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The Dynamics of Business Orientation :

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on 16 February 2014

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Transcript of The Dynamics of Business Orientation :

Brand Value

Functional qualities
quality, technology, capacity, infrastructure, after sales service, capabilities, reliability, innovation

Emotional qualities
Risk reduction, reassurance, trust

Situational and environmental factors
Nature of the purchase and the economic situation


Functional and emotional components lead to B2B relationship

A framework of brand value in B2B markets:
the contributing role of functional and emotional components

Brand value in B2B markets
1. B2B Branding
2. Literature review
3. Research/Results/Discussion
4. Conclusions

Industrial brand equity
Situational factors on B2B brand value
Brand value
B2B relationships

Established relationship between buyer and supplier may diminish brand importance as trust and commitment develop

Research does not identify whether the brand and the relationship are linked

B2B Brand value
remains largely unexplored

1. B2B context facilitates the progression from goods and services value, which is predominantly associated with functional benefits to relationship value, which is closely associated with emotional needs.

2. Brand value encompasses the value of goods and services and also some added values (functional and emotional) resulting from the brand name.
Literature review
Provides product with a unique identity and a consistent image

Demand branded product will result in competitors offerings being rejected High brand equity can effectively act as a barrier to entry for other competitors

Brand perception
Positive perceptions of a product's brand leads to to transferral of these evaluations to other product categories

Benefits to buyers
Increases buyer's confidence and their satisfaction and reduces the level of risk and uncertainty in the purchase decision

Functional and emotional qualities
of B2B brands
B2B brand value is predominantly derived through the functional qualities
B2B Brand Value

Industrial brand equity

Functional and emotional qualities of B2B brands

The influence of situational and environmental factors on B2B brand value

Brand value in business to business relationships
Research is beginning to acknowledge that emotional qualities contribute to B2B brands
High risk situations buyers are more likely to carefully consider the brand than in low risk purchase situations

The functional and emotional qualities encompassed in the brand value may encourage the development of the relationship

Functional + Emotional
Brand Value

Brand value encompasses not only delivering the functional qualities but also delivering emotional qualities

Goods and Services value

Certain goods and services will focus on delivering value through the functional attributes.


Functional attributes of the brand are considered, emotional attributes less

Emotional elements of branding are addressed with relationship value

Potential influence of company characteristics, situational, and environmental factors are unrecognized

Quality, Technology capacity, Infrastructure, After sales service, Capabilities, Reliability, Innovation
Risk reduction, Reassurance, Trust
B2b Brand Value framework
Supplier characteristics
Company age: founded 1911,
Experience: well-established, 4th global brand (Interbrand)

Brand Value:

Functional factors: i.e “smarter planet” business strategy, IBMers involvement
Emotional factors: i.e risk reduction: Managed Vendor Support Services

Environmental factors:

Recession led to a decrease in revenues
Importance of emergent markets led to opening of 144 offices

Situational factors:
technology solutions: i.e partnership with New York Memorial Sloan-Kettering Hospital to choose right cancer treatment for patients


Company characteristics

Functional and emotional qualities

Situational and environmental factors

B2B Relationship
Full transcript