Why Branding Matters Even More in Successful B2B Marketing

The answer is branding. A well differentiated brand articulates your value proposition and aligns executional behaviours to business strategy so that you can better deliver on promises and build trust.

Branding may in fact matter even more in B2B than in business-to-consumer (B2C) markets. Here’s why:

B2B decision-makers are willing to pay a premium to do business with companies that have a solid brand reputation.

“…buy the wrong toothpaste, and you can always change brands when the tube runs out. Buy the wrong turbine and you could hurt your company’s earnings for years – and find yourself looking for another job.” (Forbes)

A McKinsey study published by Forbes revealed that strong brands outperformed by 20 per cent in 2012, up from 13 per cent in the previous year. Doing business with established brands reduces risk and may even build the buyer’s corporate reputation by association. A follow-on McKinsey study on how marketing can become a profit centre provides additional insights on the power of branding and well-planned marketing campaigns.

 A brand is essentially a promise. Given the higher risk involved in decision-making in B2B, a promise kept has value above all else. Reliability, expertise and integrity are key to relationship building.

 “[the Forbes] research shows that while B2B suppliers focus their messages on corporate social responsibility, sustainability and global reach, their customers care most about their honesty, responsibility across the supply chain, and level of specialized expertise.”

 A clearly differentiated brand combined with strategic messaging will hone in on what’s important to your customer and articulate your promise in a meaningful way.

 The emotional values at play in building B2B trust are more complex than those involved in B2C. Relationships are built on multiple experiences. Trust takes time. Consistency in how you execute on your promises is what builds brand equity.

Thanks to globalization, the ability to replicate and commoditize is becoming increasingly inexpensive, the barriers to entry for new competitors is reducing. The competitive landscape is changing and your customers have more choice. Competitive analysis is essential to knowing where you stand and consequently how you differentiate and position your brand.

 In the B2B world, supplier and buyer teams often work closely together to identify needs and execute on solutions. Internal branding is critical to ensuring that your employees speak with one voice and that their ability to deliver on brand promises in consistent and sustained.

B2B marketing typically involves more target groups than does B2C. Your brand may need to speak to customers, employees, suppliers, media, government and the public at large. B2B also has more influencers in the purchase decision cycle. A good brand strategy identifies key stakeholders and addresses their key motivations given your category.

Read more about B2B and B2C Branding: The Critical Differences.

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