Brand fundamentalsSeptember 27, 2026

What Is a Brand?—Why B2B Companies Need Brands Most

Author: Daisuke Irikura (Representative Director, HUV DESIGN OFFICE Co., Ltd.) MBA / Former INPIT-registered brand specialist / Experience delivering more than 100 branding seminars and consulting engagements for B2B SMEs

What You Will Learn

The correct definition of a brand
The difference between a brand and its “appearance” (logos and design)
Five reasons B2B companies in particular need brands
What happens to companies without a brand

Conclusion (Summary)

A brand is the meaning a company holds for its stakeholders. Logos and design are merely ways to express that meaning. Because B2B business involves high-value, long-term transactions, multiple layers of stakeholders, and frequent changes in the people responsible for accounts, brand development is actually more directly connected to business management in B2B than in B2C.

“Brands are a B2C concern.” “Brands have nothing to do with SMEs.”

We often hear these views. Yet both practical experience and research show that this perception is mistaken. In fact, for B2B SMEs in particular, brands are fundamental to business management.

What Is a Brand?—The Correct Definition

The misconception that “a brand is a logo or design” remains deeply rooted. But that is not the essence of a brand.

Kapferer defines a brand in terms of “meaning, identity, and the associations people hold about products and services.” A brand is not the physical product itself, but the meaning and associations people attach to it.

At our firm, we define a brand as follows.

A brand is the meaning a company holds for its stakeholders.

Customers, employees, job candidates, business partners, financial institutions—a brand involves deliberately shaping how all the stakeholders surrounding a company perceive what that company means to them.

Recent brand research has seen a paradigm shift from a static view of brands as the outcome of management to a dynamic, process-oriented perspective in which multiple stakeholders co-create brands through interactions within networks.

In other words, a brand is not something a company creates unilaterally; it takes shape through interactions with stakeholders. That is precisely why, without deliberate development, unintended meanings emerge.

How Does a Brand Differ from Its “Appearance”?

Logos, design, and taglines are not the brand. They are “means of expressing” it.

The essential distinction is this.

Brand: The meaning and perceptions held in stakeholders’ minds
Logos and design: Tools for communicating that meaning visually

Simply putting the tools in place will not make a brand work if the meaning to be communicated has not been defined. This is why companies find themselves saying, “We created a great logo, but nothing changed.”

Why Do B2B Companies in Particular Need Brands?

There are five reasons B2B companies need brands.

① High-value, long-term, and first-time transactions bring greater pressure to “get it right”

Mudambi’s (2002) study of industrial buyers in the UK demonstrated that brands influence purchasing decisions in high-value, high-risk, complex transactions. The more a buyer feels that an order “cannot go wrong,” the more likely they are to choose a company they know over one they do not. This is what a brand does.

② Decisions are made emotionally and reported logically

Research by Lynch & de Chernatony (2004) demonstrated that emotional value has a significant influence on decision-making in B2B purchasing as well. Even when a buyer’s true feeling is “They just seem trustworthy,” the explanation to their manager becomes “We compared their track record, pricing, and response speed.” Deliberately building this emotional sense of trust is at the heart of a brand.

③ Trust continues even when the people responsible change

Personal relationships are tied to individuals and disappear when those individuals change. A brand is tied to the company, so the perception that “that company is trustworthy” remains even when the people responsible change. Because transfers and departures are routine in B2B business, this difference has a direct bearing on business risk.

④ Brands also influence recruitment and employee retention

A brand is not just about the meaning a company holds for customers. It is also about what it means to job candidates. Companies that communicate “what it means to work here” attract people who share their values. For employees, too, the sense of belonging expressed as “I am part of this company” strengthens engagement.

⑤ Brands offer a way out of price competition

The fundamental cause of price competition is the perception that “all companies look the same.” Companies that communicate “why it has to be this company” are not compared on price. When a brand works, its impact appears in business performance through orders placed specifically with the company, long-term contracts, and referrals.

Why Do B2B Brands Have Multiple Layers of Stakeholders?

B2C companies can focus primarily on “what they mean to customers.” B2B companies have multiple layers of stakeholders.

Stakeholder	Meaning to Communicate
Customers (day-to-day contacts)	“Easy to consult and dependable”
Customers (decision-makers)	“Low risk and delivers results”
Job candidates	“Working here is meaningful”
Current employees	“Pride in being part of this company”
Business partners and collaborators	“A trustworthy company”
Financial institutions	“A company with future potential”

A corporate brand is defined as “a distinctive image of a company that is deeply rooted in stakeholders’ minds and influences their behavior.”

In other words, B2B companies need to deliberately shape what they mean to all stakeholders, not just customers. This is both the challenge of B2B brands and the reason they are so important.

What Happens to Companies Without a Brand?

Diagnostic data from 24 companies assessed using BRAND CHECK, our proprietary brand diagnostic tool, showed that the vast majority “could not put into words why they are chosen.”

“We have earned trust over many years.” “We are confident in our quality.” Competitors say exactly the same things. These statements do not differentiate a company.

When a company has not deliberately developed its brand, the following happens.

Each salesperson describes the company differently
The company is compared solely on price
Business stops when the people responsible change
The company’s appeal does not come across in recruitment
Employees cannot explain “why they work here”

All of these problems arise because the company has not deliberately defined what it means to its stakeholders.

Summary

A brand is the meaning a company holds for its stakeholders. Logos and design are merely ways to express that meaning.

The reasons B2B companies in particular need brands are clear. Building trust in high-value, long-term transactions, sustaining trust in the company when the people responsible change, influencing recruitment and employee retention, and escaping price competition—all of these are shaped by deliberate brand development.

Brands are not just for large corporations. For SMEs with limited resources, clearly defining “why we are chosen” is, in fact, a survival strategy.

Frequently Asked Questions

Q: What is the difference between a brand and branding? A: A brand is the meaning held in stakeholders’ minds (a state), while branding is the activity of shaping and strengthening that meaning (a process).

Q: Where should SMEs prioritize their investment in a brand? A: We recommend starting not with logos or design, but by putting into words the meaning behind “why our company is chosen.”

Q: Is a brand complete once it has been created? A: No. Because a brand continues to take shape through interactions with stakeholders, it requires regular review and updates.

Translated from the original Japanese article. Read in Japanese

Back to the journal