Industrial Branding: Can it Effect Buying Decisions?

The essence of good marketing is first, making target customers aware of a product or service; second,  persuading them that it will meet their needs or solve their problems; and ultimately, making them prefer that product or service over any other.

Most industrial marketers will tell you that you don’t market to an engineer buying a component for his equipment like you would a mother buying diapers for her baby. Of course there is an element of truth to this;  but there has to be an answer to the question: “why would an engineer prefer one product or service over any other, despite higher prices, longer delivery times, and other pertinent factors?” This clearly happens in the industrial realm as well as the mass, B2C consumer market.  So … why?

Obviously people don’t drink Perrier simply to quench their thirst, nor do they use an American Express credit card because it offers the best value.  There is bottled water that is much less expensive than Perrier, and the credit card offering the best value is not the one charging $50 per year for a “membership fee” along with a hefty finance charge if the bill isn’t paid in full each month. These are only two examples of brands that are preferred over other, less expensive and more value added alternatives.  There is a psychological component coming into play here.

I realize these are B2C examples.  Let’s switch to the B2B industrial world. Consider an engineer working for a pipeline company, responsible for providing the specified components that will be used in the operation of the pipeline.  One of those components is a shut-off valve.

If you asked the engineer in a survey, or even in a face to face meeting why he chose a certain supplier, he will undoubtedly back up his choice with facts, data … tangible factors that support the products’ performance, pricing, availability, etc.  But how can this be true if he continues to use this same valve, year after year, even though he’s aware of valves that have more innovative features; manufacturers who deliver in half the time of his preferred supplier; valves that provide greater reliability; or valves that have performed the same as his current valve in tests but are lower in cost? Is the engineer being influenced by a “brand?”  It could be that:

• The engineer is simply being lazy.  To switch “brands,” he would have to justify the change to those he reports to. There would undoubtedly be additional work required from him.
• He has more trust in the valve he’s used for years, versus a valve he has no personal experience with.
• He is fearful of the repercussions, should he make a change and the new valve fails to deliver the promised reliability gains.
• He has friendships with employees of the company that manufactures his current valve, and he’s afraid he’ll lose them if he quits buying their valve.

Any of these reasons and more is entirely possible. When you look below the surface, the engineer’s reason for sticking with the valve he’s used for years goes beyond its performance, pricing and availability.

If industrial buying decisions are influenced by “feelings” and “emotions” – not just by facts and data – doesn’t it stand to reason that a well-executed brand strategy could factor into a buying decision?

I realize that a well-executed brand strategy in and of itself is not enough to create a strong, industrial brand.  It is also necessary to create the infrastructure required to produce and deliver the product or service, as presented in the company’s marketing.  It will not happen overnight.  It will happen over time, as the brand strategy continues to shape perceptions in the marketplace, and the product or service consistently proves itself – time, after time, after time.

To suggest that there is no place for industrial branding is to ignore human nature.  Is it possible for a manufacturer or industrial service company to become successful without managing their “brand?” Yes.  I see it all the time; but what if they were? How much MORE successful could they be? Industrial marketers who recognize this and make the commitment to create a strong brand will rise to the top of their industries.  Those who do not may achieve financial success; but they will always be trying to catch up to the leaders.

In Part 3: How industrial companies can achieve a competitive advantage through differentiation.