Is B2B branding different to B2C branding?
Jaimee-Lee Owen - 24208752
Benjamin Flint - 25979140
Kanyi Wang - 23706481
EXECUTIVE SUMMARY: The research question in discussion in this essay is whether branding of Business to Business organisations differs from that of Business to Consumer organisations. It is often overlooked, that B2B and B2C brands are not only about very different types of decisions, but they also involve inherently different types of decision making. These decisions ultimately come down to what the buyer wants and who the buyer is – in a business to business sense, it is evident that a decision to buy is based on quite a complex set of systems and procedures, the reasons to buy are calculated and reasonable and
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This is why it’s essential for brands to get to know their markets, their buyers & the brand elements required of them, in order to build and create effective branding strategies. The following essay discusses this further.
Brands were once described by Philip Kotler as things that helped people make decisions. In our current saturated markets and with the ‘paradox of choice’ being an everyday struggle, brands are the quickest and most effective tools for us to link a name to a perception of value. What we often overlook, is that B2B and B2C brands are not only about very different types of decisions but they they also involve inherently different types of decision making. There are many factors to consider when assessing whether B2C and B2B branding are similar or different. Put simply, branding for B2C opposed to B2B is inherently different. At the beginning of developing a branding strategy, the initial goal is the same; sales revenue and getting the end user to purchase your product - whether it’s business or consumer. After that, the branding and marketing campaigns will vary immensely for a variety of reasons.
When assessing the similarities and differences in branding to consumers as opposed to businesses, it is important firstly, for brands to get to know their buyers. Across the board, business or consumer, the buying process starts
According to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”. However, as Keller highlights, a brand is also “something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace”. Therefore, a brand is an identity created to differentiate itself from the competitors and to be remembered in consumer’s mind.
It has been acknowledge (Romaniuk & Sharp 2004) that Brand salience can be defined as the propensity of the brand to be thought of by buyers when they are in a buying situations. A brand awareness strategy depends on how well known the brand is, Brand Salience is forming image to refresh their memory about the brands that can linked to consumer mind as well as the quantity and quality of the cue to brand links (Olson & Peter 2005), it is very important that consumer can connect to their mind as many cues as possible . The level of consumers’ brand awareness necessary to induce purchase varies depending on how and where they make their purchase decision for that product category or form. The brand attitude is focus on evaluating the brand, according to Schiffman and Kanuk (2007) “attitudes are relevant to purchase behavior are formed as a result of direct experience with the product, word-of-mouth information acquired from others, or exposure to mass-media advertising, the internet, and various forms of direct marketing”
Branding is not just a corporate identity program that promotes continuity of messages delivered to the consumer. It is more than logos or product lines or even products. A brand is the result of managing a number of elements, such as marketing, sales, distribution, product quality and others in order to create an emotional connection with consumers. Marty Neumeier (2005) defines a brand as "A person’s gut feeling about a product, service or company. Therefore, positioning is the vehicle used to establish a preference to a company’s brand relative to competitive offerings, based on the perceived uniqueness and significant difference. Branding, therefore, promises a good user experience.
In Business-to-Business (B2B) environments, many firms focus their branding activities on the spreading of their brand name and logo without creating a more comprehensive brand identity. Thus, the creation of brand awareness is an important goal in many B2B branding strategies. (Homburg 2010)1
Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding.
According to Aaker (1991), Kapferer (2004) and Keller (2003), “Building strong brands is one of the most important goals of product and brand management. Strong brands result in higher revenue streams, both short term and long term”. “Therefore, the stated goal of strategic brand management is to build brands that last for decades and can be leveraged in different product categories and markets” Aaker (1996). To understand how branding effects the purchasing decision of consumers, many theories emerged in which according to Aaker (1991) has framed a model called Brand equity model and Keller (1993) has identified a model called the customer based brand equity model. Both the frameworks have profoundly focused on how consumers recognize and appraise brands by studying certain information structures (Keller, 1993; Aaker, 1991, 1997).
As Khanna(as cite in Singhvi & Gera, 2013), the company strive to meet the evolving needs of consumers by creating excitement. Wrigley India intends to target various segments through product customization. They provide tailor-made market offerings such as launching new brand “Doublemint” to target at youth audience, “Orbit” for adults and “Boomer” for children. This kind of customer-oriented practice not only can increase the penetration of gum market in a large extent, but also build the positive brand equity. Mudambi(2002) recognized that branding would be a key in B2B decision making. From the B2B marketing perspective, the organizational buyers would be more likely to perceive the product represents a good branding behind if their needs are fulfilled with customization. The company’s overall brand identity has been the usual concern for industrial buyers rather than the specific market offering they want to purchase (Bendixena, Bukasaa & Abrattb, 2004). By matching the organization resources, skills and capabilities with particular customer needs, the company is more capable to fulfil commitments in order to deliver great value to customer firms. With a close relationship with customers within the distribution channel, it is more efficient for Wrigley to anticipate its changes and competence, which eventually capture more market
Most B2B companies are committed to building a strong brand. Open any quarterly report, article, or press release and it’s there: “Building a strong brand is at the core of what we want to do. A strong brand will enable us to drive customer adoption and acceptance in the market.” The confidence in
ISBN: 0-324-39865-4ReviewHardcover, 160 pagesThe Case For B2B Branding (by Bob Lamons) is a refreshing overview of the principles of business branding. The book is divided into two clear-cut and well defined sections: part one details the “seven simple steps to effective brand image management”; the second part details twenty-one B2B “branding” case studies from some of the world’s best known (and less well known) business and industrial companies. This section is a gem: the Intel “story”, for example, includes visuals from the early unsophisticated Intel campaigns for the 286 and 386 chips; hard to believe it’s
Traditionally, B2C versus B2B was often defined as business marketers being more sensitive to price, customer loyalty and working business relationships while B2C marketers tried to create excitement for their products through emotional connections. While this definition remains true, the lines are blurred because B2B companies now use B2C techniques, social media and heightened user experiences to nurture long-term business relationships. The goal of a savvy business marketer is to generate an emotional response for the
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