In this blog post, we will explore the advantages of fostering brand stability in the B2B market. Often, brands are overshadowed in the decision-making processes of B2B companies. Some managers believe that brand management holds less importance compared to factors like providing excellent service, offering competitive pricing, nurturing customer relationships, and saving advertising expenses that yield minimal results.
However, it can be argued that service, relationship-building, and advertising are only fragments of the larger puzzle called brand management. The interplay between these factors, along with many others, shapes how customers perceive a company. This phenomenon is commonly referred to as brand localization in branding studies.
Researchers have demonstrated that well-defined and robust brand positioning leads to long-term profitability.
Establishing a strong positioning is not a one-size-fits-all approach, and it cannot be achieved overnight. It requires a well-defined strategy and relentless effort to maximize customer value across all brand touchpoints.
But what exactly do we mean by brand stability?
Brand stability refers to the permanence and consistency of a brand’s attributes over time. It instills a sense of security in customers’ minds, allowing them to anticipate the brand’s long-term performance. The advantages of stable brands include reducing perceived customer risk, fostering loyalty and trust, and the potential to set prices above the market average.
In the competitive B2B market, where significant interests are often at stake, decision-making becomes challenging when searching for partners for specific projects. Companies seek partners who can meet their diverse needs. In such situations, opting for a stable brand that has successfully executed similar projects multiple times before is prudent. Companies are familiar with the brand’s values and have witnessed its reputation grow over time.
Many companies are willing to pay a premium price to mitigate uncertainty and minimize risk.
Doing business with stable brands offers customers numerous benefits, such as:
- Confidence in knowing what they are getting for their money.
- Consistent product or service quality across transactions.
- Exemplary brand history and reputation.
- Reduced risk of making wrong purchase decisions.
- Added value in associating with a stable brand that exudes a positive image. Customers feel a sense of belonging to an exclusive group that competitors find challenging to infiltrate or aspire to be a part of.
The above list is not exhaustive, as there are more advantages to be gained.
It’s easy to suggest that brands simply need to maintain stability to solve all problems. However, brand stability requires ongoing effort and can be compromised in an instant, such as through negative media coverage. Recent years have seen various examples of this phenomenon.
Brands can ensure operational stability by practicing professional brand management. This entails having a well-defined strategy, aligning marketing messages with the strategy, measuring results consistently, understanding customer needs, delivering top-notch service, exceeding expectations, nurturing staff well-being, and more.
Another aspect worth considering is that some brands operate stably, ticking many of the aforementioned boxes, yet fail to communicate it effectively. Consequently, they face challenges in acquiring new business, cross-selling to existing customers, gaining media coverage, and maintaining a comprehensive brand history.
In light of this, I believe it is crucial for companies that are committed to strengthening their brand and positioning not to shy away from sharing news about their operations. Communication channels like mailing lists, seminars, events, press releases, and university presentations can be utilized to convey important updates.
Lastly, it’s important to note that while some brands achieve stability, they may risk stagnation. Therefore, it is vital to build upon existing strengths while fearlessly introducing innovations that support the brand’s future trajectory.
