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40 Cards in this Set
- Front
- Back
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What are the main differences between B2C and B2B?
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B2B- Businesses that sell or lease products or services to other businesses.
B2C - Businesses that sell directly to consumers through retail distribution channels. B2C focuses mainly on consumers needs/wants in which the market is wide / global / varied B2B are also wide / global / varied but focus on the needs / wants of other businesses. i.e. Materials and Parts, Services and Supplies B2B Customer Demand is more volatile than B2C and is very inelastic Consumers are always in the market at some level vs businesses being affected by economic downturns are not always in the market |
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Is magnitude of sale important for B2C?
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Yes, magnitude could mean $5 Consumer Packaged Good (CPG) vs an Airplane costing millions
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B2B Products are based on what?
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Functionality and performance and can be marketed in the same way globally by using a Standardized Branding Strategy.
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What percentage of people buy from B2B?
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20% of buyers purchase 80% of the product which is a result of Key Account Selling.
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What are key accounts?
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Key accounts are buyers who produce the most profit for companies.
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What are the three groups in which B2C products fall in?
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Consumers
Retailers Distributors/Wholesalers |
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What are the three groups in which B2B products fall in?
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User: A manufacturer who buys a machine to produce parts for finished goods i.e. Apparel.
OEM: Original manufacturers buy components to integrate into their products i.e. Windows OEM |
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What are two primary purchasing factors for B2C?
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Impulse (Low Price Point)
Considered (High Price Point) |
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What is the difference in purchasing factors of B2B?
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Higher Volume
More Process Oriented |
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Who is part of a B2B buying center?
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Initiators- detect the need and request of product
Users- heavily influence the buying decision (the more qualified, the more influence) (Is it needed?) Influencers- They guide the buying decision by defining specs or provides information for evaluating alternatives |
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What is the purchase process for B2B buying centers?
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- Problem recognition (Customer needs, internal objectives, external environmental factors)
- General Need Description (Outline estimated quantity and timeframe) - Product Specifications (Technical, commercial terms, maintenance, after-sales service) - Search / Evaluation of Suppliers (media/internet/suppliers/sales reps/literature) - Proposal Analysis (Definition of key criteria for evaluation / selection) - Supplier Evaluation (Evaluate product against pre-selected criteria) - Order Specification (Writing the purchase order, varies by company) - Performance Review (Receipt and performace test of purchase) |
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Do human factors play a role in B2B selling?
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Yes.
Human Factors - Intrapersonal Factors - Individual Factors (age, background, attitude towards risk, income level, personality) - Job Position (Where do they fit in / what influence do they have on company) |
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What is a brand?
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- A brand is a means to identify and differentiate products, service and businesses, from competitors
- A brand is a guarantee of quality, origin, and performance - A perceived value that helps reduce risk and complexity in buying decisions, which makes it even more important in high-ticket B2B markets. - Primarily intangible asset for any organization |
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What attributes does a brand contain?
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A brand is much more than a name. symbol, or tagline
• A promise to its customers that must be kept by everyone in the organization • A totality of perceptions that includes everything you see, hear, read, know, feel, think about a product, service, or organization • A distinctive position in customer’s minds based on past experiences, associations, and future expectations. |
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Why are brands important in B2B?
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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 trus a brand can build helps to quickly penetrate the purchase environment complexity and helps to minimize risk - Brands are an efficient way to reach and impact all stakeholders, including investors, with a single, unified message. |
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What are the key benefits to using brands?
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- Increases information efficiency
-- Makes it easier for consumers to choose and process information about products through recognition of trusted brands - Reduces Purchase Decision Risk -- Brands create trust in their expected performance and provide continuity in product benefits -Perceived Value -- Brand serves as a symbol of the value of a product, service, or organization will deliver to its stakeholders. |
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What are the five market factors that effect brand relevance in B2B markets?
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- Market Structure
-- The more fragmented the market, the harder it is for a brand to stand out. (Consolidated markets favor dominant brands) - Number of Competitive Brands -- An abundance of brands drives down brand relevancy and makes it hard for brands to stand out. (Growth stage of life cycle) - Degree of Purchase Power Complexity -- The more people involved in the buying process, the more important the brand becomes. Brand becomes more important in more complex decision making. - Number of deciders in buying center -- Brand becomes more relevant when there are many deciders to reach and many products / services to purchase. (Stakes are high for high price / complex product) - Visibility of a Brand -- Highly visible brands are more relevant to a market. (Higher awareness brings familiarity and acceptance) |
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What are the 8 roles of B2B branding?
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1. Differentiation
-- "Decommoditize" a market and provide a reason for being able to choose a competitive brand over a competitive brand 2. Securing future business -- Once recognition and trust are created, it is easy to sell in new products under the brand "halo". 3. Establish Brand Loyalty -- A promise to build strong customer relationships by constantly pushing a brand promise. 4. Effective Communications -- Differentiated brand communication helps accelerate information gathering and communicated brand values to build trust. 5. Building Brand Preference -- A stronger brand will reduce the chance of switching brands, especially in high price B2B 6. Price Premium -- Well known brands have a price premium and are less susceptible to competition i.e. Intel vs AMD 7. Building a brand image -- Brands bring value propositions to life and convey emotional reasons to buy 8. Increasing Sales -- Strong brands become more profitable, but also benefit from higher sales volumes. |
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Define Holistic Branding
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Holistic Branding is the development, design, and implementation of brand marketing programs, processes, and activated that are broadly integrated within the company
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Definition of Brand Equity
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Value behind the image of the brand
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What are the components of Brand Equity?
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- Brand Awareness
- The Brand's Perceived Quality - Consumer / Customer Associations with the brand - Brand Loyalty |
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Describe Brand Awareness
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- The key fundamental or brand equity
- The rule of 7: Only remember 7 brands - Brands need to have strategic awareness - Pure recall is most important |
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Describe Perceived Quality
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-Quality perception wraps around the total customer service, not only the product / perceived look
-Quality is considered the price of entry but delivering is still the key to brand perceptions - Perception is reality |
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Describe Brand Associations
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- The "essence" of a brand is its key to association, and the basis for brand's positioning.
- Key to formation about the attitudes, beliefs, and opinions about the brand. - Associations can be both positive and negative - Association form the basis of brand equity |
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Describe Brand Loyalty
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- Most valued component, critical for B2B repurchase and brand recommendation/ endorsement
- Essential in mature markets for profitability - Brand trust builds brand trust and long term relationships, critical for B2B life revenue stream |
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How can you measure Brand Equity?
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Market ( 10%) - The degree to which the market is stable, growing and has strong barriers to enter
Stability (15%) - Brands that have been established for a long time and command customer loyalty Leadership (25%) - A brand that leads the sector that it competes in Trends (10%) - Provides and indication where the brand is moving Support (10%) - The support the brand has received (budgetary/commitment/execution) Internationalization (25%) - The strength of the brand in international markets Protection (5%) - The ability of the company to protect the brand. |
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What is the use of brand architecture?
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The brand structure that defines the relationship between the corporations and its products / services for its stakeholders
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What is brand positioning?
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- How you want your brand to be perceived by your target audience vs competitive brands.
- Built upon key brand attributes that: Differentiates the brand from its competitors Is relevant, meaningful, and valued by customers Sustainable over the long-term Rooted in the "essence" and "core" of the brand |
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What are the key components of brand positioning?
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- Target Audience
Key Customer Focus (know what they want, know who to market to) Both Primary and Secondary Buyers What the Target Market Needs / How your brand is Perceived - The Value Proposition Sets the brand apart from competitors by delivering a benefit valued by the market and emphasizes the brands differentiation |
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What are the three characteristics of The Value Proposition?
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1. Focus on value meaningful to target customers, expressed in the language of the target
2. Convey the value of the brand by communicating the proposition (position) succinctly (keeping it simple) and consistent (on message repitition) 3. Value must be consistent with the goals of the business for holistic support and provide foundation for the brand communication strategy |
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What is the importance of brand associations?
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• Help customer evaluate brand beyond performance of the product.
• Well defined positive association linked to the brand. • Help fill in the gaps between total performance and brand value proposition |
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What are the 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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Define Brand Scope
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- Elasticity: Expand the brand beyond its initial market and allows new products and geographic markets
- Defies the limits of how you can expand your brand - Primary research: allows you to see which markets are the best to enter and will give you a chance to see what markets your product will work in |
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Why would you extend the brand to new markets?
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Profability and Revenue
Expand customers choices of brands |
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Define 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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What are the Global Branding Strategy Models?
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Standardization
- Assumes that both strategy and execution are implemented globally with language translation as the only change in content. Pattern Standardization - Strategy, basic creative work and the selection of overall themes and appeals are centralized and coordinated in a global advertising agency. Countries are primarily responsible for media selection and the adaptation of advertising appeals. Localization - Implements strategy and execution on a country-by-country basis with great attention paid to local needs |
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What is the importance of Standardization model?
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The ability to leverage successful ideas from any market into all markets and lower production costs
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What are the 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 business and brand strategies. •Implementing a consistent measurement and reward system that allows the company to monitor, benchmark, and keep control of the brand. |
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What is the touchpoint definition?
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- Different ways the brands interact with and makes impression on customers, employees, and other stakeholders.
- Every action, tactic, and strategy implemented to reach customers and other stakeholders through advertising, customer service, a referral, etc… represents a touchpoint. |
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What are the 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… All touchpoints that indirectly help make a brand impression |
