B2 b branding workshop recap
- 1. 1 When Does B2B Branding Really Matter? SWaMFest 2012 Dr. Brian P. Brown, Ph.D. Assistant Professor, Marketing Virginia Commonwealth University October 11, 2012
- 2. Agenda / Discussion Topics • Introduction • Does B2B branding matter? • Differences between B2B and B2C • Role of branding in B2B settings • Factors that affect branding in B2B settings • Developing B2B brand strategies • Closing Remarks and Q&A
- 3. Does branding matter in B2B settings?
- 4. B2B brands may not be equally important to all sellers, all buyers, or in all purchase situations, but… • B2B marketers willing to invest in their brands tend to be rewarded with: – Enhanced reputations – Improved financial performance
- 6. Should B2B marketers implement different brand strategies?
- 7. B2B brands serve a similar purpose as B2C brands • Reduce risk perceptions • Simplify offering selection; differentiate • Communicate benefits and value of an offering
- 8. Simply, differences between B2B and B2C begin with “How do I satisfy my customers?” • Group buying process • Complex offerings • Nature and diversity of demand • Fewer customers, larger volumes • Long-term buyer-seller relationships
- 9. The B2B-Consumer Market Dimensions Continuum Consumer B2B Low Buying Situation Risk High Context Self-Expressive Product-Market Drivers Technological / Utilitarian Individual Purchase Decision Process Group Social Type of Risk Economic and Performance Psychological Variables Impulse Purchases Impulsiveness Rational Discourse External: Icons/Peers Reference Group Influencers External: Best-in-class Internal: Experts Product-Oriented Brand Strategy Approach Company-oriented Variables Product Product and Product Value Product and Associated Associated Imagery Services Traditional / Medium Interactive / Personal Broadcast Marketing Variables Comm. Image-Based Content Technical / Pedagogic 9 Brown et al. 2007
- 10. Different forces and processes may require different approaches Case Product Market Drivers Focus Utilitarian Self-Expressive Purchase Decision Process Formal / Group B2B Consensually Agreed Needs Individual / B2C Household Private Wants Consumer Focus Minett 2002 10
- 11. B2B marketers must understand what FACTORS affect brand sensitivity
- 12. Risk and Brand Sensitivity Brown et al. 2011
- 13. Brands appear to matter most when purchases are of low to moderate importance Brown et al. 2011
- 14. Small firms more likely to rely on brand information in complex purchase situations Brown et al. 2012
- 15. Buyers tend to place more emphasis on brands when the offering is intangible Brown et al. 2012
- 16. What Influences B2B Brands? • B2B buyers are more brand sensitive in low and high risk situations, but not as much in moderate risk situations. – Brands serve to minimize risk (high risk situations) as well as serve as a cue for choice simplification (low risk situations) – There is evidence to support the so-called “IBM effect.” • Smaller firms more likely to rely on brand information in complex purchase situations. – Smaller firms tend to have limited resources to dedicate to information processing; brands are a mechanism for “overload” • Purchase complexity matters, especially when the offering is intangible – Brands provide a way to manage information in highly ambiguous choice situations
- 17. So, what are the implications? • Reinforce brand awareness and emphasize brand values even in low-risk purchase situations • Strong brands should highlight importance of the purchase situation and create perceptions of risk (e.g., bundle) • In complex situations, emphasize brand values when product is intangible • Emphasize brand information when communicating with small companies
- 18. Closing Remarks • Brands serve to reduce risk, differentiate, and communicate values • Brands matter in B2B contexts, but the extent depends on various factors (risk perceptions, purchase importance and complexity, offering type, customer type, market, etc.) • Be wary of how B2B differs from B2C context and develop strategies accordingly
- 19. QUESTIONS?