Major decisions in B2B Marketing

MET Institute Sept 4, 2010

Ujjwal Phadnis

WIPRO Face the customer or

face your colleague
B2B Marketing in IT company
Customer interface a MUST for every function
Quantitative analysis of time spent in FACING

CUSTOMER or FACING COLLEGUE

Analysis results also published for top management
Top
Management
leadership

accountability

Key

to

Role of Strategic marketing

relationships in B2B Marketing
FIAT with TATA MOTORS IN INDIA
Technology partnership
Services partnership
Vendor relationships
Logistics guidance
Channel development
Local Know-how

Role of Customer Services team

in B2B Marketing

Supports the entire Marketing process

Enhances relationships
Provides feedback
Acts as a sounding board
Guides business development

Effective Customer services can sometimes

bring the horse to the pond

Role of an OE Manufacturer in
Direct Marketing

Marketing touch point for the customer

Guides influencing relationships with customers
Provides ready potential marketing opportunity
Influences buying decision
Strategic relationship with OEM Best case scenario

OEM Relationships form the backbone of all

Industrial businesses

Communicating your Success to

potential customers
Proof of Performance reports
Publish papers on Customer problem solving WINS
Articles and interviews with customers
Customer interviews at sponsored events

Customers speaking
on your behalf and
recommending your products and services is
..THE
BEST
PATH
TO
EFFECTIVE MARKETING!!

Major objectives in B2B

marketing
Objective 1
To secure Immediate purchase
Objective - 2
Produce prospects for the sales force
Objective - 3
Strengthen brand image
Objective - 4
Inform and educate, strengthen relationship
Two percent success rate in direct marketing
sales

Marketing focus guides effective

utilization of the resources
Focus area : Marketing , Effective marketing
tools
Event management
Sponsorships
Marketing communications
Direct marketing viz. direct mailers, seminars

Marketing
control
,
implementation
evaluation
Return on Investment measurement

Effective marketing is the key

driver to business leadership

Focus area : Marketing , Effective marketing

tools
Advertising
media planning
Marketing Research
Web based marketing
Public Relations
Event management
Sponsorships
Marketing communications
Direct marketing viz. direct mailers, seminars

How are typical B2B marketing

budgets spent
Space trade, technical , journals ( 21 %)
Direct mail leaflets, brochures, catalogues
( 24 %)
Shows trade shows,
conferences ( 11 %)

industrial

events,

Promotions sales promotions ( 24 %)

Public Relations - Print , Electronic ( 20% )

Role of Direct B2B Marketing

Clear focus on customer

To focus your advertising media communication

build direct customer relationships
build customer database for future
Direct sales growth thro increased focus
De-massification of the product or service
cater to individual needs , customize your offer

Develop an integrated Direct

Marketing communication
Advertisement with paid response mechanism
followed by a Direct Mailer
followed by a Tele caller
Followed by a sales call
Integrated direct marketing communication increases
chances of converting a prospect into a sale.

Developing a marketing
database system
Organized collection of data of customers /
prospects
Action for lead generation, sale , customer
relationship
Example - Banking Industry , sale of multiple
products
Great asset for any marketing communication
Tracks customer history, past purchase patterns
Creating a Marketing data base, exhaustive process
Successful
only
when
integrated
with
marketing communication and sales

Major objectives in B2B

marketing
Response and success rate
Immediate sales
Awareness
Intent to buy at a later date
Recommend to other buyers
Marketing tools are effectively utilized only
when objectives are clearly followed

Role of PR in effective B2B

Marketing campaigns
PR Objective
Build awareness
Build credibility
Enthuse sales and dealers
Guide product promotions
Example - Develop effective PR campaign to
inaugurate the new production facility in India

Effective Public Relations

constituents
Typical PR activity involves
- Corporate Communication , Internal &
external
Product publicity , new product launch
Media relations , news worthy information to
media
Dealing with government
Advising management on image, company
position

Effective Public Relations

constituents
Marketing oriented PR
New product launch
Re-positioning product , communication
Build up interest in product category
- Influence specific target groups
Defend company,, products incase of litigation
Build corporate image to favor products
In several cases PR proves more cost effective
than advertising

Effective Public Relations impact

Marketing oriented PR
Impact on public awareness at a fraction of
the cost
Content of the PR activity important fro m
media perspective
Interesting news, story , new business
development, product
PR more credible than advertising
Estimated impact of article is five times more
than advertising

Major tools in Public relations

PR
- Publications , annual reports, brochures,
articles
- Events
, news conference , sports
tournament
- News , written press release
- Speeches , CEO speeches at forums
- Public service activities , cause related
marketing
- Company logo Visual Identity in media

Implementing the PR plan

Challenges in implementing the PR Plan
Personal relationships with media houses
Eye for detail in communication
Crisis management incase things go wrong
Mitigate risks with effective Q&A data

Evaluating the PR activity ROI

Evaluating PR results
Airtime value , Print space value in terms of
advertisement rates
The effectiveness cannot be evaluated in terms
of sales value , therefore needs to be
integrated
with
advertising
and
other
communications

Impact of Public Relations in B2B

Marketing
PR Activity benefits
Media Both Electronic & Print
Interviews with top management
Technical Articles in business and relevant
sector magazines
Cost effective process in brand building
Communicating your SUCCESS to potential
customers

What
we
call
beginnings

results

are

Return on Investment measure

of success
Example
New lifestyle club , discount via invite direct
mailer campaign
1000 direct mailers resulting in 5 new
accounts
Spend of Rs 40 only per direct mailer
Membership cost of Rs 25,000 per member

Direct marketing tied with customer database

has now become an integrated part of all
marketing communication campaign

Return on Investment in B2B

Marketing
All corporate activities require a return on
investment
- Guides measuring the Effort v/s Return
Example
- Seminar held for 100 potential customers
- PR Interview of
CEO on main news
channels
- ROI measures effectiveness and provides
future guidelines
- Builds all round Accountability of the sales
and marketing team.

Return on Investment

Marketing spends accountability

How do you do it ? Challenges and actions
Example - Seminars
Trade Show participation

Return on Investments can be both Qualitative as

well as Quantitative, easier to measure Quantitative
investments.

Digital Marketing
Asias emerging markets are poised for explosive

digital growth.
- China and Indiaalready boast some 500 million
Internet users, forecast nearly 700 million more will
be added by 2015
- Estimate Asian market revenues of over $80 billion
in Internet commerce, access fees, device sales, and
so forth.

Digital Marketing
- Asia, growing markets for digital content and
services and to new opportunities around digital
marketing.
Include efforts to reach consumers via Internet

sales channels.
- With only 7 percent of the population connected (81
million users), India is Asias digital sleeper.
Poised to become a truly mobile-Internet society as
new users leapfrog PCs altogether.

Digital Marketing
- By 2015, the number of Internet users will increase
almost fivefold, to more than 350 million28 percent
of the population
More than half of those accessing the Web via
mobile phones.
Need to roll out wired and wireless broadband
networks aggressively.
To make smart phones and network access more
affordable, and to develop new content types.

Digital Marketing
- Indians spend more than four hours a day
consuming online and offline content.
Indians spend much time e-mailing and,
Heavy consumers of downloaded videos and music,
as well as DVD movies.
Indians use mobile phones predominantly for voice
services.

Also as offline personal-entertainment devices,

listening to radio stations or to downloaded music.
Significant pent-up demand for more convenient
and personalized Internet access .
A void the mobile Web could fill.

Embracing the Digital Marketing opportunity

-High hardware costs, inconsistent network quality,

and limited access could check these optimistic
growth prospects.
Construction of network infrastructure is proceeding

apace
In India, for example, Cos. spent nearly $25 billion

on telecommunications spectrum.
Hardware and access costs are declining in most
markets.

Digital Marketing - India ,Embracing the

opportunity

- Innovators and entrepreneurs must develop

content creation and delivery models priced low
enough to compete against the pirated options
currently available.
Content and Web services providers need to foster

the growth of local and regional advertising markets

to help defray the cost of content creation.
- E-commerce platforms, including transaction
systems that make purchases more convenient and
trusted, must be developed.

Digital Marketing - India ,Embracing the

opportunity

Consumer-facing sectors need to reconsider their

marketing and advertising strategies in light of the

shift away from traditional media.
At stake is a significant competitive advantage in a

region that already boasts more than half the worlds

Internet
users.

Digital Marketing - India ,Embracing the

opportunity

Internet opportunities in emerging India could reach

US $ 15 billion with $ 9 Billion in access and $6
billion in content and services
China
Internet opportunities in emerging China could reach
US $ 60 billion with $ 28 Billion in access and $32
billion in content and services

Four ways to get more value from

digital marketing difference
- focus on managing four core sources of value as
they increase the percentage of marketing and
channel spending that is directed to digital activities.
First, they coordinate their activities to engage the

consumer
throughout
purchase journey.

an

increasingly

digital

Second, they harness interest in their brands by

syndicating content that empowers the consumer to

build his or her own marketing identity and, in the
process, to serve as a brand ambassador.

Four ways to get more value from

digital marketing difference
- Third, the need to manage a staggering increase in
the content to support products, segments, channels,
and promotions.
And lastly, these marketers strategically plot how

to gather and use the plethora of digital data now

available.

The digital-marketing difference

- Digital technology is changing conventional
marketing.
Consumers who used to seek out family and friends

for word-of-mouth product recommendations

Now read online reviews, compare features and
prices on Web sites, and discuss options via socialnetworking sites.

Information flow not only empowers consumers but

also allows marketing departments to be part of the

conversation consumers have as they actively learn

The digital-marketing difference

Both business-to-consumer (B2C) and business-to-

business (B2B) purchasers increasingly

marketers to help them make smart decisions.

want

They just dont want to feel subjected to the hard

sellthey expect marketers to engage them, not

dictate to them.

The digital-marketing difference

Change from one way sales mentality to a two-way
relationship with consumers requires core changes in
the way marketers do business
Most simply tried everything that came to mind,

because they werent sure what would work.

Companies have explored digital-marketing vehicles

such as video ads, sponsored content, and online

promotions. New forms of targeted online ad delivery
have emerged.

The digital-marketing difference

Web sites have been overhauled, and micro-sites

for specific products or promotions have multiplied.

Cos. buying thousands of search terms across their

lines of business.
New agencies keep popping up to serve marketers

increasingly keen desire for innovative content, user

tools, or social experimentation.

The digital-marketing difference

Most merely add them to their other operations and

thus stretch
operationally.

their

organizations

financially

and

Companies must thoughtfully integrate such

initiatives by focusing on four core sources of value.

Orchestrate an integrated consumer

experience

Customers today continually interact with brands as

they move closer to making purchasing decisions.

Completely different parts of an organization
manage most such contacts.

Digital channels can unify that experience and

prevent the leakage of opportunity.

Orchestrate an integrated consumer

experience

Across B2C and B2B clients, companies accelerate

revenue growth by tightening coordination of endto-end experience

These increases represent the cumulative impact of
capturing more online traffic,
engaging consumers effectively,
raising sales conversion rates, and
then deepening bonds with the brand after sales
are made.

Coordinating the engagement experience

consumer experience

1. Capture Internet traffic ( Capture 50-100% of itraffic)

2. Increase consumer engagement ( meet or exceed
50 % of best competitors engagement rate )
3. Capture qualified leads ( Convert 10-15% of
engagement traffic into qualified leads , and 20 % of
leads into sales )
4. Build consumer loyalty ( Build 60 % loyalty rate ,
and 40 % sales conversion rate from loyalists ).

Coordinating the engagement experience

consumer experience
Dell, for example, has a full-time team that

monitors its Idea Storm discussion boards and rapidly

responds to posts.
Packaged-goods companies to manage thousands

of search terms on a daily basis, - optimizing what

they spend, & looking for the keywords used in
association with their brands.
Auto co. tracks the volume of people using car

configuration tools on its Web-site as a way to

forecast sales

Coordinating the engagement experience

consumer experience
Technology and marketing functions need to work

together more closely, with clear service-level

agreements from IT to maintain adequate support for
much
more
information-intensive
marketing
operations.
Business line executives should demand better

visibility into metrics about digital delivery and

greater clarity about how marketing plans will
directly improve performance.

Digital Marketing
600
500
400
China
India
Malaysia

300
200
100
0
mobile phone only

PC and mobile