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EMBA 2K12

Lecture Plan
Importance of Brand in B2B Buying Behavior
How do Manufacturers Brands Become
Standard?
Brand & Brand Equity
Customer-Based Brand Equity Model (CBBE)
The Branding Triangle
The Brand Customer Relationship
Branding Checklist

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Importance of Brand in B2B
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

Companies need to ask:

1. What do you want your company
name to stand for?

2. What do you want it to mean in the
customers mind?

Understanding of the role of marketing as being different
in the short versus the long-terms, with strategic
marketing and operational marketing being two distinct
activities.
Brand management therefore is the organizational
framework that systematically manages the planning,
development, implementation, and evaluation of the
brand strategy.
The development of a holistic brand strategy has to involve
all levels of marketing management.
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How do Manufacturers
Brands Become Standard?

First with new technology

Being the best with Service

Innovating to meet the need
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Brand & Brand Equity Defined
Brand
Name, sign, symbol, logo or anything that
identifies and differentiates the product
from competitors

Brand equity
Set of brand assets and liabilities linked to
a brand; it can add to or detract from
the value of the brand
65.3
33.7
29.4
23.6
58.7
32.1
29.2
$ B
% of B2C sales
% of B2B sales
Legend:
Source: Interbrand 2008
BRAND VALUE OF TOP 10
COMPANIES
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Coca
Cola
Micro
-soft
57.1
IBM
51.6
GE
Mc-
Donalds
Nokia Toyota
30.9
Intel
Mercedes-
Benz
Disney
Customer-Based Brand Equity (CBBE)
Kevin Lane Keller defines CBBE:
The effect that customer brand knowledge
has on their response to market activities
and programs for the brand.

Brand Power relies on:
What customers have learned, felt, seen and
heard about the brand over time.
How customers link their thoughts to
feelings, perception, imagination and
experience of the brand.
The concept behind the Brand Equity Model is simple:

in order to build a strong brand, you must shape how customers think
and feel about your product.
You have to build the right type of experiences around your brand, so
that customers have specific, positive thoughts, feelings, beliefs,
opinions, and perceptions about it.

When you have strong brand equity, your customers will buy more from
you, they'll recommend you to other people, they're more loyal, and
you're less likely to lose them to competitors.
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CBBE Pyramid
CBBE model lays out 4 steps for building a
strong brand:

1. Develop deep brand identity
2. Establish unique brand identity by highlighting
differences
3. Employ marketing programs to elicit positive
brand responses
4. Build brand relationships with loyal customers
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The model, illustrates the
four steps that you need to
follow to build strong brand
equity.


CBBE PYRAMID
Step 1: Brand Identity Who Are You?

In this first step, your goal is to create "brand salience," or
awareness in other words, you need to make sure that your
brand stands out, and that customers recognize it and are
aware of it.
You're not just creating brand identity and awareness here;
you're also trying to ensure that brand perceptions are
"correct" at key stages of the buying process.
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Step 2: Brand Meaning What Are You?
Your goal in step two is to identify and communicate
what your brand means, and what it stands for. The two
building blocks in this step are: "performance" and
"imagery."

"Performance" defines how well your product meets
your customers' needs. Performance consists of product
reliability, durability, and serviceability; service effectiveness,
efficiency, and empathy; style and design; and price.

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"Imagery" refers to how well your brand meets your
customers' needs on a social and psychological level. Your
brand can meet these needs directly, from a customer's own
experiences with a product; or indirectly, with targeted
marketing, or with word of mouth.

A good example of brand meaning is Patagonia. Patagonia makes high quality
outdoor clothing and equipment, much of which is made from recycled materials.
Patagonias brand performance demonstrates its reliability and durability; people
know that their products are well designed and stylish, and that they won't let
them down. Patagonias brand imagery is enhanced by its commitment to several
environmental programs and social causes; and its strong reduce, reuse, recycle
values make customers feel good about purchasing products from an organization
with an environmental conscience.


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Step 3: Brand Response What Do I Think, or Feel, About
You?

Your customers' responses to your brand fall into two categories:
"judgments" and "feelings" These are the two building blocks in
this step.
Your customers constantly make judgments about your brand and
these fall into four key categories:
Quality: Customers judge a product or brand based on its actual and
perceived quality.
Credibility: Customers judge credibility using three dimensions
expertise (which includes innovation), trustworthiness, and likability.
Consideration: Customers judge how relevant your product is to their
unique needs.
Superiority: Customers assess how superior your brand is, compared
with your competitors' brands.
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Customers also respond to your brand according to how it
makes them feel. According to the model, there are six
positive brand feelings: warmth, fun, excitement, security,
social approval, and self-respect.
Step 4: Brand Resonance How Much of a Connection Would I
Like to Have With You?
Brand "resonance" sits at the top of the brand equity
pyramid because it's the most difficult and the most
desirable level to reach. You have achieved brand
resonance when your customers feel a deep, psychological
bond with your brand.


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Keller breaks resonance down into four categories:

Behavioral loyalty: This includes regular, repeat purchases.
Attitudinal attachment: Your customers love your brand or your
product, and they see it as a special purchase.
Sense of community: Your customers feel a sense of community
with people associated with the brand, including other
consumers and company representatives.
Active engagement: This is the strongest example of brand
loyalty. Customers are actively engaged with your brand, even
when they are not purchasing it or consuming it. This could
include joining a club related to the brand; participating in
online chats, marketing rallies, or events; following your brand
on social media; or taking part in other, outside activities.

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CBBE Pyramid
The Branding Triangle

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Company
Collaborators

Customers
General Public
Building the basis for competitive advantage and long-term profitability
through understanding branding triangle
The Brand Customer
Relationship
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Publications
Technical Support
Trade shows/
Presentations
Web Site/
Web Banners
Brand
Products and
Services
Networking

Word of Mouth
Proposals
Customer
Care
Innovation,
R&D
Packaging
Business
cards
Training
Service &
Delivery
Sales
Collateral
Pre-Selection
Ongoing
Relationship &
Referral

Purchase & Usage
Experience
Publicity
PR/
Advertising
Sales
Representative

Product
Performance
Brand Strategy Guidelines
The Brand Mantra
Develop a coherent branding strategy and then build on the
reputation of that brand
A firm with a strong brand can command a price premium
for its products or services. However, to sustain that
premium, important points of differentiation must be
clearly communicated to target customer segments
Successful branding requires a well-conceived market
segmentation plan


BRANDING CHECKLIST (1)
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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/products 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?

Source: Nick Pauley Design Brand Check (2008) download under http://www.pauleydesign.co.uk/PD_gd_brandcheck.pdf
BRANDING CHECKLIST (2)
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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 Positioning/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?
Source: Nick Pauley Design Brand Check (2008) download under http://www.pauleydesign.co.uk/PD_gd_brandcheck.pdf
BRANDING CHECKLIST (3)
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Looking to the Future The 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?
Source: Nick Pauley Design Brand Check (2008) download under http://www.pauleydesign.co.uk/PD_gd_brandcheck.pdf