Lovemarks and B2B branding

Is the idea of B2C Lovemarks transferable to a B2B context? If so, how should a B2B Lovemark be characterized? Based on the theories of Saatchi and Saatchi CEO Kevin Roberts, and a Master’s thesis conducted in 2008 at the University of Lund, Sweden, we explore the possibilities of using Lovemarks in B2B branding with the aim of boosting brand preference and creating customer loyalty beyond reason.

In consumer markets (B2C), the importance of branding has been widely recognized for quite a while, but little research has been done on branding in business-to-business (B2B) markets.

Even today, some B2B marketeers think that the decision-making process of professional customers solely depends on hard facts like functionality, price and quality. Soft emotional facts, like empathy and enjoyment, are seen as more or less irrelevant.

If that’s the case, then how come some of the world’s most valuable brands are B2B brands? According to BusinessWeek/Interbrand (2008), IBM ranks as the world’s 2nd most valuable brand, General Electric 4th, Intel 7th, American Express 15th, Cisco 17th, Oracle 23rd, HSBC 26th, UPS 28th and SAP 31st. In fact, of the world’s 30 most valuable brands, 11 are B2B brands.

Several scholars (Mudambi, 2003; Lynch & de Chernatony, 2004; Kotler & Pfoertsch; 2006) have started to research the relevance of branding in B2B. According to their respective findings, they agree that brands serve exactly the same purposes in B2B markets as they do in consumer markets: they simplify the decision-making process and establish a competitive advantage, price premiums and long-term profitability. As such, they must be seen as strategic assets – even in a B2B context.

Creating an emotional bond.
 Branding is, in short, about drawing seller and buyer closer to each other on an emotional level. This is becoming increasingly important, particularly in B2B markets, since customers are better informed than ever about competitors’ and substitutes’ offerings. The business environment of the 21st century is ultracompetitive; customers are flooded with brand messages and are increasingly more time-pressured, stressed and confused with the vast array of choice. Simply put: competing only on a functional benefit level is short-term oriented because the development of technology is so fast and imitation so common.

”People will forget what you said, people will forget what you did – but people will never forget how you made them feel.”

But is it possible to create strong emotions in B2B relationships? Is ”love” truly realistic?

What is a Lovemark?
In his book, Lovemarks – the future beyond brands, Kevin Roberts captures the term “Lovemark” in many different ways. Based on all his descriptions, a tentative definition could be:

“Lovemarks are strong emotional relationships or bonds between brands and customers that are based on great performance and which are identified, owned, loved, defended, advocated and forgiven by customers. Lovemarks create loyalty beyond reason.”

Roberts identified a combination of three qualities that draw the line between ordinary brands and Lovemarks: mystery, sensuality and intimacy. He further argues that brands have been ‘captured by formula’ and are too stiff to adjust to the fast-transforming customers of today. These customers look for more individuality, personal relationships, experience and outstanding performance – which is true for both orientations, B2C and B2B. Roberts concludes that ”A Lovemark will always be a great brand, but not all great brands are Lovemarks”.