B2B marketing. B2C marketing. It's all the same isn't it?
1. B2B Marketing. B2C Marketing
It’s all the same isn’t it?
Graham Edwards
Head of Group Marketing – BM TRADA
2. 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
3. B2B & B2C examples – illustrating the point
Company A - B2B Company B - B2C
Professional services
Product performance
testing
FMCG –
energy drink
Very different propositions!
5. 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
6. 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
7. B2B vs B2C marketing
Possible areas of difference
• Basic principles?
• Market behaviour/characteristics?
• The purchase decision?
• Marketing strategy?
• Marketing communications?
9. B2B & B2C
= P2P*
Common objective -
seeking to influence behaviour
*Oneredbird.ca
The most basic marketing principle of all
10. Basic principles the 7 Ps – same or different?
B2B B2C
Product
Price
Place
Promotion
People
Process
Physical evidence
Same principles – different application
11. Basic principles – Same or different?
B2B B2C
Targeting
NPD
Acquisition
Retention
Customer insight
Same principles – different application
15. 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
16. 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
18. 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
19. 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
20. 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
21. 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
22. Why does all this matter?
Because it has a direct impact on strategy
24. What does it mean for the marketing strategy?
Professional services (B2B)
Fire door testing
• Expertise
• Integrity
• Knowledge
• Support
• Added value
• Risk minimization
• Partnership
• Trust
25. 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)
27. 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)
28. 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)
29. 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)
30. 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)
32. • 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
33. 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
34. 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
