Branding; A Value Creation Lever - What's in a Name and More

While the importance of branding is well established in the consumer industry, many business-to-business companies are relatively unsophisticated in their approach to what is a key lever in value creation - branding. Most companies compete vigorously on price, service and breadth of offerings, but those that dramatically differentiate themselves from their competitors do so through shaping customers' perceptions and experiences. Moreover, companies that recognize the importance of branding are able to affect the views of other key audiences (influencers, referral sources, analysts and investors) all of whom impact business prospects. A strong brand provides a solid market position, a sustainable competitive advantage, and, ultimately a meaningful increase in company value. In this CEO Topic, we will define the key elements of branding and the areas that merit senior executive attention.

In his book "Building Strong Brands," David Aaker defines brand equity as: “A set of assets (or liabilities) linked to a brand’s name and symbol that adds to (or subtracts from) the value provided by a product or service…” Branding is not simply about a creative name or a well-designed logo. A brand is the perception held by your target audience of who you are, what you do and how well you do it. A brand is created throughout the entire cycle of customer experience from the first time one hears about a company to well after the purchase is made. A successful brand is created with a sharp focus and with close attention on each phase of the customer experience to ensure that your company vision is clearly articulated, communicated and perceived. Everyone in your firm must embrace your brand for it to be an asset that builds value.

A successful branding strategy can only be developed in conjunction with a company’s business strategy. In fact, the business strategy really dictates the branding strategy. The brand strategy of a value-added reseller differs substantially from an outsourcer targeting C-level executives. It is necessary to clearly outline your product/service value proposition, your unique competitive advantages and overall market positioning and to integrate that with your brand strategy development. A properly executed corporate brand strategy results in differentiation and clarification of purpose, distinguishing your company for employees and clients alike.

Building a brand for B2B companies presents a number of challenges. Clients are specialized and there may be multiple selling points. Influencers have greater importance and are more difficult to target. Since a multi-pronged marketing strategy is necessary, defining the entire client experience is usually helpful in determining areas of brand improvement. Points of contact that influence brand perception include:

• online presence (i.e. website),
• print-based materials (i.e. brochures, annual reports),
• thought leadership materials (i.e. case studies, white papers),
• press/media (i.e. press releases, articles, interviews),
• the role of influencers (i.e. analysts, consultants),
• post sale service/support and
• client retention/loyalty programs.

Each client experience affects their view of your brand and therefore should be carefully evaluated as part of your brand strategy. Each employee interaction similarly influences brand perception and should also be assessed.

Perhaps the most difficult task for B2B companies with respect to branding is measuring Return on Investment and demonstrating the impact, effectiveness and value of your branding and marketing efforts. However, it is essential to do so, as it forces you to outline key objectives and desired results in a quantitative not just qualitative manner. A results-based methodology will lead to the development of those programs that are effective in creating, improving or maintaining the positive perception among your key constituencies and target audience.

Developing and executing a successful branding strategy requires CEO leadership, executive management support and firm-wide employee buy-in. A strong marketing executive will have many programs already in place, but occasionally external guidance and advice is extremely beneficial. As markets become even more competitive, branding will become more and more important for all businesses and as a key value creation lever. For more information or to discuss branding further, please contact your GA deal team.