Companies across the country are being squeezed by rising food and energy prices. At the Chicago American Marketing Association BrandSmart 2008 Conference, Kim Feil, former Chief Marketing Officer of Sara Lee North America, briefly discussed the current economic situation and its impact on consumer brands. At one point, she asked the audience which one premium brand we are not willing to give up. In other words, what brands are we truly loyal to even as we tighten our purse strings. Someone in the audience said Charmin, another said Jif and someone else said Starbucks. (I must point out that some might argue that Starbucks has not taken care of its loyal customers and is now closing 600 stores.)
Business-to-business companies are also strained by the current economic situation, and we will hear a lot in the coming months about the economy’s impact on B2B marketing budgets. Budgets for branding and advertising will be questioned. However, we can’t forget that brands matter in B2B.
In a sense, this is a very exciting time for well-managed B2B brands. B2B companies that have already spent resources identifying, cultivating and managing their loyal customers have a leg up in their industry. B2B companies that have already communicated how their products and services address the needs of customers also have a leg up in their industry.
Would your customers call out your brand if they were asked to identify a B2B brand that they could not part with despite possible budget cuts?
