Framework of each point -
I. Importance
II. Model
Or
III. Example
----
1. Keep It Simple
● We see simple messages by successful consumer marketing giants all the time (e.g.,
Apple). They completely eschew jargon or industry terms and instead use simple and
direct words. What they convey isn’t specifications and features, but rather how the
product can change the customer’s life and make it better.Given the fact that customers
are the same human beings who engage with consumer products, why do B2B firms think
that they have to market messages to them so differently when they’re at the office?
IBM
● It has hundreds of products and services in dozens of categories. Yet one key product
represents everything about IBM and why working work with them is the best
option:Watson.
● Once a machine, now just a logo (the visual cue), Watson encompasses everything that
makes IBM the first choice for large-scale corporate computing. For a few years, Watson
meant supercomputing ,then the computing world cast its eyes on cloud computing, and
Watson became the enabler of the cloud. Now artificial intelligence is on everyone's
mind.
● Watson has been the guide into each of these categories. IBM never starts by talking
about the implications of supercomputing, the cloud, or AI at the start. That information
is much farther down the communications chain. It is the existence of Watson that gives
us a single word and image that guide our thinking about IBM. Simple.
HAMILTON
● Hamilton Casters of Hamilton, Ohio, maker of those little caster wheels on rolling
boxes and equipment. They manufacture the toughest casters in the world. How
do we know this? Because their messaging is so simple, and they make the
purchasing decision so easy, there's really no incentive to look elsewhere: our
brains have one simple answer.
● Look at any Hamilton ad. It has a single message. A visual that locks their
audience into the message. Seventy words of copy make the decision seem more
rational than emotional.
● All of these elements guide readers to an (almost) equally simple website that
asks, "What's your business? Here's your answer." The message never varies. And
all this disciplined, creative, fun communication is about little wheels for
businesses. It's radically simple.
2. Clear Positioning & Differentiation
3. Customer-Centricity
○ · As B2B offerings become ever more commoditized, the subjective or
personal concerns that business customers have relating to the purchase process
gain importance.
○ This is a chart of B2B elements of value that identifies 40 fundamental “elements
of value.” which fall into five categories: table stakes, functional, ease of doing
business, individual, and inspirational.
○ · This B2B model sorts the elements into the levels of a pyramid, with those
providing more objective value at the base and those that offer more subjective
value higher up.
○ It is basically derived from the Maslows Hierarchy of needs, but it refers to
business purchases.
○ b2b companies need to focus on the subjective part.
○ · At the base of the pyramid are the table stakes which refer to meeting
specifications at an acceptable price and compliance with regulations while also
abiding by ethical standards.
○ Above the table stakes are functional elements, which address companies’
economic or product performance needs, such as cost reduction and scalability.
As both buyers and sellers, B2B companies still focus most of their energy on
functional elements.
○ Elements within the third level make it easier to do business; some provide
purely objective types of value, by, say, increasing a customer’s productivity
(time savings, reduced effort) or improving its operational performance
(simplification, organization).
○ But here under the relationship head we encounter the first set of elements
that involve subjective judgments from buyers. They include things that enhance
relationships between parties, such as a good cultural fit and a seller’s
commitment to the customer organization.
○ The elements at the next level provide additional types of subjective value,
addressing individual buyers’ priorities, whether they are personal (reduced
anxiety, appealing design and aesthetics) or career related (increased
marketability or network expansion.)
○ Here the elements of value can address highly emotional concerns. So, in a
nutshell b2b companies need to focus on the subjective part.
○ Deloitte has found that customer-centric brands are 60% more profitable than
companies not focused on the customer.
○ Gallup pointed out that 71% of B2B buyers are either disengaged or indifferent
to their vendors, representing a major threat of defection not because of a weak
product or service, but rather because of a lack of customer focus
○
4. Data-Driven
5. Messaging that Stands Out
6. Evoke an Emotional Response
1. Building emotional connections with your audience is one of the most powerful things
your business can do for your brand (line for ppt)
· Take the example of Xerox, which used emotionally positive paid ads to sell their
Genuine Rewards program.
· Let’s be honest: Of all the elements that make up a professional office,
photocopiers are probably the least fun. Yet in a campaign that reinforced the
motivational aspect of a rewards program, Xerox used goofy content videos to sell the
program to team leaders looking to motivate their employees.
· The Genuine Xerox Rewards (GXR) program awards customers points for the
toner and solid ink they purchase for their Xerox equipment which they can redeem for a
wide variety of business related or personal merchandise and vouchers.
· It was the first-of-its kind loyalty program in the printing and imaging industry
which included the purchase of Xerox branded supplies for non-Xerox printers.
· Leveraging its expertise in printer and toner technology, Xerox offers toner
cartridges and supplies for competitors’ laser printers.
· PLAY VIDEO
2) A McKinsey study found that the main driver of B2B purchases specifically is risk
reduction (45% weighting in the decision) (line for ppt)
A study shows that with B2B purchases, considerations such as whether a product
can enhance the buyer’s reputation or reduce anxiety play a large role.
● Consider one U.S. telecommunications provider’s decision to upgrade its
fiber-optic video service several years ago. It chose a China-based vendor that
offered the lowest price and looked good on paper.
● Once installed, however, the new network was plagued with outages, and the
telecom firm had to deal with technical support based 12 hours away in China.
From the customer’s perspective, the vendor’s poor communication and
relationship missteps such as launching major changes without notice were big
problems.
● Though the firm eventually switched network vendors, it wasted a great deal of
time and money and took a hit to its reputation with customers. This goes to show
why some suppliers benefit from offering risk reduction and providing
reputational assurance to individuals who are accountable for purchases.
