual Branding)
Siemens,Xerox, Motorola Dupont de Nemours
Guarantee Brand
Signatures
Original creation signature
Bertone
Push/Pull effect of Branding
Ingredient Manufacturer
Demand Supply
Push
Incentive to purchase
Pull
Incentive to demand an ingredient brand in the finished goods
Finished Goods Manufacturer
Demand Supply
Supply
Downstream marketing efforts
Final User
Brand Distinction
Brand Strategy Pros
Widest & most efficient use of time, resources & brand investments Highest stability, less complexity
Cons
Generic brand profile Possible bad-will transfer on all products
Corpora te Brand Brand Width
Reinforces comprehensive solutions Maximum market impact
Family Brand
Brand investment covers a product line Synergy effect Use of brand related interconnections Product specific brand profile No bad-will transfer Creates diverse growth
Possible brand dilution Limitations for product positioning
Product Brand
Expensive productspecific brand creation Weakens the
Brand Distinction (contd.)
Brand Strategy
§
Pros
§
Cons
Expensive brand creation § Difficult to approach with family brand Requires ubiquity § High level of brand awareness needed (cost intensive)
§
Brand Length
High Profile Premium High Quality positioning Brand § High price premium Classic Brand Applicable in mass markets § Creates high brand reliance
§
Brand Distinction (contd.)
Brand Strategy
§
Pros
No language problems § Adapted to national requirements
§
Cons
Can become useless with later internationalization § Can be too expensive (Less standardization)
Necessary to comply with different legal requirements § Possible image dilution § Language/ cultural problems
§
National Brand
Bran d Dept h
Internati onal Brand
Potential standardization § Cost effectiveness (economies of scale) § Use of international media
§
Moving away from Commodity mode
Commodity
Customer need
Competition Key leverage Customer loyalty Investments End Result
Value added
Segmented, quantified
Adapted offerings for selected customers Value by increasing benefits Reinforced partnerships Service, quality Sustained profitability & growth
Similar
All customers Price Decreasing Cost, capacity Low profitability
Branding for Technology
Emotions are an equally important component ? Must understand the basis of customer’s relationship so that it can be worked upon. ? Two critical overriding values: Feel Good and Performance ? Big ticket is often a one time purchase, so the fear of a wrong decision is natural! ? Aura of Safety, Reliability and Quality offers Security
Brand building for Technology Offerings
Consumer Technology
Simple products
Complex
Differentiation through Feature to be built into a stress on a small feature single idea: Microsoftmaking it easier Quick consumption Ongoing relationship No training Impulse decision Reach for a package Training dependent Considered purchase Considered purchase
Brand building in technology markets
? ?
?
?
Technology changes and moves very fast Technology products are being picked up even in mass channels This calls for simplifying the purchase decisions This is afforded by a Brand “ a kind of a shorthand”
nomenclature to a name “when meaningful”
Importance of Channels in the process
Distributors, Dealers, Consultants, Agents, Solution Integrators, Value added Resellers ? Need of adoption by the influential who make the market ? Intermediaries also very keen on continuing business relationships
Brand building in technology markets
Evolutionary
Gradual change Improved See, want, buy Longer product cycles Evolutionary upgrades in functionality, packaging etc. Channels normally stable
Revolutionary
Sudden & sweeping changes Completely new Multiple influences Shorter product cycles New products & versions; upgrade option important Channels fluid & evolving
Steps to build Tech-brands
?
?
?
?
? ?
Define objectives, what problems need solutions Understanding who the customers are, their perceptions of the brand & the competition Define the brand: positioning, associations, personality and identity Developing brand strategy and communication plan to apply to all relationships Create & execute integrated communication Manage continuously, track it to leverage brand equity
Brand revitalization strategies
Refresh Old Create New Sources of Brand Equity
Expand depth, breadth & usage
Improve Strength, Attitude &uniqueness of Brand Association
Revitalization (cont’d)
?
? ? ?
Retain Vulnerable customers Identify neglected customers Recapture lost customers Capture new customers
doc_126501385.ppt
The ppt on branding in typical B2B scenarios.
Branding in Business to Business Markets
Brand, What is it?
?
? ?
?
?
A Brand is a distinguishing name and/or symbol, logo, trademark or package design) intended to identify the goods or services of a seller, and to differentiate these from those of competitors. A brand thus signals to the customers the source of the product. Protects both sides from the competitors who would attempt to provide products apparently identical.
Successful Brands : criteria
?
?
?
?
At Product level: Should deliver benefits Should offer intangibles besides tangible benefits Benefits on offer should be consistent with the personality Benefits offered must be relevant to the customer
History of Brands
?
?
? ?
?
During 1st century AD ,brands were used to identify the work of different potters. Earthware was fired in common ovens holding large quantity of work One firing lasted two weeks Around 20 potters used the same oven at one time Consequently way had to be found to distinguish the work of different craftsmen
Is Branding relevant to B2B?
?
When faced with a buying need, what one looks out for A competitor approaches the client to ask if he would be interested in changing supplier? The response would be dependent on their perception
This shared common understanding is a consequence of consistent communications about company's reputation, thus the company's Brand.
Reasons for Building B2B Brand
? ? ? ? ?
Recruitment Low risk for decision Makers Combating Price pressure Differentiate products &services Globalization of industrial markets
B2B Brand Relevance
FACTORS BOOSTING BRAND RELEVANCE
Proliferations of similar products
BRAND
Risk reductions
GLOBALIZATION Increasing complexity
Brands differentiate, reduce risk & compensate price pressures by offering additional value
Information efficiency
HYPER COMPETITION Price pressures Value added/image benefit creation
Reasons for Building B2B Brand
?
?
? ?
Concentration of sectors of activity & competition Ease in building Customer - Supplier relationship Search engines Vendor development.
Role of B to B Brands
?
?
Risk Reduction, Information & value addition Differentiation Creating Brand Loyalty Create Preference Create Brand Image Increase Sales Secure Future Business Command Price Premium
Importance of Brand Functions
B to B 14 % 41% 45 %
B to C
40 %
37 %
23 %
Image Benefit
Information Risk Efficiency Reduction
Basics for a Strong Brand
?
? ?
At The Core an impeccable value A promise fulfilled Quality of Experience
( Dynamic Between the promise and the felt experience)
? ?
Employees ( after all some one has to deliver) Loyalty, counts more than cost but less than Awareness
The Branding Triangle
Company
Internal Marketing interactive marketing External Marketing
Collaborators
Customers
Push & Pull Strategy Communication Promotional Promotional Communication
Efforts
Ingredient Manufacturer
Efforts Push
Incentives to purchase the products
Demand
Supply
Pull
Incentives to demand an Ingredient brand in finished goods
Finished goods Manufacturer
Demand
Supply
Supply
Marketing efforts of downstream stages
Consumer Final User
Creating Brand Power
Brand Loyalty Brand Stretch Brand Coverage Brand Dominance
Brand Power
B2B: basic target audience issues
1.The target audience’s demand is usually derived, rather than direct.
2. The purchase isn’t for themselves it’s for a company. 3. Often the target audience is a small tight group of buyers who have almost identical professional backgrounds, regardless of nationality. 4. Decision-making is hard to define. Company politics, national politics, technical politics and a dozen other types of politics can ankle tap a deal worth millions.
B2B issues (cont’d)
5. Selling big turn-key projects involves a more complex buying process. 6. Buying motives tend to be more rational, because there are a lot more factors to consider. 7. Initial costs are sky high and careers could be on the line. 8. They have to live with for a long time. After sales, service for a hydroelectric power station will make any PC agreement look elementary.
Six Steps to Creating and
Developing B2B Brands
?
Get inside the customer’s business.:-
?
How does our brand create value?
Which dimensions of value are most important?
?
?
Which brand attributes are most important?
Creating and Developing B2B Brands
?
Carefully segment existing customer base and prospect pool.
With B2B branding, it is necessary to segment customers according to what they want product/service offering to do.
Until one understands very clearly what product/service attributes each different segment values, any attempts at branding will be hit or miss at best.
?
?
Five Key Elements of B2B Branding
?
?
?
?
?
Targeted : Your value proposition must be relevant to your target market, Value Based: Association with a clear value proposition is a requirement for a strong B2B brand. Differentiating:. It is also an opportunity to position yourself against the competition that helps you clearly demonstrate your advantage,. Coherent: Translating your value proposition and differentiation into a coherent message is what makes your brand stick in your customers' minds Memorable: This is the ultimate test of your brand strength.
Brand awareness level
?
?
?
The Maximum awareness:-Highest degree of Brand Recall (Usually the Existing supplier) The Second awareness level. The Third level:-Brand recognition.
Brand Building : a model
Assessm ent Inputs Outcomes
Inputs
?
?
? ?
Identification of Key customer groups or segments. Understanding customer expectations, needs and aspirations. Assessing competitive offerings, including substitutes Building Customer confidence by
-customising the product -establishing key image of the brand -dealer support-easy availability and push -innovative communication and promotion schemes -elegant packaging
?
Total brand management-both hardware and software as
Assessment
?
?
Continuous feedback from customers and channels Inquiring customer satisfaction
-profiling the target segment -defining the constituents -measuring the satisfaction after designing the scale -trend analysis and pointers for management of customer satisfaction
?
Brand Strength Score
Outcome
? Market
Share ? New Customers attracted ? Customer loyalty ? Increased profitability ? Brand Knowledge
Brand Image
?
Totality of Impressions about the brand, includes physical, functional and psychological aspects of the brand
How the Brand is perceived by the Consumer, thus Brand Personality is the cause and the Image the effect
?
The Different status of Brand
Brand Status Role Of the Brand Example
Product Brand
One Name & a Lycra,Nutrasweet( specific promise for Monsanto) one product A product which is identified by its Brand A Brand for set homogeneous product Rubafix(Bayer); PostScript(Adobe) Scotchgard(3M)En ergy(Michelin)
Branduit(Branded product) Brand-Range
The Different status of Brand
Brand Status Role Of the Brand Example
Umbrella Brand
A Brand for set heterogeneous product Linked to several product lines(Dual Branding)
Siemens,Xerox, Motorola Dupont de Nemours
Guarantee Brand
Signatures
Original creation signature
Bertone
Push/Pull effect of Branding
Ingredient Manufacturer
Demand Supply
Push
Incentive to purchase
Pull
Incentive to demand an ingredient brand in the finished goods
Finished Goods Manufacturer
Demand Supply
Supply
Downstream marketing efforts
Final User
Brand Distinction
Brand Strategy Pros
Widest & most efficient use of time, resources & brand investments Highest stability, less complexity
Cons
Generic brand profile Possible bad-will transfer on all products
Corpora te Brand Brand Width
Reinforces comprehensive solutions Maximum market impact
Family Brand
Brand investment covers a product line Synergy effect Use of brand related interconnections Product specific brand profile No bad-will transfer Creates diverse growth
Possible brand dilution Limitations for product positioning
Product Brand
Expensive productspecific brand creation Weakens the
Brand Distinction (contd.)
Brand Strategy
§
Pros
§
Cons
Expensive brand creation § Difficult to approach with family brand Requires ubiquity § High level of brand awareness needed (cost intensive)
§
Brand Length
High Profile Premium High Quality positioning Brand § High price premium Classic Brand Applicable in mass markets § Creates high brand reliance
§
Brand Distinction (contd.)
Brand Strategy
§
Pros
No language problems § Adapted to national requirements
§
Cons
Can become useless with later internationalization § Can be too expensive (Less standardization)
Necessary to comply with different legal requirements § Possible image dilution § Language/ cultural problems
§
National Brand
Bran d Dept h
Internati onal Brand
Potential standardization § Cost effectiveness (economies of scale) § Use of international media
§
Moving away from Commodity mode
Commodity
Customer need
Competition Key leverage Customer loyalty Investments End Result
Value added
Segmented, quantified
Adapted offerings for selected customers Value by increasing benefits Reinforced partnerships Service, quality Sustained profitability & growth
Similar
All customers Price Decreasing Cost, capacity Low profitability
Branding for Technology
Emotions are an equally important component ? Must understand the basis of customer’s relationship so that it can be worked upon. ? Two critical overriding values: Feel Good and Performance ? Big ticket is often a one time purchase, so the fear of a wrong decision is natural! ? Aura of Safety, Reliability and Quality offers Security
Brand building for Technology Offerings
Consumer Technology
Simple products
Complex
Differentiation through Feature to be built into a stress on a small feature single idea: Microsoftmaking it easier Quick consumption Ongoing relationship No training Impulse decision Reach for a package Training dependent Considered purchase Considered purchase
Brand building in technology markets
? ?
?
?
Technology changes and moves very fast Technology products are being picked up even in mass channels This calls for simplifying the purchase decisions This is afforded by a Brand “ a kind of a shorthand”
nomenclature to a name “when meaningful”
Importance of Channels in the process
Distributors, Dealers, Consultants, Agents, Solution Integrators, Value added Resellers ? Need of adoption by the influential who make the market ? Intermediaries also very keen on continuing business relationships
Brand building in technology markets
Evolutionary
Gradual change Improved See, want, buy Longer product cycles Evolutionary upgrades in functionality, packaging etc. Channels normally stable
Revolutionary
Sudden & sweeping changes Completely new Multiple influences Shorter product cycles New products & versions; upgrade option important Channels fluid & evolving
Steps to build Tech-brands
?
?
?
?
? ?
Define objectives, what problems need solutions Understanding who the customers are, their perceptions of the brand & the competition Define the brand: positioning, associations, personality and identity Developing brand strategy and communication plan to apply to all relationships Create & execute integrated communication Manage continuously, track it to leverage brand equity
Brand revitalization strategies
Refresh Old Create New Sources of Brand Equity
Expand depth, breadth & usage
Improve Strength, Attitude &uniqueness of Brand Association
Revitalization (cont’d)
?
? ? ?
Retain Vulnerable customers Identify neglected customers Recapture lost customers Capture new customers
doc_126501385.ppt