brand-architecture

Why Brand Architecture is Fundamental to Building Power Brands?

Most people are very brand conscious and only buy goods that are from familiar brands. If you agree with this, then you must understand that brand architecture is an essential element of marketing and building a brand.

The name, recognition, and equity of your brand is your identity that helps you stand out in the market against competitors.

 

What is the Brand Architecture?

Brand architecture is a way to organize a company’s brands, products, and services such that they are prominent in their audience’s sight.

The brand architecture also relates a parent company with its subsidiaries, products, and services. For example, Toyota needs brand architecture to relate to its subsidiaries, which are: Lexus, Daihatsu, Subaru and so on.

 

Brand Architecture types

brand-architecture

There are mainly three types of brand architecture:

 

1. Branded house

Also known as Monolithic type, the branded house is the case where the master brand has its original name and logo while the other products that follow, are extensions to the master brand. The extensions’ names usually start with the name of the master brand, and the logo is similar to the master brand’s logo with, maybe, different color scheme. A very famous example of the branded house is Google. Google was primarily a search engine, but now it owns several other services too, for example, Google Groups, Gmail, Google photos, Google play music, Google games, Google analytics, Google finance, Google drive, Google maps and so on.

Another one of brand architecture examples under the branded house is FedEx. The master brand, FedEx provides courier services, but there are other services provided by FedEx too, for example, FedEx express, FedEx trade networks, FedEx SmartPost, FedEx ground and so on. Both mentioned examples have the master brand’s name and logo in their extensions.

 

2. House of brands

Also known as the pluralistic type, house of brands is the case where there are several other brands under the master brand. The master brand, itself, might or might not be manufacturing anything under its brand name. Proctor and Gamble, Unilever, Reckitt Benckiser and Nestle are all brand architecture examples under the house of brands type. Proctor & Gamble is not a product itself, but it has subsidiaries like Gillette, Braun, Ariel, Crest and so on. Similarly, Unilever; it also has other subsidiaries under it including Axe, Dove, Knorr, Ben & Gerry’s and so on.

 

3. Hybrid

Also known as the endorsing type, the hybrid is a case which uses the advantages of both, the branded house and the house of brands. The master brand may or may not have a close relationship with the sub-brands, but they are somehow related. A very famous example of this type is that of Volkswagen. Volkswagen owns Audi, Lamborghini, Bentley, Bugatti, Skoda, Ducati and so on, while manufacturing vehicles under its name too. Another example is of Toyota; Toyota owns Daihatsu, Lexus, Scion, Subaru, Hino and so on.

Key terms related to brand architecture

Brand design

Talking about branding, it is compulsory to talk about how a company makes it possible to be viewed by its audience in a way it wants to be viewed. It is through brand design. Brand design includes a logo, name, style, and visuals which are used to transmit a message to the audience about a brand. Of course, the product keeps worth too, but it is not just the product that makes a brand. A famous example here is of Oreo. Oreo is a cookie originally made by Nabisco (Mondelez International).

However, it is an international brand now and is made by many companies. Oreo has become a brand, and even though the taste of different company-made Oreos differs, the logo and the packaging remain constant.

 

Brand personality

Brand personality is the human traits associated with the brand. It determines how a customer interacts with your brand and whether he buys the product or not. Brands are given adjectives such as kind, happy, brave, funny, honest, caring, unique and so on, to make them more understandable to the audience. There are mainly five types of brand personalities: excitement, sincerity, ruggedness, competence, and sophistication.

 

Brand archetypes

Brand archetype is closely related to brand personality. Developed by Karl Jung, brand archetypes are 12 in total. They are The innocent, the hero, the regular guy, the caregiver, the creator, the explorer, the rebel, the lover, the ruler, the jester, the magician and the sage.

Each of these demonstrates a different set of characteristics that define a product. For example, McDonald’s is the innocent, Nike is the hero, Vodafone is the regular guy, Heinz is the caregiver, Canon is the creator, the North face is the explorer, Harley Davidson is the rebel, Galaxy chocolate is the lover, Rolex is the ruler, Skittles is the Jester, Disney is the magician, and Audi is the sage.

All the brands that are mentioned have the characteristics of that archetype which is mentioned with them.

 

Brand promise

A brand promise is what a brand promises to provide to its customers. These promises are made through advertisements, packaging, campaigns and so on. For example, IKEA promises “To provide well-designed quality products at an affordable price.” Another example is of Britannia, saying “Eat healthily, think better.” Here, Britannia is trying to promise its customers of providing good quality and healthy snacks which will further help them to think more effectively.

 

Brand positioning

Brand positioning refers to how a product is differentiated from its competitor products and how the target audience sees it. Effective brand positioning is the reason why customers would choose your product over competitors’ products.

For example, Apple’s “Think different,” differentiates it from its competitors, because it quite explicitly says that the firm introduces something new every time and that they are innovative. Another example is of Walmart; it has the most reasonable prices. So, customers think of it as a store where you can get anything at the most reasonable prices.

 

Brand foundation

The brand foundation is a process of building a brand. Brand Foundation includes careful examination of a company’s vision and mission. It also focuses on the target audience of the brand, and what would they like to see in the brand. It involves creating the brand design, brand promise, brand positioning and brand personality for a brand.

coca cola logo

Coca Cola Logo: How It All Started

Ever wonder who designed the Coca Cola logo and why people love it so much?

Experts put in a lot of thought in designing brand logos and for good reason.

A logo serves as a strong weapon for any brand. After all, it’s the first thing consumers notice when they’re rummaging through shelves at the grocery store. It’s how a brand differentiates itself from competitors and drives customers into making a purchase decision.

So, it’s interesting to wonder how your favorite brand could have turned out had it opted for a completely different identity. Take Coca-Cola for example – can you imagine drinking a bottle of coke without that unique scripture?

Probably not. But the logo we see today isn’t what the brand initially started off with, though the brand has stayed committed to its original theme.

In this post, we’ll be discussing how Coca Cola’s unique logo has evolved throughout the years.

Coca Cola Logo: The Beginning of Coke

It all started in 1886, back then Dr. John S Pemberton has just perfected Coca Cola’s formula and had teamed up with his bookkeeper, Frank M Robinson.

Robinson proved to be better in doing more than just his own job because he also came up with the name Coca-Cola and designed the iconic script logo. It was also he who cared to experiment with elaborate Spencerian script. Owing to its immaculate detailing, the script sought out to become one of the most recognizable trademarks to date.

1887-1890’s: The Era of the Trademark

 

coca cola logo

During this period (January 1893), the U.S patent office patented the logo. Notice how the word trademark has been printed on the letter “C”.

1890-1891 – The Era of Swirls

 

coca cola logo

 

While this era was quite short-lived, it deserves a mention too. During this one-year period, the brand experimented with a dramatic swirly look. This makeover was probably the most unique, however, the brand quickly reverted back to its iconic scripture without the added swirls.

 

1941-1960’s – The Era of the Tail Tweak

 

coca cola logo

In this era, Coca-Cola made a pretty smart move by placing the words “Trademark Registered” outside of the “C” instead of leaving it in. The words were then moved below the logo in hopes to improve the aesthetic appeal of the logo, which it certainly did.

 

1947-1960’s – The Era of the Red Disc

 

coca cola logo

You’re probably no stranger to this stunning red disc thanks to vintage ads. This button sign was once popularly used to advertise Coca-Cola and set the ultimate paradigm for outdoor signage. These discs were heavily used for decoration and advertising purposes because of its aesthetic appeal during 1948.

You’ll also find these discs in print advertisements during the 1960’s, making it a popular Coca Cola logo.

 

1958-1960’s – The Era of Fishtails

 

During this period, Coca-Cola used its iconic script into an arciform shaped structure – otherwise known as the fishtail sign. This logo was revealed in 1958 and was then used on vending machine, signs, cartoons etc.

However, in only a few years, the design was swamped back to the Red Disc. Experts noted that the circular designed deemed best in terms of visual associated with the brand.

By 1965 this design was phased out and replaced by the familiar Red Disc of earlier years. It was decided the red circle was the strongest visual association with the trademark.

1969 – The Era of the White Wave

 

This logo features the famous Coca-Cola script in a red box, underlined with a white wave. This logo is still popularly used today, owing to its spectacular design.

 

1982 – The Era of Diet Coke®

The 1980’s was an exciting time for Coca-Cola because that’s when it blessed the world with Diet Coke. The brand also came up with a bunch of cool coke slogans such as “Coke is It!” and much more.

The Diet Coke logo was the first to feature a change in font from the regular script to slab serif. The company also mixed and matched by swapping colors. They printed Diet Coke in bold red letters on a white background which was the opposite of what they had been doing before.

 

2003 – The Era of Being Real

 

The year 2003 kicked off with the “Coco-Cola… Real” campaign. This time around, the logo was further improved by adding some bubbles and a lovely splash of yellow.

 

2007 – The Era of Going Classic

 

 

Minor changes were made to Coca-Cola’s logo in 2007, the brand decided to oomph up the design by adding a single white ribbon.

 

2011 – The Era of Happiness

coca cola logo

2011 marked a very special year for Coca-Cola as it celebrated 125 years of happiness. The anniversary logo featured bubbles bursting from a bottle to celebrate the success of Coke’s incredibly promising future ahead as well as all it has achieved in the past and present, kinda how you celebrate with a champagne bottle.

 

2013―2014 – The Era of You

 

coca cola logo

 

Now, this era is by far our favorite because it brought us Coca-Cola’s Share a Coke campaign. This campaign focused on intimacy by swapping Coca-Cola’s logo with your name. Sure, while this caused a major packaging change, the campaign was a huge success and hit more than 70 countries.

But it didn’t end there as Coca-Cola teams across the world pulled together to add their own creative spin to the campaign.

 

2016 ― The Era of Taste the Feeling

 

coca cola logo

 

In 2016, Coca-Cola replaced its Open Happiness campaign to “Taste the Feeling.” This campaign used a more cohesive approach as all of Coke’s variants such as Coke Zero, Diet Coke, Coca-Cola Classic featured the same red disc logo.

This brand strategy highlighted how all these unique flavors are a part of Cola-Cola’s big, happy family.

Coca Cola Logo: Wrapping it Up

We hope you’ve enjoyed reading about the evolution of the Coca Cola logo and the story hidden behind each design.

Is there something you’d like to add?

Tell us about it in the comment’s section below.

 

vertical-integration-examples

Vertical Integration Examples that Show How the Consumer World is Evolving

Vertical integration refers to the business strategy where the company acquires or merges with other companies at different stages of production or distribution channel in the same industry. In other words, it acquires business operations within the same production vertical. This could be forward or backward in nature.

It is the merging together of two businesses that may be at different stages of production, for instance, an oil exploration company and a retail chain of gas stations.

In a three-tier model, it refers to the manufacturer, wholesaler, and retailer. A company that acquires or expands into a manufacturing facility is called to have integrated backward whereas; one that expands forward, thus establishing its presence into distribution is known to have conducted forward integration.

The most popular and relevant examples are from the oil industry dating back to the 70s and 80s when many of the oil exploration companies that dealt with the extraction of crude petroleum started acquiring downstream refineries and distribution networks. This meant being in complete control of bringing oil from Alaska or North Sea all the way to the vehicle’s fuel tank.

 

Best Vertical Integration Examples

A vertical integration is a type of growth strategy for businesses. Here are some of the best examples of vertically integrated firms are:

 

1. Apple:

Apple uses an integration software and hardware approach and has excelled the vertical integration model over the years. The company designs the hardware and software of both the iPhone and the iPad including the device processors.

Eventually, mobile computing continues being streamlined through various competencies being employed in areas of procurement, manufacturing, and supply chain.

 

 

2. Dell Computers:

The idea was taken a notch ahead in the 90s when Michael Dell, the founder of Dell Computers coined and implemented the term ‘virtual integration’ using the concept of technology and vertical integration.

He combined the characteristics of the virtual organization with the traditional vertical integration of the supply chain in doing so. It started assembling computers using parts acquired from other firms and maintained a relationship with firms through exchanges of information which Dell described as a ‘tightly coordinated supply chain’.

Thus, it went beyond the traditional sense of links established between the buyer and supplier.

 

3. Carnegie Steel:

This has been another example of vertical integration of the 19th century. It controlled the manufacturing end for steel factories and owned mines that extracted iron ore and coal from mines other than the railroads that managed distribution all the way to the factories.

Furthermore, it also owned the ships that transported iron ore as well as the mills that produced steel. The company was renowned to be a very efficient entity.

 

Advantages of Vertical Integration

Vertical integration leads to several advantages such as:

  1. It creates avenues for economies of scale by reducing the production cost,
  2. The access to inputs can be controlled other than quality,
  3. Times of delivery of the raw material can be managed well and with absolute accuracy, leading to well-timed stock turnover rates,
  4. The after sales service and distribution channels can be made for an efficient creating room for achieving excellence in facilitating great customer service,
  5. Having less competition through increasing barriers to entry for new entrants by being able to control cost as a result of reducing it because of a total control on suppliers and distributors,
  6. Profit repatriation and crowdsourcing in various business operations to leverage what can be referred to as ‘question marks’ in the Boston Matrix for instance.

 

Disadvantages of Vertical Integration

At the same time, there could be several disadvantages too of vertical integration:

  1. Flexibility could be greatly reduced by business ventures previously involved in downstream or upstream investments,
  2. Product variety could become stagnant in case of significant development being needed within the company,
  3. Monopoly power through market entry barriers that could lead to a slack in product quality as a result of limited or no competitors as all thereby significantly resulting in anti-trust as well,
  4. Inelastic demand for products that could make consumers pay high prices.

 

 

Vertical integration implies that a particular company controls the component parts as well as the finished good. However, market conditions and the economy also determine whether it would be beneficial or not or even beneficial in the long run for which extrapolation must be done.

coke slogans

Coke Slogans From Then & Now: The Ultimate List

How about we take a stroll down memory lane and revisit the most iconic coke slogans?

It’s safe to say that Coca-Cola is one of the most renowned brands around the world and for good reason. After all, the brand has worked incredibly hard to establish a credible reputation for itself.

And since we are a marketing website, we can’t help but acknowledge coke’s stellar marketing team for the efforts it has put in over the years.

You see, while it may seem like nothing but a couple of sentences, coca cola slogans have played an integral role in perpetuating its brand image. Time and time again, Coca-Cola has stepped up its rebranding game by launching new campaigns and opting for better coke slogans.

In this post, we’ll be sharing some of our favorite coke slogans from the past couple of years. But before that, let’s have a look at what the company is all about.

Coca Cola History

It may sound a little odd but this famous beverage was actually created by a pharmacist, namely Dr. John S. Pemberton back in 1886. Once Pemberton was able to create a batch of this distinct drink, he mixed it with carbonated water and decided to sell it. This caused Pemberton to team up with his bookkeeper, Frank M. Robinson who is often accredited with naming the soft drink and designing the unique script that is used till date.

And thus began the (incredibly successful) journey of Coca-Cola because, in just about two years, the soft drink became the #1-selling sparkling beverage in the world.

Coca Cola Ideology

coke slogans

Coca-Cola enjoys its position as the #1 bestselling beverage around the world. Because of this, the brand acknowledges its responsibility to shape a better future for the generations to come and that’s exactly what its 2020 Vision is all about.

The company has created a “Roadmap” to success which includes its mission statement, company values, and overall corporate culture.

Coca Cola’s Mission

A company cannot thrive without a mission or purpose that will push it towards the road to betterment. According to The Coca-Cola Company’s website, its mission is:

  • “To inspire moments of optimism and happiness…”
  • “To refresh the world…”
  • “To create value and make a difference.”

So you see, unlike other companies, Coca-Cola opts for a distinct approach. Note how its mission is not to make the most sales or build a bigger empire, instead, it focuses on the importance of creating change and bringing happiness. This is all part of Coke’s thriving company culture.

With its positive mission, Coca-Cola wishes to be a part of some of the best days of your life and “Open Happiness”.

Coca Cola’s Values

From the company culture to brand strategy, everything is built around these seven core values:

  • Leadership
  • Collaboration
  • Integrity
  • Accountability
  • Passion
  • Diversity
  • Quality

Overall, it is a brand driven by the desire to inspire a positive change – a change that encompasses the whole world, every single community.

List of The Best Coca-Cola Slogans

coke slogans

Cutting right to the chase, here are some of the best coke slogans:

“Delicious and Refreshing”

This was the first and longest-running slogan that initially appeared in Coca Cola’s very first published ad in 1886. The company remained loyal to this slogan till the 1920s. However, it was time and again used along with other secondary slogans such as “The Great National Temperance Drink” in the 1890s and ‘Good to the Last Drop’ during the 1900s.

In the 1920s, the company came up with two more iconic slogans. The first one, “Thirst Knows No Season” was created in1922 and remained popular till they came up with the tagline “The Pause That Refreshes” in 1929. The latter caught up with the masses and remained their main tagline for around three more decades.

“Things Go Better With Coke”

The 1950s was a revolutionary decade for advertising. The focus shifted from print to television. Companies were coming up with slogans that sounded well as jingles. Coca-Cola hired McCann Erickson as its branding partner. We saw a number of jingles throughout the 50s and 60s and “Things Go Better with Coke” is the one that stayed for six years.

Coke’s first major campaign “I’d Like to Buy the Word a Coke” was launched in 1971. That is when the same agency, precisely the same man wrote another iconic slogan “It’s the Real Thing.”

“Coke Is It”

Coke kept coming up with interesting and catchy slogans throughout the 80s. First, it was “Have a Coke and a Smile” and then they created the popular “Coke Is It.” The company was now focusing its attention on the younger audience. “Coke Is It” reflected the cultural shift among American Youth. It remained their slogan for six years before it was replaced by “You Can’t Beat the Feeling” in 1988. In just two years, that slogan was slightly altered to “Can’t Beat the Real Thing” – a slogan that hints towards the rising competition during that period.

“Always Coca-Cola”

The 1990s was the decade of change for the company. From the bottle to branding, everything changed. The company hired another marketing agency who helped them build multiple campaigns around the iconic “Always Coca-Cola” slogan. Anyone alive in the 1990s would remember the jingle. It is the anthem of the 90s and every 90s kid still remembers it by heart.

“Open Happiness”

Open Happiness is essentially the most popular Coca-Cola slogan of our time. It was first used in 2009 and everyone thought they are never going to change it again. It was accompanied by a number of popular ad campaigns that spoke volume about the brand’s mission, vision, and values. Most of the campaigns were built around the subject of peace, tolerance, inclusion, diversity, and coexistence.

With this slogan, Coca-Cola rebranded itself into a company that truly cares about things that matter – about humanity and the challenges it faces. It became more than just a soda company and set an example for other brands to follow.

“Taste the Feeling”

While we thought Coca-Cola had found its perfect slogan in Open Happiness, Marcos de Quinto, the global Chief Marketing Officer had something else in mind. Quinto found the previous slogan a tad bit preachy and wanted to revert to something that focused more on simple pleasures. That is when “Taste the Feeling” was launched.

“Taste the Feeling” reinforced the company’s commitment to choice. It signifies how there is Coca-Cola for everyone no matter their taste, lifestyle, and dietary preferences. It is one campaign that covers all the variants including Coca-Cola Zero, Coca-Cola Life, and Coca-Cola light.

Complete List of Coke Slogans

Here’s a list of complete Coca-Cola slogans:

1886 – “Delicious and Refreshing”

1904 – “Drink Coca-Cola”

1905 – “Coca-Cola Revives and Sustains”

1906 – “The Great National Temperance Beverage”

1907 – “Good to the Last Drop”

1917 – “Three Million a Day”

1922 – “Thirst Knows No Season”

Coke slogans

1923 – “Enjoy Thirst”

1924 – “Refresh Yourself”

1925 – “Six Million a Day”

1926 – “It Had to Be Good to Get Where It Is”

coke slogans

1927 – “Pure as Sunlight; Around the Corner from Everywhere”

1929 – “The Pause that Refreshes”

1932 – “Ice Cold Sunshine”

1938 –   “Thirst Asks Nothing More”

Coke slogans

1948 –   “Where There’s Coke There’s Hospitality”

1949 – “Along the Highway to Anywhere”

1952 –   “What You Want is a Coke”

1956 –   “Coca-Cola … Makes Good Things Taste Better”

1957 –   “Sign of Good Taste”

1958 –   “The Cold, Crisp Taste of Coke”

1959 –   “Be Really Refreshed”

1963 –   “Things Go Better With Coke”

1969 –   “It’s the Real Thing”

Coke slogans

1975 –   “Look Up America”

1976 –   “Coke Adds Life”

1979 –   “Have a Coke and a Smile”

1982 –   “Coke Is It!”

1985 –   “We’ve Got a Taste for You 1986”

1986 –   “Catch the Wave”

1988 –   “You Can’t Beat the Feeling”

Coke slogans

1989 –   “Official Soft Drink of Summer”

1990 –   “You Can’t Beat the Real Thing”

1993 –   “Always Coca-Cola”

2001 –   “Life Tastes Good”

2003 –   “Coca-Cola … Real”

2005 –   “Make It Real”

2006 –   “The Coke Side of Life”

2009 –   “Open Happiness”

2016 –   “Taste the Feeling”

Coke Slogans: Wrapping it Up

So there you have it! We hope you’ve enjoyed reading our list of coke slogans.

Now, it’s your turn to tell us about your favorite coke slogans.

We’d love to hear from you!

Image Souce: Coca-colacompany.com 

value-proposition-examples

Value Proposition Examples to Illustrate How Brands Use it

Value proposition refers to the key features and aspects of a product or service that give the company or brand a competitive edge over others. It, therefore, serves as an attraction for customers and gives them a reason to choose a particular company’s product offering. We’ll use a few value proposition examples to explain the concept in greater detail.

 

What is Value Proposition?

A value proposition gives your prospects of doing business with you over your competitors and highlighting it in marketing campaigns helps in adding value to the brand. In a nutshell, it combines relevancy, quantified value, and unique differentiation.

Your product’s ability to solve a customer’s problem to improve his/her experience addresses the concept of relevancy, being able to provide benefits refer to qualified value, while the product’s competitive advantage denotes the unique differentiation.

 

Value Proposition Examples

Writing a good value proposition is like any other skill and can become the very statement for your brand or service’s success.

Below are a few of the best examples of value proposition:

 

1. Netflix: ‘Watch Anywhere. Cancel anytime’

Netflix delights its customers and employs the right marketing strategy in doing so. It addresses the customer need in these four simple words, ‘Watch Anywhere. Cancel Anytime’ which one can do in simple steps, all that is needed is internet connectivity.

Do you know how Netflix makes money?

value-proposition-example-netflix

 

2. Skype: “The Ultimate Network Business’

Skype creates a great user experience by connecting people continents apart over a video chat and much of it is free of cost. Therefore, as the value proposition suggests, it being able to connect people the world over is the unified value and addresses the question of relevancy for people who need to connect with peers for business meetings or with friends and family over long distances.

This along with the unique features serves as a competitive advantage over other such offerings that may be geographically limited or restricted to certain features only.

 

3. Uber: ‘The Smartest Way to Get Around’

Uber quite subtly tells its users how hailing a traditional taxi could be a hassle over its service which is not just simple but superior over such an option. The Uber convenience is embedded in its value proposition.

All that is required is a tap and the driver is available for you who knows his way around regarding where you want to go and the payment is completely cashless.

This is reinforced in the message on Uber’s homepage that says, ‘Your day belongs to you’.

Make money with Uber

 

4. Apple iPhone: ‘The Experience is the Product’

Apple literally has a cult following when it comes to brand loyalty, there are consumers who cannot think of any other brand but Apple which has created a solid customer base for the company. The strong positioning has been attributed to Steve Jobs who led the company to its success over the years.

It won’t be a wrong statement when you’d say there’s nothing quite the Apple’s flagship device because it offers a very unique experience. Apple states that a mobile phone ‘should be more than a collection of features’ despite what a smartphone is supposed to be.

Similarly, the brand simplifies the complex issue of encryption into language that is easily understood by users and its hassle free as well. Apple knew that it couldn’t break free from the clutter to distinguish itself from the already crowded market, but it did exactly that by focusing on its unique features and IOS, and most importantly through highlighting the value proposition in the form of a great user experience, product design, and aesthetics.

 

 

5. Vimeo: ‘The high quality home to make, share, and watch videos’

Vimeo, as you may know, has very well positioned itself as a more advanced and perhaps more refined version of Youtube. When you upload content on Vimeo, it definitely is something worth the eyeballs.

Great Vlog Ideas for Your Next Youtube Video

Although it achieved late traction, it did succeed in its positioning and strategy. It provides superior video infrastructure and hence a better HD embeddable player for bloggers. Vimeo’s value proposition was directed towards producers thereby coming in direct competition with Youtube.

 

Looking to Start a Youtube Channel?

 

Thus, it aimed to acquire those producers who planned to create a sustainable collection of videos.

 

How Youtubers Make Money?

 

Did These Value Proposition Examples Help?

In conclusion, these value proposition examples illustrate that good value propositions entail the following:

  1. The ability of your product or offering to be able to solve the customer’s problem through its key features
  2. The benefit that it offers
  3. The competitive advantage that you can offer so that the customer prefers your product over your competitors
business to business marketing

Business To Business Marketing: The Best B2B Marketing Strategies

Over the last couple of decades, business to business marketing has emerged as a unique discipline of its own. Unlike consumer marketing, B2B marketing can be a lot trickier since you’re targeting affluent businesses that’ll make a more informed buying decision to generate maximum profit and value. Which is why marketers ought to get creative and steer clear from pesky phone calls and blatant advertising.

B2B buyers are more knowledgeable and rationale in terms of purchasing decisions while consumers are usually driven by emotional triggers.

In this post, we’ll be discussing business to business marketing in detail. We’ll also walk you through a few of the best business to business marketing strategies to aid learning and propel your brand to success.

However, before we dive into the details, let’s take care of the basics first.

What Is B2B Marketing?

Now, this is fairly simple. In B2B marketing, a company sells its products and services to other companies as opposed to regular consumers. B2B marketing typically deals with products that regular consumers have no practical use for such as packaging materials or raw products.

Also, unlike consumer marketing, B2B marketing deals with different channels in terms of information dissemination.

B2B Vs. B2C Marketing

Here are some primary differences between business to business marketing and business to consumer marketing:

  • Purchasing Point: Unlike businesses, consumers purchase products and services for personal use. The purchasing decision of B2B buyers often relies on multiple parties or departments within an organization such as the finance or business department.
  • Pricing: When it comes to B2B customers, pricing may differ depending on the number of orders or may vary on special terms negotiated between buyers and sellers. This is very different from B2C marketing where customers are expected to pay the same price.

Business to Business Marketing Strategies

Because of the intense competition, it’s becoming incredibly important for B2B marketers to blend a number of marketing practices to come up with the perfect customized strategy. Every strategy must be designed to cater to a specific target audience and must incorporate relevant trends to make your campaign more successful.

Here are some powerful B2B marketing strategies you ought to try:

Inbound Marketing

We’re sure this marketing term has been profusely drilled into your mind over the last couple of years. With the inception of social media, outbound marketing has taken quite a fall with customers and B2B buyers becoming smarter than ever before.

Inbound marketing is one of the most effective and highly practiced B2B strategies today. The strategy focuses on luring potential buyer using relevant content that’s designed to convert. Here, marketing professionals need to be careful about providing value at every step of the buying journey. Thanks to inbound marketing, B2B buyers are able to find companies through social media platforms, search engine and of course, company blogs.

It’s important to take notice of marketing has changed over the years. Sure, you can always print ginormous ads to get people to notice your brand but that doesn’t necessarily mean they’re paying attention any attention to your brand.

Advertising vs. B2B Inbound Marketing

We feel it’s important to clear the air about advertising and B2B inbound marketing because both terms are certainly not interchangeable. While advertising, you’re basically renting the attention of your audience. Inbound marketing does more than that. It utilizes a long-term strategy to nurture prospects over time.

This might not produce immediate results but it definitely is a great long-term strategy. Using B2B inbound marketing fosters trust between your brand and prospects which plays an integral role in the buying decision.

Incorporate Explainer Videos

Please don’t underestimate the importance of visual content when it comes to leveraging your brand.  If you don’t know where to begin, start by creating explainer videos. These videos have become drastically popular over the last few years.

As the name indicates, explainer videos utilize an engaging storyline to inform potential buyers about important products and services. It works better than an ordinary advertisement because it dives deeper into the product’s unique value proposition and how users can actually benefit from it.

Here’s a perfect example from Hubspot that you can gain inspiration from:

At this time and age, we definitely can’t ignore the importance of visuals. Apart from being active on platforms such as YouTube and Instagram, brands must also make it a priority to incorporate visuals in their written content.

Build a Successful Website

Today, your company website works as a digital billboard to attract B2B buyers and is practically your most valuable asset. A successful website solidifies your brand’s online presence and works as an effective means to propagate information about your business to the World Wide Web.

This is why you should generate ideas to bring more traffic to your website. The most fool-proof way is to create useful educational content that’ll drive your audience into making a purchase. Use your website as a powerhouse to move forward and build authority in your niche.

The Best B2B Marketing Strategies: Wrapping it Up

We hope this detailed guide has helped you learn more about business to business marketing.

Did you enjoy reading about B2B Marketing Strategies? Is there something you’d like to add? Tell us about it in the comment section below. We’d love to hear from you!

Market-Segmentation-Types

4 Market Segmentation Types & Examples

Getting to know your consumers becomes much easier using various market segmentation types. In fact, it practically acts as a blueprint when coming up with effective marketing campaigns.

In this guide, we’ll be about discussing market segmentation types in detail along with a number of examples to help you gain a better understanding of the subject.

Let’s begin!

What is Market Segmentation?

As the name indicates, market segmentation is the process of classifying potential buyers into a number of segments or groups based on certain characteristics. Needless to say, each group comprises of members with similar characteristics.

Importance of Market Segmentation

Now you’re probably wondering why marketers should put in all this effort in the first place. Well, the fact is, classifying different groups’ makes it easier for marketing professionals to create personalized campaigns.

By breaking down the company’s target market into segmented groups, marketers don’t have to waste time in targeting each potential customer.

This allows marketers to be more efficient in terms of company resources, their time and of course, budget. Creating groups of similar customers allow marketing professionals to target potential consumers in the most cost-effective manner.

Market Segmentation Types

There are primarily 4 different market segmentation types. This includes:

1.     Geographic Segmentation

Does your brand have a widespread reach around the country or perhaps across the world? Well, then you’re probably familiar with geographic segmentation. As the name indicates, this type of market segmentation divides potential consumers on the basis of geography.

Example of Geographic Segmentation

For instance, did you know that Kit-Kat in Japan offers a plethora of wacky flavors (including wasabi and green tea flavor!) that aren’t available anywhere else in the world? Well, that’s primarily because people have a different taste palate all over the world.

Using a geographic segmentation allows companies to cater to people living in a specific location. This is incredibly important as customer needs are likely to vary depending on location, especially if you compare rural and urban areas.

2.     Demographics Segmentation

This is probably the most popular market segmentation out there. It involves splitting up your target consumers into variables such as:

  • Gender
  • Age
  • Income group
  • Family size
  • Occupation
  • Nationality

These variables make it easier for marketers to divide consumers into a number of groups. With the help of segmentation, companies are able to cater to needs and requirements of each group appropriately.

Example of Demographics Segmentation

Automobile companies can successfully use demographic segmentation. This is highly beneficial as the automobile market has a number of different price brackets. For instance, luxury car brands such as Rolls-Royce targets high-end buyers.

On the other hand, automobile companies such as Suzuki and Audi cater to buyers of various income groups, offering vehicles of different price-points.

3.     Behavioral Segmentation

In this marketing segmentation, marketing professionals segment customers based on their:

  • Purchasing pattern
  • Frequency of purchase
  • Loyalty status
  • Usage rate
  • Loyalty status
  • Attitude towards the product

Most marketing professionals are adamant that using behavioral segmentation is among the best ways to build market segments. Using behavioral segmentation allows marketers to come up with insanely effective (and personal) marketing campaigns – this becomes easier because they’re already aware of the purchasing habits of their consumers and know who to target.

Example of Behavioral Segmentation

In this case, promotional campaigns can be used to make rare buyers become frequent purchasers. Industries such as the smartphone market are likely to benefit the most out of this market segmentation.

For instance, you probably already know that Blackberry was designed to cater to business professionals. The company thus used a different marketing strategy that set it apart from other smartphone brands in the market.

4.     Psychographic Segmentation

As the name indicates, this kind of marketing segmentation is used to describe human characteristics of potential consumers. Psychographic segmentation plays an integral role in helping professionals come up with an effective marketing campaign.

Psychographic variables are popularly referred to as IAO variables which stands for interests, activities, and opinions. When using this type of market segmentation, professionals must primarily focus on trying to understand the customer on a psyche level. Only after this can he/she craft the perfect marketing strategy.

Some other popular variables include:

  • Lifestyle
  • Values
  • Personality
  • Perception
  • Attitudes
  • Self-image

Additionally, consumers may also be classified according to their personality traits. While this may seem similar to behavioral segmentation, it’s worth noting that psychographic segmentation only deals with the psychological aspects of consumers. This information can also be used to cultivate a brand personality that’s aligned with the company’s consumers.

Example of Psychographic Segmentation

For instance, Forever21 is a clothing brand that’s specifically catered towards women who want to look young and hip. This is quite unlike other clothing brands that cater to working women who are always on the go.

Market Segmentation Types: Conclusion

We hope this guide has answered your queries regarding market segmentation types. Have something that you’d like to ask? Hit us up in the comment section below!

Market-Positioning-Strategies

Market Positioning Strategies & How to Position Your Brand

In simple terms, market positioning strategies dictate where consumers’ position companies based on their pricing, brand and of course, product.

Effective market positioning places your brand exactly where you want it to in the target market. Companies typically use perceptual or positioning maps to create market positioning strategies.

What is a Positioning Map?

A positioning map is used to create a marketing positioning strategy for products and services. Since most of this is based on the perception of the consumer, it is often referred to as a perceptual map.

With the help of this map, companies are able to determine what position existing products and services currently hold in the market. This information is then used to help companies decide where they’d like to position new products and services.

Once a firm has a mapped out a positioning map, they typically have two options to choose from. They can either choose to fill a gap in the current market or position their product to compete with other existing products in the market.

What is Brand Positioning?

Similar to market positioning, brand positioning is the conceptual place you want your target audience to position your brand in. Basically, the goal here is to create a distinct image so that consumers are able to distinguish your brand from others in the market.

How to Develop a Market Positioning Strategy

Developing a market positioning strategy may seem complicated at first but it’s in the best interest of your company. Here are some steps that you ought to follow:

Conduct Market Research

Now, this is perhaps the most crucial step of all. Start by gathering information about your buyers and figure out what features they would like to see in your product. Understand that this research phase deals with product features in general. So you don’t have to focus on features that are offered by other brands.

Make a List

After highlighting the best product features, it’s time you figure out how customers rank each product. This’ll become much easier once you have compiled of those features.

Create a Positioning Map

The next step is to develop a positioning map displaying the best product features. Keep in mind that you also have to list down the names of competitors that offer these features. For better clarity, we advise you also place your product on the map. This’ll allow you to compare how well your products will do as opposed to your competitor’s

Once you have positioned competitor products, it’s time you start looking for ways to position your product now.

Figure out a Price Point

The price point greatly impacts how consumers view your products and services. Sure, a more expensive product is typically viewed as high-quality but that strategy might not always work. Especially if you try to trick consumers into paying a higher price for low quality.

The best strategy would be to decide a price based on its feature, the brand’s overall strength, and other benefits.

Cost Leadership and Differentiation

When it comes to market positioning, companies can choose between two broad categories. This includes cost leadership and differentiation strategies. A company can choose from either of these strategies for optimal results according to the products and services they offer.

Cost Leader Strategy

A cost leader strategy is better suited for companies that offer products at a lower price point compared to their competitors. Because of the low price, consumers don’t hold very high expectations and expect a basic product.

With no bells and whistles, consumers are only concerned about the product meeting their basic needs and requirements.

Differentiation Business Strategy

On the other hand, a differentiation business strategy is when a company sets its mind to introduce unique products. By doing so, it aims to create a distinct place in the market. Since the company is working to introduce something that’s new, consumers will hopefully be willing to pay a higher price for it.

Market Positioning Examples

Here are a couple of great market positioning examples that will provide you a clearer idea on the subject:

Tesla

A couple of years ago, Tesla was one of the first automobile companies to break into the electric vehicle marketplace with luxury sports cars. You see, Tesla could have chosen to compete with brands such as Toyota and Chevy but instead, it decided to go after a high-end market instead.

Chipotle

For several decades now, Taco Bell had retained itself as the cheapest fast food joint for Mexican cuisine. Because of this, consumers sought out to Taco Bell for cheap takeaways. Then entered Chipotle that focused on quality instead. From its great marketing approach to its quality menu, Chipotle has managed to build stellar brand equity.

Wrapping it Up: Market Positioning Strategies

All in all, developing a positioning map is vital for creating a market positioning strategies. Have something to add, tell us about it in the comment section below!

Picture Credits: Industrial Brand