B2B Brand Management Questions and Answers

 1. Could you explain us meaning of B2B branding or industrial branding? Why is so important for companies?

The terms B2B Branding and industrial branding are similar. They are both concerned about how brand management in companies provide products and services to business customers. B2B (business to business) is a more catchy term than industrial branding and is the parallel to B2C? (business to consumer). Use of such acronyms (alphabets used to shorten long names) is popular in the business world where saving time and getting to the point are important for busy managers.

B2B Brand Management is becoming increasingly important for industrial companies because it enables them to differentiate themselves from the competition in a different way than traditionally done through product improvement or price advantage. Establishing a brand enables global companies to establish emotional ties to the product and thus create long lasting business relationships.

Branding also creates value for the shareholder, not only in terms of better business performance but also for improved share prices.

2. What is your advice for CEO's who want to build an industrial brand? Also tell us some tactics...

In our book, we present a methodology to becoming a successful industrial brand. It all starts with the fundamental decision: to brand or not to brand. Many companies have established themselves through great innovation or superior manufacturing capabilities. Today, in the globalized economy, a product needs to satisfy customer need in order to differentiate itself from the competition. This is where value creation through branding becomes an attractive strategy.

After choosing to brand, there are various dimensions of brand management to consider. We lay out clearly in the book, in particular, brand distinction in the form of brand naming, brand appearance, logo, etc. These are crucial for success, so are brand communication and evaluation. We recommend a holistic approach to branding.

Brand acceleration comes next; we offer in our book a structural approach and show various examples. We also present a series of case studies of companies around the world: FedEx, Samsung, IBM, Cemex, Siemens, Lanxess, Lenovo, and Tata Steel. Each company represents a brand challenge that has been successfully met.

Along with success stories, we also tell about pitfalls of branding. Branding is a sophisticated marketing tool that companies must learn to use effectively and certain pitfalls must be avoided.

3. Which are the most successful companies on industrial branding?

In the first chapter of the book B2B Brand Management, we show a graph of very successful German B2B companies that are listed on the DAX (German stock exchange). Their brand management success enabled them to outperform their peers and increase their stock market value from 2001 to 2005 by more than 30%. These companies were: BASF, Linde, SAP, RWE, and MAN. We have done the same analysis for the DOW in the U.S. and got even more convincing results. Using the Interbrand brand evaluator in the same time span, GE, Caterpillar, and HP outperformed their competition by more than 80% in market capitalization increase. They were easier able to survive the 2002 stock market crisis and rebound more quickly.

We know that branding pays; now it is your turn to believe in us. Read the book on brand management and learn from it before the competition does.

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