If you’re a marketer in the business-to-business industry, understanding the top twelve factors influencing your marketing efforts is critical to your success.
The B2B buying process is highly involved and complex. From identifying a need or problem to be solved to conducting extensive research on possible solutions, comparing vendor options, to finally making a purchase decision – the process can take weeks or even months. As a result, many factors can influence a company’s decision-making regarding B2B purchases.
Let us explore twelve of the most critical factors influencing B2B marketing:
1. The Company’s Overall Business Strategy
The company’s overall business strategy is the number one factor influencing success. This is because the company’s business strategy provides the framework for everything else the marketing team does. It determines the target market, the products and services offered, the pricing strategy, and more.
It is no surprise that this strategy is the foundation for your marketing plans and activities. After all, your ultimate goal as a marketer is to support the achievement of the company’s strategic objectives.
Here are a few key things to call to mind when aligning your marketing efforts with your company’s business strategy. First, take the time to understand the process truly. What are the company’s top priorities? What are its long-term goals? Once you have a stable grasp of these things, you can begin to develop marketing initiatives that support them.
It’s also important to keep in mind that your company’s business strategy may change over time. Your marketing plans and activities should be flexible enough to adapt to these changes. After all, you don’t want to put all your eggs in one basket to make your entire campaign obsolete overnight.
Regularly revisiting and revising your marketing strategy will ensure that it always remains aligned with your company’s changing business needs.
As a marketer, it’s important to remember that your efforts must always be aligned with your company’s overall business strategy.
2. The Target Audience
Whether you’re targeting small businesses or large enterprises, your target audience is the one factor that should always influence your marketing strategy.
To create an effective marketing strategy, it’s essential to understand who your target audience is and their needs.
By understanding the three main types of target audiences — transactional, relationship, and brand — you can adapt your strategy as needed and ensure that you’re always reaching your ideal customer.
Transactional: A transactional target audience is interested in making a purchase and nothing more. They’re not looking to establish a relationship with your brand; they want to buy your product or service and be done with it.
If you’re targeting a transactional audience, your marketing messages should be focused on showcasing the features and benefits of your product or service. For example, if you’re selling a new type of toothbrush that you claim is the best on the market, a transactional customer might be interested in trying it out. But once they’ve made their purchase, they probably won’t give it another thought.
Relationship: A relationship target audience wants to establish a connection with your brand. They’re not just looking for a one-time purchase; they want to form a long-lasting bond with your company.
For example, let’s say you own a small business that sells pet supplies. If you can build a strong relationship with your customers, they’ll keep coming back to you for all their pet needs — and they’ll also likely tell their friends and family about your business.
Relationship building is all about creating loyalty between your brand and your customers. If you’re targeting a relationship audience, your marketing messages should focus on building trust and showing how much you care about your customers’ needs.
Brand: A brand target audience is interested in what your company represents—not just what it does or sells. They want to align themselves with your values and mission statement because they believe in what you stand for as an organization.
Nike is an excellent example of this type of target audience. Customers who purchase Nike products aren’t just buying shoes or clothes; they’re buying into the Nike brand and everything it stands for (i.e., being active, successful, etc.).
Creating an emotional connection between your customers and your company is essential when targeting a brand audience. Your marketing messages should highlight how your brand can make them feel (i.e., happy, proud, supported, etc.) instead of what it can do for them (i.e., make them run faster, jump higher, etc.).
Understanding the different types of target audiences is essential for any business that wants to create an effective marketing strategy. By tailoring your messages to every kind of audience — transactional, relationship, or brand — you can ensure that you’re always reaching your ideal customer base and driving results that matter for your business.
3. The Products And Services Offered
In B2B, companies sell products and services to other businesses, which means the decision makers are usually more concerned with ROI than emotional factors. This doesn’t mean that emotions don’t come into play – far from it – but they tend to be less of a deciding factor in the purchasing process.
So what does this mean for marketers? The products and services offered must be relevant and meet customer needs. Company reputation also plays a role, as customers want to do business with companies with good track records.
It is also essential to consider the price of your product or service. In the B2B world, price is often one of the most important factors when making a purchase decision. As such, it is essential to ensure that your pricing is competitive.
It is also important to remember that price is not always the primary consideration; quality and features are often just as important, if not more so.
Finally, it is essential to consider how your product or service will be delivered. In the B2B world, delivery methods can vary greatly. Will your product or service be provided via email? A downloadable file? Physical goods?
Make sure you consider all the different delivery methods available and choose the one that makes the most sense for your business and your target market.
4. The Competition
Keeping an eye on the competition is essential no matter what business you’re in. This is doubly important for those in the B2B (business-to-business) space. Why? Because understanding what your competition is doing — and how they’re marketing themselves—can give you a significant leg up in your marketing efforts.
When creating your marketing strategy, it’s essential to consider how the competition might react. What are they likely to do in response to your marketing initiatives? This will help you anticipate their moves and adjust your strategy as necessary.
Staying one step ahead of the competition is key to success in business. For example, if you launch a new product or service, your competitors may respond by lowering their prices or running promotions. If you roll out a new ad campaign, they may come out with a counter-campaign that tries to undermine your message.
Competitive intelligence gathering should be an ongoing process for businesses in all industries. You can’t just set it and forget it; you must continuously monitor your competitors’ activities and adjust your strategy accordingly.
Thankfully, there are quite a few tools and resources available that can help with this process. Google Alerts allows you to track mentions of competitors online; use it to set up alerts for whenever your competitor is mentioned on the web, so you can be among the first to know about any new developments.
Social media monitoring tools like Hootsuite Insights and Mention can also help track competitor activity on social media platforms like Twitter and Facebook.
5. Pricing
The correct pricing can make or break a deal in B2B marketing. If your prices are too high, you risk losing potential customers to your competitors. Moreover, if your prices are too low, you may not be able to make a profit or cover your costs. This is why it’s so important to get your pricing right.
You need to consider a few things before deciding on a price point.
– The Value of the Product or Service
This is perhaps the most crucial factor to consider when setting a price for your product or service. How much value does your product or service provide? This can be tricky to calculate, but it’s worth taking the time to analyze thoroughly. If you’re unsure where to start, consider hiring a pricing consultant who can help you determine the value of your product or service.
– The Costs of Production and Distribution
Of course, you also need to consider the costs of producing and distributing your product or service. These costs will include raw materials, labor, shipping, and packaging. Once you’ve calculated these costs, you’ll need to add a markup to make a profit.
– Competitor Analysis
It’s also essential to research your competitors before setting a price for your product or service. How do their prices compare to yours? You may have trouble making sales if your prices are significantly higher than your competitors. On the other hand, if your prices are too low, you may not be able to cover your costs or make a profit. This is why it’s so important to find that sweet spot.
6. Promotion
Promotion is how you communicate your product or service to your target market. It includes all the methods and channels you use to reach potential customers and clients. And because the techniques and media for getting B2B customers are different than those for reaching B2C customers, your promotion strategy needs to be tailored specifically for B2B marketing.
Some of the best ways to promote your product or service in a B2B setting are as follows:
– Traditional Advertising
Traditional advertising is one of the most common and effective methods for promoting your product or service in a B2B setting. This can include print ads in trade publications, TV commercials, radio ads, and billboards. While traditional advertising can be expensive, it’s also one of the best ways to reach many potential customers quickly and efficiently.
– Digital Advertising
Digital advertising is another great way to reach potential customers in a B2B setting. This advertising includes online banner ads, Google AdWords, social media advertising, and retargeting ads. One advantage of digital advertising is that it allows you to be very specific about who sees your ad (i.e., target by demographic, interests, etc.). Another advantage is that it’s typically more cost-effective than traditional advertising.
– Email Marketing
Email marketing can also effectively promote your product or service in a B2B. This involves sending emails with promotional content (e.g., coupons, discounts, new product announcements) directly to potential customers and clients. One benefit of email marketing is that it allows you to build relationships with potential customers over time by regularly sending them helpful and relevant information.
– LinkedIn Advertising
LinkedIn Ads are a form of digital advertising that allows businesses to specifically target members of LinkedIn – which is perfect for targeting professionals in a B2B setting.
7. Distribution
When it comes to business-to-business (B2B) marketing, the factor of distribution is often overlooked. While product and price are important considerations, distribution ultimately will make or break a B2B marketing campaign.
For a product or service to be successful, it must be distributed to the right people, in the right place, and at the right time. Distribution is the process of making a product or service available for purchase by the customer.
There are two main types of distribution: direct and indirect.
Direct distribution happens when a company sells its product or service directly to the customer without intermediaries. Indirect distribution involves intermediaries such as distributors, wholesalers, or retailers to reach the customer.
The most effective B2B marketing campaigns will use direct and indirect distribution to maximize their reach and ensure their product or service is available to their target market.
B2B marketers must get creative and find new ways to reach their target market. This may involve selling products online, through catalogs, or even directly to other businesses.
B2B marketers must have a solid understanding of all the distribution channels available to develop a comprehensive strategy to reach their target market effectively.
8. Customer Service
Good customer service should also be crucial to your overall marketing strategy. Here’s why:
Satisfied Customers Spend More Money
It’s no secret that satisfied customers are more likely to spend more money with a company than unhappy ones. In fact, according to a study by American Express, 68% of customers say they’ve spent more money with a company because it delivered excellent service. And happy customers tend to tell their friends and family about their positive experiences — which can lead to even more business down the road.
Good Customer Service Can Generate Leads
In addition to generating repeat business from existing customers, good customer service can also help you generate leads for your sales team. According to another study by American Express, 59% of respondents said they would refer a friend or family member to a company or product after having a positive customer service experience. Furthermore, 70% said they would use the company again after a positive customer service experience.
Word-of-Mouth Advertising Is Powerful
In the age of social media, word-of-mouth advertising is more powerful than ever. 92% of consumers say they trust recommendations from friends and family over any other type of advertising. And as mentioned above, satisfied customers are likelier to tell others about their positive experiences. So if you want to grow your business, providing excellent customer service should be one of your top priorities.
9. Branding
Your brand is what sets you apart from your competitors, and it’s what helps customers create an emotional connection with your company.
In a B2B setting, buyers often evaluate multiple brands at once and make decisions based on which brands they think are the most credible and trustworthy. An effective branding strategy can differentiate between winning and losing a sale in this competitive landscape.
Let’s take a closer look at how branding impacts B2B marketing and why it’s essential for businesses to get it right.
Branding Helps You Attract Customers
A strong brand will help you to attract new customers and retain existing ones. Customers looking for a product or service you offer are more likely to choose a company they recognize and trust.
Branding can also help you to stand out from your competition. If customers have heard good things about your company, they are more likely to do business with you than a competitor they know nothing about.
Branding Helps You Differentiate Yourself from Your Competitors
Differentiation is critical in any market but especially important in the B2B space. Many companies often offer similar products or services, making it difficult for customers to choose between them.
Having a solid brand makes it easier for customers to remember your company and what it has to offer. Additionally, if you have a unique selling proposition (USP), you can use your branding strategy to communicate this to potential customers.
Branding Helps You Build Relationships with Your Customers
A good brand will help you to build relationships with your customers. If customers feel positive about your company, they will likely do business with you again in the future.
Good branding can also help you to create loyalty among your customer base. Customers who identify with your brand are more likely than others to reward you with their business when they need what you offer.
10. Internet Presence
In today’s digital age, more businesses rely on the internet to connect with potential customers and clients. A solid online presence can help you reach a wider audience, build trust and credibility, and close more deals.
On the other hand, a weak or nonexistent online presence can damage your chances of success. If potential customers can’t find you online, they may not even know you exist.
Create a Well-Designed Website
Your website is often the first contact between you and your potential customers. It’s essential to make an excellent first impression. Your website should be well-designed, user-friendly, and informative. It should also be optimized for search engines so potential customers can easily find it when searching for products or services like yours.
If you don’t have the time or expertise to create a professional-looking website yourself, you may want to hire a web designer or developer to help you out. Just be sure to set aside enough money in your budget to cover the costs.
Develop Compelling Content
Once you have a great website, it’s important to populate it with high-quality content. Your content should be well-written, accurate, and relevant to your target audience. It should also be keyword-optimized so that people can find it when searching for your industry information. In addition to written content, you may also want to consider creating videos, infographics, and other types of visual content.
Be Active on Social Media
Social media is a powerful tool that allows you to reach a broad audience with minimal effort. By being active on social media, you can increase brand awareness, build relationships with potential customers, and drive traffic back to your website. You should create profiles on all major social media platforms (Facebook, Twitter, LinkedIn) and post regularly. If possible, you should also try to get involved in relevant online communities and forums.
11. Sales Process
Understanding the sales process is essential to market and selling to potential customers effectively. There are typically five stages in the sales process: prospecting, qualifying, needs assessment, solution presentation, and closing.
Prospecting
The first stage of the sales process is prospecting. This is when the salesperson tries to identify potential customers who might be interested in what they’re selling. They usually do this by researching their target market and identifying potential leads.
Qualifying
Once a potential customer has been identified, the next step is to qualify them. This is when the salesperson determines whether or not the lead is a good fit for their product or service. They’ll consider factors such as budget, need, and timeline.
Needs Assessment
After a qualified lead, the next step is assessing their needs. This is when the salesperson tries to understand what problem the lead is trying to solve and how their product or service can help.
Solution Presentation
Once the lead’s needs have been assessed, the next step is to present them with a solution. This is when the salesperson pitches their product or service as a solution to the lead’s problem.
Closing
This is when the salesperson asks for the sale and tries to seal the deal. Factors such as price and payment terms will be negotiated at this time. Once all of that has been agreed upon, both parties will sign a contract, and the sale will be considered closed.
12. Market Trends
Staying up-to-date on the latest market trends is essential. After all, your target market is constantly changing, and what worked last year might not work this year. Understanding the latest trends allows you to adapt your marketing strategy to stay ahead of the curve and attract more leads.
Keep tabs on industry news sources.
To be aware of the latest market trends, you must stay up-to-date on industry news. Set aside time each day to read industry publications or listen to podcasts. This will help you identify any emerging trends in your industry.
Talk to your sales team.
Your sales team is in constant contact with your target market. They’re the ones who hear firsthand what customers are looking for and what their pain points are. As such, they’re a valuable resource for understanding current market trends. Make sure to have regular check-ins with your sales team to stay abreast of any changes in the market.
Conduct customer surveys
Another great way to stay on top of market trends is to conduct customer surveys regularly. This will give you insight into what customers want and how they feel about your product or service. You can use this information to make adjustments to your offering as needed.
Monitor your competition
It’s also important to keep an eye on your competition. See what they’re doing differently from you and try to learn from their successes (and failures). This will help you stay one step ahead in the ever-changing landscape of B2B marketing.
Conclusion
To create an effective B2B marketing strategy, it is essential to consider all factors influencing how potential customers will perceive your company and its products or services. By taking these into account, you can develop a plan that aligns with your overall business strategy and reach your target audience in a way that resonates with them.
Remember to continually assess and adjust your marketing efforts based on changes in the competitive landscape, market trends, and customer needs.
References
- https://en.wikipedia.org/wiki/Business-to-business
- https://en.wikipedia.org/wiki/Target_audience
- https://en.wikipedia.org/wiki/Market_trend
