Slides from B2B Branding Workshop given by Professor Brian Brown of the VCU Business School at SWaMFest VIII, held by the Virginia Association of State College and University Purchasing Professionals (VASCUPP) October 10-11 2012.

1. 1
When Does B2B Branding
Really Matter?
SWaMFest 2012
Dr. Brian P. Brown, Ph.D.
Assistant Professor, Marketing
Virginia Commonwealth University
October 11, 2012

2. Agenda / Discussion Topics
• Introduction
• Does B2B branding matter?
• Differences between B2B and B2C
• Role of branding in B2B settings
• Factors that affect branding in B2B
settings
• Developing B2B brand strategies
• Closing Remarks and Q&A

3. Does branding matter in B2B
settings?

4. B2B brands may not be equally
important to all sellers, all buyers, or
in all purchase situations, but…
• B2B marketers willing to invest in their
brands tend to be rewarded with:
– Enhanced reputations
– Improved financial performance

6. Should B2B marketers implement
different brand strategies?

7. B2B brands serve a similar purpose
as B2C brands
• Reduce risk perceptions
• Simplify offering selection; differentiate
• Communicate benefits and value of an
offering

8. Simply, differences between B2B
and B2C begin with “How do I
satisfy my customers?”
• Group buying process
• Complex offerings
• Nature and diversity of demand
• Fewer customers, larger volumes
• Long-term buyer-seller relationships

9. The B2B-Consumer Market Dimensions Continuum
Consumer B2B
Low Buying Situation Risk High
Context
Self-Expressive Product-Market Drivers Technological / Utilitarian
Individual Purchase Decision Process Group
Social Type of Risk Economic and
Performance
Psychological
Variables
Impulse Purchases Impulsiveness Rational Discourse
External: Icons/Peers Reference Group Influencers External: Best-in-class
Internal: Experts
Product-Oriented Brand Strategy Approach Company-oriented
Variables
Product
Product and Product Value Product and Associated
Associated Imagery Services
Traditional / Medium Interactive / Personal
Broadcast
Marketing
Variables
Comm.
Image-Based Content Technical / Pedagogic
9
Brown et al. 2007

10. Different forces and processes may require different
approaches
Case Product Market Drivers
Focus
Utilitarian Self-Expressive
Purchase Decision Process
Formal /
Group B2B
Consensually Agreed Needs
Individual / B2C
Household Private Wants Consumer
Focus
Minett 2002
10

11. B2B marketers must understand
what FACTORS affect brand
sensitivity

12. Risk and Brand Sensitivity
Brown et al. 2011

13. Brands appear to matter most when purchases
are of low to moderate importance
Brown et al. 2011

14. Small firms more likely to rely on brand
information in complex purchase situations
Brown et al. 2012

15. Buyers tend to place more emphasis on brands
when the offering is intangible
Brown et al. 2012

16. What Influences B2B Brands?
• B2B buyers are more brand sensitive in low and
high risk situations, but not as much in moderate
risk situations.
– Brands serve to minimize risk (high risk situations) as well as
serve as a cue for choice simplification (low risk situations)
– There is evidence to support the so-called “IBM effect.”
• Smaller firms more likely to rely on brand
information in complex purchase situations.
– Smaller firms tend to have limited resources to dedicate to
information processing; brands are a mechanism for “overload”
• Purchase complexity matters, especially when the
offering is intangible
– Brands provide a way to manage information in highly
ambiguous choice situations

17. So, what are the implications?
• Reinforce brand awareness and emphasize
brand values even in low-risk purchase
situations
• Strong brands should highlight importance
of the purchase situation and create
perceptions of risk (e.g., bundle)
• In complex situations, emphasize brand
values when product is intangible
• Emphasize brand information when
communicating with small companies

18. Closing Remarks
• Brands serve to reduce risk, differentiate,
and communicate values
• Brands matter in B2B contexts, but the
extent depends on various factors (risk
perceptions, purchase importance and
complexity, offering type, customer type,
market, etc.)
• Be wary of how B2B differs from B2C
context and develop strategies accordingly

19. QUESTIONS?