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19 Cards in this Set
- Front
- Back
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Business to Business buying center complexity
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Business to business sell-in is far more complicated and done through Buying Centers
• Buying Center levels of involvement and influence: o Initiators detect the need and request product purchase o Users heavily influence the buying decision (the more qualified, the more influence) o Influencers guide the buying decision by defining specs or providing further information for evaluation of alternatives o Approvers approve or disapprove o Buyers formally authorize and select suppliers and arrange terms -Business to business purchase process used by Buying Center: • Problem recognition (customer needs, internal objectives, external environmental factors) • General need description (outlined estimated quantity and timeframe) • Product specification (technical, commercial terms, payment, maintenance, after-sales service) • Search/evaluation of suppliers (media/internet/sales literature/sales reps) • Proposal solicitation/analysis (definition of key criteria for evaluation and selection) • Supplier evaluation/selection (evaluate product against pre-determined criteria) • Order specification (writing the purchase order…varies by company0 • Performance review (receipt and performance test of purchase) |
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Definition of brand
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In its simplest definition, a brand is a means to identify and differentiate products, services, and businesses from competitors
A guaranteed of quality, origin, and performance A brand is more than a name, symbol, or tagline. A promise to its customers that must be kept by everyone in the organization |
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Why brands are important in B2B markets
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• An explosion of choices in almost every market (product and geographic) is adding to the complexity of purchase
• The recognition and trust a brand can build helps to quickly penetrate the purchase environment complexity and helps to minimize risk • Brands are an efficient and effective way to reach and impact all stakeholders, including investors, with a single unified message |
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The role of B2B brands
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• Increase information efficiency
o Branded products make it easier for customers to gather and process information and speed up the process through the recognition of trusted brands • Reduce purchase decision risk o Brands create trust in their expected performance and provide continuity in product benefits. (No one ever got fired for buying IBM) • Perceived value o Brand serves as a symbol of the value a product, service, or organization will deliver to its stakeholders |
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Definition of brand equity
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Definition of brand equity
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Components of brand equity
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• Brand equity is created through four components:
o Brand awareness o The brand’s perceived quality o Consumer/customer associations with the brand o Brand loyalty |
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Measurement of Brand Equity
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M 10% Market
S 15% Stability L 25% Leadership T 10% Trends S 10% Support I 25% Internationalization P 5% Protection (legal shit) |
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Brand architecture use in B2B
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It defines the relationship between the corporation and its products/services for its stakeholders
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1st key component of brand positioning
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Target audience
-know who wants it and what they want |
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2nd key component of brand positioning
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Value proposition
-It specifies the essential association/attribute offered to the selected target(s) out of the larger set of brand associations (the “essence” of the brand) -It sets the brand apart from competitors by delivering a benefit valued by the market and emphasizes the brand’s differentiation |
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Importance of brand associations
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Well-defined positive associations linked to a brand help customers evaluate brand beyond the performance of a product
They “fill in the gaps” between performance and the total brand value proposition, creating familiarity, liking, confidence, and trust, essential in B2B markets |
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Definition of brand scope
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The elasticity of a brand, its ability to extend beyond its core market to new product and/or geographic market
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Three levels of brand associations
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- Threshold Awareness Associations- People know something about the brand. Link less important attributes to those brand that are less known
- Focal Associations- Help define the brand, Most easily recalled brand associations. Easily link the benefits to the brand through focal associations - Subordinate Associations- A higher order of association. |
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Key reasons for extending the brand into new markets
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-◦Demand for new revenue and profitability
◦Expanding customer needs for new solutions…a trusted brand helps simplify the decision ◦The rapid economic development of international markets ◦Competitive pressure ◦Lower cost and higher potential for success than creating new brands (9 out of 10 new products fail) ◦Strengthens the relevance of the brand in existing markets ◦Spreads the risk across more markets |
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Global branding strategy models
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◦Standardization
Standardization assumes that both strategy and execution are implemented globally with language translation as the only change in content. ◦Pattern Standardization (Levis - regional) -Strategy, basic creative work and the selection of overall themes and appeals are centralized and coordinated in a global advertising agency. Localization Localization implements strategy and execution on a country-by-country basis with great attention paid to local needs. Pringles has same “fun” positioning everywhere but uses different flavors in different countries (Mexico – lime) and advertising tailored to local markets. |
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Importance of the standardization model
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◦Ability to leverage successful ideas from any market into all markets.
◦Lower advertising production costs. |
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Definition of brand operationalization
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Means all employees will work in a cohesive and consistent way in support of the brand and its promise to its constituencies.
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Five key brand-driven areas for successful brand operationalization
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Achieving total alignment between business and brand strategies.
◦Demonstrating a clear and consistent level of commitment to brand building by top executives within the organization. ◦Controlling the critical interactions customers and stakeholders have with your brand (touchpoints). ◦Transforming the company into a brand-driven organization and culture where employees understand: The brand’s promise The role they need to play in bringing the brand to life in their functional area -The critical importance of permanently changing behaviors to be congruent with the business and brand strategies ◦Implementing a consistent measurement and reward system that allows the company to monitor, benchmark, and upgrade brand performance in each functional area. |
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Four key touchpoint categories
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Pre-purchase -
Those activities that create awareness and purchase consideration.
Typically advertising, word-of-mouth, direct mail, the Internet, public relations, etc…
Purchase - Activities that move customers from actively considering to purchase. Direct field sales, physical stores, customer representatives. Post-purchase - After the sale, including product or service usage. Installation, customer service, warranty, rebate activities, customer surveys, regular maintenance. Influencing touchpoints - All touchpoints that indirectly help make a brand impression Annual reports, analyst reports, current and past customers, recruiting materials, etc… |
