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2001 | Book

Strategy and Management of Industrial Brands

Business to Business Products and Services

Author: Philippe Malaval

Publisher: Springer US

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About this book

Strategy and Management of Industrial Brands is the first book devoted to business-to-business products and services.

Looking at numerous companies, this book defines two brand objectives that are specific to the industrial and service sectors and which must be added to the traditional functions of branding: the minimization of risk as perceived by buyers, and the facilitation of the customer company's performance by the supplier brand.

Different ways of classifying brands are suggested, providing a better understanding of brand strategies adopted by business-to-business companies, as well as new concepts such as brand `printability', `visibility', and `purchaseability'.
Five major brand categories are dealt with in separate chapters:
-entering goods brands;
-intermediary equipment goods brands;
-equipment goods brands;
-business-to-business service brands; and
-industrial distributor brands.

From a practical point of view, the aim of the book is to address the main concerns of managers: How to create and protect brands? What type of visual identity is appropriate? How to manage international brands?
An analysis of 1,500 industrial brands as well as 40 case studies are included in this book. These brands are used in both the industrial (automotive, building, aeronautics, IT, etc.) and consumer sectors (clothing, electronics, food packaging, telecommunications, etc.).

This book has been written for professors and students of universities and business schools, as well as managers and people working in industry or the service sector.

Table of Contents

Frontmatter
Chapter 1. Development of the Concept of Brands
Abstract
One of the first identifiable uses of a brand dates back to the Gallo-Roman period. In particular, during the 1st century AD, brands were used to identify the work of different potters. Earthenware was fired in collective ovens holding large quantities of work; one firing lasted two weeks and around 20 different potters used the same oven at one time, consequently a way had to be found to distinguish the work of different craftsmen to avoid any confusion or disagreements. Archeologists have been able to study the period’s economic organization from the signed pottery marked with a stamp printed on the bottom of the container. This stamp signified the work of a particular potter. Usually stamps were in the form of pictograms or the initials of names of potters: these were the first logos in history (Figure 1).
Philippe Malaval
Chapter 2. The Role of the Brand in the Industrial Purchase
Abstract
Since the end of the 1980s, brand management1 has been of growing interest to companies and has received increasing attention in marketing literature. The research on brand management goes further than brand image and strategy by studying the concepts of brand equity and extension2. But the literature essentially deals with consumer product brands, bought by individuals and households for personal use. Industrial brand management involves studying the role of the brand in inter-company trade relationships. This means taking the brand into account when analyzing the buyer’s behavior within an industrial context
Philippe Malaval
Chapter 3. The Characteristics of Business to Business Communication
Abstract
Companies have many ways of promoting their brands particularly among other businesses. In view of the nature of inter-company relations, specific tools can be used apart from those applicable to consumer markets. However, first a communication policy coherent with the marketing strategy of the company must be defined.
Philippe Malaval
Chapter 4. The Brand and its Mechanisms
Abstract
Today, brands are of increasing concern to business professionals, as well as being the subject of numerous surveys and research. Most of the time, brands are analyzed in terms of the consumer market, in other words, from the perspective of the end-user rather than the professional purchaser. Many concepts (brand equity, brand associations, etc.) and tools for measuring brand performance have indeed contributed to understanding their main operating mechanisms, without, however, focusing on the specific context of industrial markets.
Philippe Malaval
Chapter 5. Brand Functions
Abstract
In the United States, virtually anything can be registered as a trade mark or service mark with the Patent and Trademark Office. The statutory definition of trade mark in the Trade Mark Act of 1946, as amended (the Lanham Act) includes “any word, name, symbol, or device, or any combination thereof. Courts have interpreted this language very broadly allowing protection for the overall look of a product, including its size, shape, color or color combinations, texture, even perfumes and graphics (Cantor and Chestek, 2000). Thus, a manufacturer’s brand name, trade or service mark is “a graphic sign meant to distinguish the products or services of a physical or moral person”. The brand can, therefore, be considered as a distinctive sign, but also as a symbol, a design or a combination of these different elements which identify the product and confer upon it a durable competitive advantage: “A winning brand is a brand that consumers want to buy and distributors want to sell” (Doyle, 1990). Its strength is defined by its equity: the sum of “all the strong and transmissible brand associations, and their capacity to influence behavior” (Leuthesser, 1988).
Philippe Malaval
Chapter 6. Purchaseability and Visibility of Industrial Brands
Abstract
Unlike consumer brands, industrial brands are generally not seen or are never purchased by end users. Concerning essentially professional customers, industrial brands can differ greatly depending on “purchaseability” and visibility by end consumers. They are generally unknown by the consumer public, even when they belong to powerful groups. Some brands such as Lycra®, Intel® or Tetra Pak have, however, reached very high awareness rates. These results and the advertising investments dedicated to these brands are surprising, as consumers cannot buy their actual products directly. Brands like Xerox, Grohe, Legrand, Intel® or Gore-Tex® have chosen to advertise on television, while they aim, first of all, at business targets. They are now trying to make themselves known by the consumer public. Whatever their motivations, it seems necessary to explain the different ways an industrial brand can reach the final customer.
Philippe Malaval
Chapter 7. Industrial Brand Classification
Abstract
While much research has been done on the classification of consumer brands, the same cannot be said of industrial brands. The latter can be classified and characterized by applying traditional methods, analyzing the brand portfolio of major companies in the industrial sector, and finally, using the “purchaseability” and “visibility” concepts developed in Chapter 6.
Philippe Malaval
Chapter 8. Creating and Protecting Business to Business Brands
Abstract
Brand classification, which was dealt with in Chapter 7, shows how diverse the origins of industrial brands are: company name brands, brands which have some sort of signification, and brands with a technological connotation, among others. As well as being the basic element of communication between the company and the customer and an indicator of the customer’s loyalty and awareness, the brand is also the company’s mouth piece conveying its values and promises. Considering what is at stake for industrial brands especially as regards the customer-supplier relationship, launching a new brand requires very serious preparation.
Philippe Malaval
Chapter 9. The Logotype and The Visual Identity Code
Abstract
A brand can only rarely be summed up by its name: various different elements contribute to its identity, which progressively develops throughout its life. Brand identity is multidimensional. In addition to the numerous evocations and associations, and tangible product or service attributes brought to mind by the brand, identity is also built on distinctive elements such as the logo, slogan or jingle. Representing the brand and communicating its basic values, these elements must be carefully managed starting with establishing an effective visual identity code.
Philippe Malaval
Chapter 10. Managing the International Brand
Abstract
Over the last few years several factors have contributed to reducing trade restrictions such as:
  • International agreements (Gatt, lower customs duties…),
  • Improvements in the means of transport and logistics,
  • Rapidity and availability of information,
  • Global media coverage,
  • Growth of industry worldwide,
  • Changes in financial context.
Philippe Malaval
Chapter 11. “Entering Goods” Brands: The Development of Co-Branding
Abstract
“Entering goods” have three main characteristics. They are generally not purchaseable by end consumers. They are selected by industrial customers and then integrated into the production process. Physically they are delivered in a way which does not allow end users to use them. For instance, Lycra® fibers such as Tetra Pak packaging are delivered in reels which require industrial equipment to be transformed into underwear, clothing and pre-finished packaging.
Philippe Malaval
Chapter 12. Brands of Intermediary Equipment Goods
Abstract
Intermediary equipment goods are similar to entering goods in that they are often found as an integrated part in an assembled product such as a house or car sold by an industrial client. The purchaseability of such products by the consumer is higher than for entering goods and is dependent on the supplier brand strategy and on the technical complexity of the product category. Purchaseability in fact applies to independent units, easily used by the final consumer. Such renewable parts include windscreen wipers for cars, tools, radiators, carpets or electrical appliances for the home. More complex sub-assemblies such as microprocessors or alternators are generally not available for purchase by the final consumer.
Philippe Malaval
Chapter 13. Equipment Goods Brands
Abstract
Equipment goods and systems can be distinguished from intermediary goods by the fact that they stand alone: for the customer they are an independent entity. Normally they do not need to be built into another assembly. The equipment goods and systems category is much less homogeneous than the entering goods and intermediate equipment goods categories dealt with earlier. This is because in this large category there is both small equipment (individual protective equipment, office supplies, etc.) as well as very large equipment (supply of a transport aircraft or a freeway).
Philippe Malaval
Chapter 14. Business to Business Service Brands
Abstract
Professional services are all the services on the market which aimed at companies:
  • Furniture, goods and equipment rental for companies: rental of cars and industrial vehicles, building equipment (cranes, cement-mixers, scanffolding, etc.), office and IT equipment (word processors, photocopiers and scanners, computers and peripherals, telephone equipment, software license fees), farming machinery (tractors, combine harvesters, etc.), transport and freight equipment (freight cars, containers, ships, planes, etc.), machines and equipment (machine tools, boring and exploratory equipment, telecommunication and electronic equipment, measuring instrument, etc.),
  • IT and telecommunications services: consulting design of programs, data processing, technical assistance, maintenance, system integration, network management, etc.,
  • Legal services: counseling and representation (for civil, penal or administrative matters or for work or business disputes), counseling and assistance (for patents and royalties), drawing up and recording of acts (statutes, trust deeds, etc.),
  • Assessment and consulting professions concerning the supply to companies of tools for help with financial and economic decision making, e.g. for accounting (book-keeping, audits, etc.), market research and opinion polls, economic and financial studies, management consulting
Philippe Malaval
Chapter 15. Industrial Distributor Brands
Abstract
Industrial brands can be analyzed in terms of the status of the supplier company, which can be either a producer or distributor of products or services. Today, just like in the consumer sector, the distributor brand concept has taken off in business to business.
Philippe Malaval
Backmatter
Metadata
Title
Strategy and Management of Industrial Brands
Author
Philippe Malaval
Copyright Year
2001
Publisher
Springer US
Electronic ISBN
978-1-4615-1737-5
Print ISBN
978-1-4020-7753-1
DOI
https://doi.org/10.1007/978-1-4615-1737-5