branding for the industrial markets
DESCRIPTION
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)TRANSCRIPT
Branding in the Industrial Markets:Why We Care, How We Put It to Work
February 22, 2011
Shari L.S. WorthingtonTelesian Technology
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?
Brand Value of Top 10
65.3
33.7
29.4
23.6
58.7
32.1
29.2
$ B
% of B2C sales % of B2B salesLegend: Source: Interbrand 2008
Coca
Cola
Micro-
soft
57.1
IBM
51.6
GE Mac-Donald’s
Nokia Toyota
30.9
Intel MercedesBenz
Disney
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
Role of B2B Brands
Differentiate
Increase Sales
Differentiate Marketing
Create Preferences
BrandRisk Reduction
Information Efficiency
Value Added
Secure Future Business
Create Brand Loyalty
Command Price
Premium
Create Brand Image
Branding Triangle: Consistency Required
Company
Collaborators Customers
General Public
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?
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?
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?
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
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
Rockwell Automation
SoftPLCControl Technology Corp.
National Instruments
Publications
Technical Support
Trade shows/ Presentations
Web Site/ Web Banners
BrandProducts and
Services
Networking
Word of Mouth
Proposals
Customer Care
Innovation, R&D
Packaging
Business cards
Training
Service & Delivery
Sales Collateral
Pre-SelectionOngoing
Relationship & Referral
Purchase & Usage Experience
Publicity PR/Advertising
Sales Representative
Product Performance
Consistency Across Brand-Customer Relationship
CAT Footwear
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
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
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
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
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
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
Push & Pull Branding
Ingredient-Producer
Final ProductProducer OEM
Final User
Sales-promotion to theB2B Customer
SupplySupply-push
Incentives todemand creation
at the B2B customer
Supply-push
Incentives fordemand creation
at the final customer
Supply
Push
Sales-promoting from theIngredient supplier to the
final customer
Demand pull
Incentives for the demand creation of a certain ingredient in the final product
Demand
Demand
Pull
Questions?
Shari Worthington
Juliann Grant
Phone: 508-755-5242
Blog: http://blog.telesian.com
LinkedIn: http://www.linkedin.com/in/sharilee
Thank you!!