All forms of marketing require a certain level of branding. Be it B2C marketing or B2B marketing, branding is crucial. A clear cut branding strategy in marketing can help a brand establish a foothold in the industry. In recent times, the need for branding in B2B marketing has been noted by several experts.
How is B2B marketing different?
B2B or Business-to-Business marketing attracts a distinct clientele. B2C or Business-to-Customer businesses focus on selling specialized products to individuals. On the other hand, B2B businesses produce large-scale, customized solutions. Their customers are mainly corporations. Hence, B2B businesses deal with a larger number of people in buying decisions.
The past notion about B2B branding
Previously, not much importance was given to B2B branding. Top experts in the field nullified the need for branding in B2B marketing. The following reasons were cited for this opinion:
- Buyers of such products depended more on critical thinking and rationality rather than the emotion factor related to brands.
- The relationship between the client and the sales representative is more crucial than branding.
- B2B products are too complicated to be typecast into a brand mold.
- Price is the ultimate deciding factor for B2B products and not soft attributes such as brand impression and value.
- The target audience for B2B products is limited. Hence, extensive branding and advertising measure are futile.
Why is branding important in B2B marketing?
However, these outdated notions are slowly being cast aside. In current times, B2B branding is extremely important. Here are 5 major reasons to justify this:
- Emotion: If we look closely, all buying decisions are dictated by emotion at some level. Even the most technical products such as IT software are purchased by human beings and all humans are driven by emotion. In such a scenario, it is important to make a good impression on customers with the help of concrete branding tactics for your B2B products.
- Negative buyer impression: Secondly, B2B purchases are dictated by avoidance of negative impressions. A buyer’s propensity to avoid failure, dejection, or guilt during a purchase negotiation is extremely important. So, a good branding strategy in marketing B2B products can utilize this to their advantage. It can provide buyers with a sense of security and trust associated with the brand.
- Customer loyalty: As a natural reflex of the above reasons, sound branding for B2B companies can induce customer loyalty. This translates to profits for the company. Once buyers have positive emotions towards the brand, they would be more loyal to the company. As a result of this positive association, they would prefer to choose the brand over competitors for all purchases.
- Better conversation rates: Good branding can also considerably reduce the sales cycle for B2B products. Prospective customers are more likely to turn buyers. This results in better lead conversion, yielding profits. Customers are also more willing to pay a premium for the products if need be.
- Employer branding: Last but not least, good branding strategies for a B2B company can leave a positive impression on employees. Both existing and prospective employees will be prone to choose a workplace with a favorable brand image. This can be achieved by strategic branding procedures.
So, the importance of B2B branding in the modern-day world cannot be ignored. More B2B companies must take note of the branding phenomenon. Investing judiciously in such practices can help build the brand value for years to come.