LECTURE 7:

BRANDING AND
BUILDING LOYALTY:
VALUE CO-CREATION IN
NETWORK
PARTNERSHIPS
B2B Marketing (BUSI4508)
Dr. Dilip S. Mutum
TODAY’S OBJECTIVES

To explore the significance of business customer

value perceptions and the development of a
business brand in terms of
 how marketing communications can be linked to the
nature of inter-organisational relationships, and
 how branding can act as facilitator for value co-creation
and loyalty in business markets.

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POSITIONING
Aim of market (or competitive) positioning is to encourage buyers to
view a supplier as different from other suppliers in elements of their
offerings that the customer perceives as adding value.
POSITIONING BY VALUE PROPOSITION
Anderson et al. (2006)

1. All benefits 2. Favourable 3. Resonating

approach points of focus
difference proposition

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FRAMEWORK FOR B2B REPOSITIONING
SOURCE: ADAPTED FROM PENTTINEN AND PALMER (2007, P 554)

Nature of Relationship

Transactional Relational

More
complete
III IV
Basic Solution Integrated Solution
Completeness
Of Offering

I II
Integrated
Basic Components
Less Components
complete

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SOME ISSUES IN B2B BRANDING

Benefits of Managerial
B2B branding decisions

Cements Brand identity

positioning c/w business
strategy

Builds asset Company or

value product based

Reduces Multiple
perceived brand
OBB risk dimensions

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 B2B branding perceived as gimmicky

Suggestion that branding industrial

products is impractical due to the
LIMITATION large number of products in
companies
OF B2B Not clear whether B2B branding will
BRANDING increase the financial rewards.

Also much of the research in B2B

branding has little or no theoretical
underpinnings

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VALUE CO-CREATION
PRAHALAD AND RAMASWAMY (2004)

A term used to describe an emerging range of business practices in

which customers work with firms to co-create value through
collaboration with other members of the value chain and with
customers in the specification, design, manufacturing, and support of
product and services.
Customers actively interact with companies to shape their experiences
and value perception.
It is realized and assessed in the social process of simultaneous
production and consumption.

Prahalad, C. K., & Ramaswamy, V. (2004). The Future of Competition; Co-

creating Unique with Customers. Boston: Harvard Business School Press.

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CUSTOMER EXPERIENCE & BRAND EQUITY
BIEDENBACH & MAREL, 2010

Biedenbach, G., & Marell, A. (2010). The impact of customer experience on

brand equity in a business-to-business services setting. Journal of Brand
Management, 17(6), 446-458. 8
THANK YOU
Any Questions?