1. Philip Kotler Waldemar Pföertsch December 2006
B2B Brand Management
Philip Kotler
Waldemar Pföertsch
December 2006

2. B2B Branding - A Must Read...But Tough Love For Marketers
Philip Kotler, one of the titans of  modern marketing and Waldemar Pfoertsch, a Professor for International Business at the Pforzheim University in Germany have collaborated on a new book that is destined to become a classic. B2B Branding covers a lot of territory and has some great case histories.

3. Branding is an established
marketing tool in consumer industries
In Business-to-Business branding is just in the initial stage.

4. Marketing Advantages of Strong Brands
Improved perceptions of product performance
Greater loyalty
Less vulnerable to competition
Less vulnerable to crises
Larger margins
Inelastic consumer response to price increases
Elastic consumer response to price decreases
Greater trade cooperation
Increase in effectiveness of Integrated Marketing Communication
Licensing opportunities
Brand extension opportunities

5. Acceleration Through Branding
Chapter 4
Acceleration Through Branding

6. Guiding Principle

7. Creating Value
.. with branding requires a long term view, and need other measurements
Measuring profit performance using ROI (return on investment) has two problems:
First, profits are arbitrarily measured and subject to manipulation; cash flow is more important.
Second, investments ignore the real value of the firm, and brands as one of the main value drivers.

8. Value Measurement
A company’s real value resides more in its intangible marketing assets:
brands,
market knowledge,
customer relationships,
distribution coverage,
intellectual property,
and partner relationships,
as in its balance sheet.

9. Brand Value Measurement
These assets are the drivers of long-term profits and they have to demonstrate their impact on shareholder value with brand typically being the most important one of them.
A value-based performance measure of a company's worth to shareholders. The basic calculation is net operating profit after tax (NOPAT) minus the cost of capital from the issuance of debt and equity, based on the company's weighted average cost of capital:

10. The power of branding
As J. Justus Schneider, Brand manager of Mercedes-Benz admits,
“The brand Mercedes-Benz is a brand icon, from its founding day till today.”

11. Brand Building Process
Brand building approach incorporates all the relevant processes necessary for building a brand icon.
Branding initiative comes from top management – the Owner, CEO, CMO or CBO
and aims to establish the
brand strength, including
brand stability,
brand leadership and international presence.

12. The 10 most brand authentic brands
Interbrand 2006

13. Sequence of the brand building processes

14. Branding Principles Consistency Clarity Continuity Visibility
Authenticity

15. Brand Planning Based on the principles of continuity and involvement
Build a climate of ongoing change
Have processes that deliver timely information
Develop procedures for rapid breakthrough planning
Have standard formats for communicating brand plans and changes Have strong implementation processes

16. Brand Analysis You have to answer the following questions:
Who are you?
What is important to you?
What does your company stand for?
What is important to your customers?
What distinguishes you from competition?
Where and what do you want to be in five years?
You have to measure Brand share =
Brand Sales / Category Sales

17. Brand Intelligence (BI)
Key word searching (KWS)
Natural Language Processing (NLP)
Brand Score Card (BSC)

18. On the Way to Brand Strategy
Brand Mission
Brand Value Proposition
Brand Promise

19. The Mercedes-Benz “Enduring Passion”

20. Brand Positioning Power Brand Essence Core Customer Insight
Corporate or Product Branding?

21. Brand Strategy Thinking
The power of a brand lies in the customer mind set – brand equity is therefore a vital strategic bridge
They can be captured in the Customer-Based Brand Equity (CBBE) Model

22. Customer-Based Brand Equity (CBBE) Model
The CBBE model implies that a strong brand involves the customer over four steps:
(1) Deep Broad Brand Awareness, establishing a proper identity and awareness for the brand,
(2) Establishment of Points of Difference by creating the appropriate brand meaning through strong, favorable, and unique brand associations,
(3) Positive Accessible Reactions, through eliciting positive, accessible brand responses, and
(4) Forging Brand Relationships with customers that are characterized by intense, active loyalty.

23. Customer Acceptance Cycle
CBBE Model
Loyalty
Brand
Resonance
Positive Reactions
Customer
Judgments
Customer
Emotions
Brand
Performance
Brand
Imagery
Points of Difference
Brand Salience
Brand Awareness
Customer Acceptance Cycle

24. Brand Strategy Power Brand Stretch Dominance Loyalty Coverage
Creating the power of your brand

25. Brand Architecture
Example

26. Brand Portfolio Management Rules
Align the brand portfolio with the business design.
Consider building a brand pyramid.
Grow winners and harvest losers.
Play the cards you are dealt.
Counter the tendency to make brand decisions in a decentralized, ad hoc manner.

27. Brand Portfolio Management
Example

28. Brand Portfolio Management Options
“Pooling” and “trading”;
Branded partnerships;
Strategic brand consolidation;
Brand acquisition;
New brand creation.

29. Brand Building Pyramid
Loyalty
What about You and Me?
Brand
Resonance
Positive Reactions
What about You?
Customer
Judgments
Customer
Emotions
Points of Difference
Brand
Performance
Brand
Imagery
What Are You?
Who Are You?
Brand Awareness
Brand Salience
Customer Acceptance Cycle

30. Brand Audit: Assess Brand strength and weaknesses through
Brand inventory (internal analysis)
Brand exploratory (external analysis)
Brand Equity Charter
Brand Score Cards

31. Brand profiler exemplified at a Personal Brand
High
Low
Dimensions

32. Brand Exploratory
An investigation of customers knowledge of the brand, awareness, and the strength, favorability and uniqueness of associations (category, use, brand promise…).
The research activity is directed to understanding what customers think and feel about the brand and its corresponding product category in order to identify sources of brand equity.

33. Brand Equity Charter (Kevin Keller)

34. Brand Score Cards
Keller, Linxweiler

35. Brand Audit Compliance audit
1) collection of information that establishes how the brand has been used in each country that it is marketed in,
2) assessment of deviations from its established position in the structure and reasons, and
evaluation of the brand's performance.
Strategic audit (top down audit)

36. Brand Audit Tools

37. More Brand Audit tools Brand Identity Elements

38. Re-evaluating Business Brands
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Development of Dow Jones market capitalization
Dow Jones average
B2B brands with above average brand development
Market capitalization (index)
120
100
Average development for B2B brands (indexed; 2001 = 100) 80 60
140
160
180
200
Current Research based on Dow Development & Interbrand Brand Evaluator

39. Summary
The brand building process consists of brand planning, brand analysis, brand strategy, brand building and brand auditing.
Brand building starts with understanding the key attributes of your products and services as well as understanding and anticipating the needs of your customers.
Mastering brand stability, brand leadership and international presence calls for a structured sequence of the brand building process. ,
The first thing you have to do when building your own brand is to articulate a brand mission that reflects what you want to accomplish with it. Secondly you have to add a coherent set of brand values and a brand identity. All the visual elements of the brand, the brand name, logo, and slogan, should be developed accordingly to create a unique visual identity that reflects what the company stands for as well as its attitude and culture.
The power of a brand lies in the customer mind set – brand equity is therefore a vital strategic bridge from the past to the future and a set of stored values that consumers associate with a product/service. These associations add value beyond the basic product functions due to past investments in marketing the brand and they are captured in the Customer-Based Brand Equity (CBBE) model.

40. Summary 2
Brand analysis helps to define and formulate a proper brand mission, personality and values. Aligning to the corporate vision and mission is mandatory for devising effective and focused distinctive brand elements for developing a brand strategy
The “three C’s” of branding refer to the indispensable conditions that precede successful branding. For the purpose of completeness we have added a fourth and fifth branding principle: Consistency, Clarity , Constancy, Visibility, and Authenticity.
A brand strategy should not be changed just for the sake of change. Re-branding or brand rejuvenation efforts have to be carefully evaluated in terms of necessity and success probabilities. Companies with many unstructured and maybe even diluted brands need to refocus their brand which is almost the same work as building a brand from scratch.
Brand strategy consists of developing a strong mission, positioning, brand promise, and value proposition.
Successful brands don’t just sell products; they communicate clear values stretched across a number of products.

41. Summary 3
A key element of success is the framing of harmonious and consistent brand architecture across countries and product lines, defining the number of levels and brands at each level.
Brand auditing is seeks to measure the strengths and weaknesses of a brand and the brand portfolio. The Brand Score Card measures the performance of your brand in relationship to customer priorities. Based on internal and external analysis, compliance and strategic audits should be conducted regularly. Other brand metrics could be implemented such as business intelligence,, key word search or Natural Language Processing.
Fact-based insights, grounded in an understanding of both brand equity and a brand's economic contribution to corporate profits, form the foundations for a winning brand portfolio.
Over time every brand needs re-evaluation, fine-tuning and re-branding.

42. Contact Prof. Dr. Waldemar A. Pförtsch International Business
Pforzheim University