Social Media - Promising to B2B Marketers

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Social media can be leveraged for B2B marketing too. Some questions that  may strike you are - whether potential B2B buyers are present online? Do they spend time online? Do they use social media either for personal or professional purposes? Do they subscribe to podcasts, stay connected online (through instant messaging); build contacts via social networking sites (SNS); participate in online forums, etc? Answers for all these questions is ‘Yes.’ There was a notion that 'users of social networking sites and other forms of social media are young, and hence best fit for marketing GenX consumer products only.' This notion no longer holds today. Supporting this, several developments in social media space were noted. Nielsen online customer analytics (2008) observed that composition of member community websites is shifting from the young to the old. Significant number of Internet users above age 35 and baby boomers are using social media and networking sites like MySpace, Facebook, Twitter, Youtube, Toolbox, Slideshare, etc. This trend is reaching behind the corporate firewalls.

There was also a shift noticed in the usage of social media - from 'purely personal' to both personal and professional use. Business professionals are using social media to develop personal contacts; connect with potential members and partners to communicate and make decisions (LinkedIn, Plaxo, etc.,); collaborate with knowledge communities to generate knowledge through open interaction (Toolbox); share best practices and insights (Slideshare); search job, source talent, etc. These trends are offering potential opportunities to B2B firms for reaching prospective customers, promoting relations and marketing their products and services via social media.

Tailor Sales Strategy to Segment

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In B2B space where direct marketing is generally practiced, sales approach should be defined based on characteristics and behaviors of segments. Especially in technology marketing, the selling organization should be defined suitably to handle different segments. For example, When Hewlett-Packard’s Customer Sales Organization (CSO) observed that groups of its enterprise customers across industries shared common characteristics; it forced a deep-rooted overhaul of its traditional regional sales approach to sell computers and IT infrastructure. It has reorganized the sales organization from region-specific to customer-focused, yet focused on maximizing sales efficiency and customer value by re-engineering its sales process. HP divided its sales organization into three teams (Red, Green and Blue) to handle enterprise, business and individual customers respectively. It deployed sales personnel with deep industry knowledge to handle large enterprise customers.

As technologies become commodities, the sales strategy should embrace solution selling. Besides, pre-sales relationships should be built with prospects to gain edge over competitors. B2B sales teams, therefore, should invest time in developing early relationships with potential firms. Leveraging it, sales personnel should play the role of consultant - should help diagnose problem(s) and at the right time,
offer right solution(s). When enterprise customers showed signs of volume shifting, HP transformed its sales approach from product selling to solution selling. It trained its designated sales force to better understand customer’s unique problems and take the consultant route to sell integrated solution, rather selling product. Of course, HP’s CSO had to fundamentally rethink the way it needs to project its sales personnel and re-engineer sales processes to optimize operating efficiency and enhance the return on productive selling time.

Whether market initiated or opportunistic sales opportunities,
B2B firms should explore how they can customize their sales approach to match with segment's profile, experience, confidence, etc. In doing so, measures should be taken so that each sales approach ensures higher operating efficiency and customer value. For example, HP’s CSO tailored unique sales strategies to win different enterprise segments viz., repurchase (potential re-buy market), replacement (enterprises leaning to HP dissatisfied with other vendors), expansion (enterprises willing to involve HP in development projects) and innovation (enterprises expecting help in defining need and developing solution). For instance, HP’s CSO adopted a sales strategy of meeting customer specifications of features, price and delivery terms while being available at right time (relationship approach) to win repurchase segment. While product selling is pursued in repurchase and replacement segments, solution selling is practiced in expansion and innovation segments recognizing the perceived difference in customers’ knowledge and confidence on vendor(s). Further, HP’s CSO tailored a four-stage sales process for the first three project types and a five-stage selling process for innovation projects to contain operating costs and maximize customer value.

When client firm offer potential business value, extra care is needed in devising B2B selling strategy. The sales approach, either all-at-once (ATO) or foot-in-the-door (FITD) i.e., capturing downstream business of an enterprise customer first and later migrating to midstream and upstream business opportunities -- should be chosen considering customer firms' relationship values and behaviors. But when all-at-once sales approach is adopted, sales organization should ensure that required resources and competencies matches with corresponding business opportunity streams. Earlier Hewlett-Packard’s CSO had to shift from the foot-in-the-door (FITD) to all-at-once sales approach. This change was initiated after recognizing that factors viz., functional walls within the account, HP’s image as hardware supplier, purchasing community’s interest to control pricing, IT community’s desire to control vendor relationships, top executives reluctance to expand for advisory relationships -- all acted as hindrances when HP’s sales force made attempts to capture midstream and/or upstream business opportunities despite having the required competencies.

How to be Ethical in E-Mail Marketing

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In B2C and B2B businesses, E-mail marketing has become prevalent today, thanks to Internet. Though it is practiced in consumer and business markets, the need to bank heavily on direct marketing by B2B firms gives more room for unethical e-mail marketing practices. Several business marketers have misled the e-mail practice due to competitive pressures. Ideally permission-based marketing is ethical and legal. But under pressure, some B2B firms are embracing unethical practices like presumed opt-in in their web-site landing pages. By doing so firms are rather hitting nails to their own coffins. Though e-mail promotional content is sent to many, only true prospects will show interest. Others would either report abuse or report spam, and eventually unsubscribe locking access to them permanently. Whereas true prospects will continue to subscribe as they feel so. Besides failing to convert, firms may loose established contacts, referrals and future prospects of other products. So attempts to reach many via presumed opt-in way not only prove unethical, but also go in vain. E-mail promotions, therefore, should be based on fairly received subscriptions.

Website visitors should not be mislead with practices like presumed opt-in. They shall be suitably prompted for self opt-in. Interactive marketing should be practiced to motivate visitors for self opt-in. When visitors land into web pages, immediately plunging into interaction can allow marketers understand and appraise their problems. The process may eventually convert the visitors to self opt-in. It is not only ethical and legal, but effective too as it targets the right and guarantee the sales without paying price in the form of lost relationships. B2B marketers can attract visitors and know who they are by designing website landing pages. When visitors come to these landing pages, online marketing team should plunge into discussion with visitors through a specially designed interactive program like how a marketing software company 'Eloqua' did with its popular campaign called 'Conversation.' During the course of informal interaction, marketers should try to understand and discover what visitors actually need and why they have visited the landing webpage. Based on the knowledge gained, if required marketers can make different proposals. If marketer discovers that visitor could be a future prospect, then he/she can be motivated to share contact details and persuaded to subscribe to the e-mail promotional letters.

7 Ways How Humor Works in B2B Marketing

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Hilarity in advertising is common. Fun and laughter is often observed in B2C marketing . But we hardly find instances using humor as marketing element in business markets. In fact, hilarious approach is considered irrational when dealing with prudent markets. However some B2B firms are breaking this fervor by making use of mirth in their commercials, blogs, online ads, video marketing, etc. Quite a few firms have witnessed positive ROI too. Cases like IBM’s viral video Mainframe: The Art of the Sale, Lesson One proves that, a good dose of humor has the power to boost B2B brands. Realizing this, many B2B marketers are changing their stance and redefining their approach. In mid 2000, Amaron Batteries quickly penetrated into the dull automotive battery market in India dominated by players like Exide, through some exciting fun-filled advertisements. It grabbed 6% of the market share within short span of time since its launch. Today it supplies automotive batteries to several automobile manufacturers like Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Hyundai, Mahindra & Mahindra, Maruti & Tata Motors and is also an exclusive supplier to Daimler Chrysler, Ford and Swaraj Mazda. GE Healthcare came out with a series of 3 videos targeting hospital administrators that took a humorous look at cost, quality and access challenges that hospitals face every day. Though it received criticism for making hospital administrators look foolish, the campaign was successful in communicating the real hospital administration challenges in a humorous way.


Ultimately people in the businesses make decisions. Associates in buying centers are human beings and have emotions. By entertaining business buyers and decision-makers, they can be truly connected and engaged. For instance when Cisco launched its global campaign the human network effect to promote its Tele-presence service, it showed senior business executives behaving funnily in the commercial. An accounting software company Farm Plan, targeting at commercial farmers uses humor to catch a farmer's attention and as well as convince him/her that the software will make life easier. This could be a better way instead showing charts and person sitting before computer. If B2B marketers start targeting people instead of marketing to organizations, their efforts can have better impact. Find below seven ways how humor works in B2B space.

Catches attention easily – Like in B2C, humor can grab the attention of client's staff, media and other stakeholders without much effort. It has potential to create buzz in the markets and carry free press coverage through business media and blogs. IBM when it launched its mainframe server has created a lot of buzz and received wide press coverage due to its humorous viral videos.

Spreads like wildfire – Humor makes B2B communications to go viral. Cascading effect takes the message to decision-makers’ desks quickly. IBM’s funny viral video received more than 270000 views increasing website traffic 25 times within short period. Today’s social media can further fuel the effect by manifolds.

Clutter Busting – Humor can be used as one of ways to bust clutter, especially in crowded B2B markets. It was easy for Cisco to get into prospects consideration list through its funny ad campaign, the human network effect, in a fully crowded tele-presence market dominated by WebEx and other organized as well as unorganized players.

Brand Recall – Amaron’s award winning Pandu Mangal campaign ‘lasts long, really long’ with jingle ting tong is one of the few B2B brands that are remembered most. Research shows that, the ad was not only attention grabbing, but has put the brand on top of the mind giving longer shelf life.

Pulls End-User - Tetrapak’s funny ad campaign ‘Protects What’s Good’ about a park ranger Roy Sullivan who is struck by lightning seven times - sent a strong message to the end-consumers to buy milk, food or juice in an environment-friendly tetrapak cartons, creating potential derived demand.

Simplifies complexity – Speaking or communicating about industrial products/services is not only bland, but complex too. It makes market communication look tedious and dull, making selling effort more challenging. But breaking the conventional approach, GE Healthcare simplified its market communication using a series of humorous videos about how its medical equipment can tackle complex operational and technical challenges that hospitals face every day.

Amicable & Authentic – Finally, humor personifies the brand creating human touch and friendly space. It gives business buyers a feeling of social, friendly and approachable vendor. This make organizational buyers feel more comfortable in pursuing purchase deals.

15 Ways to Develop Customer Loyalty

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Focused customer-driven culture encompassing 24/7 service ethic, lead-by-example philosophy, flat management structure, open communication, service beyond letter-of-contracts, amazing client experience.....keep business customers loyal. Find below 15 ways how customers can be kept loyal in business markets:

1. A culture of ‘care and respect’ for clients and their employees shall be instituted across the firm.
2. Set up a flat management structure so that staff at all levels in the business, are easily accessible to customers.
3. Encourage employees to attend social events with customers and their employees.
4. Promote a culture of Lead-by-example philosophy among senior executives. Senior management should spend quality time on the customer site reassuring customers. Directors themselves should visit customer sites quite often to know if they could do anything further. This philosophy not only spreads positive energy among the staff; but also signals how the firm value its clients.
5. Ensure solid and stable management. It contributes to the development of long-term customer relationships.
6.‘24/7 Service Ethic’ of attending to customer problems anytime, anywhere spreads good word-of-mouth and customers start referencing.
7.Promote regular social interaction and offer amazing customer experience – Invite customers into premises (to see facilities, to walk-through business, to see the training center, to get feel of the culture, to see presentations, etc., frequently). Each director should be responsible for managing relations with their own customers – they should regularly telephone customers and invite them for events, product launches and so on.
8. Mentor staff to exhibit ‘humble’ attitude towards customers.
9.Serve beyond the contractual obligations. Don't insist on formal service and maintenance agreements with customers.
10. Spend majority of the time helping customers address their general maintenance issues (though not related to firm's products) - Invest time in relationship building alone.
11. Project division should continuously liaise with client companies, OEMs and end-users to promote open communication.
12.Project management should be considered as all about setting up tangible value adds, to ensure that customers get more than just a product/service.
13.Walk the extra miles with customers beyond strong after-sales service, component support and intensive user training to the point where they feel comfortable with the product. This will help lock the customers into an ongoing relationship.
14. Participate in customers' vendor development programs and adapt technology, resources, policies, etc., as per their changing requirements case-to-case.
15. Implement suggestions given by clients and show high-level commitment towards continuous improvement.

Finally, keep reviewing client interactions on quarterly-basis to know where to follow up relations

'Front-end Customer Strategy' Reinvents B2B

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When a B2B product serves a market with diverse end-users, embracing B2C mindset helps. It drives to a 'front-end customer' strategy involving end-user segmentation and analysis. This enables B2B marketers know the true market potential, real customers’ needs and actual product gaps. Focused insights into end-user behavior help target right markets, define product right and penetrate further.

In a crowded market, end-user segmentation strategy promises business sustenance and growth. Thomson Corporation (currently Thomson-Reuters), a global information services company (offering info products/services in financial services, healthcare, law, science & technology research, and tax & accounting sectors) reinvented and transformed itself by embracing front-end customer strategy. One of its division Thomson Financial, for instance, discovered eight end-user segments in place of three corporate purchaser segments. Such insight enabled Thomson to identify segments where it had opportunities for penetration and growth, understand segment-specific needs and develop products that provide what end-users valued most.

The 'front-end customer' strategy makes more sense when market is experiencing discontinuity or a clear value proposition is lacking or a significant change in market demand patterns is observed or a new non-traditional competition is sensed. But suitability of ‘front-end customer' strategy to a few or all B2B industry types, is something which has to be explored.

Non-Tangible, Non-Financial Incentives to Build Client Loyalty

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Offering 'nontangible-nonfinancial' benefits beyond letter-of-contract makes customers feel positive about the vendor.  Providing extended services such as delivering supplies or rendering after-sales service even on a holiday to keep customers' production lines going; deploying dedicated service personnel to assist staff at customer site for free of cost; helping clients in solving their business problems; proactively moulding to clients' requirements; developing informal relationships, etc., all these keep business customers loyal. For example, the global science major DuPont built amazing informal customer relationships by offering exciting racing experience and hospitality programs to its clients. However to reinforce  customer loyalty, B2B marketers should keep communicating  the nontangible-nonfinancial benefits offered by them, as clients don't keep track and quantify the value of all such services they get from different vendors. In the early years of Arrow Electronics, the supplier was shocked when it found that companies using its parts coordination and design engineering services weren’t aware that they were provided by Arrow. Recognizing such  possibilities made one of the global chemical companies to practice regular communication about nontangible-nonfinancial benefits it offered to its customers via a monthly matter-of-fact letter.

A focused customer-driven model (viz., flat & stable management structure, lead-by example philosophy, open communication, service ethics, tangible value-adds, frequent social interaction, hospitality, etc) helps even a small B2B player to effectively compete with big giants. For example, South-African based ZEST Motors shows how critical is ‘customer relationships’ to withstand competition in B2B arena. Its ability to withstand competition against big giants like ABB and Siemens is mainly due to the customer-driven organization culture and loyalty built up over years. Though loyalty building efforts are appreciated by clients at later stages, binding customers can help firms during troubled times. For example customers of Lucent Technologies continued to buy from it and gave a chance to catch up with its rivals, when Lucent's switching systems did not incorporate the latest technology. This was due to relationships that Lucent has built with its customers over years. 

Besides value derived from retaining client, benefits of promoting loyalty are ample. Initially, loyal clients tend to grow business relationships in terms of increased purchase quantity or buying other products/services of the firm. Next, they start referring to others and spread positive word-of-mouth. Besides acquiring new clients easily, costs of selling and acquiring reduces. Furthering clients' loyalty convert into affinity that resists competitors' offerings, though rivals offerings are attractive. For instance, CEO of Aeropres, a leading propellant manufacturer and distribution company though had the opportunity to go with other companies offering at lower prices, consistently stuck with DuPont products since he experienced the NASCAR car racing events and hospitality programs sponsored by DuPont. Eventually clients those who develop deep trust and willingness to bank on, will be willing to pay a premium, as well as collaborate to improve product and/or innovate new products/services. This will generate added revenue besides driving product innovation. In the most ideal situation, selected clients show interest to invest in new business ventures that can help them. It eliminates risk of the vendors, both retention and financial risks. However, B2B marketers should be constantly open and flexible to new opportunities and simultaneously focus on business growth while maintaining customer relations.

Celeb-Branding Boosts Visibility In B2B Too

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Celebrity Branding, in many cases, has proven to be effective marketing tool for even firms serving business markets. B2B celebrity branding classics such as Accenture – Tiger Woods, BT Business - Peter Jones, HP - Gwen Stefani, DuPont - Jeff Gordon, etc., put across that, celebrities, if properly aligned can greatly supplement B2B market communication effort to reinforce the brand or pitch the image and visibility. American professional golfer Tiger Woods, with his consistent top performance image reinforced and face-lifted Accenture (formerly Known as 'Anderson Consulting') through the campaign ‘High Performance, Delivered,’ immediately after re-branding as ‘Accenture.‘ By associating with Tiger Woods, Accenture could easily position itself as high  quality, consistent and reliable technology, consulting and outsourcing firm.

Celeb-branding strategies help B2B brands quickly and easily leapfrog cultural boundaries or elevate in a crowded commodity offerings market. But care should be taken so that cultural setting relates to the business context. For instance, Internet and communication solutions provider BT Business campaign featured Peter Jones (a star of the BBC’s Dragons' Den and proven businessman) in a TV ad alongside the gremlins, who attack the whole office leading to an IT meltdown. The celebrity campaign ‘Keep doing what you do best 24x7’ helped BT Business elevate its position in a crowded market.

Celebrity may or may not do ‘referencing’ as effectively as experts and clients do (probably because they don’t possess expert/referent power) in business markets. But, well-known personalities can act as catalysts to quickly scale B2B business across different cultures. Hewlett Packard (HP), for instance, through its campaign, 'The computer is personal again' featuring Gwen Stefani, a famous singer/fashion designer reached the graphic arts and small to medium-size business communities at a global level.

Sponsoring celebrity can also help a B2B brand convert visibility into its advantage. The global scientific major DuPont could take amazing sponsorship opportunity of Jeff Gordon-NASCAR car racing to its advantage. DuPont was immensely successful in creating derived demand for its innovations viz.,automotive finishes, Tyvek (house wrap), Teflon and FE-36 (fire extinguishing gas) by running innovative Motorsports-themed promotional programs and sweepstakes.

Like in B2C, risks also prevail in B2B contexts especially when celebrities’ professional or personal life shatters. The episode of Accenture getting into trouble when Tiger woods scandal became rather public in November 2009 stands latest example. Celebrities with consistent top image exactly reflecting desired B2B product/service attributes are rare. Though available, continuity of their success/image in long-term is uncertain. So a future-proof celebrity avoids risks. The strategy and effort may also become dysfunctional soon if stated performance isn’t proved simultaneously. Damage may not be immediate and high for B2B brands (for a proven brand). This is because clients’ perception doesn’t change and buying behavior is largely based on functional and service characteristics.


‘Celebrity branding’ strategy should be  carefully employed  by B2B marketers. Such strategy can be considered during periods of and situations like product launches, rebranding, scaling across cultures, etc. A balanced ‘celebrity branding’ campaign, crafted based on properly chosen future-proof celebrity matching with offering’s characteristics and relevant time-frame backed by suppliers’ performance can help B2B marketers in their branding effort.

Celebrity Endorsements in B2B

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Celebrity endorsement marketing theory and practice has been evolved mainly based on consumer markets. Therefore ‘celebrity’ has been viewed as a celebrated personality with a public image and has high profile usually in, sports or entertainment. Such individuals are predominantly used to endorse consumer products, services, etc.

Normally firms operating in business markets usually bank on customer referencing for instituting and promoting their credibility with new customers and seldom use prominent experts/individuals (not celebrities) to endorse. However, rather than being sports prodigy or popular entertainer, these personalities are tagged with high profile due to their amazing success in leading firms. Individuals endorsing in B2B, while possessing expertise and trustworthiness should also qualify with attractiveness in terms of “similarity,” “Familiarity,” and “Respect.” Besides, personalities, B2B marketers use high profile organizations usually clients for endorsement (for instance Lufthansa Cargo endorses Microsoft’s Windows Server System). However, endorsing organization should have consistent track record alongwith proper visibility and credibility. When choosing an organization for endorsing, issue arises on ‘similarity’ front, as it would imply using a direct competitor.

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