Branding Promotion

Industrial Branding The Need for Branding in B2B Markets  Traditional view of B2B Marketing for almost 50 years       Build superior products Optimum cost Manage the sales and distribution channel Promote the product Traditionally B2B marketing has been predominantly product-focused Research in B2B branding done in the last fifteen years only  Studies indicate that driving force behind most B2B branding has just been based on making the brand recognizable by a suitable logo. Industrial Branding The Need for Branding in B2B Markets  Situation is becoming difficult since B2B customers have  More information     More choices Higher Expectations Highly Competitive Environment Primary purpose of a brand which is to make the company, product or service recognizable is not enough anymore.  Experts have recently stated:  Products are being viewed as commodities  Crowded field of companies offering similar and increasingly commodified products and services.  Rapidly changing technologies are making products obsolete Industrial Branding The Need for Branding in B2B Markets  Greater effort is required by companies to avoid their products being viewed as commodities.  If commoditization of industrial products happens, due to various brands and suppliers, price will be the only criteria for buying thus decreasing company profits  Desirable Situation for B2B Brands:    Customer is willing to pay a price premium Customer is willing to recommend brand to peers Customer is willing to give special consideration to another product from the same brand Industrial Branding Meaning of Brand in Industrial Markets   An Industrial Brand represents a multi-dimensional promise of value Four key dimensions:     Product Performance Delivery Performance Support Services Performance Company Performance  Product Performance   Quality, Reliability, Performance of the actual product Can only be demonstrated by testimonials or trial use Industrial Branding Meaning of Brand in Industrial Markets  Delivery Performance    Order Processing Logistics Performance Can only be demonstrated by building a reputation and then leveraging it  Support Services Performance     Customer Services Complaint Handling After-sales support Depends on swiftness and quality of response and people. Industrial Branding Meaning of Brand in Industrial Markets  Company Performance   Customers are looking for trust and commitment ‘Perceived Risk’ associated with industrial products is far higher than consumer products.  Customers lower this perceived risk by buying from recognized firms.  Distinctive aspects of building a B2B Brand:   Emphasis on the companies behind the brands, not only the products Based on more rational realistic and demonstrable benefits  Sales Force is a major brand building tool due to direct nature of contact in industrial markets. Purchase does not only depend on the assessment of products, but the assessment of the people also Industrial Branding Meaning of Brand in Industrial Markets  Distinctive aspects of building a B2B Brand:    Emphasis on the companies behind the brands, not only the products Based on more rational realistic and demonstrable benefits Sales Force is a major brand building tool due to direct nature of contact in industrial markets. Purchase does not only depend on the assessment of products, but the assessment of the people also   Role of intermediaries also important (where applicable) Company personnel need to keep brand promises and values in mind and should demonstrate in all key interactions with customers  Company standing should be regularly communicated to customers Industrial Branding Meaning of Brand in Industrial Markets   Secondary associations are important and should be extensively used Understanding that customers are buying much more than a product:    They are buying a satisfaction to the need They are lowering perceived risk They are buying ‘peace of mind’  Only by leveraging all dimensions of value supporting by a marketing program that clearly communicates and demonstrates the value can a successful B2B brand be built and commoditization can be avoided. Industrial Promotion Promotional Mix  Promotion  An effort by marketers to ‘Inform and Remind’ and to ‘Persuade’ people to participate in an exchange  Promotional Mix  Combination of promotional tools an organization uses Industrial Promotion Promotional Mix  Advertising  Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the advertising message  Personal Selling  Face to face interactions between salespeople and customers  Sales Promotion  Any initiative taken by an organization to promote short-term increase in sales, usage or trial of a product or service  Public Relations  The management function that listens to the public, changes policies in response to public request, executes communication programs to earn public understanding and awareness. Maintains relation with various representative bodies. Industrial Promotion Consumer vs. Industrial Promotion  Consumer Promotion  Advertising and ATL activities are the core feature  Personal selling would be prohibitively expensive therefore electronic media is used   Scope of sales promotion activities is high Reasons     Number and geographically widespread nature of point of sales Number, participants and locations of the distribution network Presence of huge retail sector Large number of customers and decision makers    Products carrying personal appeal Products sold mostly on perception Brand building is extremely essential Industrial Promotion Consumer vs. Industrial Promotion  Industrial Promotion  As opposed to electronic media, focused and targeted advertising is used   High reliance on direct marketing and personal selling Reasons  Electronic media advertising is usually superficial in nature and not suitable for high involvement industrial products   Relatively fewer customers and decision makers Products do not carry personal appeal since the usage is not personal   Products sold on benefits rather than perceptions Brand building is essential, but product are not sold on brand alone Industrial Promotion Industrial Advertising  Advertising is important in industrial marketing     Creates awareness Improves attitude towards companies products and services Tries to create top-of-the-mind recall Induces action in case of change in any stimuli   E.g. competition products having quality, delivery or service issues Company needing product that is not part of competition product range Industrial Promotion Industrial Advertising  Need for focused and targeted advertising efforts  Number of customer is low    Buying centers are involved Effects of product buying decisions are more profound Need for personal interaction between seller and buying centers  Advertising media    General business and trade publications Trade directory advertising News or business channels on television   The internet Direct marketing / Telemarketing / Email marketing Industrial Promotion Industrial Advertising  Industrial advertising objectives  Create a favorable environment for sales calls     Project a financially healthy image Support distributors or resellers Create favorable image among difficult to reach influencers Generate leads for field sales personnel   Increase attendance at tradeshows Increase distribution of catalogs Industrial Promotion Industrial Advertising - Vehicles  General Business and Trade Publications  Energy Update  Pakistan Textile Journal  Defence Journal of Pakistan  Pakistan Journal of Surgery  Pakistan Journal of Medical Research  Business Recorder  Pakistan and Gulf Economist  The Motorist  Auto Mart Trade Directories  Yellow Pages of Pakistan  Jamals Yellow Pages On-line Directories  B2B Pakistan  Pak Tech Search   Industrial Promotion Industrial Advertising  Television  Selected channels focused towards business viewers  Business News Channels  Internet  Own Website     Company Profile Product Range / Performance Benefits On-line Customer Community / Testimonials Company News    Product Announcements Helpdesk / Complaint Box Value Added Services / FoC TCO Reduction Advice Industrial Promotion Industrial Advertising B2B Buying Behavior • Purchasing objectives – – – – Price Service Quality Assurance of supply Creating B2B Advertising • Select strongest benefit • Dramatize most important benefit • Relevant visual • Clear offer • Provide contact information Industrial Promotion Promotion-mix effectiveness “How effective are the following marketing tactics at building brand image?” In-p e rso n e ve nts P ub lic re la tio ns Ind ustry-sp e cific / tra d e m a g a zine s C usto m p ub lica tio ns TV O nline m a rke ting D ire ct m a il P rinte d ne w sle tte rs G e ne ra l b usine ss m a g a zine s N e w sp a p e rs R a d io P rinte d d ire cto rie s 3 1 .8 % 2 9 .9 % 4 4 .6 % 4 2 .9 % 3 9 .8 % 3 9 .7 % 3 9 .0 % 3 7 .9 % 3 7 .4 % 5 1 .7 % 5 0 .2 % 6 0 .9 % (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 (Base: 867 US B2B marketers; Source: Forrester Consulting Survey for ABM) Industrial Promotion Promotion-mix Effectiveness “How effective are the following marketing tactics at generating qualified leads?” In-p e rso n e ve nts Ind ustry-sp e cific / tra d e m a g a zine s P ub lic re la tio ns O nline m a rke ting D ire ct m a il C usto m p ub lica tio ns TV P rinte d ne w sle tte rs G e ne ra l b usine ss m a g a zine s N e w sp a p e rs P rinte d d ire cto rie s R a d io 3 6 .3 % 3 5 .3 % 3 4 .6 % 3 3 .3 % 3 1 .7 % 3 0 .7 % 4 7 .4 % 4 5 .4 % 4 2 .1 % 4 2 .0 % 4 1 .3 % 6 2 .6 % (On a scale of 1 to 6, 1 being “very ineffective” and 6 being “very effective,” the answers reflect a combination of 5 and 6) Confidence interval: + / – 3.3 percentage points (Base: 867 US B2B marketers; Source: Forrester Consulting Survey for ABM) Industrial Promotion Tradeshow Marketing  Importance  Tadeshows create dialogue    Tradeshows reach new prospects and generate sales leads Tradeshows strengthen customer relationships Tradeshows provide opportunity to build relationships with trade press  Type of tradeshows    Association sponsored versus for profit Regional, national or global Vertical or horizontal Industrial Promotion Tradeshow Marketing  Tradeshow Activities  Pre-show promotion     Show Management Post-show follow-up Specialty Advertising Split Premiums  Tradeshow Effectiveness Measurement   Traffic Counts Direct mail redemption    Attraction efficiency (No. of people visited upon qualified prospects) Degree of press coverage Recall Industrial Promotion Direct Marketing  Definition  Precludes face to face interaction   Uniqueness in seeking a measurable response Use of databases and lists  Components  Direct Mail    Create Goodwill Develop familiarity and interest Provide Demonstrations (sample CDs catalogs etc.)    Build Traffic for tradeshows Influence the channel Direct Order Industrial Promotion Direct Marketing  Telemarketing  Prospecting     Account Management Helpdesk / Complaint box Customer after sales services In-house vs. outsourced  Also classified as a personal selling aid  Email marketing  Permission marketing  Low cost and high effectiveness Industrial Promotion Sales Promotion  Categories  Consumer Promotion   Retail Promotion Trade Promotion Contests, Sweepstakes, and Premiums Free Samples Coupons and Rebates Trade Shows Types of Sales Promotion Store Displays Demonstrations