B2B branding

What is B2B branding?
B2B branding is the systematic development and implementation of a B2B corporate brand to support the business success of a B2B company. This is done, for example, by preference formation, price premium, cost reduction and risk minimization.

A B2B brand is aimed exclusively at companies. It offers products or services for other companies.

How does the purchase decision work in B2B?
The purchase decision is the process by which a customer makes a choice between different offers and decides to buy a particular product or service. The brand plays a more or less important role in this, depending on the industry.

In the consumer sector (B2C brands), buyers choose directly between brands – at the physical shelf or in the digital shop.

B2B purchasing decisions are based on a more complex process: the entire value chain is included in the form of comprehensive solutions, from the planning of installations or product portfolios to downstream service and ongoing deliveries.

What role does the brand play in B2B purchasing decisions?
In B2B, the brand contributes between 2% and 20% to the purchasing decision. In the B2C luxury goods industry, the role of the brand achieves 90% or more.

While in B2B innovation industries such as med-tech, the role of brand can be up to 20%, the brand plays a lesser role in the commodity sector (e.g. chemical raw materials), since the standardized quality and availability of the materials are the main focus here.

Positioning also influences the role of brand: for premium brands, the brand contributes significantly more to the purchase decision than for low-priced entry-level brands.
A “Role of Brand” of 2% may seem low. But with a turnover of 100 million, 2 million can be attributed exclusively to the power of the brand.

Who particularly benefits from B2B branding?
Hidden champions that are growing and want to attract new customers and talent can significantly increase their appeal and awareness through a brand refresh.

Hidden champions are B2B companies that occupy a leading position in their market segment due to a unique product, service or technology, but are often less known than large brands or companies.

What are the most common mistakes in B2B branding?

• Lack of brand awareness. The brand is not seen as a business-relevant asset in the company, so it is not actively maintained and provided with the appropriate budget.
• Inadequate brand protection. The brand is not registered in the relevant trademark registers, or only in a rudimentary way. If a company wants to expand into new markets, for example as part of an acquisition, unprotected brands bear a significant business risk.
• An uncontrolled growth of the brand portfolio, resulting from acquired, non-integrated companies. This reduces synergies, makes brand management more expensive and prevents the brand from being perceived as a leader in its segment
• An unclear brand strategy and a generic brand experience. Both lead to an unclear profile and reduce relevance for customers.
• A weak brand presence, which in turn reduces brand awareness and reach, negatively impacting the acquisition of new customers.

Curious for more?
Discover how strong B2B branding creates value: https://markenfels.ch/en/b2b-branding/