Branding still a mystery to business advertisers
Published on 05/08/1995 under Branding
Why is it that business-to-business marketing and advertising managers have such a hard time with the concept of brand image? Our consumer counterparts surely don't.
Consumer product marketers recognize that brand image is one of their most valued assets; something to be lovingly nurtured and watched over with the greatest of care.
They will do whatever it takes to protect that brand equity, including drastic things like recalling every product when reports of tainted or defective products are received.
Many consumer product marketers have even developed a "personality" for their brands consistent with strategic selling points that customers regard as important (e.g., Wheaties and sports excellence or Clairol and natural-looking hair).
Most b-to-b managers, on the other hand, still think their customers buy features and benefits and are not influenced by brand image.
It's time for us to come out of the dark ages, don't you think?
Four years ago, I wrote a column titled, "Maybe it's time to sell the ranch" (Feb. 28, 1994). It was based on a talk my friend Dan Bellack gave about surviving in a world of parity products.
Dan identified a five-step "parity ladder" in which revolutionary, new products are created, followed by copycat competitors, then some with worthwhile new features better than the original. Eventually, however, it becomes harder and harder for customers to differentiate between suppliers.
At Level Five all products and services are essentially viewed as equal which, by the way, is where the personal computer industry now finds itself after less than two decades.
Dan's recommendation was to "sell the ranch," not the individual cows, chickens and other assorted farm products. He emphasized the importance of building the image of the company behind all those products and services.
And not just in a brag and boast way, either. He talked about creating a personality for the company, one a customer wouldn't mind dealing with.
In his excellent book, "Integrated Marketing Communications" (NTC Business Books, 1993), fellow Marketing News columnist Don Schultz conveys similar thoughts about brand image. He says, "In a parity marketplace, the only real differentiating feature that a marketer can bring to consumers is what those consumers believe about the company, product, or service and their relationship with that brand."
Messrs. Schultz, Tannenbaum and Lauterborn devote a significant portion of their book to such factors as brand networks, brand contact paths, brand personality and building a brand-focused structure. I guess you can "brand" them as being solidly behind the concept.
Then why all the confusion among business-to-business practitioners?
One reason might be that many business and industrial companies don't view the advertising function as strategic. They push it down organizationally to the level of "doing brochures" and assign it to "watchguard" managers who have other (more important) responsibilities.
The closest that marcom people in situations like this get to branding is at the product level, and even then, it's not carefully thought through. Most certainly it isn't coordinated from one product group to the next.
Another problem frequently encountered is accountability metrics. David Aaker, author of "Managing Brand Equity" (Free Press 1991) says, "Instead of focusing upon an asset such as a brand, too often American "fast-track" managers get caught up in day-to-day performance measures which are easily available."
Like quarterly sales quotas, market share figures or stock prices, for example. As we all know, building images takes a while. If you're preoccupied with showing results this quarter or even this year, it's doubtful you'll put much effort into brand image building.
Maybe we've been conned by sales people who think they can sell ice boxes to Eskimos without regard for the brand image of the particular ice box they have available.
Despite mountains of research showing the correlation between a quality image and such things as market share, higher pricing, ROI and profitability, many managers remain ambivalent to the need of investing in brand image development.
Even if they give it lip service, there never seems to be enough money to go around at budget crunching time. We end up earmarking funds for more pressing things like product literature and trade show displays.
Mind you, I'm not saying that product literature and trade show displays aren't important. Those activities have been a BIG part of my life, to be sure. I'd just like to raise our sights to include image development programs that will impact HOW the product brochures and trade show promotions are likely to be perceived in the minds of our customers and prospects.
My favorite book on the subject of brand image development is called "Romancing The Brand" (AMACOM 1989) by David Martin, founder and former chairman of Virginia-based The Martin Agency.
The fourth chapter of Martin's book is called "The Hat Trick," which is a strange title until you understand where it comes from. The Hat Trick was a term used by a columnist for the long-lost advertising trade publication Printer's Ink, and it referred to the practice of "getting up off your chair, putting on your hat and going outdoors to find out what the prospect wants."
Martin's first job in advertising was to do this kind of in-person research for a copywriter at an ad agency. He went to hardware stores for Black & Decker to talk to salesmen about power tools. Why did they recommend a particular brand? What did they like about Black & Decker? What about the competition?
He then took the "who, what, where, when and why" back to the copywriter who would use that information as the foundation for his ad.
I think this is the Missing Link for b-to-b advertisers today, because most of us never get to talk to Real Customers or, in some cases, people who even KNOW Real Customers.
If we did, we'd be more acutely aware of branding opportunities, as well as potential branding problems. And we'd put more effort into making sure our brand image was consistent with the needs and priorities of our customers.
The solution may be as simple as getting b-to-b marcom people out of our chairs, face-to-face with Real Customers who have real attitudes and preferences about the companies we represent.