Above All, be Remembered
In marketing, visibility is just the beginning; ensuring recall is the true game-changer.
B2B sales and marketing are becoming increasingly complex. Several surveys point out that decision-making groups within a company are getting bigger, and customer journeys are even more complicated.
This perfect storm hits the marketing manager forcefully. The person in question needs to make choices based on facts from analyses to extract as much information as possible about the target groups and, with their gut feeling and experience, determine which creative means and distribution channels to go with.
Creating growth through intelligent marketing communication is difficult in a typical B2B marketing department, which is often thinly staffed and where budgets are limited compared to what needs to be done.
Focus on building the brand
Over time, B2B marketing managers have had to prioritise short-term measures to help sales reach their quarterly goals.
There is now a contradicting trend driven by both insights from research and experiences from marketing managers who have done everything by the book and invested in the brand. LinkedIn B2B Institute, in particular, has been pointing out to the marketing leader that they need to prioritise building brand awareness to gain market share and create more lasting growth.
It’s simple: if the company is to grow, the strategy of only selling to those you already know is not sustainable. Sales need to win new customers all the time.
This exercise requires investment over time to create the memories and associations that influence the decision-making process after the ads have stopped running.
Brands that dare to spend money on marketing even in bad times experience higher growth when the good times return. Therefore, the marketing leader must become the management team's biggest strategist, and leaders must understand the long-term value of branding.
A strong brand is more credible, gives you a seat at the table more quickly, and makes price a less critical factor. Therefore, it is essential to understand that the brand is the most important driver of growth and higher profitability.
International competition is getting stronger. If B2B companies are to increase their competitiveness, they must take branding more seriously.
"A stable competitive market never has more than three significant competitors, the largest of which has no more than four times the market share of the smallest."
- Bruce Henderson, founder of Boston Consulting Group
The big three win 70 to 90 per cent of all sales
Equally important is being aware of the rule of 3. The rule of 3 was first presented in 1976 by Boston Consulting Group (BCG) consultant Bruce Henderson. It states that when we enter a buying process, at home and work, we remember three top brands. Several providers are part of the assessment, but in 70-90 per cent of cases, we choose one of the businesses that came to mind first.
Henderson’s theory was that a mature market characterised by healthy competition often consists of three major providers in each segment, controlling 70 to 90 per cent of the market.
Thirty years later, BCG confirmed Henderson’s hypothesis after studying over 10,000 businesses between 1975 and 2009. The responses pointed out that a player must have at least 10 per cent market share to manage and that the three most prominent players often had 40%, 30% and 20% market share, respectively. This new version also highlights that there is usually room for three large and complete providers and a few specialised players in mature markets. In other words, it is essential to be on the podium.
Therefore, the marketing leader should divide the budget between building a brand to create awareness and the sales-inducing measures focusing on the rational and the credible. Many non-marketing senior executives view branding the same as marketing to bring in quick sales. It is an approach based on a lack of understanding that branding contributes to the company achieving long-term financial goals.
BEO is more important than SEO
Using keywords is an important factor in winning the battle in digital channels. Researchers Jon Lombardo and Peter Weinberg argued that all marketers, whether B2B or B2C, now need to focus more on being remembered at the moment of purchase.
They emphasise that the strongest search engine is the one we have in our brains. For marketers, it’s as simple as customers searching their memory before going to Google. If the answer is already there, we tend to choose the most natural choice and the one that feels right.
Therefore, the researchers use the term brain engine optimisation (BEO) as more important than search engine optimisation (SEO) to point out that it is more important to be at the top search in your brain rather than being the first search result under the ads on Google. They refer to research from one of the world’s foremost researchers on the effect of marketing, which shows how the brand must connect to mental keywords that the buyer uses to look for answers in their brain in decision-making; This is not only important for winning new customers, but the research proves that being remembered reduces losses in today’s customer base.
For sales and marketing, it is crucial to recognise that you probably won’t win the sale if buyers don’t remember you in the purchase process. Therefore, increasing awareness of the brand should be the highest priority for everyone who wants to sell more and reach new customers.
69% believe B2B purchase decisions
are as emotionally driven as B2C.
A survey by LinkedIn among marketers in 13 countries shows that almost seven out of ten believe emotions influence decisions within B2B as much as in the B2C segment. 89% of marketers agree that long-term branding is just as crucial in B2B as in B2C. A whopping 81% of B2B marketers in the study now report producing more creative campaigns that align with what we’ve seen from brands in the consumer market.
Source: LinkedIn B2B Institute
The B2B marketing manager's biggest challenges
There are two communication challenges in particular that recur in B2B companies: how to position themselves and putting too much focus on their products and services.
Four key points must form the basis if the company is to succeed in talking only about its products and services:
- There is a recognised need in the market.
- The target audience is ready to buy.
- The target audience is ready to make a decision.
- The brand is the natural choice.
Branding pays off
LinkedIn is a platform of choice among B2B marketers, with 85 percent of respondents seeing results from paid social media advertising.
If you're a marketing manager and want to get the most out of your LinkedIn advertising, you should split your budget between tactical campaigns and branding.
"We’ve seen that companies that only work with tactical communication after about a year find that the prices for clicks and leads become much more expensive. The reason is because they haven't matured new target groups.
Companies with close to a 50/50 split between tactical and brand-building creative see a reduction in the price of clicks and leads after one, two and three years. These companies have, through good branding, achieved:
- Steady influx of new customers, even without lead-generating activities
- A value to the brand that allows them to charge well enough for the product or service they offer
- To become a natural choice among the target groups
- To become more sustainable so that the brand stands firm even in downturns and ensures growth when the market turns
A company with a strong brand will also retain and attract new talent to a greater extent. Good people are essential for achieving the company's financial goals.
A CASE FOR BRANDING
The Hydro Group
The aluminium and energy group Hydro has been in constant change for almost 117 years. In 2017, the company reached a new milestone when Hydro acquired SAPA. Overnight, Hydro went from being a Norwegian-run company focusing mainly on Northern European markets to an industrial company with a presence in 40 countries. This had a major impact on the way Hydro worked with marketing.
Five benefits gained from building a strong brand
1
Facilitates Decision-Making Processes
Strong branding significantly streamlines decision-making processes for potential clients. A concept closely tied to this is ‘brand equity’. Brand equity is the added value a brand provides to a product or service beyond the functional benefits. In the B2B context, this equity often manifests in the form of trust, reputation, and recognition that customers associate with the brand, influencing their purchase decisions.
According to a blog post from Renegade, brand equity holds great significance in B2B markets, acting as a differentiator and decision influencer. In the realm of numerous competitive options, clients often rely on the established equity of a brand to make their purchasing decisions, as it reduces perceived risks and assures them of quality and reliability.
2
Adds Value and Commands Premium Pricing
The value of a robust brand isn’t merely communicative; it’s also quantifiable in the price premium your business can command. A brand isn’t just a logo or a slogan—it’s an assurance of quality, reliability, and exclusivity. This, in turn, allows companies to employ ‘premiumisation’ strategies, setting higher prices for their products or services based on the perceived added value provided by their brand.
A blog post from Vistaar points out that implementing premium pricing is a viable and effective strategy for growth in industrial manufacturing B2B businesses. It argues that premiumisation isn’t merely about raising prices but strategically capturing value through well-developed branding and superior product offerings. Thus, a powerful brand presence enables businesses to command premium pricing, capitalising on the positive perceptions associated with their brand and subsequently driving business growth.
3
Boosts Customer Loyalty
Customer loyalty is the bedrock of long-term business success, and a strong brand plays a vital role in establishing and nurturing it. The cumulative effect of consistent brand messaging and positive customer experiences leads to strong brand trust. Once established, this trust can translate into sustained customer loyalty, even in the face of competitive offerings.
According to a McKinsey report on the future of B2B sales, the importance of brand trust cannot be overstated. The report underscores customers nowadays expect more and companies need to shift to put them at the center of sales—by improving channels, technology, talent, incentives, and culture. This loyalty, fostered by strong brands, is pivotal for companies seeking to thrive in the rapidly evolving and highly competitive B2B landscape.
4
Differentiates and Transforms Market Perceptions
In the saturated markets of 2023, differentiation has become critical. A strong brand helps your business stand out from competitors, giving you a competitive advantage.
A strong brand doesn’t just resonate with customers; it also alters the market’s overall perception of a company. It allows a company to position itself effectively within its industry, thereby influencing how competitors, partners, and stakeholders see it.
An article from Branding Strategy Insider talks about how strong brands can drive B2B markets. The strength of a brand can positively influence market perceptions, ultimately dictating the company’s positioning and the way the broader market views it. The article asserts that powerful branding can open doors to new business opportunities, create competitive advantages, and set the tone for industry leadership.
5
Facilitates Trust-building
Having a strong brand reputation can not only drive customer loyalty and premium pricing but also directly affect a company’s overall business performance and market share.
A comprehensive article from Forbes discussed the vital importance of brand trust, especially in the digital era. The article cites a study from Northwestern University, stating that brand trust measures how strongly customers believe a business can fulfil its promises. Furthermore, the article notes that a lack of trust can lead to drastic consequences, with nearly 40% of Americans choosing never to use a brand they no longer trust and another 40% looking for alternatives from competitors.
The article suggests that brands can foster trust by establishing authenticity and credibility, leveraging social proof and user-generated content, engaging in transparent communication, embracing influencer marketing, and using content marketing strategically. These elements contribute to building a robust and resilient brand that enhances overall business performance and helps secure market share.
A few last words...
Research from Les Binet and Peter Field, affiliated with LinkedIn B2B Institute, shows that almost no B2B marketers measure the impact of their campaigns beyond the first six months when the effect of branding typically kicks in. The same researchers have revealed that those companies that invest at least half their budget in building their brand over time gain the most significant market shares and ensure greater earnings and profitability. Marketing must be intended to create dialogue. We must speak to the heart and use messages that capture interest. The American psychologist Daniel Kahneman has described how 95 per cent of all decisions are made with instinct and intuition – described by many as a gut feeling. This part of the brain reacts lightning-fast, considering the individual’s fundamental values and experiences. The second part of the brain is slow, logical and indecisive – it likes facts and knowledge and reacts rationally. B2B campaigns must therefore create an impression and convey value. Less pressure must be placed on the characteristics of the products and services.