Topic 9 - Branding Promotion

8/9/2019 Topic 9 - Branding Promotion

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Industrial BrandingIndustrial BrandingThe Need for Branding in B2B MarketsThe Need for Branding in B2B Markets

Traditional view of B2B Marketing for almost 50 yearsTraditional view of B2B Marketing for almost 50 years

Build superior productsBuild superior products

Optimum costOptimum cost

Manage the sales and distribution channelManage the sales and distribution channel

Promote the productPromote the product

Traditionally B2B marketing has been predominantly productTraditionally B2B marketing has been predominantly product--focusedfocused

Research in B2B branding done in the last fifteen years onlyResearch in B2B branding done in the last fifteen years only

Studies indicate that driving force behind most B2B branding has justStudies indicate that driving force behind most B2B branding has just

been based on making the brand recognizable by a suitable logo.been based on making the brand recognizable by a suitable logo.


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Situation is becoming difficult since B2B customers haveSituation is becoming difficult since B2B customers have

More informationMore information

More choicesMore choices

Higher ExpectationsHigher Expectations

Highly Competitive EnvironmentHighly Competitive Environment

Primary purpose of a brand which is to make the company, product orPrimary purpose of a brand which is to make the company, product or

service recognizable is not enough anymore.service recognizable is not enough anymore.

Experts have recently stated:Experts have recently stated:

Products are being viewed as commoditiesProducts are being viewed as commodities

Crowded field of companies offering similar and increasinglyCrowded field of companies offering similar and increasingly

commodified products and services.commodified products and services.

Rapidly changing technologies are making products obsoleteRapidly changing technologies are making products obsolete


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Greater effort is required by companies to avoid their products beingGreater effort is required by companies to avoid their products being

viewed as commodities.viewed as commodities.

If commoditization of industrial products happens, due to various brandsIf commoditization of industrial products happens, due to various brands

and suppliers, price will be the only criteria for buying thus decreasingand suppliers, price will be the only criteria for buying thus decreasing

company profitscompany profits

Desirable Situation for B2B Brands:Desirable Situation for B2B Brands:

Customer is willing to pay a price premiumCustomer is willing to pay a price premium

Customer is willing to recommend brand to peersCustomer is willing to recommend brand to peers

Customer is willing to give special consideration to another productCustomer is willing to give special consideration to another product

from the same brandfrom the same brand


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Industrial BrandingIndustrial BrandingMeaning of Brand in Industrial MarketsMeaning of Brand in Industrial Markets

An Industrial Brand represents a multiAn Industrial Brand represents a multi--dimensional promise of valuedimensional promise of value

Four key dimensions:Four key dimensions:

Product PerformanceProduct Performance

Delivery PerformanceDelivery Performance

Support Services PerformanceSupport Services Performance

Company PerformanceCompany Performance

Product PerformanceProduct Performance

Quality, Reliability, Performance of the actual productQuality, Reliability, Performance of the actual product

Can only be demonstrated by testimonials or trial useCan only be demonstrated by testimonials or trial use


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Delivery PerformanceDelivery Performance

Order ProcessingOrder Processing

Logistics PerformanceLogistics Performance

Can only be demonstrated by building a reputation and thenCan only be demonstrated by building a reputation and then

leveraging itleveraging it

SupportServices PerformanceSupportServices Performance

Customer ServicesCustomer Services

Complaint HandlingComplaint Handling

AfterAfter--sales supportsales support

Depends on swiftness and quality of response and people.Depends on swiftness and quality of response and people.


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Company PerformanceCompany Performance

Customers are looking for trust and commitmentCustomers are looking for trust and commitment

Perceived Risk associated with industrial products is far higher thanPerceived Risk associated with industrial products is far higher than

consumer products.consumer products.

Customers lower this perceived risk by buying from recognized firms.Customers lower this perceived risk by buying from recognized firms.

Distinctive aspects of building a B2B Brand:Distinctive aspects of building a B2B Brand:

Emphasis on the companies behind the brands, not only the productsEmphasis on the companies behind the brands, not only the products

Based on more rational realistic and demonstrable benefitsBased on more rational realistic and demonstrable benefits

Sales Force is a major brand building tool due to direct nature ofSales Force is a major brand building tool due to direct nature of

contact in industrial markets. Purchase does not only depend on thecontact in industrial markets. Purchase does not only depend on the

assessment of products, but the assessment of the people alsoassessment of products, but the assessment of the people also


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Distinctive aspects of building a B2B Brand:Distinctive aspects of building a B2B Brand:

Emphasis on the companies behind the brands, not only the productsEmphasis on the companies behind the brands, not only the products

Based on more rational realistic and demonstrable benefitsBased on more rational realistic and demonstrable benefits

Sales Force is a major brand building tool due to direct nature ofSales Force is a major brand building tool due to direct nature of

contact in industrial markets. Purchase does not only depend on thecontact in industrial markets. Purchase does not only depend on the

assessment of products, but the assessment of the people alsoassessment of products, but the assessment of the people also

Role of intermediaries also important (where applicable)Role of intermediaries also important (where applicable)

Company personnel need to keep brand promises and values in mindCompany personnel need to keep brand promises and values in mind

and should demonstrate in all key interactions with customersand should demonstrate in all key interactions with customers

Company standing should be regularly communicated to customersCompany standing should be regularly communicated to customers


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Secondary associations are important and should be extensively usedSecondary associations are important and should be extensively used

Understanding that customers are buying much more than a product:Understanding that customers are buying much more than a product:

They are buying a satisfaction to the needThey are buying a satisfaction to the need

They are lowering perceived riskThey are lowering perceived risk

They are buying peace of mindThey are buying peace of mind

Only by leveraging all dimensions of value supporting by a marketingOnly by leveraging all dimensions of value supporting by a marketing

program that clearly communicates and demonstrates the value can aprogram that clearly communicates and demonstrates the value can a

successful B2B brand be built and commoditization can be avoided.successful B2B brand be built and commoditization can be avoided.


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Industrial PromotionIndustrial PromotionPromotional MixPromotional Mix

PromotionPromotion

An effort by marketers toAn effort by marketers to Inform and RemindInform and Remindand toand to PersuadePersuade

people to participate in an exchangepeople to participate in an exchange

Promotional MixPromotional Mix

Combination of promotional tools an organization usesCombination of promotional tools an organization uses


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Industrial PromotionIndustrial PromotionPromotional MixPromotional Mix

AdvertisingAdvertising

Paid, nonPaid, non--personal communication through various media bypersonal communication through various media by

organizations and individuals who are in some way identified in theorganizations and individuals who are in some way identified in the

advertising messageadvertising message

Personal SellingPersonal Selling

Face to face interactions between salespeople and customersFace to face interactions between salespeople and customers

Sales PromotionSales Promotion

Any initiative taken by an organization to promote shortAny initiative taken by an organization to promote short--termterm

increase in sales, usage or trial of a product or serviceincrease in sales, usage or trial of a product or service Public RelationsPublic Relations

The management function that listens to the public, changes policiesThe management function that listens to the public, changes policies

in response to public request, executes communication programs toin response to public request, executes communication programs to

earn public understanding and awareness. Maintains relation withearn public understanding and awareness. Maintains relation with

various representative bodies.various representative bodies.


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Industrial PromotionIndustrial PromotionConsumer vs. Industrial PromotionConsumer vs. Industrial Promotion

Consumer PromotionConsumer Promotion

Advertising andATL activities are the core featureAdvertising andATL activities are the core feature

Personal selling would be prohibitively expensive therefore electronicPersonal selling would be prohibitively expensive therefore electronic

media is usedmedia is used

Scope of sales promotion activities is highScope of sales promotion activities is high

ReasonsReasons

Number and geographically widespread nature of point of salesNumber and geographically widespread nature of point of sales

Number, participants and locations of the distribution networkNumber, participants and locations of the distribution network

Presence of huge retail sectorPresence of huge retail sector Large number of customers and decision makersLarge number of customers and decision makers

Products carrying personal appealProducts carrying personal appeal

Products sold mostly on perceptionProducts sold mostly on perception

Brand building is extremely essentialBrand building is extremely essential


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Industrial PromotionIndustrial PromotionConsumer vs. Industrial PromotionConsumer vs. Industrial Promotion

Industrial PromotionIndustrial Promotion

As opposed to electronic media, focused and targeted advertising isAs opposed to electronic media, focused and targeted advertising is

usedused

High reliance on direct marketing and personal sellingHigh reliance on direct marketing and personal selling

ReasonsReasons

Electronic media advertising is usually superficial in nature andElectronic media advertising is usually superficial in nature and

not suitable for high involvement industrial productsnot suitable for high involvement industrial products

Relatively fewer customers and decision makersRelatively fewer customers and decision makers

Products do not carry personal appeal since the usage is notProducts do not carry personal appeal since the usage is notpersonalpersonal

Products sold on benefits rather than perceptionsProducts sold on benefits rather than perceptions

Brand building is essential, but product are not sold on brandBrand building is essential, but product are not sold on brand

alonealone


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Industrial PromotionIndustrial PromotionIndustrial AdvertisingIndustrial Advertising

Advertising is important in industrial marketingAdvertising is important in industrial marketing

Creates awarenessCreates awareness

Improves attitude towards companies products and servicesImproves attitude towards companies products and services

Tries to create topTries to create top--ofof--thethe--mind recallmind recall

Induces action in case of change in any stimuliInduces action in case of change in any stimuli

E.g. competition products having quality, delivery or service issuesE.g. competition products having quality, delivery or service issues

Company needing product that is not part of competition productCompany needing product that is not part of competition product

rangerange


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Need for focused and targeted advertising effortsNeed for focused and targeted advertising efforts

Number of customer is lowNumber of customer is low

Buying centers are involvedBuying centers are involved

Effects of product buying decisions are more profoundEffects of product buying decisions are more profound

Need for personal interaction between seller and buying centersNeed for personal interaction between seller and buying centers

Advertising mediaAdvertising media

General business and trade publicationsGeneral business and trade publications

Trade directory advertisingTrade directory advertising

News or business channels on televisionNews or business channels on television

The internetThe internet

Direct marketing / Telemarketing / Email marketingDirect marketing / Telemarketing / Email marketing


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Industrial advertising objectivesIndustrial advertising objectives

Create a favorable environment for sales callsCreate a favorable environment for sales calls

Project a financially healthy imageProject a financially healthy image

Support distributors or resellersSupport distributors or resellers

Create favorable image among difficult to reach influencersCreate favorable image among difficult to reach influencers

Generate leads for field sales personnelGenerate leads for field sales personnel

Increase attendance at tradeshowsIncrease attendance at tradeshows

Increase distribution of catalogsIncrease distribution of catalogs


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Industrial PromotionIndustrial PromotionIndustrial AdvertisingIndustrial Advertising -- VehiclesVehicles

General Business and Trade PublicationsGeneral Business and Trade Publications

Energy UpdateEnergy Update

Pakistan Textile JournalPakistan Textile Journal

Defence Journal of PakistanDefence Journal of Pakistan

Pakistan Journal of SurgeryPakistan Journal of Surgery

Pakistan Journal of Medical ResearchPakistan Journal of Medical Research

Business RecorderBusiness Recorder

Pakistan andGulf EconomistPakistan andGulf Economist

The MotoristThe Motorist

Auto MartAuto Mart

Trade DirectoriesTrade Directories Yellow Pages of PakistanYellow Pages of Pakistan

Jamals Yellow PagesJamals Yellow Pages

OnOn--line Directoriesline Directories

B2B PakistanB2B Pakistan

Pak Tech SearchPak Tech Search


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TelevisionTelevision

Selected channels focused towards business viewersSelected channels focused towards business viewers

Business News ChannelsBusiness News Channels

InternetInternet

Own WebsiteOwn Website

Company ProfileCompany Profile

Product Range / Performance BenefitsProduct Range / Performance Benefits

OnOn--line Customer Community / Testimonialsline Customer Community / Testimonials

Company NewsCompany News

ProductAnnouncementsProductAnnouncements

Helpdesk / Complaint BoxHelpdesk / Complaint Box

Value Added Services / FoC TCO Reduction AdviceValue Added Services / FoC TCO Reduction Advice


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B2B Buying BehaviorB2B Buying Behavior

Purchasing objectivesPurchasing objectives

PricePrice

ServiceService

QualityQuality

Assurance of supplyAssurance of supply

Creating B2B AdvertisingCreating B2B Advertising

Select strongest benefitSelect strongest benefit

Dramatize mostDramatize most

important benefitimportant benefit

Relevant visualRelevant visual

Clear offerClear offer

Provide contactProvide contactinformationinformation



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29.9%

31.8%

37.4%

37.9%

39.0%

39.7%

39.8%

42.9%

44.6%

50.2%

51.7%

60.9%

Printed directories

Radio

Newspapers

General business magazines

Printed newsletters

Direct mail

Online marketing

TV

Custom publications

Industry-specific / trade magazines

Public relations

In-person events

How effective are the following marketing tactics at building brand image?

(Base: 867 US B2B marketers; Source: Forrester Consulting Survey for ABM)

(On a scale of 1 to 6, 1 being very ineffective and 6 being very effective, the chart reflects the percentage selecting 5 or 6)

Confidence interval: + / 3.3 percentage points

Industrial PromotionIndustrial PromotionPromotionPromotion--mix effectivenessmix effectiveness


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30.

31.

33.3%

34. %

35.3%

36.3%

41.3%

42.0%

42.1%

45.4%

47.4%

62.6%

Radi

ri t ddir t ri

aper

eneral iness magazines

Printednewsletters

TV

Cust m publi ati ns

Direct mail

nline mar eting

Public relati ns

Industr -specific / trade magazines

In-personevents

How effective are the following marketing tactics at generating qualified leads?

(Base: 67 US B2B mar eters; Source: ForresterConsulting Survey for ABM)

( nascaleof1 to6, 1being very ineffective and6being veryeffective, theanswers reflect acombinationof5and6)

Confidence interval: + / 3.3percentagepoints

Industrial PromotionIndustrial PromotionPromotionPromotion--mix Effectivenessmix Effectiveness


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Industrial PromotionIndustrial PromotionTradeshow MarketingTradeshow Marketing

ImportanceImportance

Tadeshows create dialogueTadeshows create dialogue

Tradeshows reach new prospects and generate sales leadsTradeshows reach new prospects and generate sales leads

Tradeshows strengthen customer relationshipsTradeshows strengthen customer relationships

Tradeshows provide opportunity to build relationships with trade pressTradeshows provide opportunity to build relationships with trade press

Type of tradeshowsType of tradeshows

Association sponsored versus for profitAssociation sponsored versus for profit

Regional, national or globalRegional, national or global

Vertical or horizontalVertical or horizontal


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Industrial PromotionIndustrial PromotionTradeshow MarketingTradeshow Marketing

TradeshowActivitiesTradeshowActivities

PrePre--show promotionshow promotion

Show ManagementShow Management

PostPost--show followshow follow--upup

SpecialtyAdvertisingSpecialtyAdvertising

Split PremiumsSplit Premiums

Tradeshow Effectiveness MeasurementTradeshow Effectiveness Measurement

Traffic CountsTraffic Counts

Direct mail redemptionDirect mail redemption

Attraction efficiency (No. of people visited upon qualified prospects)Attraction efficiency (No. of people visited upon qualified prospects)

Degree of press coverageDegree of press coverage

RecallRecall


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Industrial PromotionIndustrial PromotionDirect MarketingDirect Marketing

DefinitionDefinition

Precludes face to face interactionPrecludes face to face interaction

Uniqueness in seeking a measurable responseUniqueness in seeking a measurable response

Use of databases and listsUse of databases and lists

ComponentsComponents

Direct MailDirect Mail

Create GoodwillCreate Goodwill

Develop familiarity and interestDevelop familiarity and interest

Provide Demonstrations (sample CDs catalogs etc.)Provide Demonstrations (sample CDs catalogs etc.)

Build Traffic for tradeshowsBuild Traffic for tradeshows

Influence the channelInfluence the channel

Direct OrderDirect Order


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Industrial PromotionIndustrial PromotionDirect MarketingDirect Marketing

TelemarketingTelemarketing

ProspectingProspecting

Account ManagementAccount Management

Helpdesk / Complaint boxHelpdesk / Complaint box

Customer after sales servicesCustomer after sales services

InIn--house vs. outsourcedhouse vs. outsourced

Also classified as a personal selling aidAlso classified as a personal selling aid

Email marketingEmail marketing

Permission marketingPermission marketing

Low cost and high effectivenessLow cost and high effectiveness


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Industrial PromotionIndustrial PromotionSales PromotionSales Promotion

CategoriesCategories

Consumer PromotionConsumer Promotion

Retail PromotionRetail Promotion

Trade PromotionTrade Promotion

Free Samples

Contests, Sweepstakes, and Premiums

Coupons and Rebates

Trade Shows

Store Displays

Demonstrations

Types ofTypes ofSales PromotionSales Promotion

Topic 9 - Branding Promotion

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