Branding is usually not a popular topic in B2B marketing, especially in the industrial sector. Most CEOs of manufacturing, engineering and technical companies do not believe in the value of brand building and consider it the domain of consumer marketing (B2C). Branding is an expense item like the rest of marketing.
That’s a shame and here’s why — among the top ten in Interbrand’s Best Global Brands 2009, IBM was listed at #2, Microsoft, GE and Intel at number 3, 4 and 9 respectively. Yes, GE and Microsoft sell directly to end-users but they are primarily B2B companies.
According to a study done by Professor John A. Quelch, the Lincoln Filene Professor of Business Administration at Harvard Business School, the common characteristic shared by the top B2B Global Brands is that their “CEO is a willing brand cheerleader, loves the brand heritage, and is a great storyteller.” He suggests that B2B marketers take a cue from their B2C counterparts when it comes to increasing brand awareness.
One of the key findings from the study was that B2B marketers are realizing that developing brand awareness among their customers’ customers can capture a larger share of channel margins and build loyalty that can protect them against lower-priced competitors. Professor Quelch provides the example of Intel and its very successful advertising campaign “Intel Inside.”
He ends his post by asking, “Would Dupont’s shareholder value be the same today if it had not made consumers aware of nylon, Lycra, [Teflon], Stainmaster and linked these innovations to the Dupont name? Definitely not.” Read more