B2B Brand Management Basics - Part 2

This is the second in a short series of posts discussing some of the basic principles of B2B brand management. In Part 1, I described the ongoing debate in B2B marketing between the advocates of brand building and the proponents of demand generation marketing, and I observed that B2B brand building seems to be making a comeback.

I also noted that Proctor & Gamble invented the business function we now call brand management and that most of what we know about building and managing strong brands originated in B2C companies. As a result, many B2B marketers don't have extensive experience with brand management.

The purpose of these posts is to entice B2B marketers to learn more about a skill set that is increasingly vital for B2B marketing success.

Let's start with three basic questions.

What Is a Brand?

The members of most professions share a common view of the core elements of their trade. If you ask 20 accountants what "net profit" means, you're likely to get 20 similar answers.

That's not true for many aspects of marketing. If you ask 20 marketers what "brand" means, you'll probably receive a wide range of definitions.

The American Marketing Association defines "brand" fairly narrowly: "A brand is any distinctive feature like a name, term, design, or symbol that identifies goods or services."

Philip Kotler, who is often described as the "father of modern marketing," offers a similar definition:  "A name, term, symbol or design (or a combination of them) which is intended to signify the goods or services of one seller or group of sellers and to differentiate them from those of the competitors." 

Many marketing thought leaders have defined "brand" more expansively. Here's a sample from a longer list collected by Heidi Cohen.

• Seth Godin - "A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer's decision to choose one product or service over another."

• Ann Handley - "Brand is the image people have of your company or product. It's who people think you are. Or quoting Ze Frank, it's the 'emotional aftertaste' that comes after an experience (even a second-hand one) with a product, service or company."

• David Ogilvy - "The intangible sum of a product's attributes:  its name, packaging, and price, its history, its reputation, and the way it's advertised."

• Al Ries - "A brand is a singular idea or concept that you own inside the mind of a prospect."

Strictly speaking, the AMA and Kotler definitions are more accurate. Most marketing academics would argue that the thought leader definitions conflate "brand" with other concepts such as brand image and brand preference. However, those definitions are likely to be more meaningful to many brand managers.

Which brings us to the second question.

What Is the Goal of Brand Management?

The prime directive of brand management, whether B2C or B2B, is to create, build, and sustain brands that win in the marketplace. "Winning in the marketplace" is typically measured using some combination of high-level performance metrics such as revenue growth, unit sales growth, market share growth, and profitability.

In some large consumer package goods companies with a substantial number of sizeable brands and mature brand management functions, brands are often treated almost like independent businesses. This approach shapes the role of the brand manager, and that's the subject of our third question.

What Are the Responsibilities of a Brand Manager?

Brand managers are sometimes described as "mini CEOs." While that description is an exaggeration, it does capture the broad scope of a brand manager's responsibilities, particularly in companies that view their brands as distinct businesses.

In these companies, the brand manager is responsible for developing the brand's business strategy. This strategy includes (among other things) how the brand will be positioned in the marketplace, how the brand will be marketed, and how the brand's products will be priced and distributed. Brand managers are also deeply involved in managing brand innovation, including product improvements and new product launches.

The specific responsibilities of brand managers will obviously vary across companies, but there are common themes. I recently pulled a few brand manager job descriptions from actual online job postings. Here's a mashup of some of the important brand manager responsibilities contained in those job descriptions.

• Formulates and executes annual marketing plans for the brand, ensuring alignment with the objectives of maximizing brand growth and profitability.

• Manages the brand's marketing budget to maximize short-term and long-term business growth.

• Oversees the design and quality of the brand's products to consistently meet brand standards and fulfill the brand promise.

• Analyzes relevant data to anticipate trends, assess strategic implications, and drive new product development.

• Collaborates with the Company's finance department and other relevant business leaders to review sales and financial data to identify customer issues and opportunities while monitoring overall business health.

• Fosters strong relationships with business management and sales teams by preparing impactful sales presentations, participating in sales calls, and facilitating open communication for effective problem-solving.

Even this partial list shows that a brand manager is often tasked with broad job responsibilities that require both marketing and general business expertise.

The next post in this series will discuss what is probably the single most important concept in brand management - positioning.

Image courtesy of Limelight Leads via Flickr (CC).