Demand Generation Agency in Bangalore
Balancing Brand Building and Demand Generation in B2B SaaS
TL;DR: The current state of B2B marketing, particularly in SaaS, is characterized by rapid evolution, a short-term focus, and a prioritization of demand generation over brand-building initiatives. However, lead generation and typical tactics are no longer effective. B2B SaaS companies require a new approach to marketing. This guide introduces the "Brand & Demand Campaign" approach, a strategic methodology that balances long-term brand building with short-term demand generation.
In this guide, you’ll learn:
- The importance of mental availability in B2B contexts
- Leveraging category entry points to increase brand recall
- The three-component framework behind the Brand & Demand Campaign approach
The guide offers marketing leaders actionable insights to transform their marketing strategy and achieve both short-term results and long-term brand value.
Introduction: The B2B SaaS Marketing Dilemma
Over the past decade, B2B SaaS marketing has been on a journey of evolution, constantly adapting to new technologies, changing buyer behaviors, and increased pressure for measurable results. This evolution has led us to a point where short-term thinking and misaligned metrics challenge the very foundations of effective marketing.
If you have been paying attention to the marketing discourse, you may have noticed growing dissatisfaction with traditional demand generation approaches. What was once a lead generation and nurturing function has now become a full go-to-market (GTM) approach, often dominating the budget—especially in smaller tech companies.
The issue is that as an industry, brand building has not been prioritized for decades. As a result, the importance of brand building hasn't been fully realized, and demand generation has taken on the missing role of brand marketing. Although this comes from a place of good intent, it ultimately hinders long-term growth.
This guide aims to address this dilemma by introducing the Brand & Demand Campaign approach—a methodology that balances the need for short-term results with the crucial task of long-term brand building. By understanding and implementing this approach, which draws from established marketing principles, B2B SaaS marketers can create sustainable growth strategies that align with fundamental marketing principles and economic realities.
Brand Marketing and Demand Generation: Complementary Forces
Brand marketing and demand generation are often seen as competing forces, but effective marketing depends on leveraging both together. As Mark Ritson emphasized through "bothism," we need to find the "AND" rather than focusing solely on brand or demand.
While brand and demand serve distinct purposes and operate on different timelines, successful B2B SaaS companies recognize that they are complementary forces working together to:
- Prime the Market: Brand marketing creates familiarity and positive associations, making prospects more receptive to demand generation efforts.
- Increase Conversion Rates: A strong brand significantly boosts the effectiveness of demand generation campaigns by increasing trust and perceived value.
- Lower Customer Acquisition Costs: As brand awareness grows, the cost per lead and customer acquisition cost for demand generation efforts often decrease.
- Extend Customer Lifetime Value: Strong brands typically enjoy higher customer loyalty, increasing the long-term value of customers acquired through demand generation.
- Enhance Content Effectiveness: Brand-building content can support demand generation by providing context and credibility to more product-focused materials.
The goal is not to replace demand generation with brand marketing but to create a strategy where both elements support and amplify each other.
The Science Behind Effective B2B SaaS Marketing
Before diving into the Brand & Demand Campaign approach, it's essential to understand the scientific foundations that underpin effective B2B marketing. These principles, drawn from respected marketing authorities and extensive research, challenge many of our industry's current practices.
Mental Availability in B2B Contexts (Byron Sharp)
Byron Sharp's research emphasizes the importance of mental availability—the likelihood of a brand coming to mind in buying situations. In the B2B SaaS context, mental availability means being easily recalled when a potential customer faces a problem that your product solves. It’s about being associated with key Category Entry Points (CEPs)—the moments or needs that trigger a buying journey.
Additional reading: How Brands Grow by Byron Sharp
The Long and Short of It: Balancing Brand and Activation (Binet & Field)
Les Binet and Peter Field's research shows that the most effective marketing strategies employ both short-term sales activation and long-term brand building. For B2B SaaS, this often means a 50/50 split, ensuring immediate results and long-term growth.
Additional reading: The Long and Short of It by Les Binet and Peter Field
Category Entry Points: Making Your Brand Mentally Available
Category Entry Points are the cues or needs that prompt customers to choose a brand. In B2B SaaS, these might be specific pain points or business challenges. It’s crucial to build mental availability and be associated with these entry points to maximize relevance and brand recall.
The Role of Emotion in B2B Decision-Making (Kotler)
Philip Kotler's work emphasizes that B2B buying decisions are heavily influenced by emotional factors. Effective B2B marketing should address both rational and emotional aspects, creating emotional connections while telling compelling stories.
Additional reading: Marketing Management by Philip Kotler
The Brand & Demand Campaign Approach
Drawing from established marketing principles, the Brand & Demand Campaign approach consists of three key components that work together to create a balanced, effective marketing strategy.
1. Brand Foundations
The first component of the Brand & Demand Campaign focuses on establishing strong brand foundations. This is an ongoing process of refining and reinforcing the brand's position.
Key elements include:
- Identifying Category Entry Points: Understand the moments, needs, and situations that prompt potential customers to seek solutions like yours.
- Conducting a Brand Audit: Assess your brand perception, messaging, and positioning.
- Creating a Mental Availability Blueprint: Develop a plan to increase your brand’s mental availability by consistently showing up in ways that reinforce associations with key entry points.
The goal is to lay the groundwork for strong brand recall and preference.
2. Strategic Campaign Architecture
The second component focuses on designing integrated campaigns that build brand and drive demand simultaneously.
Key elements include:
- Designing Integrated Campaigns: Create campaigns that blend brand-building with immediate call-to-action components.
- Crafting a Unified Narrative: Develop a consistent core brand story across all channels.
- Balancing Brand and Performance Metrics: Measure both immediate campaign performance and longer-term brand health.
3. Content Creation & Activation
The final component focuses on bringing the strategy to life through content and activation.
Key elements include:
- Developing Multi-format Content: Create content that addresses category entry points (e.g., blogs, videos, podcasts).
- Leveraging Thought Leadership: Position the brand as an authority in the space through articles, reports, and speaking engagements.
- Optimizing Paid Media: Balance reach for brand awareness with targeted activation for demand generation.
Implementing the Brand & Demand Campaign
Implementing this approach requires a shift in mindset and often, organizational structure.
Overcoming Internal Resistance to Brand Investment
One of the biggest challenges is overcoming internal resistance to brand investment. To address this:
- Educate stakeholders on the principles of balancing brand and activation.
- Present case studies of successful B2B companies investing in brand building.
- Propose a phased approach to implementing brand initiatives, starting with small, measurable projects.
Aligning Teams Around a Unified Brand-Demand Strategy
The Brand & Demand Campaign requires close collaboration between brand, content, and demand generation teams. Ensure alignment through:
- Establishing cross-functional teams.
- Developing shared KPIs for brand and demand generation.
- Creating a unified content calendar balancing brand-building and activation content.
Setting Realistic Timelines and Expectations
Brand-building results often take longer to materialize. Set realistic expectations with stakeholders by:
- Mixing short-term and long-term KPIs to track progress.
- Implementing brand health surveys.
- Using proxy metrics, such as branded search volume, to track brand growth.
Measuring Success: Blending Brand and Performance Metrics
Create a holistic view of your marketing performance by blending brand health metrics, mental availability metrics, content engagement metrics, and demand generation metrics.
Conclusion: Embracing the Brand & Demand Mindset
The Brand & Demand Campaign approach represents a fundamental shift in how we think about B2B SaaS marketing. By balancing brand building with demand generation, companies can create sustainable, long-term growth while still driving short-term results.
Key Takeaways:
- Shift from short-term tactics to long-term brand building.
- Embrace the competitive advantage of a strong brand.
- Balance brand and activation campaigns.
- Focus on Category Entry Points for increased mental availability.
- Measure success holistically to reflect both brand health and performance.
Taking the first steps towards this balanced approach may seem daunting, but the rewards are significant. By educating your team and stakeholders, starting with small initiatives, and embracing the Brand & Demand Campaign mindset, you're positioning your B2B SaaS company for sustainable success.
Additional Resources
Recommended Reading:
- How Brands Grow by Byron Sharp
- The Long and Short of It by Les Binet and Peter Field
- Marketing Management by Philip Kotler
- Playing to Win: How Strategy Really Works by A.G. Lafley and Roger L. Martin
Useful Tools and Templates:
- Brand health survey template
- Category entry point mapping worksheet
- Brand and demand generation balanced scorecard