Description
B2B Marketing: efforts geared to generating inquiries, leads and direct sales, as well as helping companies to establish and maintain their brand presence
Business to Business
Marketing
Presented by
Advisors On Target
PACE 2010
What Is B2B Marketing?
• B2B: buying and selling goods and
services between businesses
• B2B Marketing: efforts geared to
generating inquiries, leads and direct
sales, as well as helping companies to
establish and maintain their brand
presence, among the other companies
they deal with
Information used in this presentation is sourced from RAN ONE, Inc., used with permission
What We’ll Discuss Today
• The essential differences between B2B and
B2C markets
• Marketing to Businesses
– Segmenting your B2B customers
– Developing client relationships and accumulating
customer business intelligence
• How to leverage your advantage as a small
to medium business
• How to promote your services B2B
Business And Consumer
Markets Are Different
CHARACTERISITIC B2B B2C
CUSTOMERS
Companies Individuals
SALES VOLUME
Larger Smaller
MARKET SIZE
Smaller Larger
LOCATION OF
CUSTOMERS
Often localized Often dispersed
DECISION-TO-BUY
For business reasons
Extended over time
Many decision makers
For personal reasons
Immediate purchase
One or few decision
makers
MARKETING
Personal relationship Mass advertising
The B2B Marketplace is
Primarily Local
• Marketing to businesses
means that you are
targeting a limited number
of customers or prospects
• Most of those businesses
are likely to be local,
because small businesses
still benefit from sourcing
their suppliers locally
The B2B Buying Process Is
Involved
• The larger the business the more people
involved in the decision
• Decisions are made on more rational and
objective grounds
• The buying decision can be much longer
Complexity Affects B2B
Marketing
• Business-to-business products/services are
more likely to be complex than the B2C end
product
– Even where the products are of like complexity, the
buying decision for a business might be based on
entirely different drivers than for a consumer
• Business buyers are analytically focused, ask a
lot of tough, detailed questions, and expect
comprehensive answers that are strong on
technicalities
Personal Relationships Are
Important To B2B Marketing
• You need to develop
personal relationship in
B2B marketing
– Where the number of buyers
is small, their needs
complicated and their
decision making process
influenced by many people,
the most effective way of
marketing is through
personal contact to build
trust and understanding
B2B Market Research
• When you deal B2B you need to take the characteristics
of the B2B marketplace into account and develop a
marketing strategy that answers to them
• Start by segmenting your current customers:
– If you can identify groups with similar characteristics, then you
can develop products and services according to their needs
– You can also customize your marketing to each so as to
concentrate on what is of interest to them personally and what
they want from a supplier or a product.
• Marketing to segments is more efficient and less costly
than a shotgun approach
Segmenting B2B Customers
and Prospects
• Location
• How much they spend
with you and their
spending pattern – how
many projects and how
valuable they are on
average
• Needs (price, quality,
technical support etc.)
• How they position
themselves in the
marketplace What trade
associations do they
belong to?
• How they use the product
• Annual revenue
• How they place their
orders with you
• How loyal they are to you
Segmenting By Location
• A common way to
segment in B2B is by
location
Segmenting By Company Size
And Value
• Company size determines the complexity
of their internal decision making process
• Their current and possible future value to
you will determine how intensively you
market to them and service their needs
Segmenting By Needs
• Segmenting B2B by needs can be complicated but it can
be worthwhile.
– Knowing the needs of an individual customer, e.g. price
conscious or in need of high after sales support and tailoring
marketing to meet that need can provide you with a competitive
advantage
• Because the decision to buy may be multi-layered, you
need to know what information to provide to which
people
• Information about client needs is likely to be gathered
over time as the relationship develops
Segmenting By Market
Positioning
• How does the business characterize itself
(innovative; cutting edge; conservative;
environment friendly etc.)?
• What growth stage is the business in (start-up,
growth, stable or decline)?
• What is the type of workforce they employ?
• What trade associations do they belong to?
• What publications do they subscribe to?
Validating Target Segments
• Create groups that are different from each
other in a meaningful way’
• Analyze the segments by value to see if
developing an individualized marketing
approach is a cost effective proposition
• Group customers with common needs to
be able to create a marketing approach for
each
Client Relationship
Management
• Knowing who makes what decisions and
maintaining good relationships with them is
crucial
• A good CRM system should gather and make
available information that includes some
personal details of the effective decision makers
– Allows you to target them for individual attention such
as invitations to product releases, congratulatory
messages, a card or corporate gift at Christmas etc.
Get To Know The Decision
Makers
• The decision-to-buy process can be very
involved - while consumers often make choices
as individuals, business buyers usually work as
part of a group
• If you want anyone in a company to be your
advocate, you’ll need to identify who could be
useful and provide them with the appropriate
detail to make your product seem the best
choice for their particular purpose
Understand How They Make
Purchasing Decisions
• The evaluation criteria a
company uses to get to a buy
decision will vary according to
the kind of goods or services
involved
• Recognize what criteria they
use to make their decision
and cover them in your offer
B2B Success Depends On
Good Business Intelligence
• You need to know who to send marketing material to
• You need to understand the individual views and
preferences of people within client companies, and also
when and how these people have influence
• You need an appreciation of their internal policies and
how they approach the buying decision for the type of
product or service you are offering them
• It helps to have a good understanding of both the
individual decision makers within an organization, and
some awareness of their group dynamics
Building Relationships – The
Heart Of B2B Marketing
• Focus on initiating, building, and maintaining
relationships with clients
– Close business relationships may become alliances
• Advertising is only the first step - the marketing
budget will be spent mostly on strengthening
relationships rather than advertising campaigns
• Aim to develop trust and loyalty with the
customer to increase retention and lifetime value
Use Business Networks
• Networking is useful
for word of mouth
promotion
• Use both direct and
indirect relationships
to develop your
reputation
The Small Business Advantage
• Smaller companies have some advantages
when it comes to building B2B relationships
– Can be more flexible than larger companies in
delivering customized products/services
– Owners & top managers are available to deal directly
with clients so strategic business issues can be
discussed and resolved quickly
Determine How You Can Add
Value
• Frame your offer to add value to the
customer’s operation
• Bundle products and services to suit
specific customer needs
Try to Lock In the Business
Process
• The more you can
customize your offer,
the closer you get to
being indispensable to
the client
– Be the last supplier to be
cut
– Be there when things
improve
Getting Your Business Known
Locally (and Globally)
• Yellow Pages
• Other Local Listings
• Your Website & Blog
• Internet Marketing
• Social Media Marketing
• Consumer Review
Websites
• Ads in Trade Magazines
• Product/Service Vendor
Directories
• Articles
Make Your Website A Marketing
Tool
• To achieve this you need to consider two
main things:
– Is your website easily findable through web
search engines?, and
– Does it provide the range of information on
the site that would make it of interest to a
customer regardless of where they are up to
in the buying process?
Making Your Website Findable
• The Internet is becoming increasingly used for
searching supply sources
• To come up in the near front pages of search
results you need to optimize your web pages for
location
• You should also be listed in online catalogs,
product/vendor directories and online yellow
pages listings
– Always include your site url
Provide Information That Keeps
Prospects Interested
PHASE INFORMATION
Researching solutions
Range of services with features &
benefits
Industry best practices
Articles & Case studies
Technical specifications
Product & Service Comparisons
Selecting appropriate vendors,
obtaining bids, final selection
Capabilities
Testimonials
Reliability / Flexibility
Service locations
Contact Form or Info
Capture Prospect Information
On Your Website
• Use your website to capture information
about visitors and use it in your direct
marketing
– Comply with permission based marketing
guidelines
– Make it easy to supply registration details so
that prospects will not feel like it’s too much
trouble to sign up
– Offer an incentive
Conclusion
• B2B marketing requires a unique approach to
match the way businesses work
• Marketing emphasis is on targeting your target
prospect and referral relationships based on
demographic (and “firmographic”) segmentation
• Keep client and prospect information records
updated and accessible
• Develop trust and loyalty to improve retention
and lifetime value
• Recognize how B2B marketing works and
develop your marketing strategies accordingly
Information used in this presentation is sourced from RAN ONE, Inc., used with permission
Contact us to help get your
business On Target for success!
Advisors On Target
Business & Marketing Consulting
Linnea Blair
Office: 619.291.3700
Email: [email protected]
Web: www.AdvisorsOnTarget.com
Twitter: AdvisorOnTarget
doc_569446572.ppt
B2B Marketing: efforts geared to generating inquiries, leads and direct sales, as well as helping companies to establish and maintain their brand presence
Business to Business
Marketing
Presented by
Advisors On Target
PACE 2010
What Is B2B Marketing?
• B2B: buying and selling goods and
services between businesses
• B2B Marketing: efforts geared to
generating inquiries, leads and direct
sales, as well as helping companies to
establish and maintain their brand
presence, among the other companies
they deal with
Information used in this presentation is sourced from RAN ONE, Inc., used with permission
What We’ll Discuss Today
• The essential differences between B2B and
B2C markets
• Marketing to Businesses
– Segmenting your B2B customers
– Developing client relationships and accumulating
customer business intelligence
• How to leverage your advantage as a small
to medium business
• How to promote your services B2B
Business And Consumer
Markets Are Different
CHARACTERISITIC B2B B2C
CUSTOMERS
Companies Individuals
SALES VOLUME
Larger Smaller
MARKET SIZE
Smaller Larger
LOCATION OF
CUSTOMERS
Often localized Often dispersed
DECISION-TO-BUY
For business reasons
Extended over time
Many decision makers
For personal reasons
Immediate purchase
One or few decision
makers
MARKETING
Personal relationship Mass advertising
The B2B Marketplace is
Primarily Local
• Marketing to businesses
means that you are
targeting a limited number
of customers or prospects
• Most of those businesses
are likely to be local,
because small businesses
still benefit from sourcing
their suppliers locally
The B2B Buying Process Is
Involved
• The larger the business the more people
involved in the decision
• Decisions are made on more rational and
objective grounds
• The buying decision can be much longer
Complexity Affects B2B
Marketing
• Business-to-business products/services are
more likely to be complex than the B2C end
product
– Even where the products are of like complexity, the
buying decision for a business might be based on
entirely different drivers than for a consumer
• Business buyers are analytically focused, ask a
lot of tough, detailed questions, and expect
comprehensive answers that are strong on
technicalities
Personal Relationships Are
Important To B2B Marketing
• You need to develop
personal relationship in
B2B marketing
– Where the number of buyers
is small, their needs
complicated and their
decision making process
influenced by many people,
the most effective way of
marketing is through
personal contact to build
trust and understanding
B2B Market Research
• When you deal B2B you need to take the characteristics
of the B2B marketplace into account and develop a
marketing strategy that answers to them
• Start by segmenting your current customers:
– If you can identify groups with similar characteristics, then you
can develop products and services according to their needs
– You can also customize your marketing to each so as to
concentrate on what is of interest to them personally and what
they want from a supplier or a product.
• Marketing to segments is more efficient and less costly
than a shotgun approach
Segmenting B2B Customers
and Prospects
• Location
• How much they spend
with you and their
spending pattern – how
many projects and how
valuable they are on
average
• Needs (price, quality,
technical support etc.)
• How they position
themselves in the
marketplace What trade
associations do they
belong to?
• How they use the product
• Annual revenue
• How they place their
orders with you
• How loyal they are to you
Segmenting By Location
• A common way to
segment in B2B is by
location
Segmenting By Company Size
And Value
• Company size determines the complexity
of their internal decision making process
• Their current and possible future value to
you will determine how intensively you
market to them and service their needs
Segmenting By Needs
• Segmenting B2B by needs can be complicated but it can
be worthwhile.
– Knowing the needs of an individual customer, e.g. price
conscious or in need of high after sales support and tailoring
marketing to meet that need can provide you with a competitive
advantage
• Because the decision to buy may be multi-layered, you
need to know what information to provide to which
people
• Information about client needs is likely to be gathered
over time as the relationship develops
Segmenting By Market
Positioning
• How does the business characterize itself
(innovative; cutting edge; conservative;
environment friendly etc.)?
• What growth stage is the business in (start-up,
growth, stable or decline)?
• What is the type of workforce they employ?
• What trade associations do they belong to?
• What publications do they subscribe to?
Validating Target Segments
• Create groups that are different from each
other in a meaningful way’
• Analyze the segments by value to see if
developing an individualized marketing
approach is a cost effective proposition
• Group customers with common needs to
be able to create a marketing approach for
each
Client Relationship
Management
• Knowing who makes what decisions and
maintaining good relationships with them is
crucial
• A good CRM system should gather and make
available information that includes some
personal details of the effective decision makers
– Allows you to target them for individual attention such
as invitations to product releases, congratulatory
messages, a card or corporate gift at Christmas etc.
Get To Know The Decision
Makers
• The decision-to-buy process can be very
involved - while consumers often make choices
as individuals, business buyers usually work as
part of a group
• If you want anyone in a company to be your
advocate, you’ll need to identify who could be
useful and provide them with the appropriate
detail to make your product seem the best
choice for their particular purpose
Understand How They Make
Purchasing Decisions
• The evaluation criteria a
company uses to get to a buy
decision will vary according to
the kind of goods or services
involved
• Recognize what criteria they
use to make their decision
and cover them in your offer
B2B Success Depends On
Good Business Intelligence
• You need to know who to send marketing material to
• You need to understand the individual views and
preferences of people within client companies, and also
when and how these people have influence
• You need an appreciation of their internal policies and
how they approach the buying decision for the type of
product or service you are offering them
• It helps to have a good understanding of both the
individual decision makers within an organization, and
some awareness of their group dynamics
Building Relationships – The
Heart Of B2B Marketing
• Focus on initiating, building, and maintaining
relationships with clients
– Close business relationships may become alliances
• Advertising is only the first step - the marketing
budget will be spent mostly on strengthening
relationships rather than advertising campaigns
• Aim to develop trust and loyalty with the
customer to increase retention and lifetime value
Use Business Networks
• Networking is useful
for word of mouth
promotion
• Use both direct and
indirect relationships
to develop your
reputation
The Small Business Advantage
• Smaller companies have some advantages
when it comes to building B2B relationships
– Can be more flexible than larger companies in
delivering customized products/services
– Owners & top managers are available to deal directly
with clients so strategic business issues can be
discussed and resolved quickly
Determine How You Can Add
Value
• Frame your offer to add value to the
customer’s operation
• Bundle products and services to suit
specific customer needs
Try to Lock In the Business
Process
• The more you can
customize your offer,
the closer you get to
being indispensable to
the client
– Be the last supplier to be
cut
– Be there when things
improve
Getting Your Business Known
Locally (and Globally)
• Yellow Pages
• Other Local Listings
• Your Website & Blog
• Internet Marketing
• Social Media Marketing
• Consumer Review
Websites
• Ads in Trade Magazines
• Product/Service Vendor
Directories
• Articles
Make Your Website A Marketing
Tool
• To achieve this you need to consider two
main things:
– Is your website easily findable through web
search engines?, and
– Does it provide the range of information on
the site that would make it of interest to a
customer regardless of where they are up to
in the buying process?
Making Your Website Findable
• The Internet is becoming increasingly used for
searching supply sources
• To come up in the near front pages of search
results you need to optimize your web pages for
location
• You should also be listed in online catalogs,
product/vendor directories and online yellow
pages listings
– Always include your site url
Provide Information That Keeps
Prospects Interested
PHASE INFORMATION
Researching solutions
Range of services with features &
benefits
Industry best practices
Articles & Case studies
Technical specifications
Product & Service Comparisons
Selecting appropriate vendors,
obtaining bids, final selection
Capabilities
Testimonials
Reliability / Flexibility
Service locations
Contact Form or Info
Capture Prospect Information
On Your Website
• Use your website to capture information
about visitors and use it in your direct
marketing
– Comply with permission based marketing
guidelines
– Make it easy to supply registration details so
that prospects will not feel like it’s too much
trouble to sign up
– Offer an incentive
Conclusion
• B2B marketing requires a unique approach to
match the way businesses work
• Marketing emphasis is on targeting your target
prospect and referral relationships based on
demographic (and “firmographic”) segmentation
• Keep client and prospect information records
updated and accessible
• Develop trust and loyalty to improve retention
and lifetime value
• Recognize how B2B marketing works and
develop your marketing strategies accordingly
Information used in this presentation is sourced from RAN ONE, Inc., used with permission
Contact us to help get your
business On Target for success!
Advisors On Target
Business & Marketing Consulting
Linnea Blair
Office: 619.291.3700
Email: [email protected]
Web: www.AdvisorsOnTarget.com
Twitter: AdvisorOnTarget
doc_569446572.ppt