Chapter Thirteen
Business-to-Business Branding
Authors’ Comments
This chapter concentrates on
Business-to-Business Branding
, and explains the concept
in detail. The areas emphasized in this chapter are:
• Holistic branding
• Brand dimensions
The concept of holistic brand management is introduced by highlighting the
interrelationship of various marketing and managerial issues with the customer’s
understanding of the company’s values and offerings. Western students tend to
compartmentalize and separate tangible and intangible benefits of the offerings. We
would like to emphasize an integrated approach.
After explaining the characteristic and role of business-to-business brands, we
A whole section is dedicated to the topic of competing by brand building. Many
practitioners and students need help in this area, because in the past, technology or
pricing has been in the foreground of business-to-business marketing. Then, we would
like to emphasize the need for understanding the importance of the brand for
industrial buyers and explain how brand management can be established in a
Chapter 13: Business–to-Business Branding 2
Opening Vignette
ITT Industries–Brand Engineering in China
The opening vignette illustrates the effort needed to vitalize an existing brand portfolio
and the need to streamline efforts for a joint appearance in a demanding market like
Learning Objective
Understand the creation and application of brand management in
order to compete successfully in business-to-business markets.
Industrial branding is as old as industrial production, but conscious brand
management started to spread in the 70s in the U.S. and became popular in
Exhibit 13-1 (PowerPoint 13.2): Brand Value of Top 10 Companies
Other analyses show that the success of these companies could be expanded to
stock market performance. At this point, it is important to point out to students
Chapter 13: Business–to-Business Branding 3
cooperation between various partners in the value chain.
Learning Objective
Obtain an understanding of how branding relates to entrepreneurial
marketing and gain a sense of how branding can be accomplished in
all elements of the offering.
In order to practice branding as a holistic approach, executives have to
incorporate all branding efforts into their entrepreneurial mindset. Business-to–
business branding needs leadership from the top. Important decisions have to
So, understanding what the concepts of increased information efficiency, risk
reduction, and value added/image benefit creation could mean for the customer
can help the student and future executive to conceptualize the benefits from
the investment into the brand.
The company itself must inform its collaborators continuously. A large amount
of internal communication is needed to make everybody familiar with the brand
offering. This could be achieved through training, internal publications, Intranet,
etc., so that every collaborator can represent the brand accordingly.
Chapter 13: Business–to-Business Branding 4
Learning Objective
Understand how to implement brand management in business-to–
business marketing.
For many students and executives, business-to-business brand management
is reduced to brand communication. After introducing the Branding Triangle
and understanding the role of brands, students should consider brand
Exhibit 13-5 (PowerPoint 13.8) The Brand Customer Relationship
It is necessary to emphasize that even in the hybrid situation there should be
no internal conflicts and overlap. The day-to-day management has to assume
that the differences are clearly noticeable to the customer.
Chapter 13: Business–to-Business Branding 5
Various brand building tools are introduced, which are known from B2C
communications, but have to be adapted to industrial market conditions.
• Personal Selling:
Full knowledge of company and products are required. A long-term
individual relationship is anticipated; even personal friendship can
evolve.
• Direct Marketing:
These tools provide a good basis for competing by building a brand. The
section “Importance of Brand in Business–to–Business Buyer Behavior” gives the
students a deeper insight in the decision process. Extensive explanations are
offered for brands to become designated as a standard.
product feature level.
Learning Objective
Develop insights in the concepts of competing and winning over a
long-time frame through building and managing brand strength in a
business-to-business environment.
With a good basis of marketing principles provided in Chapter 1, 3, 4 and 7, it
Chapter 13: Business–to-Business Branding 6
Exhibit 13-6: The Brand Architecture Spectrum
The example of sensor SUV is used to demonstrate how to defend the brand,
with option of
• Market up
Exhibit 13-7 (PowerPoint 13.9): CAT Footwear
Competing Through Branding
Importance of Brand in Business-to-Business Buyer Behavior (PowerPoint 13.10
and 13.11)
A recognized brand name with positive customer perceptions has an
advantage at each stage of the decision process
• Determine that a need exists–Missionary salespeople from a well–
respected company may have entry into the buying center to discuss
Chapter 13: Business–to-Business Branding 7
• Cut the short list to finalists–the name brand may be included for
comparison, may get the benefit of the doubt, may be evaluated higher
because its figures are better known or trusted, and may win any ties
How does a manufacturer’s brand become a standard? (PowerPoint 13.12)
• First with New Technology
Consider a discussion of the value of brands in shortening the time to
market for new products.
Example: A designer of ski parkas is in the process of specifying
materials for the company’s next generation parka. Included are
design decisions related to zippers, buttons, snaps, etc. How shall
the sleeves by closed at the wrist? After due consideration, the
Defending the Market Position (PowerPoint 13.13)
There will be imitators, either copycats trying to be the low-cost
producer or modifiers trying to slightly move the technology envelope.
So …
Market up–build relationships with management above the influencers to
Chapter 13: Business–to-Business Branding 8
Learning Objective
To understand the meaning of Ingredient Branding.
Since the introduction of the Intel Inside Campaign in the 1990s, Ingredient
Branding is well known all over the world. Intel was one of many computer
processor manufacturers; today only a handful are left. In addition to an
aggressive innovations strategy from the beginning, Intel introduced the
All of them offer a unique product feature in their component, which is
interpreted in the final product such as beverages, clothes, or stereo systems
and make the customer choose the final product with the branded
component.
More than 200 companies in the world are following this concept, but many
more would if they understood the principles and positive consequences of
the innovative branding concept.
♯ The short form of Ingredient Branding is Inbranding
The next important concept for the successful implementation of InBranding
is the understanding of the push-pull principle. Marketing push is normally
achieved through strong marketing communication measures. For business-
to-business companies, the most commonly used means are sales promotion
or fair participation. When the supplier wants to push through the value chain
Key Terms
associations
awareness
brand strength
branding dimensions
ingredient branding
interactive marketing
Answers to Questions for Review and Discussion
1. What are the benefits created by branding?
Externally, a branding effort will help you:
Chapter 13: Business–to-Business Branding 10
2. How does business-to-business branding differ from consumer products
branding?
Business-to-business is different from B2C in some crucial ways, including the need to closely
3. Why should you approach branding in a holistic way?
Knowing that brand influences any buying decision in a complex business environment and
4. What are the important business-to-business brand functions?
Since brands help business-to-business companies to differentiate, they have major functions
5. What roles do brands play for a company’s offering?
In business-to-business, brands can play many roles. The following are the most important
ones:
•
Differentiate (“de–commoditizing”)
Chapter 13: Business–to-Business Branding 11
6. Why should marketing apply the branding triangle?
The Branding Triangle is a concept, which can align the thinking and action of business-to–
7. Why should a business-to-business marketer care about building a strong
brand?
One major reason for establishing business–to-business brand is to avoid commoditization and
8. Why is it advantageous to have your brand designated as a standard by a
customer’s purchasing process?
By establishing a brand as a standard, the company establishes a threshold which other
9. How are positive associations for a brand established in the memory of persons
in the customer’s buying center?
When planning to establish positive brand associations, it is necessary to understand first what
10. Can a business-to-business marketer be innovative in the way a brand is built?
As branding follows strategy, marketers have to be in line with the company’s general direction,
11. What are requirements for Ingredient Brandings, and what are current
examples?
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12. What industries are more inclined to use Ingredient Branding?
In principle, all industries have relevance to Ingredient Branding. It is important that the final
13. Many positive aspects of Ingredient branding have been discussed. What are
some of the potential problems?
InBranding success shifts the power structure in the value chain. The supplier becomes more
14. Why is it important to choose an ingredient branding partner carefully? What
factors must be considered beyond short-term market effectiveness?
Component suppliers need partners who are close in the value chain to final customers. This