Branding Your Product or Service
Traditionally, branding has been seen as a consumer marketing discipline. Business marketing was seen as different; buyers were assumed to be rational and decisions were believed to depend primarily on price and performance. But research has shown that business-purchase decisions are more complex, and companies base their decisions on a variety of factors. Business-to-business companies ignore branding at their peril.
Your product or service will always be under the halo of your company's brand. Knowing your brand's attributes are not always obvious. Start with listing what you know of your brand; include the strengths and weaknesses. Next, conduct some customer research. Research what your customers state are your brand's strength's and weaknesses. Ask simple questions that can offer deeper insights: "Why do customers buy my product or service?", "What do my customers feel are important attributes for the product or service?", "When do my customers buy my product or service?" Compare your customers' requirements against the performance of your own products and your company. Alternatively, look at your competitors and consider your comparative strengths.
Customers will always admire a company that is committed to continuous improvement, so start looking for improvements, particularly in the areas that are most important to customers. In order to benefit from your efforts, let your customers know what you are doing—and make sure that you follow through on any promises.
Many companies do brand value research. There are market research firms that specialize in this brand equity tracking. This research can indicate changes in customers perception of your brand. Many companies, like Coca-Cola will list the value of their brand on their company's financial statements. Having a strong brand can clearly increase the likelihood of future sales.
Product messages are more likely to generate short-term sales, which in turn could lead to marketing budget increases over time. However, if possible, don't neglect brand-building messages completely as often having a strong brand brings long-term competitive advantages.
No: if anything, they'll become more important. Companies have to work very hard to stand out among all the "crowding" online, so brand values still have a big role to play.
Branding is as important in business marketing as in consumer marketing. Business buyers, however, look for a different set of brand values. They are more likely to purchase based on what a product or service can do for their business and will hope for some proof of measurable results.
Once you have identified your brand's attributes that are most important to your current and prospective customers, you can emphasize them in your marketing communications: some key values are highlighted below. If an attribute is important to customers, but is currently weak, you should consider ways of improving its performance.
- Proven Products
Some buyers may be reluctant to buy new products that are not proven. They don't like to think that their companies are being treated as proving grounds for product development laboratories. This is why if an early stage product is offered to the general public, it is important to be upfront, like a software company releasing a "beta" version of new software. This allows companies that are open to buying unproven products get new software quickly, while allowing other companies the ability to wait for the proven model.
- Reliability
Buyers feel more confident buying from a reliable company. That includes solid financial performance, a strong and ethical management team, good industrial relations and a track record in effective products. A company's long term stance of strong reliability may be damaged or even ruined with just one well publicized event
- Fitness for Purpose
The product should be fit for its purpose. Does it meet the buyer's specification or conform to industry standards? Approval by recognized authorities is important. It is a good idea to state both the products features as well as their end-benefits as that will help the customer know why they need that product or service.
- Value for the Money
A product or services' value for the money is typically important to buyers. That does not mean buyers will always look for the lowest price, in fact often it is just the opposite. Some customers may happily to pay more for a product with an integral maintenance package as the maintenance package is of high value to them. Quality can be an important differentiator. Japanese companies led the way in transforming their brand values with massive improvements in quality. Companies that excel in quality build customer confidence.
- Service
Offering reliable service is important for every company, but it is vital for products that a customer's business depends on. Often a customer will research the timeliness and quality of a product's service options before purchase as the loss of a critical process can be so damaging.
- Extendability
If you supply a range of products or services, it is important to ensure your brand attributes and values are extendable to the entire range. If not, the brand will confuse the potential customer to the point where you could lose sales as well as hurt your brand equity. This is especially important to consider when launching new products. Having a brand that is extendable will be a strong asset when attempting to build incremental business and strengthen customer loyalty.
In many industries, potential new customers will be influenced to buy by the caliber of people who already use the product or service: a blue-chip customer list demonstrates product quality and approval. Ask existing customers for their permission to use their name and some positive feedback on your Web site and promotional material.
You can boost your relationship with customers by partnering with them. This could mean working on joint development projects or providing a package of services that support a customer throughout the life cycle of the product. Collaboration of this type strengthens the customer relationship and can weaken the potential of competitive activity. Take advantage of videoconferencing and other communication services to help you get the best from these joint projects.
Consulting can move a company from commodity supplier to valued partner. Pre-purchase consulting is critical with complex or high-value products, and the quality of advice can determine which company gets the final product or service order. Many companies offer both consulting services as well as the final use product.
In some industries, customized products represent higher value than standard versions. Customers have individual needs and a standard product may not prove an exact fit. By modifying as appropriate, you can meet needs more effectively, and therefore justify charging more.
It is important that you tell your customers that your organization's products and services are being improved all the time. Depending on the industry your business operates in, customers are not necessarily interested in leading-edge products, but they do want to know that they are getting the best products currently on offer. If you have made product or service improvements, don't forget to tout them in your marketing communications, stressing the benefits to consumers.
Having your product or service available is essential for allowing customers to purchase it. However, the importance of distribution varies by product and the recent growth of direct sales via the Internet is reducing its importance. Certain products, such as components or physical supplies, continue to depend on effective national distribution. Many companies offer financing options to their customers. Capital goods have long been marketed with a financing package, but financing is now also available on many lower-value products, and can be used as an additional marketing tool. Attractive interest rates or payment terms can also differentiate your company or product.
Simple ordering procedures make it easier for customers to do business. Many companies have automated their ordering processes to reduce the time a customer has to spend dealing with administrative issues. Good quality brochures, detailed product guides, comprehensive information on the Internet, and clear presentations help buyers make informed decisions.
Efficient administration makes it easier to do business with a company. Losing orders, sending out inaccurate invoices, and getting behind with correspondence do not create positive customer relationships. High quality customer service is an important measure of a company's values. Customer service takes on many forms, from the way a customer's initial inquiry is handled to the quality of aftercare. In a number of companies, customer service is viewed as a strategic activity, with dedicated staff and documented procedures. Whatever the size of your organization, make sure that all customer facing staff have the skills they need to do your business justice, and make clear to them how crucial their role is.
Delivery, like administration, is not typically seen as a strategic marketing activity, but it is important to remember it directly touches your customers and thus has an impact on brand perceptions.
For complex products, the quality of technical support can be the most important differentiator.
Technical support isn't always just about after-sales support and problem solving, however, important as both those issues are. It can also be helpful prepurchase, when customers are looking for the right item to buy, so why not make a feature of this on your Web site or offer a dedicated phone service?
Every country and often local region has environmental legislation that companies and products must conform to, but consumers often evaluate a company's environmental impact as a determining factor before purchase. Using materials from nonrenewable sources or contributing to pollution can damage a company's image.
When they think about their strengths, many organizations focus only on "hard" attributes, such as quality, performance, and price. Customers may take these for granted, particularly in a commodity market. The "soft" attributes such as customer service or technical support, can prove to be key, so incorporate both into any of your marketing messages or material.
It's essential to communicate what customers feel is important. In technology markets, quality of support and commitment to product development may outweigh price and delivery. In commodity markets, support and information can differentiate products with no performance advantage.
American Marketing Association: www.marketingpower.com