What do industrial markets need to know when it comes to branding? Shari Worthington of Telesian Technology presented this webinar on 2/22/11. Sponsored by MCAA (@MeasureControl)
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Branding for the Industrial Markets
1. Branding in the Industrial Markets:
Why We Care, How We Put It to Work
February 22, 2011
Shari L.S. Worthington
Telesian Technology
2.
3. Branding Adds Value
• Branding makes the buying decision process
easier
• Helps reduce the risk of buying the wrong
product
• Adds value to a company’s intangible assets
• Can create price premiums
• Branding is a distinct form of
DIFFERENTIATION
– Do you sell commodities or solutions?
4. Brand Value of Top 10
65.3
$B 58.7
57.1 51.6
33.7
32.1 30.9
29.4 29.2
23.6
Coca Micro IBM GE Nokia Toyota Intel Mac- Mercedes Disney
Cola -soft Donald’s Benz
Legend: % of B2C sales % of B2B sales Source: Interbrand 2008
5. Brand Functions
• Increased information efficiency
– Branded products have recognition value
• Risk reduction
– Ensure and legitimize buying decisions, since buyers
often have a penchant for avoiding risk
• Value-added or image benefit creation
– Brand is the shorthand value image of the company
• The more recognized a brand among members
of the buying team, the more likely that the
“hurdles” for approval will be lessened
6. Role of B2B Brands
Secure Future Create Brand
Business Loyalty
Differentiate Differentiate
Marketing
Brand
Risk Reduction
Information Efficiency
Value Added
Create
Increase Preferences
Sales
Command Create Brand
Price Premium Image
7. Branding Triangle:
Consistency Required
Company
General Public
Collaborators Customers
8. Branding Checklist:
Brand Identity
• Are you conveying a consistent brand identity to
your target audience? (logo, colors, designs etc)
• Does your brand identity accurately reflect the
company/product’s key attributes?
• Does your staff understand what your brand stands
for and their role in delivering on your brand
promise?
• Do you always deliver on your brand promise?
• Is your brand identity protected – do you have a set
of guidelines on how the various brand elements
should be used?
9. Branding Checklist:
Brand Awareness
• Is your brand easily recognized by your target
audiences?
• Is your brand top of mind when your target
audiences consider purchasing?
• Does your brand feature on all relevant marketing
material?
• Competitive position/market awareness
– Do you understand your brand positioning in the marketplace?
– Do you have a competitive edge in the marketplace?
– Are you aware of potential opportunities in the market?
10.
11. Branding Checklist:
Competitive Positioning
• Do you understand your positioning in the
marketplace?
• Does your brand have differentiating benefits
associated with it in customers’ minds?
• Do your intended customers believe your intended
positioning in the marketplace?
12. Branding Checklist:
Process
• Is your organizational structure, operations and
culture aligned with your brand values?
• Do you review your brand and what it stands for
each year?
• Do you have systems in place to continually monitor
your brand internally and externally
13. Brands Are One of the Few
Opportunities to Differentiate
• In a world where product offerings are getting
more similar, brands can make a difference
– Greater willingness to try products & services
– Less time needed to close the sale after offering
– Greater likelihood that a product is purchased
– Willingness to pay a price premium
– Less sensitivity to prices increases
15. Consistency Across
Brand-Customer Relationship
Publicity PR/
Advertising
Business Trade shows/
cards Presentations
Innovation, Ongoing Word of Mouth
R&D Relationship & Pre-Selection
Referral Web Site/
Networking
Web Banners
Brand
Publications Products and Proposals
Services
Technical Sales
Support Purchase & Usage Collateral
Experience
Customer Service &
Care Delivery
Training Packaging
Sales Product
Representative Performance
17. Visual Identity Guidelines
• Available and usable across all
intended markets, such as URL
• Meaningful: capture essence of brand
• Memorable: distinctive, easy to
remember
• Protectable
• Future oriented: position for growth,
change, success
• Positive associations
• Transferrable: new products, new
markets
18. Competing Through Branding:
Buying Behavior
• A recognized brand name with positive
customer perception has advantage at all
stages of decision making
– Determine that a need exists
– Determine product specifications
– Acquire solution providers
– Cull the bids/proposals to a short list
– Evaluate the short list, or get revised proposals/bids
19. Competing Through Branding:
Buying Behavior
• ―A recognized brand name with positive
customer perception has advantage at all
stages of decision making‖
– Cut the short list to finalists
– Presentations
– Final evaluation and choice
– Post purchase relationship
20. Defend Market Position
• There will be imitators, so…
– Market up — build relationships with management above
the influencers to reinforce the decision process
– Market down – build relationships with the lower level
users of the product or service
– Market sideways – build relationships in other parts of
the organization to facilitate translation of the current or
future products within the customer organization
• Whenever there is any doubt, the customer is likely
to use what they are already familiar with
21. InBranding:
Ingredient Branding
• An essential ingredient or component of a product
has it’s own brand identity
• Most B2B companies are single-stage marketers
– Marketing efforts directed to next stage in value chain,
their customers
• Multistage branding is directed at two or more
downstream stages of the value channel
22. Ingredient Branding
• Goal is to create customer demand for the
ingredient at the retail level so consumers
―pull‖ the product through the distribution
channel
– Forces middle stages to use the ingredient
• ―Ingredient‖ should capture an essential part
of the end product
– Intel processors are the ―heart‖ of the PC
23. Push & Pull Branding
Sales-promoting from the
Ingredient supplier to the Sales-promotion to the
final customer B2B Customer
Ingredient-
Producer
Supply-push
Demand Supply
Incentives to
Pull demand creation
at the B2B customer
Final Product
Demand pull Producer OEM
Push
Incentives for the
demand creation of a Supply-push
Demand Supply
certain ingredient in Incentives for
the final product demand creation
Final User at the final customer