If you’re looking to create a world class brand strategy and branding program to accelerate growth and differentiation, it’s critical to understand the difference between branding a B2B company and B2C company. Bottom line, it can be the difference between success and failure. Before you select a branding partner and methodology, consider the the following train of thought:
First off, corporations are not consumer products. While this may seem to be a blindingly self-evident statement to make, many branding agencies insist on lumping them together as “brands” and both therefore equally susceptible to consumer branding techniques. The fact is they exist in vastly different worlds.
B2B companies are often complex businesses systems that specialize in tackling large-scale problems and responding with individualized solutions with a high proportion of consultative services. IBM, Cisco, Boeing, Bechtel, and Accenture are typical B2B examples. There is no “consumer” in this world; there are buying teams that rationally evaluate your proposition on multiple dimensions.
This type of organization recognizes that it’s no longer about making and selling products, it’s about connecting complete offers — products, services, channels, and people — with the experiences their customers seek. Accordingly, B2B businesses configure their brand around customer preferences and groups, not around the products or services they offer. This brand strategy provides easy access through multiple integrated channels, often with alliance partners.
B2C companies on the other hand are based on a volume-operation model. They specialize in serving high volume markets through standardized products which are “branded” and mass-marketed through low-touch distribution channels and serviced by close-ended transactions. Take for instance the business models of Verizon, Nike, Hertz and P&G. Consumer brands tell their stories quickly and directly: Pop Tarts, Pampers, Duracell, Lean Cuisine. They are products to meet a transitory need; the brand is tightly focused around defined product attributes. B2C branding is more about product packaging and marketing than corporate strategy.
Corporate brands are configured around vision, shared values, and long-term strategy. They are more nuanced and function on multiple levels across diverse organizational micro-cultures and product divisions, with channel partners, distributor networks, investor relations and customers.
Only by understanding business and how companies operate can you build successful corporate brands. This is the RiechesBaird philosophy and the source of our enduring success. So if you’re a B2B corporation looking to build a successful brand and strategy, choose a partner and specialist that knows the difference between B2B and B2C and has built their company and model around servicing B2Bs.
Do you have a difference of opinion when it comes to the branding strategy behind B2B and B2C brands? Please share.
Learn more about the author of this post, Ray Baird.
Thank you for the thoughtful article. I’ve actually been working on one that that takes the contrary opinion: that best practices in B2C and B2B branding are actually converging.
The crux of my argument is that media fragmentation and the maturation of digital and social media has changed the game. Relative to your framework, I would argue that those changes enable all those different team members to gather information and interact with a B2B company through myriad, often 1:1 ways. B2B decisions have thus become a little less “rational”, and a bit more relational or “emotional”, which we typically associate with consumer brands.
No, that doesn’t excuse a serious B2B company from creating a silly sounding brand name (e.g. Purple Platypus). A brand needs to convey the core, professional values of the company. But, ultimately I thing the process of brand strategy development for B2C and B2B brands has pretty well converged.
Again, thanks for the thoughtful post. Follow me on Twitter at @ToddStn
Todd Stone on 10.18.12 at 1:46 pmThe principle difference between B2B and B2C with respect to branding is how that “mindshare” is achieved . Here is another look from a B2B perspective, especialy as it relates to small business.
Steve Stroum on 10.19.12 at 2:25 amhttp://venmarkinternational.com/blog/?p=312
It was interesting to read your article. However in my opinion whether it is B2B or B2C, end user/customer has to be the center of the branding strategy.Then what has to be identified is the expectations or preferences of the consumer from the product. Which can be utility based or emotional or even a mix.Parameters and propositions can vary but the focus has to be the person buying or using the product.
Adarsh on 11.02.12 at 9:43 amDoes the “emotional” aspect stick when it comes to B2B relations when the buying part is a very small business. Let´s say they are a firm of maybe only 10-15 people. They won’t have the resources of an big enterprise. Isn’t it possible that they might make buying decisions on personal emotions? They’ll buy in a B2B context using their “emotions” as a B2C customer?
Adam on 03.15.13 at 10:04 amThis is a great article and comments. I’m new to this group.
Tony Dodge on 04.01.13 at 5:29 pmIn my corner of the world, a primary difference I see, necessitating differences in brand development, is the differing architecture of the value chains in B2B and B2C. In addition to the work a brand has to do in the B2C sector, B2B brands also need to do work at the supplier, distribution, sales and aftermarket/afterservice levels. For example, an important goal of a B2B brand is, often, to provide lift at the distribution level.
A B2B brand that works well will not only ensure that the value-prop survives the trip to the end-user/decision-maker, it will also clearly represent a customized/finely-nuanced/compelling set of arguments addressing why the largest distributor network would want to a) carry your line and b) pull your product/offer out of the bag first. Of course, if a company has a direct sales force, or exclusive distribution agreements, the branding objectives would need to be modified here.
A successful B2B brand needs meet objectives at all value chain levels you choose to/need to participate in. Successful brand architecture is the foundation of the long-term ability to play offense with a/multiple brand(s).
I also find that B2C durable goods (big-ticket items lasting 3 year or more, i.e. cruiser-class motorcycles) branding projects are more like B2B than classic B2C.