Differentiation

The brand hype:when it pays off, and when it’s a distraction

With product differentiation getting harder, more and more companies are turning to brand. That makes sense, if buyers are already buying. Brand decides who they choose when they act. It doesn’t make them act. And no amount of marketing can make up for a lack of urgency.

Sanne IJspeerd

Everyone is talking about brand right now.

And for good reason. AI has made it easier than ever to build software, and easier to copy it. Features that used to set you apart can be matched in months. When products start to look alike, being known and trusted becomes one of the few things that are hard to copy. For many teams, it’s starting to feel like something you need just to stay in the game.

So the conclusion many teams reach is: invest in brand. Tell a bigger story. Build awareness. Educate the market. Once buyers know who we are, demand will follow.

Sometimes it does. But brand has a limit that’s easy to miss.

Brand decides who buyers choose when they act. It doesn’t make them act.

If buyers are already trying to solve the problem, brand is one of the strongest advantages you can have. If they’re not, brand mostly makes you well known to people who aren’t buying.

We’ve been here before

In 2009, in the middle of the financial crisis, Simon Sinek gave a TED talk about what he called the golden circle: start with why. People don’t buy what you do, they buy why you do it. It became one of the most-watched TED talks ever, and over the next few years “find your why” was everywhere. Companies rewrote their mission statements, rebuilt their websites around purpose and opened every pitch with what they believed.

The timing wasn’t a coincidence. Budgets were frozen, growth was hard to come by, and many products had become hard to tell apart. A story about why you exist felt like something you could still control.

The idea itself was sound. A clear why helps you stand out and helps people remember you. But it helped most the companies buyers were already considering. It didn’t make anyone buy who didn’t need to.

Today’s brand hype follows the same pattern. A different trigger, AI instead of a financial crisis, but the same instinct: when the product stops setting you apart, reach for the story.

What B2C has always known

None of this is new to consumer brands. In B2C, products have looked alike for decades. Most soft drinks taste roughly the same. Detergents clean roughly as well as each other. Bottled water is water. When the product can’t set you apart, brand does. That’s why consumer companies spend so much on it, and why it works.

But look at what brand is doing there. Coca-Cola doesn’t make anyone thirsty. People buy drinks every day, whether or not a single ad is running. The demand is already there, and it comes back every day. Brand decides which bottle ends up in the basket.

Two kinds of demand

In B2C, demand comes back every day. In B2B, it waits for a trigger.

B2C · a soft drink

People buy every day. Brand decides which one they pick.

B2B · security software

The problem can wait for years. Only a trigger opens a buying cycle.

And when consumer brands have tried to create a category from scratch, it took years of heavy spending, and many didn’t make it. The ones that won did it with budgets that few B2B scaleups will ever have.

That’s the lesson B2B is now learning from B2C. Brand is a powerful way to win when products look alike. But it works because the demand already exists. B2C brands don’t create the need. They make sure they get chosen when it’s there.

B2B buying works differently. Most B2B problems don’t come back every day. Buyers can live with them for years, until something forces them to act. So before you borrow the B2C playbook, it’s worth asking which kind of market you’re actually in.

Not all urgency is the same

Whether B2B buyers act depends less on how well they know you, and more on how urgently they need to solve the problem. Every market sits somewhere on a spectrum.

Opportunity flow

Three kinds of urgency
  1. Inherent urgencyThe problem has a built‑in deadline or consequenceBuyers can’t tolerate the status quo indefinitely. The need itself creates a reason to act.e.g. payroll · tax filing · mandatory complianceWhat happens if they don’t act?
  2. Event-driven urgencyA recurring event turns need into priorityThe problem can wait, but identifiable events regularly force it onto the agenda.e.g. cybersecurity · compliance · infrastructureWhat reliably makes them act now?
  3. GTM-dependent urgencyThe problem can remain toleratedNothing forces action. Buyers can carry on as they are, so your go-to-market has to build the case for change.e.g. engagement · collaboration · innovationIf we do nothing, will they still enter a buying cycle?
  • Inherent urgency
    The problem comes with a built-in deadline or consequence. Payroll has to run. Tax has to be filed. Mandatory compliance has a date. Buyers can’t put it off forever, so the need itself creates a reason to act.
  • Event-driven urgency
    The problem can wait, but identifiable events regularly force it onto the agenda. A security incident, an audit, an outage, a new regulation. Buyers tolerate the status quo until something makes that impossible.
  • GTM-dependent urgency
    Nothing forces action. Engagement, collaboration, innovation: the problem is real, but buyers can carry on as they are. So your go-to-market has to build the case for change, from scratch.

The further right you go, the more of the work falls on marketing and sales. On the left, the market brings the demand and you compete to capture it. On the right, you have to create the demand first, and only then compete for it.

Brand is powerful on the left and in the middle. On the right, it has to do a job it wasn’t built for.

Who brand works for

Brand works best for companies that already have product-market fit, in a market that already buys.

The demand is there. Buyers enter buying cycles whether you’re around or not. Brand is why your name is on the list when they do, why you’re trusted before the first call, and why you win when products look alike. It helps you win more of the demand that exists, and hold on to the customers you have.

Big players can go one step further. With enough brand, budget and patience, they can make a tolerated problem feel like a priority. They have the name that makes buyers listen, the money to keep the same message going for years, an installed base to sell into, and analysts, partners and events to amplify the story.

Even for them it’s hard. But they can afford to be wrong for a while.

And there’s a less obvious effect. When a market gets educated, demand doesn’t only grow for the company that did the educating. It grows for the category. And when a buyer finally decides the problem is worth solving, they often go to the name they already know.

That’s why creating demand is really a big company’s game. Whoever does the educating, the best-known name tends to win the deal.

Brand × urgency

Brand helps you win demand. Urgency creates it.
Urgency →
Weak brand · high urgencyThe startup’s way inFocus and speed win. Your brand comes from winning here.
Strong brand · high urgencyBrand at its bestYou win more of the demand that’s already there.
Weak brand · low urgencyThe trapYou educate the market. Someone better known wins the deal.
Strong brand · low urgencyBig players onlyBuilding the case for change: slow, expensive, possible.
Brand →

For startups: solve something that can’t wait

A startup has none of those advantages. No brand to lend credibility. No budget to keep a message going long enough to change behavior. And a runway measured in months, not years.

Brand takes years to build. It grows out of proof, references and word of mouth, which are exactly what you don’t have yet.

That’s why early-stage companies need to stay on the left side of the spectrum. Not a broad problem that everyone agrees is important, but a very specific pain that a clearly defined group of buyers needs to solve now.

Specific, because focus is the only way a small team can build proof, references and word of mouth fast enough to matter. Urgent, because urgency does the work your brand and budget can’t do yet. Deals move faster. Buyers forgive gaps in the product. Budget appears. Every win makes the next one easier.

That can feel like thinking small. It isn’t. A narrow market with real urgency will get you further than a big market that can wait.

Your brand will come from winning there. Not the other way around.

For scaleups: adjacent, or back to square one

Once you’ve won your first market, the question changes. You’re not choosing where to start anymore. You’re choosing where to go next.

This is where adjacency matters. An adjacent market keeps the urgency you’ve already found: the same pain, the same trigger, the same reason to act, in a different segment, region or buyer. And your brand comes with you. Your proof carries over. Your references mean something. Buyers may already have heard of you. Your positioning needs adjusting, not rebuilding.

Your next market

An adjacent market keeps what you’ve built. A new one starts from zero.
Adjacent marketNew market
UrgencySame triggerFind it again
BrandAlready knownUnknown
ProofCarries overStarts at zero
ReferencesStill countDon’t count
PositioningNeeds adjustingNeeds rebuilding

A completely new market is different. The urgency you found in your core doesn’t come with you, and neither does your brand. Buyers there don’t care that you’re well known somewhere else. They care whether you solve something they need to solve now.

In that market, you’re a startup again. Except this time you’re carrying a larger organization, higher growth expectations and a core business that competes for attention. That’s why urgency has to be the first question every time you expand, not an afterthought.

What marketing can and can’t do

None of this means brand or marketing don’t matter. They matter a lot. But what they can do depends on where your market sits on the spectrum.

  • Inherent urgency: clarify and accelerate
    Buyers are already looking. Marketing’s job is to make it obvious why you’re the right choice, and easy to buy. Good marketing here speeds everything up.
  • Event-driven urgency: be the known option when the trigger hits
    Buyers aren’t looking yet, but they will be. Marketing’s job is to know which events start buying cycles, reach buyers around those moments, and make sure you’re already on the list when the moment comes. This is where brand earns its keep.
  • GTM-dependent urgency: build the case, at scale, for years
    This is where marketing has to create demand instead of capturing it. It can work, but only with the brand, budget and patience to keep going long enough. Without those, it mostly produces interest, not deals.

Marketing can speed up urgency. It can’t replace it.

When a market doesn’t feel urgent, the instinct is often to push harder: a bigger brand story, sharper messaging, more campaigns, another channel. But no campaign turns a tolerated problem into a priority. If buyers don’t need to act, better marketing just helps them feel better about waiting.

The question to ask first

Before you invest in brand to open up a market, whether it’s your first one or your next one, ask the question from the right-hand column of the spectrum:

If we do nothing, will they still enter a buying cycle?

If the answer is yes, you have a market that brings its own demand. Build your brand there. It will help you win more of it.

If the answer is no, and you’re not a big player, you can’t market your way into a market that can wait. Find the problem that can’t.

FAQ: Brand and demand in B2B SaaS

Does brand create demand in B2B SaaS?

No. Brand decides who buyers choose once they act. It doesn’t make them act. Demand comes from urgency: a problem buyers need to solve now.

When does investing in brand pay off?

Once you have product-market fit in a market that already buys. The demand is there, and brand helps you win more of it and keep the customers you have, especially when products look alike.

Should a startup invest in brand?

Not as a way to create demand. A startup gets further by solving a very specific pain that a clearly defined group of buyers needs to solve now. The brand grows out of the proof, references and word of mouth it builds there.

Why is brand becoming more important in B2B SaaS?

AI has made software easier to build and easier to copy. When features can be matched in months and products start to look alike, being known and trusted is one of the few things that are hard to copy.

Why doesn’t the B2C brand playbook work the same way in B2B?

In B2C, demand already exists and comes back every day; brand decides which product ends up in the basket. Most B2B problems can wait for years, until something forces buyers to act.

What are the three kinds of urgency?

Inherent urgency: the problem has a built-in deadline or consequence. Event-driven urgency: the problem can wait, but recurring events force it onto the agenda. GTM-dependent urgency: nothing forces action, so your go-to-market has to build the case for change.

Can marketing create urgency?

Marketing can speed up urgency, but it can’t replace it. Building the case for a problem buyers can tolerate takes brand, budget and years of patience, which mostly only big players can afford. Ask first: if we do nothing, will they still enter a buying cycle?

Does your brand carry over when you expand into a new market?

Into an adjacent market, largely yes, together with your urgency, proof and references. In a completely new market, buyers don’t care that you’re well known elsewhere, and you’re back to square one.

Where I can help“Why are you different?” is getting harder to answer

Sanne IJspeerdProduct Marketing Lead for B2B SaaS

About Sanne