Brand Building vs Demand Generation: A Strategic Balance for B2B Businesses

This morning, I fortuitously discovered the newest episode of the 'That's What I Call Marketing' Podcast. The episode featured an enlightening conversation between host Conor Byrne and marketing luminary Peter Field. They delved into a decade of insights from 'The Long and Short Of It', a seminal piece of research that has significantly influenced the marketing and advertising industry. This work has had a profound impact on my own understanding of marketing strategy and impact measurement, shaping the way I approach these critical aspects of the field.

In the following article, I explore the dynamics of brand building and demand generation for B2B businesses, drawing from the wisdom encapsulated in "The Long and The Short of It" and my own personal experience as a B2B marketing professional. I also explore how these strategies have evolved over the years, the challenges they pose, and how businesses can effectively measure their success.

For those who aren’t yet familiar with ‘The Long and the Short of It’, here’s a quick summary:

• When planning advertising strategy and media investments It recommended the use of both ‘performance’ (short-term) and ‘brand building’ (long-term) strategies?Short-term performance advertising, delivering immediacy that is focused on efficient, immediate returns. Long-term brand building, which conditions consumers through repeated exposure long before they come to buy.
• Long-term (3+ years) investment in brand building delivers double the profit of a short-term performance approach (<1 year) but investing in both (two speed approach) delivers even higher returns.
• The more you move away from rational messages to ones of pure emotion, the more effective advertising becomes. Emotional = double the profit.

This prompted me to ponder how B2B marketing professionals should navigate the 'Two-Speed Approach,' striking a balance between brand building and demand generation amidst periods of unprecedented volatility, like we are facing now.

In the last decade, the world of marketing has seen a paradigm shift, largely influenced by thought leaders such as Field. His seminal work, "The Long and The Short of It", co-authored with Les Binet, has been a guiding light for marketers worldwide. Now, as we stand on the cusp of its tenth anniversary, it's time to revisit their insights and assess their relevance in today's B2B landscape.

Field's and Binet's two-speed approach to marketing – a balance between brand building and demand generation – is more pertinent than ever. In an era where businesses are vying for attention amidst digital noise, understanding and implementing this approach can be a game-changer

In the world of B2B marketing, two concepts often stand at the forefront of strategy discussions: brand building and demand generation. While both are crucial for business growth, they serve different purposes and require distinct approaches. Understanding their dynamics can help businesses strike a balance and achieve sustainable growth.

Brand Building: Crafting a Memorable Identity

Brand building is about creating a strong, positive perception of your company, by telling a compelling story that resonates with your audience, encouraging them to trust your brand over time.

In the B2B space, brand building plays a critical role in distinguishing your company from competitors. This process involves consistently delivering on your promises, providing thought leadership, and positioning your brand as a reliable partner.

However, brand building does not deliver instant or short-term returns. It requires a long-term commitment and strategic investment. Although its impact isn't always directly measurable, a strong brand can lower the cost of sales, enhance the effectiveness of demand-generation activities, and command a price premium.

Demand Generation: Driving Immediate Results

On the other end of the spectrum, demand generation focuses on driving immediate results. It involves targeted marketing campaigns and sales activities that aim to generate engagement in and stimulate demand for specific products or solutions.

Demand generation often leverages a mix of inbound and outbound marketing strategies, including content marketing, email campaigns, SEO, SEM, and events. The goal is to identify prospects who are ready to buy and employ tactics that convert their interest into sales.

Unlike brand building, it is much easier to measure demand generation. As the impact is much more short term, marketers can track various metrics like leads generated, conversion rates, and revenue to gauge the effectiveness of their efforts.

Striking the Balance: The Two-Speed Approach

Balancing brand building and demand generation is a common challenge for B2B marketers. Too much focus on short-term growth can detract from long-term resilience, while over-investing in brand building may not yield immediate returns necessary for survival, especially for start-ups and small businesses.

That's where the two-speed approach comes in. This strategy involves running brand-building and demand-generating activities simultaneously but at different rhythms. Global campaigns are geared towards building the brand, while regional marketing initiatives focus on generating demand for priority solutions.

During economic slowdowns, it's tempting to cut back on brand-building efforts and focus solely on demand generation. However, continuing to invest in brand building during these times can maintain market share and foster long-term resilience.

Measuring Success: The B2B Perspective

Measuring the success of brand building and demand generation requires different sets of metrics. For brand building, metrics like brand awareness, brand sentiment, and share of voice are often used. On the other hand, demand generation success is usually measured by the number of qualified leads, conversion rates, and generated revenue.

In conclusion, both brand building and demand generation are essential for B2B businesses. Each serves a unique purpose and contributes to the overall success of the company. By understanding their differences and strategically balancing their use, businesses can build a robust brand and drive sustainable growth.?