B2B vs B2B marketing and the truth behind them.
The term “business-to-business” (B2B) marketing refers to the promotional activities directed toward other businesses, rather than consumers. B2B marketing is distinct from business-to-consumer (B2C) marketing in a number of ways:
– The decision-making process is usually more complex in B2B, involving multiple stakeholders with different objectives.
– The products and services sold in B2B are often more expensive and less tangible than those sold in B2C.
– The relationship between buyer and seller is generally longer-term in B2B.
Despite these differences, the principles of good marketing remain the same in both B2B and B2C contexts. In order to be successful, marketers must understand their customers and craft messages that appeal to them.
The Decision-making process
The decision making in the B2B buying process can be a complex and lengthy process, involving many different stakeholders within the organisation. The key to successful decision making is understanding the needs of the organisation and the stakeholders involved and then aligning the decision-making process with these needs.
1. The needs of the business – What are the specific needs of the business that the product or service will address? Decision-makers need to be sure that the solution will meet their needs and solve their problem. When compared to B2C this is a much easier decsiosn especually when it comes to choosing which fast food brand to buy from.
2. The budget – Is there enough money in the budget to cover the cost of the solution? Decision-makers need to consider both the initial cost and any ongoing costs associated with the solution.
3. The timeline – How soon does the business need the solution? Is there a specific deadline that must be met? Decision-makers need to be sure that the solution can be implemented in a timely manner.
4. The ROI – What is the expected return on investment for the solution? Decision-makers need to be sure that the solution will provide a positive return on investment.
5. The risks – What are the risks associated with the solution? Decision-makers need to be sure that the solution is worth the risk.
6. The impact on the business – How will the solution impact the business? Decision-makers need to be sure that the solution will have a positive impact on the business.
7. The impact on employees – How will the solution impact employees? Decision-makers need to be sure that the solution will not have a negative impact on employees.
8. The implementation process – How easy is it to implement the solution? Decision-makers need to be sure that the solution can be easily implemented.
9. The support – What kind of support is available for the solution? Decision-makers need to be sure that they will be able to get help if they need it.
10. The warranty – What kind of warranty is available for the solution? Decision-makers need to be sure that they will be covered if something goes wrong with the solution.The Decision-making process is usually more complex in B2B because there are more decision-makers involved. In B2B, the decision-making process often involves a committee or board of directors, which can make decisions slower and more difficult.
1. The needs of the business – What are the specific needs of the business that the product or service will address? Decision-makers need to be sure that the solution will meet their needs and solve their problem. When compared to B2C this is a much easier decsiosn especually when it comes to choosing which fast food brand to buy from.
2. The budget – Is there enough money in the budget to cover the cost of the solution? Decision-makers need to consider both the initial cost and any ongoing costs associated with the solution.
3. The timeline – How soon does the business need the solution? Is there a specific deadline that must be met? Decision-makers need to be sure that the solution can be implemented in a timely manner.
4. The ROI – What is the expected return on investment for the solution? Decision-makers need to be sure that the solution will provide a positive return on investment.
5. The risks – What are the risks associated with the solution? Decision-makers need to be sure that the solution is worth the risk.
6. The impact on the business – How will the solution impact the business? Decision-makers need to be sure that the solution will have a positive impact on the business.
7. The impact on employees – How will the solution impact employees? Decision-makers need to be sure that the solution will not have a negative impact on employees.
8. The implementation process – How easy is it to implement the solution? Decision-makers need to be sure that the solution can be easily implemented.
9. The support – What kind of support is available for the solution? Decision-makers need to be sure that they will be able to get help if they need it.
10. The warranty – What kind of warranty is available for the solution? Decision-makers need to be sure that they will be covered if something goes wrong with the solution.The Decision-making process is usually more complex in B2B because there are more decision-makers involved. In B2B, the decision-making process often involves a committee or board of directors, which can make decisions slower and more difficult.
The IPA’s study by Les Binet and Peter Field.
It’s important to note some data from the IPA, which is a trade organisation in the UK and holds a huge amount of data on advertising it has 40 years of metrics on 100s of brands. Les Binet & Peter field were commissioned by B2B institute to study these brands and what Binet and Field call very large business effects. Although they are more famous for having done research into B2C they have in the last few years done a study using the same data for B2B.
The main bulk of my information has come from the IPA which is a trade organisation in the UK. The IPA holds a huge amount of data on advertising and has 40 years of metrics on 100s of brands, Les Binet & Peter field were commissioned by B2B institute to study what Binet and Field call very large business effects.
Although they are more famous for having done research into B2C, they have done a study using the same data for B2B in the last few years.
What they found is that there is an imbalance in modern marketing methods, with an emphasis on short term clear ROI goals as opposed to hard to quantifying long term goals.
In the list below we see short marketing methods and on the right more long term strategies.
Brand building.
According to the study by Binet and Field for the Institute of Practitioners in Advertising, the allocation of resources for B2B puts 54% towards activation. This means that a majority of businesses are focusing on getting their customers to take action, rather than simply creating fame or building relationships.
There are a number of reasons why this may be the case. First, activation typically leads to sales, so it makes sense from a bottom-line perspective. Additionally, customers who take action are more likely to be engaged and loyal, which can create a virtuous cycle of growth for a company. Finally, with the rise of digital marketing, it’s easier than ever to track and measure results from activation campaigns, making them more accountable and ROI-driven.
Despite the clear benefits of activation, it’s important to strike a balance with other marketing strategies. Awareness and relationship-building are still important, especially in the early stages of the customer journey. Additionally, too much focus on activation can alienate customers and create a sense of being “sold to” rather than being engaged with. The key is to find the right mix of strategies for your business, and to constantly test and optimize your approach.
Imbalance in modern marketing methods.
Price over volume:
Activation campaigns (lead gen) aren’t always good for long term growth, there has to be a balance. Utilising longer term brand building and short term growth methods both can work together to increase growth, so for sure you can eat your cake and have it too.
Fame over Awareness
Thus, when it comes to marketing, fame may be more difficult to achieve and maintain, but it can be more lucrative in the short-term. Awareness, on the other hand, may be easier to create but it can take longer to have an impact. Ultimately, what’s most important is what will best achieve the goals of the campaign.
Emotion over reason
Emotion over reason in marketing is a strategy that has been used by marketers for years. Emotional appeals are more likely to be successful than rational ones because they trigger an immediate, gut-level response. This type of response is more likely to lead to purchase than a reasoned, logical decision. Long term growth thrives on emotional based messaging.
Board targeting over narrow
Non customer over customer:
The idea behind broader targeting is that you target people that are out of the funnel, meaning they haven’t become aware that they have a problem that needs attention yet.
Mac Donalds vs Twillio.
A clear example of the differences between B2B and B2C, Mac Donalds doesn’t have to explain the functional benefits of the Big Mac in B2C marketing, however in a B2B market, Twillio does.
SEO digital marketing b2b vs b2c.
When it comes to keyword targeting, there are some key differences between B2B and B2C businesses. Here’s a look at how the two types of businesses approach keyword targeting differently:
-B2B businesses typically target keywords that are more specific and narrowly defined than those targeted by B2C businesses. This is because B2B buyers are usually looking for very specific products or services, and they use more specific language when searching for these items.
-B2C businesses, on the other hand, often target keyword phrases that are broader and less specific. This is because B2C buyers are generally less knowledgeable about the products or services they’re interested in, and they use more general language when searching for these items.
-B2B businesses also tend to target keyword phrases that are longer and more detailed than those targeted by B2C businesses. This is because B2B buyers usually have a better understanding of what they’re looking for, and they use more specific language when searching for these items.
When doing keyword research it’s important to target B2B rather than B2C keywords.
If you’re in B2B waste management:
B2B keywords should be:
Waste management management
Waste management services
Waste management recycling
Recycling company
B2C keywords should be:
Trash removal
Trash pickup
Waste collection
Waste disposal
Targeting based on your buyer’s journey.
Targeting certain keywords for customers that aren’t in the funnel can be cheaper but does;’t always lead to instant sales. Most people aren’t in the market to buy, so this is where most of your budget should be spent. Sending to customers a new white paper, a new study, or a guide that you have created are all ways to start that relationship with the customer.
For example, a B2B soda can producer will want to target both out of funnel keywords and in funnel keywords
Out of funnel keywords:
New technological advances in soda can production
The science behind soda can production
In funnel keywords:
Soda can supplier
Soda can production quick turnaround
When targeting decision makers whether it is using Linkedin or SEO, its important to keep messaging easy to understand for all. The initial buyer will understand the specification of the product being sold, but not everyone will.
References:
Book
Unleash possible
By Samantha stone
The writer has worked with a data management company, the company would go onto to be bought out by a larger database company.
Book
Brand identity
By Sheldon Leonard
Book
B2B verse B2C marketing – major difference along the supply chain of fast-moving consumer goods (FMCG)
Book
Is social media an effective B2B and B2C marketing tool for business in 2018 and beyond
Audio Lecture
How is Business Marketing Different from Consumer Marketing?
Columbia Business School
Prof. Miklos Sarvary
The Principles of B2B Marketing
Peter Winberg & John Lombardo
Exposure Ninja
7 Essential B2B Marketing Strategies for 2022
In conclusion.
Whilst there are similarities between B2C and B2B marketing strategies, B2B is a far more complicated beast. I’ve written more articles centred around the B2B world, hopefully, these can help explain and simplify the complexities.
