Brand schmand? Does it really matter in B2B?
April 12th, 2006Our customers almost exclusively deal business to business. The reason we focus on this specific segment is because they tend to have limited in-house marketing resources, so we can fill a gap in a flexible format. As a rule, B2B companies in the SME space have a management team consisting of a CEO/Business owner as well as a Sales, Finance and Operations Manager.
Selling is the key marketing activity. And clearly, selling is the most important marketing function in B2B.
Marketing is generally equated with advertising, which is on the nose (and often for good reasons). Marketing is not seen as a strategic tool, because it is often not understood. The Accenture report I referred to in my last post pointed this out too, but related more to large corporate companies (with Marketing Managers) rather than SME’s who have no internal marketing champion.
Take branding. When recently discussing a proposed tagline with a customer they insisted on using a tagline that would explain what they do. I argued that we need to aim for an emotional response, not a factual one. I read an interesting article in MarketingProfs by Kevin Randall, which has an interesting observation:
People say that they are not influenced by advertisements, but data and client spending suggest otherwise. In the early-to-mid 1980s, IBM did
not have the best computer systems or pricing. “Big Blue,” however, became the enterprise systems market leader because you never got fired for buying IBM (same with Cisco today). IT Directors “bought” a relationship, company,
reputation, service, people, assurance. In other words, they bought
goodwill or the brand.
I still believe that most marketing services are aimed at either large corporate or FMCG organisations, not business-to-business, not SME. They need a combination of marketing services, rather than point solutions. From help with analysing opportunties to branding, to marketing communications and customer satifaction/loyalty programs.
A great opportunity for progressive B2B companies, a great opportunity for marketing firms.
May 5th, 2006 at 12:41 am
David makes a good point about the blurring of definitions - when referring to “marketing,” does that mean advertising? When referring to “branding” does that mean logo?
One of the major problems in the marketing industry (speaking as a veteran insider) is that we expect the world to understand what we are talking about when we bandy around our industry terms. David is right on when he makes it is mission to throw-out the marketing-speak and use business terms. Things like differentiated value proposition or positioning are more relevant in a B-to-B environment. But in making broad distinctions between B-to-B and B-to-C marketing, I do not agree. Whether selling to businesses or consumers, everyone is trying to sell something to someone and all the same rules apply. At the end of the day it’s a person or group making the decision. Having a clear understanding of your target audience, who they are, what their unarticulated wants, needs, desires and frustrations are is the key. The “marketing mix” or the use of a sales force, for example, are tactical considerations.
May 5th, 2006 at 9:00 am
Simon, I actually agree with the fact that B2B and B2C are not fundamentally different, just the tools that you use. What is different is that in B2C the role and importance of marketing is better understood and resourced.
As a result, many B2B organisations turn to an external service provider when they wish to undertake a “marketing” (read promotional) activity. Suddenly there are twenty different type of service providers who all have their own silver bullet, whether it is email marketing, advertising, telemarketing you name it. What is missing is a strategy to determine how they differentiate, who their target audience is, how they should use various tools together to achieve results. And the point solution providers neither have the skills nor do they have an interest in going down this much more involved path. On the other side there are the marketing consultants who will help with the strategy but leave the customer to select, brief and manage the providers and manage the campaign.
This is a bit black and white, but I don’t think it is too far of the mark.