Why most B2B2X OEMs market product over brand—and why that’s an issue
In most B2B2C industries, the product leads the sale over the brand. There is certainly rationale as to why we got here—when we measure sales data we don’t just look at overall number, we look at the breakdown by product, and when we identify our top performers we create more products like it to replicate that success. Then, the marketing can be based on products as well. Much easier to market one specific product than a whole suite of them with differing specs and customers. Especially today when we can get so precise and targeted with who we serve our ads to it makes sense to take advantage of that. To advertise the brand would be to tell the story of the brand, the values and the lifestyle of the consumer, not how many people it seats or where you can park it.
There are of course exceptions to this rule (automotive). But for the majority of this space (RV, marine), because we market product first, buyers go product first into a dealership. In a mixed lot environment this can end up leaving things up to chance because if the product is either unavailable or is somehow misaligned with their needs, they will continue their search by just popping over to the next unit over that may or may not be the same brand as what they were first looking at—and they may not even know (or care).
The companies that win in the mixed lot space are the ones that invest in their brands. They’re investing in their brands on the front end through marketing so, when the prospect walks through the dealership door, they’re an informed consumer who knows what they want and what OEM is the best fit for them. Winning OEMs are investing in their brands through strong support to the dealers so they are excited to talk about what they have on their lot, and they’re investing in their brands by making their products easily recognizable on the dealer lots. This is done through wayfinding and signage (more on that below), or through the product design that makes the OEM brand distinct and recognizable.
Why brand investment has an impact when your customer reaches the dealer floor
When a prospective customer reaches the dealership floor they are frequently looking for one particular product, which more often than not, ends up the wrong fit because the specifications aren’t what was expected, the price point doesn’t work, or simply because it’s unavailable. For OEMs that market product-first, this can be a dangerous situation because the consumer is loyal to the product, not the brand, and will look for other products from other brands that fit their needs in terms of price, spec, or availability.
OEMs that market brand first are in a stronger position here because they have pre-sold the customer on the brand lifestyle and benefits. When product fit isn’t quite right, a brand-loyal customer will default to staying within a brand family they already trust rather than switching to competitor brands.
Research to reality
Today’s consumer is more informed than ever, the average customer arrives at the dealer lot having researched multiple brands and models online with a specific idea of what they need. When they get there, they may discover that the 24-foot model they wanted isn’t available, or actually didn’t come with a key feature they thought it did. Then the decision becomes, do we go with the 28-foot model from the same brand? Or do we move to another brand that has the feature?
When you think about the brand leaders in your vertical the answer seems clear. Someone looking to buy an Airstream is likely not going to decide to buy a different RV brand because one feature is missing. In fact, they’re more likely to drive across the country to get the exact Airstream they want. The brand building Airstream has done (over decades) has created a group of people with a strong emotional connection and trust in the brand.
Why dealer preference determines what actually gets sold
Let’s go back to the moment of truth with our customer: do they go with the model they came in for? Or do they find something else that is a better fit? A dealer sales team member will help guide the decision making process here, especially for the consumers that don’t have a brand preference. Sales team members are going to sell what they know, what they trust, and what they can present confidently. It is impossible for the sales team to be experts in everything on a mixed lot with 100+ SKUs and more brands than you can count on one hand. Most will learn through osmosis, and when a customer comes in asking about a specific unit, there can be some conscious or unconscious steering that happens based on where their confidence is. “That’s a good unit, but let me also show you…” can lose you a sale.
Investing in sales enablement creates product knowledge through features, benefits and ideal customer profiles, as well as confidence so the sales team is more apt to answer technical questions on the fly and know when to recommend Model A vs. Model B based on customer needs. What’s more, it fuels the dealer-OEM relationship. The sales team feels supported by those who are invested in their success and in turn become invested in the product.
True and meaningful investment is not just sales sheets and online training that is easily ignored or tossed aside, but in-person training that builds relationships as well as easy to access resources for ongoing education. While this might not be categorized as a traditional brand investment, when you think of your brand as every touchpoint someone has with your company, investing in dealer sales enablement fits the bill because of all the times they represent you to the customer.
Making your brand visible in the chaos
On mixed lots, products can blend together in a sea of sameness. When you are looking out at dozens and dozens of boats, ATVs or motorhomes it can be hard to distinguish them from one another, especially in the same category. This is why creating visual distinction on the lot is so important. As customers wander from one product to the next, if there are no clear cues indicating where a brand starts and stops they may not realize they’ve moved on from the original brand they came to see.
There are a few ways this can be accomplished:
Wayfinding and signage on the dealer lot
This is the most accessible option of the three. When a customer is in a dealer lot where everything is large and shiny, it can be hard to navigate in general, and even harder when looking for a specific product or brand. Arming dealers with standing banners, posters, floor decals, window clings, and hang tags and both help orient the consumer and help them find what they are looking for as well as reinforce your brand message and highlight features and benefits they wouldn’t otherwise know about.
Distinctive product design
This is another area where automotive OEMs have invested heavily over the years—the distinct spindle-shaped front grill, the three vertically-oriented taillights, the bright green paint with no alternative option. Product design builds instant connection when committed to over time, and is a large area of opportunity in non-automotive B2B2C brands. Harley Davidson doesn’t need wayfinding signage because the product design is so distinct there is no question when you are walking among that brand.
Clear OEM branding on products
For customers who are buying a unit model first, seeing the unit in person may be the first time they are exposed to the brand. Highlighting the brand prominently on the product can be a way to keep that prospect engaged and interested in other models from your brand instead of losing them wholesale. Additionally, for current customers who own units, they may be loyal to the product over the brand based on whatever logo is the biggest on the thing they are hauling around. Adjusting or balancing product logos with brand logos is a way to improve brand loyalty so customers remain sticky as product lines change and evolve over time.
Many products have large model names and small brand names which don’t serve the purpose of brand building. Switching this may not always be the right fit (and would require a full pivot in the way you go to market) but providing wayfinding, signage and decals to define your brand space in a mixed lot is a good way to help make your brand recognizable to the consumer.
Brand building can be thought of as just awareness tactics and what is in your brand guidelines, but the reality is that, when done correctly, brand tactics are helping you where it matters most—at the point of sale. The story you tell to your prospective customers, the sales enablement support you give to your dealers, and the physical experience someone has with your brand on the lot are all brand building endeavors. Purchasing decisions are informed by price, features and specifications, but loyalty to your brand by the dealer and the consumer will tip the scales every time.
