b2b marketing. b2c marketing. it's all the same isn't it?

B2B Marketing. B2C Marketing

It’s all the same isn’t it?

Graham Edwards

Head of Group Marketing – BM TRADA

Former graduate of Bristol Business School

28 years in advertising & marketing

Agency – media planning/buying

B2C (FMCG) – toiletries, confectionery, retail

B2B – personalised corporate gifts, professional services

About me

B2B & B2C examples – illustrating the point

Company A - B2B Company B - B2C

Professional services Product performance

testing

FMCG – energy drink

Very different propositions!

Professional Services – Fire door testing

B2B Professional Services - Fire door testing

• Niche market

• Limited competition

• A legal requirement in the UK

• ‘Passport to trade’

• High value – low volume, infrequent purchase

• Complex, technical – expertise key

• Independence, integrity, experience important

• Lead-time/response time important

• Independent accreditation important

• Direct access to market

B2C FMCG - energy drink

• Mass market

• Highly competitive

• Promiscuous buyers

• High volume, frequent purchase - low value

• Simple product

• Awareness important

• Availability important

• Indirect access to market

B2B vs B2C marketing

Possible areas of difference

• Basic principles?

• Market behaviour/characteristics?

• The purchase decision?

• Marketing strategy?

• Marketing communications?

Basic principles

B2B & B2C

= P2P*

Common objective -

seeking to influence behaviour

*Oneredbird.ca

The most basic marketing principle of all

Basic principles the 7 Ps – same or different?

B2B B2C Product

Price

Place

Promotion

People

Process

Physical evidence

Same principles – different application

Basic principles – Same or different?

B2B B2C Targeting

NPD

Acquisition

Retention

Customer insight

Same principles – different application

Brand

Basic principles Brand – same or different?

Market behaviour and

characteristics

Market behaviour/characteristics

Professional services (B2B)

Fire testing

• Market size small – ‘000s prospects

• Limited competition – barriers to entry high

• High cost of sale

• Purchase frequency sporadic/low

• Lifetime customer value high

• Brand value created through direct channels

• Customer seeking long-term relationship

Market behaviour/characteristics

FMCG – product (B2C)

Energy drink

• Market size large - millions of prospects

• Highly competitive (direct & indirect)

• Low cost of sale – pence per unit

• Purchase frequency high

• Lifetime customer value low

• Brand value created through indirect channels

• Consumer not looking for close or long-term relationship

Decision making

What is driving the purchase decision?

• B2B - satisfying a business need

• B2C - satisfying a personal need/want

• Think about the individual and the context/environment

in which the decision is being made

• Professional versus personal

• Necessitates a very different approach to marketing and

marketing communications

Decision making - Professional services (B2B)

Fire testing

• Beneficiary is the business

• Driven by the need to improve business performance

(revenue targets, financial objectives)

• High value/High risk

• Rational/logical

• Planned/Considered

• Involved/Lengthy – multiple decision makers

• Lengthy / sporadic buying cycle

Decision making - FMCG product (B2C)

Energy drink

• Beneficiary is the purchaser

• Driven by personal desire, self image, peer pressure

• Low value/risk

• Emotional/illogical

• Impulse, not considered

• No other involvement

• Simple/quick

• Short/frequent buying cycle

B2C decision making – energy drink

• Secondary decision maker – distributor

• A B2B decision!

• To stock or not to stock

• Rate of sale versus competitor brands

• Sales/profit potential

• Evidence that the proposition is well founded

• Evidence of market opportunity

• Evidence of marketing support

Why does all this matter?

Because it has a direct impact on strategy

Marketing strategy

What does it mean for the marketing strategy?

Professional services (B2B)

Fire door testing

• Expertise

• Integrity

• Knowledge

• Support

• Added value

• Risk minimization

• Partnership

• Trust

Energy drink

• Mass awareness/availability

• Brand – image, differentiation, engagement

• Compelling proposition

• Stand-out (physical - in-store, packaging)

• Desire

• Acceptance

What does it mean for the marketing strategy?

FMCG – Product (B2C)

Marketing

communications

Fire door testing

• Focus on benefits more than features

• Technical led language – but with commercial benefits

• Demonstration of competence, integrity, high standards

• Authoritative, credible, convincing communications

• Multiple, on-going communications

• Direct - face to face consultative marketing & selling

• Designed to build a deep and long-term relationship

• Value added

What does it mean for the marcomms strategy?

Professional services (B2B)

Fire door testing heavy emphasis on:

• Content rich authoritative website

• Technical PR – case studies/technical articles

• Sponsorship of key industry events

• Speaking opportunities (technical experts)

• Exhibitions/CPD seminars & training

• Personal (face-to face) communications

• Short/succinct sales support materials

Marketing communications mix

Professional services (B2B)

Energy drink

• Simple, succinct messages

• Simple language

• Entertaining, enjoyable, fun, quirky

• Short, snappy

• Differentiated/standout/memorable communications

• Strong brand identity / personality

• Communications which reinforce brand personality

• Communications which creates brand advocates

What does it mean for the marcomms strategy?

FMCG – Product (B2C)

Energy drink – heavy emphasis on:

• Advertising

• Social media

• Sponsorship

• Events

• Promotions

• High profile PR - stunts

• Short-term tactical + long-term brand building

Marketing communications mix

FMCG Product (B2C)

B2B marketing. B2C marketing

It’s all the same isn’t it?

• Fundamental principles of marketing and tools available

are the same for B2B & B2C

• Nature of supplier/customer relationship differs

between B2B & B2C

• Marketing strategy differs between B2B & B2C

• Key marketing messages differ between B2B & B2C

Summary

1. In B2B, emphasize rational as opposed to emotional arguments.

2. Focus B2B marketing messages on business benefits rather than product or

service features.

3. Effective B2B marketing messages are those that focus on adding value to

the customer’s business.

4. Price isn’t everything. Often, overall value delivered matters more in B2B

markets.

5. B2B marketing communications often need to convince multiple decision

makers - both commercial and non-commercial.

Top ten tips to help agencies deliver effective

marketing communications to a B2B audience

6. Sometimes B2B marketing messages which overtly sell the product or

service work best.

7. Keep B2B marketing messages simple, clear, succinct and to the point.

8. Tailor B2B marketing messages to suit the customer’s different delivery

channels.

9. In B2B, use marketing messages which remove or minimize the perceived

purchase risk in the customer’s mind.

10.To many B2B SMEs, successful marketing communications are those that

deliver ROI in the short term.

Top ten tips to help agencies deliver effective

marketing communications to a B2B audience

Thank you for listening!

Any questions?