Branding in B2B Markets

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MANAGEMENT DEVELOPMENT INSTITUTE - GURGAON
Post-Graduate Programme in Management (PGPM): 2011-13 (PGPM 2011-2013 Batch) Term: V (Sep 2012 – Dec 2012)

Business Marketing
Submission Date: th 20 Nov 2012

Term Paper

PGPM 2011-13
A Term Paper on

“Branding in B2B Markets”
Submitted to Prof. Vinod Kalia

Submission Date: 20th November 2012

Contents
Business to Business (B2B) Branding: An Introduction ........................................................................... 2 Customer Value Proposition in Business Markets .................................................................................. 3 Brand Equity in Business Markets........................................................................................................... 6 Keller’s Customer Based Brand Equity Pyramid: ................................................................................ 6 Revised Customer Based Brand Equity Pyramid for B2B: ................................................................... 7 Social Media Branding in B2B Sphere ..................................................................................................... 8 Social media marketing: A method of paradigm shift ........................................................................ 8 Impact of social media on B2B Branding efforts................................................................................. 9 Alignment of Brand Strategy and Social Media .................................................................................. 9 B2B Branding vis-à-vis Product Branding .............................................................................................. 11 Challenges and Difficulties in B2B Branding ......................................................................................... 14 Problem with Over-Branding ............................................................................................................ 15 References ............................................................................................................................................ 16

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Business to Business (B2B) Branding: An Introduction
The world’s leading brands like Intel, General Electric, Microsoft & IBM, generate more B2B sales as compared to B2C sales. An HBS research team found the following insights about B2B branding of major corporations:     The CEO is a willing brand cheerleader, loves the brand heritage and is a great storyteller, the CMO helps him in this task Efforts are focused on creating a focused, single corporate brand, rather than individual product brands The payback on marketing expenditures are measured rigorously against the industry benchmarks Building brand reputation reduces commercial risks, insulates the company in a crisis and forms a common purpose for all the stakeholders

Why B2B branding is important for an organization Organizations go for branding primarily because small businesses and enterprise customers can not be addressed using traditional sales force. Secondly, companies look disorganized if individual managers are left to operate and design the brands. Hence a corporate level framework should be in place to manage the brands. Thirdly, large share of channel margins and loyalty can be built in conjunction with branding, which helps differentiate the company from low-price competitors sans brand.

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Customer Value Proposition in Business Markets
Marketing Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation. Successful Marketing effort requires a clear articulation of targeted customer segments and the value proposition required to please them. Clarity of this value proposition is the single most important dimension of strategy. (Strategy Maps, Robert S. Kaplan and David P. Norton, HBS Press, 2004) Customer value proposition (CVP) can be defined as “a clear, compelling and...
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