Branding a Business Product

GETTING STARTED
Branding is as important in business markets as it is in consumer markets, and buyers feel more confident buying from a reliable company. Indeed, some buyers may be reluctant to buy new products that are not proven.

FAQS
How can I identify brand attributes? Brand attributes are not always obvious. A good starting point is customer research. What do your customers feel is important when they buy? Compare their requirements against the performance of your own products and your company. Alternatively, look at your competitors and consider your comparative strengths. What do I do if my brand attributes look poor? Customers admire a company that is committed to continuous improvement, so start looking for improvements, particularly in the attributes that are most important to customers. Make sure you communicate any improvement. Is it possible to measure the effect of branding? In consumer markets, companies use tracking research to monitor changes in customer perceptions of the company. This research can indicate whether customers see your company in a more favorable light. This, in turn, can increase the likelihood of future sales. My advertising budget is limited. Should I concentrate on product messages or brand-building messages? Product messages are more likely to generate short-term revenue. That could increase your marketing budget over time. However, it would be wrong to neglect brand-building messages completely. You would be sacrificing long-term business development. An increasing proportion of sales are coming via the Internet. Does this mean brand values are now less important? With more and more crowding on the Internet, companies will have to work hard to stand out. Brand values will remain important.

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MAKING IT HAPPEN
Why Business Branding Is Important Branding is as important in business markets as in consumer markets. Business buyers, however, look for a different set of brand values. They ask what a product or service can do for their business. Using the Brand Values The following list covers the key attributes. Once you have identified the attributes that are most important to your customers and prospects, you can emphasize them in your communications. If an attribute is important to customers, but is currently weak, you should consider ways of improving performance. Fitness for Purpose The product should be fit for its purpose. Does it meet the buyers specification or conform to industry standards? Approval by recognized authorities is important. Value for Money and Quality Value for money may be important to some buyers. That does not mean buyers will always look for the lowest price. Some customers may be happy to pay more for a product with an integral maintenance package. Quality can be an important differentiator. Japanese companies led the way in transforming their brand values with massive improvements in quality. Companies that excel in quality build confidence. Extendability If you supply a variety of products or services, brand values should be extendable to the entire range. This can help to build incremental business and strengthen customer loyalty. Company Reliability Buyers feel more confident buying from a reliable company. That means solid financial performance, a strong management team, a good industrial relations record, and a track record in effective products. Proven Products Some buyers may be reluctant to buy new products that are not proven. They dont like to think that their companies are being treated as proving grounds for product development laboratories. Investing in Product Development Customers want to know that products are being continuously improved. They are not necessarily interested in leading-edge products, but they want to know that they are getting the best products currently available.

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Distribution and Financing If distribution is poor, customers cant buy the product. The importance of distribution varies by product, and the recent growth of direct sales via the Internet is reducing its importance. However, certain products, such as components or supplies, continue to depend on effective national distribution. The availability of financing may be important to some customers. Capital goods have long been marketed with a financing package, but financing is also available on many lower-value products. Attractive interest rates or payment terms can differentiate a product. Service Backup Service backup is vital to products that a customer depends on. The loss of a critical process can prove damaging, so a customer wants to know that service response will be rapid. Training Training helps customers make effective use of a product. Many companies operate their own training departments or develop distance learning packages, to make sure that customer staff become familiar with new products. Customized Products Customized products may represent higher value than standard versions. Customers have individual needs and a standard product may not prove an exact fit. By modifying, you can meet needs more effectively. Partnership Working in partnership with a customer can increase the value of the relationship. Partnership may mean working on joint development projects or providing a package of services that support a customer throughout the life cycle of the product. Partnership strengthens customer relationships and can weaken the impact of competitive activity. Collaboration on joint projects is now much easier with the growth of videoconferencing and other communications. Administration and Customer Service Efficient administration makes it easier to buy from a company. Lost orders, inaccurate invoices, and poor correspondence do not impress customers. Quality of customer service is a key measure of a companys values. Customer service takes many forms, from the way a customers initial inquiry is handled to the quality of aftercare. In a number of companies, customer service is viewed as a strategic activity, with dedicated staff and documented procedures. Consulting Consulting can move a company from commodity supplier to valued partner. Presales advice is critical with complex or high-value products, and the quality of advice can determine where the order goes.

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Technical Support The scope of technical support ranges from advice on the right product for an application, to after-sales user support and problem solving. In complex products, the quality of technical support can be the most important differentiator. Environmental Issues Products must conform to environmental legislation, but companies are also measured by the effects of their processes on the environment. Using materials from nonrenewable sources or contributing to pollution can damage a companys image. Ordering and Product Information Simple ordering procedures make it easier for customers to do business. Many companies have automated their ordering processes to reduce the time a customer has to spend on administration. Quality brochures, detailed product guides, comprehensive information on the Internet, and clear presentations help buyers make informed decisions. Delivery Delivery, like administration, is not seen as a key marketing activity, but it has an impact on brand perceptions. Customer Base Buyers assess a product by the customers who already use it. A blue-chip customer list demonstrates product quality and approval.

COMMON MISTAKES
Neglecting the Soft Issues Many companies communicate their strengths in the hard attributes, such as quality, performance, and price. Customers may take these for granted, particularly in a commodity market. The soft attributes such as customer service or technical support, can prove to be key. Ignoring Branding Traditionally, branding has been seen as a consumer marketing discipline. Business marketing was seen as different; buyers were assumed to be rational and decisions were believed to depend primarily on price and performance. Research has shown that business purchase decisions are more complex, and companies base their decisions on a variety of factors. Business-to-business companies ignore branding at their peril. Concentrating on the Wrong Attributes Its essential to communicate what customers feel is important. In technology markets, quality of support and commitment to product development may outweigh price and delivery. In commodity markets, support and information can differentiate products with no performance advantage.

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Failing to Communicate Brand Strengths Communications that focus only on the product may fail to communicate the important brand strengths. Customer presentations, corporate brochures, public relations activities, and corporate advertising can be used to present a more balanced picture.

FOR MORE INFORMATION

Books: Hutt, Michael, and Speh, Thomas. Business Marketing Management: A Strategic View of Industrial and Organizational Markets. Mason, OH: South Western College Publishing, 2003. Koehn, Nancy F. Brand New: How Entrepreneurs Earned Consumers Trust from Wedgwood to Dell. Boston, MA: Harvard Business School Press, 2001. Web Site: American Marketing Association: www.marketingpower.com

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