Business-to-Business Branding: It's Not an Option! How to Build Strong B2B Brands Ramesh Venkat, Ph.D.

'Brands are the express checkout for people living their lives at ever increasing speed.' - Brandweek

"Branding" was not too long ago the domain of FMCG companies, especially those with deep pockets like P&G, Nestl, Nike and CocaCola. In the past few years, greater understanding of the role of branding and the impact of having strong brands has led to wider use of branding concepts. In fact, some of the strongest brands globally are business-tobusiness brands. Among the most valuable brands of 2006 (from Interbrand's list of Top 100 brands), were IBM, GE, Intel (all in Top 5), HP, Cisco, Dell, Oracle, SAP, UPS, Siemens, Accenture and Caterpillar. Companies like GE and Dell, which traverse both consumer and business markets, have been parlayed their consumer branding experience to establish strong business brands. Interest in B2B branding is partly attributable to corporate boards becoming more cognizant of the financial value of brands. But that is not the only reason. Branding actually works in B2B markets. In this paper we will discuss the relevance and importance of branding for B2B companies and

make the case for B2B branding. Then, we will provide a framework B2B branding. Ten Reasons for B2B Branding There are a few good reasons why B2B companies need to focus on building brands. 1. B2B Buyers Consider the Brand. It is myth to think that brand is only for consumer products. A study of the B2B marketplace by Accenture showed that there are five types of buyers. In all but one of them brand (brand familiarity, brand reputation, brand tenure) featured at the top of the list of important considerations in the buying decision.1 Remember that buyers and buying committees businesses made up of people. Rational and technical features do count. But often when two offers are equal technically, the "soft" issues win the day. 2. Brand is all About Expectations. A brand-based strategy in a B2B company should result in creating the appropriate as well as consistent expectations. By creating consistency in the message across channels (Web, tradeshows, brochures, sales

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presentations and service), the customer gets a clear signal on what to expect. Strong Brands are Trustworthy. When IBM ruled the computer hardware world, there was a saying that "no one was ever fired for buying IBM." That is because of the trust that customers had in IBM. Even if something went wrong, the big blue was expected to fix it. Brands Represent Relationships. B2B selling has always relied on building relationships with the customer and the people within the customer's organization. In the B2B context a brand can be a symbol of collaboration and partnership with the customer. A great example is National Semiconductor, which allows engineers to not just buy parts online, but also design, simulate and test power systems on National's Web site. By helping their customers solve problems, the emphasis has shifted from selling to relationship building. Brand is Not Features, but the Whole. A brand strategy shifts the focus away from specific features to the complete experience. It is easier to sell based on the total value that the buyer gets, rather than a feature-by-feature comparison with competition. Brand Supports Sales. Personal selling continues to be the primary form of communication with customers. Brand strategy, which articles the vision, the value proposition and sets forth the expectations (or brand promise) is a vital aid to improved sales performance.

7. Brand Means Differentiation. An outcome of a successful brand strategy will be differentiation of your brand from your rivals' brands in the customer's mind. There will be clarity on why you are superior and on what dimensions you are superior. 8. Brand Represent Lower Risk. As in the case of IBM in the 1980s, when customers buy a reputed brand, there is a clear sense of what they are getting. The brand promise and the brand experience are not in doubt. That lowers the risk for the buyer. 9. Brand Means Premium. There is ample evidence that the leading brands are able to sustain premium prices. That is because of all of the preceding seven reasons for branding. The customer is willing to pay more for clear expectations, trust and lower risk. 10. Brands are Strategic Assets. As Interbrand's annual brand valuation studies show, brands are worth a lot of money to the companies that own them. Even if you don't have individual product brands, every B2B company has a corporate brand. Manage it proactively is financially the prudent thing to do. Brands can help business attract talented employees. It can also provide opportunities for expansion into new markets. We have seen examples of B2B brands expanding into B2C markets because they are wellknown and highly regarded.

B2B vs. B2C Branding Before embarking on a brand strategy for a B2B company, one must bear in mind the differences B2B vs. B2C branding. The role of the brand and the end-user's response to the brand are different in the two cases. Branding takes on more of an emotional tone in B2C settings. Consumer's emotional engagement with the brand is critical to branding success in B2C markets. Often consumers will buy a brand for status value (why else does anyone need a $100,000 car? Or an $8000 watch?) and the need for belonging. In B2B, while emotions do play a role, brand building tends to focus on more customer value. A purely emotional appeal is unlikely to work. While providing a human touch to the brand, the value being created for the customer should be the primary focus. As we discuss in the next section, the brand platform for B2B should really be based on value proposition. B2B Brand Platform The brand platform is the foundation on which the brand strategy is built. It essentially involves a clear articulation of the brand vision and brand mission, brand values and brand identity. Brand Vision and Mission. The vision is a futuristic statement and defines the brand's ultimate destination or impact on its

customers. The mission is how the brand intends to get there. Brand Values. "Brand values" is the same as brand value proposition. The value proposition is an explicit statement of how and what value is provided to the customer. There are three types of values embedded in B2B products. In developing the value proposition statement, it is important to focus on all three: o Functional Value What can the brand do for the buyer? What problem can it solve? o Economic Value What does the brand means in terms of time and money? Will it save time and/or money? o Emotional Value How does brand make the customer or end-user feel? The brand values should really represent the organization. In other words, it should be something that comes inside out. Take the case of Virgin, whose brand values include: value for money, good quality, brilliant customer service, innovation, competitively challenging and fun. These concepts really capture the essence behind Richard Branson's creation of Virgin. The value proposition should suggest why this brand is superior to the competition. In other words, brand differentiation from the competition is vital to building a strong brand. Brand Identity. Brand identity is really a set of associations that company would like to create in the minds of customers. First, the

company needs to describe what the brands stands for, what its values are and how the company wishes the brand to be perceived. Then a statement of brand identity can be developed. How the customer eventually perceives the brand (i.e., brand image) may be different from how the company wishes to be perceived (brand identity). It is this brand identity in its entirety or in part that is used in marketing communications. When AT&T used the slogan "reach out and touch someone" or when Nike says "Just do it", what we see are examples of how brand identity is operationalized in marketing communications. A Framework for B2B Branding B2B branding should start with the brand platform. Without this foundation, focusing on creative elements (such as logos and advertising) is a big mistake. We propose a B2B brand building framework which includes internal branding, external branding, brand delivery and brand metrics. Internal Branding. This is really the first step in our model. The brand vision/mission, brand values and brand identity have to be clearly explained to employees. They have to be engaged with the brand. In B2B there is greater contact between employees and customers. That means, unless employees "live the brand", the words and imagery in marketing brochures will be meaningless. If a company says that "quality is their main focus", but the actions of

employees suggest otherwise, customers will find out.

Before communicating the brand to customers, ensure that the employees are on board. External Branding. The second stage involves developing the brand message aimed at customers. It is important to note that brand message may vary for different segments. Small business customers may have different needs compared to enterprise customers. One-size-fits-all will not work. All B2B customers are not the same. External branding should reflect consistency in how the brand is portrayed and in the words used. Logos, taglines and images play a role. Emotional appeals play a role. But in B2B markets, one should not go overboard with glitzy advertising. The core (what value can the product deliver) has to be the focus.

Brand Delivery. As in any business, B2B or B2C, the brand experience is eventually the key determinant of brand success. It is even more important in B2B because the stakes are often very high. Failure of a product can mean huge losses. If the promise is 99% reliability and lower operational costs, the results should support the brand promise. This means attention to innovation, quality and service cannot be compromised. Building a B2B brand has less to do with marketing communications materials and more to do with how well the brand experience is orchestrated for the customer. This requires investment in business processes, technology and even employee rewards to ensure a positive customer experience at every touch point. Brand Metrics. Finally, any business activity has to be measured to ensure the investment was really worth it. Marketing has suffered from its inability to hold itself financially accountable. The performance of the brand needs to be monitored through appropriate metrics. These could include: o Brand Perception o Brand Market Share o Brand Loyalty o Customer Profitability o Brand Equity In closing, building strong B2B brands requires a commitment to customers and delivering a

compelling value proposition in a consistent manner. Decision makers in B2B companies do respond to brand communications. We are dealing with people and there is evidence to show that B2B purchases are not purely rational or based only on specifications. To build strong B2B brands: 1. Create a compelling value proposition. Continue to do things that will sustain the value proposition and even improve it (that includes R&D). 2. Ensure your employees understand and live the brand values. 3. Don't dismiss the role of emotions, but don't overplay it. 4. Brand delivery is critical to building a strong B2B brand. That means having the right business processes and well trained employees. Employees who "live the brand" need to be rewarded appropriately. 5. Continue to monitor the health and value of the brand. Identify opportunities for improvement, growth and leverage.

Was it an Illusion? Put More B in B2B, Accenture, www.onlineinsight.com, 2001.

Customer Experience Management o Customer Experience Audit o Mapping as is and to be process o Customer Experience Design o Customer Experience Training o Customer Brand Experience Tracking 360 Brand Management o Brand Strategy, Vision, Identity, Positioning o Internal Branding o Aligning Internal and External Communication o Customer Brand Experience Tracking o Brand Metrics Research o Market Research Surveys, Focus Groups o Voice of Customer o Competitive Intelligence Metrics o Customer Satisfaction Measurement o Brand Performance Measurement o Marketing ROI o Customer Profitability and Lifetime Value
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