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B2B Brand Management

By Philip Kotler and Waldemar Pfoertsch

(Berlin: Springer. 2006. 357 Pages. (Price: Euro 39.95) (ISBN: 3-540-253360-2)

Business-to-Consumer (B2C) branding and its importance are known for decades. Whenever we talk of branding, many common brands like Coca Cola, Nokia, Apple and so on strike immediately to our mind. These are all B2C brands and for these companies their brand represents a strong and enduring asset, a value driver that has literally boosted the company’s success. Hardly any company neglects the importance of brands in B2C.

However when it comes to Business-to-Business (B2B) branding, still things are not so rosy. Majority of the companies and their managers are still of the opinion that branding is a phenomenon confined only to consumer products and markets and not to industrial products which are basically selected and chosen by a customer through objective decision-making process like features/functionality, benefits, price, service and quality etc.

In contrast, when we see companies like Microsoft, IBM, General Electric, HP, Intel, Dell, Oracle, Boeing and so on then all together another picture emerge that is these are part of some of the strongest and well known brands and all these are B2B brands although these companies presence is also in B2C segment.

What is the truth then? Is branding important equally if not more in B2B brands as in B2C brands or branding is just a phenomenon of B2C brands? If former is true, then what B2B branding is exactly about and what are the theories and examples to prove the same? What is strengths and weaknesses of B2B brands? What is the future of these brands? We get answer of all these questions in this much thought provoking book on B2B brand management by Philip Kotler and Waldemar Pfoertsch.

The book revolves around the authors understanding about B2B branding and the concept that “Brand management for industrial goods and services represents a unique and effective opportunity for establishing enduring, competitive advantage”. It aims to put B2B brands and branding into their actual context. It describes current thinking and best practice, draws comparisons and highlights differences to B2C, and also presents future of B2B.

Authors begin with definition of branding i.e. “Branding is about taking something common and improving upon it in ways that make it more valuable and meaningful” and stress that brands serve exactly the same general purpose in B2B markets as they do in consumer markets viz. “They facilitate the identification of products, services and businesses as well as differentiate them from the competition. They are an effective and compelling means to communicate the benefits and value a product or service can provide. They are a guarantee of quality, origin, and performance, thereby increasing the perceived value to the customer and reducing the risk and complexity involved in the buying decision.”

They further stress that brands are important for companies not only in consumer products but in almost every industry because of explosion of choices in almost every area. Another important aspect of B2B branding is that these brands do not just reach customers but all stakeholders – investors, employees, partners, suppliers, competitors, regulators and so on. The definition, benefit, and functions of brands embrace every type of business and organization. In order to create and maintain the competitive advantage offered by the brand, companies need to concentrate their resources, structure and financial accountability around this most important asset. Businesses with a strong brand positioning are benefiting from clarity of focus that provides them with more effectiveness, efficiency and competitive advantage across operations. Thus branding is about promising that company’s offering will create and deliver a certain level of performance. The promise behind the brand the brand becomes the motivating force for all the activities of the company and its partners. The most important brand functions in B2B are increased information efficiency, risk reduction and value added/image benefit creation.

To begin, elaborate, discuss pros and cons and future perspective of B2B branding authors have divided the book into seven chapters. The first chapter begins with need and importance of brands and introduction to the subject. Second chapter gives reasoning for requirement of branding in B2B sector, comparisons and similarities between B2C and B2B brands with focus on power of the business brand.

Third chapter deals with B2B branding dimensions i.e. brand distinction, brand communication, brand evaluation and brand specialties. This is basically about fundamentals of branding in B2B area.

Fourth Chapter is practical oriented viz. “How to do it”. It discusses how to plan, create, implement, and manage your brand strategy. It is covered with examples of first branding steps of many companies.

Fifth chapter deals with successful brands stories in B2B segment and Sixth chapter deals with branding pitfalls. Here authors demonstrate with various examples the importance of taking careful and well considered actions related to brand management to avoid pitfalls.

Seventh and final chapter deals with future perspective of B2B brand management. They point that corporate social responsibility and design are important developments that can change and redefine brand management of the future.

This is indeed a comprehensive book on B2B brand management that provides even the most experienced business manager with a new way of looking at B2B branding. It provokes the reader to think about a systematic approach to branding, based on facts, rather than personal judgment. Authors encourage us to get top management attention for the branding decisions on a continuous basis.


Jitender Sharma, NIILM-CMS, New Delhi – 110044