In many B2B markets, 25, 15, or even just 10 customers account for 80 percent of sales.

By taking them through a conjoint analysis and interviewing their managers in person, B2B companies can gather most of the information needed to determine exactly which customers really care only about price and which features other customers would be willing to pay more to get In many B2B markets, 25, 15, or even just 10 customers account for 80 percent of sales. Therefore companies which serve different segments of industrial buyers can maximize their sales by slotting prospective customers into a needs-based segmentation scheme.

The four steps to branding in industrial markets: 1) Carving up the market Successful commodity marketers must start by recognizing that no market is truly homogeneous. It is a deliberate process to find those customers who need, appreciate and will pay for differentiation. In place of the traditional psychographic or demographic approaches, the first step here is to conduct a disciplined behavioral segmentation of the market by examining the actual purchase patterns of the customers. According to a study there are three classes of customers identified viz. Gold Standard Customers, Potentials and Incorrigibles in the commodities market. Gold Standard Customers They will pay a premium for offerings that deliver true value in terms of process enhancements, cost reduction or benefits to end-users. The true Gold Standard commodity customers will consider long-term, strategic partnerships with multiple levels of client interaction. Potentials Customers in this segment have some degree of interest in partnering although they shy away from long-term commitments. Because they are concerned with delivered cost, it is possible on occasion to interest them in opportunities to reduce network costs, including transportation, delivery and warehousing

Incorrigibles No matter what one does, customers are not going to love one. These are not strategic thinkers. They are tightly focused on a single goal: making the best possible deal on the transaction at hand.

2) Differentiate

Commodity differentiation must be tangible, robust and capable of withstanding intense scrutiny. The marketed offering must significantly enhance some element of the customer's value chain in ways other competitors cannot match.


Quality Control:

Reliabilty: Creating

the supplier must have the business systems and processes required to deliver the marketed offering. for eg: In food industry delivering product with standard specifications Customization Matching: Creating value through product convenience For eg: A wheat company monitoring the precise content in its wheat to meet requirements of most demanding customers Value through consistent service For eg: A chemical company gaining advantage due to 24 hour response servic Applications: Creating value through knowledge based service For eg: A water treatment company using its information database to assemble money saving. Bundle If the supplier can bundle multiple sources offering. because they will constantly measure and reevaluate it. Defining and delivering a differentiated attribute that provides real value to the customer is essential. By feeding directly in the production process waste disposal and constant reordering are eliminated Convenience Packaging: Create Value through product convenience For eg: A milk manufacturing company introducing new packaging to increase shelf life and portability of milk 3. 4 branding guideline for B2B Markets . it can't be skin deep. When commodity buyers pay a premium for value. Deliver The extraction of a premium for a differentiated offering demands that the supplier make good on the promise of added value.Creating Value through product consistency. Adopting a corporate or family branding strategy: Since the companies in B2B segment are associated with large and complex number of product lines and variations. The value has to be real and tangible. it is important to develop a logical and well-devised product hierarch i) Link Non-product related associations: . 4. Often. site specific systems of chemicals and equipment for food manufacturers Responsibilty: Creating Value through Convenient service For eg: A specialty chemical company provides returnable chemical drums with a small computer and modem. Execution is critical. the challenge facing competitors becomes immense. a single attribute can be matched or at least neutralized by agile competitors. but not necessarily sufficient.

branding the product. service and company: Due to the lack of genuine differences in the commodities the brand strategy for a commodity manufacturer should be based upon thus three factors i. ii) Leverage brand equity of customers Secondary associations have to be commonly adopted to represent levels of service and quality.Although product related differentiating factors are important in the overall decision making in B2B buying. corporate credibility is also important. .e. service and company to create meaningful and sustainable points of differences. For eg various auto component manufacturers brand themselves around the auto companies and leverage the equity of automobile manufacturer to create their brand iii) Brand the product.

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