How To Be Successful in Business Marketing

Business marketing is when a business markets and sells its goods and services to other businesses or organizations. These other organizations may resell these goods and services or use them in their own business to support their operations. Business marketing is often called as industrial marketing or business-to-business (B2B) marketing.

The perfect example of Business to business marketing is the automobile industry. Automobile companies buy various spare parts such as tires, batteries, electronics and door locks which are manufactured independently by other businesses and sold directly to automobile manufacturers to assemble automobiles.

Even the Service industry is also engaged in large number of business to business transactions. For example Companies specializing in housekeeping provide services exclusively to other organizations, rather than individual consumers.

Business-to-customer marketing is when a business markets and sells its goods and services to retail consumers for personal use. While most companies that sell directly to consumers can be referred to as B2C companies. The business-to-consumer as a business model differs significantly from the business-to-business model, which refers to transaction between two or more businesses.

Business market (B2B) vs. Consumer marketing (B2C)

B2C marketing differs from B2B marketing in a number of key ways. A Business market has very few customers as compared to a consumer market which has large numbers of customers. A business market usually sells a customized product where as a consumer market sells a homogenous product. A Business to business transaction is a huge value transaction as purchase quantity is very high where as business to consumer transaction is a small value transaction. Price can be negotiated in business markets where as price is usually fixed in consumer market. Business markets have lengthy and complex selling process with multiple decision makers but in consumer market buying decision are simple and are made by individuals.

Keys to success in Business markets are:

1) Value creation & Customer satisfaction

Business begins with value creation. It is the prime objective of the business to create and deliver value in an efficient manner which will ultimately lead to profits. Value leads to customer satisfaction. Customer experience is an integral part of B2B marketing. The customer experience is the key brand differentiator, even more than the price and product.

2) Social media marketing

Social media marketing is when a company uses social media platforms such as Facebook or Twitter to market its product or services. Social media marketing is one of the best and efficient platforms for marketers. Most social media platforms have built-in data analytics tools which enable companies to track the progress, success, and engagement of ad campaigns. Companies address a range of stakeholders through social media marketing including current and potential customers.

3) Mobile marketing

Mobile marketing is a digital marketing strategy whose aim is reaching a target audience on their Smartphone, tablets, and other mobile devices through email, SMS and multimedia messages.

Smartphone usage has increased multiple times during the last few years, app usage has also highly increased. Therefore, mobile marketers have increasingly taken advantage of Smartphone apps as a marketing resource. Marketers aim to optimize the visibility of an app in a store, which will maximize the number of downloads. This practice is called App Store Optimization (ASO).

4) Multimedia Content Marketing

Marketing using Multimedia content attracts more customers. B2B marketers are widely adopting this trend. The primary driver is the desire to make content more engaging, compelling, and shareable than just the traditional modes. The most common forms of visual content include 360-degree videos.

5) Effective Personal selling & Executive Branding

Distribution channel is the path through which the product reaches the final customer. Personal selling is the most preferred form of distribution and promotion used by B2B marketers The sellers promote the product through their attitude, appearance and specialist product knowledge. Executive Branding is when an executive showcases his professional strengths as a way to attract the customers. Executive branding is also known as reputation management. Especially in B2B environments, executive branding is now considered a necessity. Senior management must create and develop their personal brand image to attract new customers.

Steps To Saving Your Marketing Budget

For anyone who runs their own business, there is always a combination of emotions that makes launching both the most exhilarating moment of your life, as well as the most nauseating thing you’ve ever experienced. As time goes on, you find that while you are enjoying some success because of the curiosity factor, you aren’t finding the success you wish you could get, and this is where customer segmentation can make the biggest difference in the world.

Customer segmentation, in and of itself, is really nothing more than splitting your customer base into specific groups and marketing directly to said groups. Seems simple, right? Well, if you don’t know how to make this happen, you’re likely missing out on the success you feel you should have.

There is one more wrench to throw into things and that is how you’ve managed your marketing budget. Marketing costs money and time, two of the most valuable resources you have. It also takes dedication to making it all work, which means you’re likely taking time away from other important areas in running your business. If you’re only “sort of” working on your marketing and “kind of” investing in some customer outreach, you’re in some trouble.

So, how exactly does customer segmentation save you money in terms of your marketing budget? Here are a few ways:

It’s All About Identifying Specifics & Marketing to Them – Marketing is often done by the same person that owns & runs their business. While this seems like a way to save money, you’re likely not a marketing expert. Customer segmentation & the agencies that do it well can identify exactly where you should be investing your marketing money so that you don’t waste resources. The savings can then be reinvested into the company.

Targeted Advertising with Social Media and Email – No matter if your customer base is tech-savvy or relatively basic in their computer usage, a well-implemented customer segmentation campaign can target your customer groups where they spend the most time. This means that you’re aren’t spending money in places where your message will not be seen.

Brand Loyalty Through “The Little Things” – One of the ways many companies make their mark is by doing something unique for their customers, such as adding some candy to an order. They don’t advertise it, but it does put a smile on their customer’s face. Moreover, this little thing, as well as the product or service, are spread by word of mouth. Customer segmentation allows for identifying specific things about your customer that, in turn, allow you to figure out what little thing might appeal to them.

Some might consider customer segmentation as a “magic bullet” for your marketing, but what it really does is take a very direct approach of reaching your customer base and making your product or service consistently sell. Moreover, it helps to create the foundation for a static marketing strategy that will adapt to market changes over time. This means that even if there are ebbs and flows, you have a greater chance of being able to navigate changing times.

Marketing Tricks You Should Know

We all know the figures; how almost five out of every six new businesses fail within the first few years.

I’ve just completed a video on how small business owners can double or triple their sales, by addressing just three common challenges, and marketing is one of them.

So, if you are finalizing your marketing plans for 2018, STOP, don’t commit to spend a penny until you read this to see if you are spending your money effectively.

Most small business owners are experts in their business, but not experts in marketing, and so many don’t appreciate the difference between STRATEGIC MARKETING and TACTICAL MARKETING.

Strategic marketing is the content of your message. It’s what you say and how you say it, including the concepts that you choose to focus on, the words and images you use to communicate those concepts, and the tone in which the message is delivered.

Tactical marketing on the other hand, has to do with the execution of the strategic marketing, such as placing ads, brochures, building a website, attending trade shows, social media etc.

If I ask a business owner about their marketing plan, the answer almost always comes back in terms of tactical marketing. But these are the tools or the tactics.

How to make those tactics work, to attract and importantly close customers is to use STRATEGIC MARKETING.

Below are the key elements to strategic marketing:

Element 1 Have a MARKET DOMINATING POSITION.

Be that category of one. Blow away your competition by making your business the ONLY obvious choice.

Don’t start with the tactics first. Most do this, and it is WRONG!

I can’t say this enough!

If you do not want epic failures and wasted money with your marketing, then don’t choose tactics first.

How do you create your market dominating position? It is all down to positioning – why should your customers choose you over all the other people or businesses who do what you do?

Most small business owners give very little thought to their positioning, but get it right and it gives you huge advantages – you can attract more of the right customers AND you can charge higher prices, which has a massive impact on your profit.

Element 2 – MARKET ­

Who is your target customer/client?

Your marketing won’t get any traction unless you target those customers who want what you’ve got to offer.

You won’t sell hamburgers to vegans’ you, you won’t sell pet care to someone without a pet, you won’t sell a kitchen refurbishment to someone who is in a brand new house. Everyone is not your target. You will waste marketing pounds if you don’t know your target audience and what they most want.

Element 3 – MESSAGE

Your marketing needs to successfully interrupt and engage your target market to identify problems, frustrations, uncertainties, and annoyances your prospects have and then address them in your marketing. Their pain in most cases is their hot button.

The you need to be able to provide the Panadol to their pain.

Address their problem (hot buttons) in a compelling message to attract them, and then keep them engaged with the solution you offer.

Element 4 – MEDIA

Now the media. Where is your audience? Once you know WHO they are, figure out where they are and what forms of media they use, so you can put your message right in front of them to attract them.

Where online and social are still the buzzwords of today, they are still just another ‘media’.

Just think about this; isn’t it fascinating how overflowing our email inboxes have become recently, and how empty our letterboxes are? A recent study by Epsilon found that 64% of people pay more attention to physical things they receive in the post than they do the email.

Your media needs to be carefully considered – don’t just hop on the latest bandwagon because you think you should, review your media in terms of who your customer is, and what will provide you with the best return on investment.

Element 5 – OFFER

Have a great offer by providing the solution to their problem.

Create value in the offer to get the highest prices instead of cutting prices to get people to buy. Can you bundle things together, provide a guarantee there are many things that can increase the perceived value of your product or service.

Element 6 – REFERRALS AND TESTIMONIALS

Consumer opinion now travels faster and further than ever before. Did you know:

88% of people trust online reviews as much as personal recommendations

90% of people read business reviews before they visit a business

What other people say about you is more important than what you say about you.

Online reviews can be the single most effective marketing media for your business. They get you seen online and they build your reputation.

In the UK you really need to have a Google+ presence as Google is the go to search engine for most people who are looking for something online.

Final thoughts:

No one really cares about you or your business. Tough, right? Take heart, as they don’t care about me either!

If you are a small business STOP trying to BRAND your business. It is a lengthy process to build a brand and you will have gone out of business before it happens if you market this way. People don’t buy logos! They buy solutions to their problems, or they buy to fill a desire.

Another Ways From Giving Discounts

Bundling is the process of grouping together certain products to create ‘packages’ which are then sold to clients. When you do this, you completely eliminate the biggest complaint small business owners have these days competing on price.

Bundling removes price from the equation by creating an “apples to oranges” comparison. You have to remember that customers today shop value NOT PRICE! Unfortunately, small businesses are LOUSY at conveying their “value proposition” so, therefore, price becomes the only value proposition left to consumers.

The real key to success in marketing is to offer more value than your competition. Prospects will pay twice the price if they believe they’re receiving four times more value. Unfortunately, most businesses in a vain attempt to increase their value begin to offer discounts, and that often destroys their margins. Did you know if some businesses discount their price by a mere 10% they now have to sell 50% more to break even?

Groupons are a popular way to generate traffic especially to restaurants, while effective at bringing customers, they have many disadvantages. Here are a few.

1. Splitting the revenue with Groupon
2. Customers go from one Groupon to the next
3. Too many customers at one time resulting in poor service.

My wife buys a lot of Groupons. There was a restaurant that we went to the last day, and they were out of a lot of items. We asked if they would extend the date and was told no.

So they lost a family of 6 ever going to their restaurant, and we got refunded. In addition, we told others of our experience, and they will never go to that restaurant again.

A better strategy would do a joint venture with other restaurants on a postcard or direct mail letter. Would have a special price for the meal and include a $10 or $20 gift card with that price. This would get you a visit now and in the future.

One last thing about Groupon, is that we have been to dozens of restaurants and do you know how many try to capture our contact information?

That would be zero.

While less than 20% of Groupon’s come back, it could be two-three times that if the restaurant would capture the contact info and follow up with Text Messaging, Email or Direct Mail.

STOP discounting! Instead, innovate your business, so you offer more value than your competition even if that means increasing your price. When you discount your price, you lose the full value of every dollar you discount. Bundling increases the perceived value, so prospects buy more.