What role does the brand have in business-to-business markets?
It is generally recognized that in consumer markets, a strong brand is in a better position than a weak one to maximize its performance, take advantage of marketplace events, and grow shareholder equity. But when it comes to large business purchasing decisions, it is common to question whether branding plays a positive role.
BUSINESS-TO-BUSINESS IS DIFFERENT
Branding will not overcome product or service shortcomings. Reliability is a major driver in business-to-business markets, because it provides peace of mind for the decision maker.
Branding can help to reinforce the impression of reliability, but will not compensate for its absence. Branding can simplify purchase decisions. It can give the product or service a visible presence in a market, and clarify the relevance of the brand in a category, helping to get it into the consideration set. Branding can also can create the perception that the brand is an acceptable choice. Additionally, branding can enhance experience of the brand, by highlighting positive product experiences.