Ask your question ... sign up today! It's FREE!
Strategy   URGENT - Need Help Fast!  
 
This question has been closed, and points have been awarded.
Relevance Of B2c Experience For B2b Marketing
Posted By: jason.koulouras* on 10/12/2004 1:00 PM (CST) 327 Points
Hi all, I have been prospecting for a Product Marketing Manager for my group - data/information product management, and product marketing (not including marcomms areas of responsibility)

I have had a number of candidates cross my desk and have interviewed them. They all seem to have a number of the right attributes I am looking for in terms of focus on ROI, marketing has to be measurable, target audience segmentation, lead generation, customer acqusition etc in rough accordance with the model from Pragmatic Marketing - link cited below

http://www.productmarketing.com/magazine/1/2/07sj.htm

However, the large majority of our target and existing customers are in the business space - i.e. it is a B2B environment as opposed to B2C. I have not worked in a B2C environment

As such, I am not sure what if any differences between B2B and B2C are relevant to my decision process or is it the case that I am getting hung up on a label and the differences are trivial....

If I have not passed enough information please advise and I would be pleased to add more if required

Thanks in advance
Jason

Posted by: Rick Sebok* Accepted Answer
10/12/2004 1:14 PM (CST)
In general, marketing (as a function) is more more valued in consumer businesses. As such, the biggest diff in my experience is the presence of a sales force in b2b and the responsibility they feel to protect their turf (knowledge of and interaction with the customer). This puts a crimp on the research-based quantifiable understanding of customers and their attitudes which drives consumer marketing.

Another big difference is the mistake that many b2b marketers make in assuming too much interest and knowledge on the part of their prospects.

Specific thoughts on marketing activities (from a networking group to which I belong):

1. Comparison of B2C and B2B Positioning, Branding
- This is the area that is most similar
– the need to communicate a compelling message; standard marketing communication approaches and skills apply.
- B2B branding has little to do with advertising and relies on orchestrating and controlling direct interactions (sales forces, call centers, trade shows) as well as web sites, white papers and case studies. Marketing must influence others in the organization to build the brand.

2. Targeting, Segmentation, Needs Analysis, Buying Processes
- These concepts apply to both B2B and B2C - an emphasis on understanding customers and competitors
- The B2B driver is usually VALUE – cost savings, productivity increases, and revenue generation. The soft influences are harder to identify and are aspects like: who will make my job easier? Who is more reliable? Who is most responsive when I have a problem? Whose invoices are easier to reconcile? Who makes me look good in front of my boss? Who sends cookies/plays golf…?
- In B2B businesses, there are fewer, identifiable buyers. Segments tend to be company size and industry; sometimes stage in company’s development.
- B2B: often a more complex decision process, with multiple decision makers or influencers involved, each with own language and needs. The B2B buying process is often longer and may involve extended evaluations and trials.
- B2C: more reliance on research-driven, quantifiable understanding of customers, their functional and emotional needs, attitudes that drive purchase
- B2B understanding of customer needs tends to be more anecdotal (and sometimes is incorrect). Several mentioned that too much interest or knowledge on the part of the prospect is often assumed.
- Downsides: “Many B2B people fall in love with their products and don’t see them through their customer’s eyes.” “Customer based principles are often underutilized.”

3. Product
- B2B products are typically far more customized and seldom as standardized as in B2C. Complexity is often hidden from retail consumers, but transparent to B2B buyers.
- Larger Marketing time allocation to identifying and resolving operational issues in B2B.
- Products must fit within customer’s supply chain or other processes.

4. Price
- B2B is more often uniquely priced for each customer than B2C.

5. Promotion
- B2C often relies on mass advertising or grass roots PR, supported by web sites.
- B2B supports OEM or direct sales with seminars, webinars, trade shows, partnerships, and conferences.
- Importance of PR and reference sales in some B2B categories
- Targeted direct mail and advertising found in both B2C, B2B
- Lead generation important in both.
- Less money is typically spent overall in B2B promotion.

6. Distribution
- Far stronger reliance upon personal sales in B2B. (B2C seeks more broad distribution channels.)
- Sales force has more political power internally and over customer relationships.
- Specialized distributors also common.
- Larger opportunity to utilize technology to monitor and control the point of customer contact (sales and service) in B2B.

7. Service Delivery, Retention
- The concepts apply in both areas, and maintaining business relationships may be more critical to B2B. Reliance on “after sales’ support and the sales person ndividual contacts and initiative.
- B2C is more advanced in applying loyalty and customer relationship management (CRM) principles and implementing formal programs to retain customers and deepen customer relationships.
- B2C is more experienced in identifying and working toward an “ideal experience’ from the customer’s point of view.

Hope this helps,
Rick
 
Posted by: jason.koulouras* Author Response
10/12/2004 1:15 PM (CST)
Wow, thanks for the kickoff Rick - that is a fabulous start

Cheers
Jason
 
Posted by: SRyan ;] Member Response
10/12/2004 2:00 PM (CST)
Hi, Jason...

I'd say that experience managing data/info products is more relevant, B2C or B2B notwithstanding.

Let me make sure that I understand your dilemma, however. You've got some good job candidates with B2C marketing backgrounds, and you are wondering if talent and experience in that realm will transfer successfully to the B2B universe. Is that right?

Shelley
 
Posted by: jason.koulouras* Author Response
10/12/2004 2:06 PM (CST)
Shelley, that is correct - in essence what are the potential trips and traps and conversely potential positives of a B2C person coming into B2B

Thanks for posting

Cheers
Jason
 
Posted by: MRowland Accepted Answer
10/12/2004 2:20 PM (CST)
Jason,

The traps are there if the candidate is used to selling in a short sales cycle environment. Meaning, if they are used to selling consumer products where an offer results in an immediate sale, they will have a hard time in the B2B environment. Most of the B2C marketers that I have worked with have a short term campaign focus upon acquisition/sale and then upsell in future campaigns.

Most of the B2B marketers that I've worked with understand that the education cycle is longer, there is more interaction with sales teams (and relationship management/politics), and that they may never know if their efforts resulted in a sale. There is no immediate gratification in other words...

In interviewing candidates, I would question along behaviours in managing programs and their expectations for B2B results. Ask what they've done that failed miserably and what they learned that could be applicable in your organization (we all learn from our failures). Ask the candidate to describe who they have marketed to and follow up with what they see as the differences between that group and your target audience. Lastly, present them with a situation regarding marketing your solution and ask them for how they would handle it and who they would involve. This type of interviewing technique should deliver better results for you.

There is no silver bullet here though. I've seen B2C folks really invigorate a B2B environment as well as fall on their faces and not deliver. The converse holds true as well. A creative person that understands your audience and its behaviours is the best candidate, whether they come from B2B or B2C.

Good luck!

Regards,

Mike
Impact Interactions
Building Strategic Interactions for Business Online
 
Posted by: jason.koulouras* Author Response
10/12/2004 2:23 PM (CST)
Thanks for the post Mike - getting some great ideas here how to approach this

Cheers
Jason
 
Posted by: Peter (henna gaijin) Accepted Answer
10/12/2004 3:47 PM (CST)
Great responses above.

One other difference is the sales driver in B2B versus B2C. In B2B, it is value, but there is also the added concern by the person making the decision about how the decision will impact their career (specifically, that a bad decision would ruin their career).

Product management/marketing positions often look for people with specific industry experience (not the generic level of B2B vs. B2C, but that the people have worked with similar customers to yours in the past). If you can get past this, then whether they are B2B or B2C probably won't be an issue.
 
Posted by: SteveByrneBranding Accepted Answer
10/12/2004 5:12 PM (CST)
Jason,

The differences are not trivial -- they have some significance as well pointed out in the above posts. However, it might serve you to look at the other side which is how are B2B and B2C similar. INHO they are more the same than different. The basic’s of marketing and the process of marketing are the same with variations – but there are variations from one B2B situation to another.

If it were me and I had an outstanding candidate in every area except specific B2B experience, I would strongly consider hiring that person anyway.

Hope this helps,

- Steve
 
Posted by: telemoxie Accepted Answer
10/12/2004 9:06 PM (CST)
Another issue relates to the attitudes of business owners about allocating resources to marketing. Most of my personal experience is B2B, and I have worked with many owners of technical B2B businesses who feel that, since they have a "better moustrap", they need not invest heavily in Marketing...

... while this is a frequent and unfortunate but not entirely unexpected phenomena, your candidates with B2C experience, if hired, might quickly become disilliusioned by the reluctance of your B2C business owner to spend "enough" money on marketing and promotion.
 
Posted by: AndrewS Accepted Answer
10/13/2004 3:42 AM (CST)
B2C is getting more relevant in the B2B markets.

I have a full B2B background.
Both markets are different, especially around promotion, but they key area we are starting to overlap with B2C is in data and segmentation and the tools and techniques that B2C use.
At last B2B is becoming more sophisticated with segmentation and how they target prospects :-)

So if any of your guys have a B2C segmentation/profiling/data background, they should serve you well.

Good luck with your search.
 
Posted by: D4Demand Accepted Answer
10/14/2004 12:35 PM (CST)
Bringing a B2C marketer inhouse may be a HUGE differentiator for your company in your industry . It can put real horsepower into a company whose only data source is daily sales and weekly profits.

DO IT is you can. Remember the market is still the same size -- 3 pounds of grey matter. The number of them is smaller.

Ask the B2C candidate what tools he is used to having at his disposal. Then see what s/he says to these differences.

Why?

Because there is usually a culture shock for th B2C guys who move to B2B. B2B marketing will be rather easy for the B2C guys to pick up IF AND ONLY IF they can deal with the folowing realities. It has more to do with the culture than skills.

Here is what they will have to adapt to.

1) There is no Scandata.
Finding reliable product response data is nearly impossible in the B2B arena. Forget profiling, lifestyle segmentation and all the other tools B2C guys rely on. They don't matter here.

2) Scoring is different.
Many B2C guys/gals are thrilled when their market share goes up 2 tenths of a point. B2B is zero sum in most cases. The feedback is slower, and so is the pace.

3) B2B has no broadcast budget.
For the most part B2B is one to one marketing at its finest. All the customers can actually be counted and met. As a result, THERE IS NO REMOTE CONTROL. B2C guys/gals who like pushing the buttons behind the scenes may not be at al comfortable on the tradeshow floor.

4) B2B demands integrity
No fluff promises make it through the B2B censors. The product either helps the customer make more profits, or it doesn't. No more B2C smoke blowing or puffery.

5) They have to be able to do it all by themselves.
If your company is like most, the marketing department has a micro sized staff. The B2C marketer might want to have "My guy" take care of that for him. In B2B there is no "my guy" to assist, its up to the marketer himself.
 
Posted by: Stokefire* Accepted Answer
10/14/2004 2:29 PM (CST)
Quick recommendation:

If this is your first marketing manager hire I'd suggest sticking with someone who has experience in the B2B arena. Ideally someone with both B2B and B2C - since B2C often gets a little more 'out there' and the practice tends to push the boundaries a bit more than B2B.

As a secondary hire I'd strongly consider adding in the counterpart - perhaps a more junior hire with heavier experience in B2C.

My reasoning - You're going to want your marketing lead to know what tools are available to B2B, who the market contacts are, what the deliverables are.... Let him or her hire that less experienced risk taker to help the company break down barriers.

I can also see exactly the opposite case, of course - much like the CEOs that are hired from other industries to 'kick-start' a market laggard. If you're hurting as a company you could try this... I still would put my money on buying the experienced leader and letting them hire the ambitious and risk-taking upstarts.

Tate
 
Posted by: jason.koulouras* Author Response
10/14/2004 2:39 PM (CST)
Great feedback everyone - I did an interview yesterday and incoprorated some of the ideas offered here into the interview.

I will be leaving this open for another day and then close with summation comments and highlight some of the comments I found most valuable

Thanks
Jason
 
Posted by: jason.koulouras* Author Response
10/18/2004 1:19 PM (CST)
As promised here is an extract of the comments and advice I found most helpful:

Rick Sebok:
"2. Targeting, Segmentation, Needs Analysis, Buying Processes
- These concepts apply to both B2B and B2C - an emphasis on understanding customers and competitors
- The B2B driver is usually VALUE – cost savings, productivity increases, and revenue generation. The soft influences are harder to identify and are aspects like: who will make my job easier? Who is more reliable? Who is most responsive when I have a problem? Whose invoices are easier to reconcile? Who makes me look good in front of my boss? Who sends cookies/plays golf…?
- In B2B businesses, there are fewer, identifiable buyers. Segments tend to be company size and industry; sometimes stage in company’s development.
- B2B: often a more complex decision process, with multiple decision makers or influencers involved, each with own language and needs. The B2B buying process is often longer and may involve extended evaluations and trials.
- B2C: more reliance on research-driven, quantifiable understanding of customers, their functional and emotional needs, attitudes that drive purchase "

MRowland:
"In interviewing candidates, I would question along behaviours in managing programs and their expectations for B2B results. Ask what they've done that failed miserably and what they learned that could be applicable in your organization (we all learn from our failures). Ask the candidate to describe who they have marketed to and follow up with what they see as the differences between that group and your target audience. Lastly, present them with a situation regarding marketing your solution and ask them for how they would handle it and who they would involve. This type of interviewing technique should deliver better results for you."

Peter:
"Product management/marketing positions often look for people with specific industry experience (not the generic level of B2B vs. B2C, but that the people have worked with similar customers to yours in the past). If you can get past this, then whether they are B2B or B2C probably won't be an issue."

SteveB:
"If it were me and I had an outstanding candidate in every area except specific B2B experience, I would strongly consider hiring that person anyway. "

Telemoxie:
"Another issue relates to the attitudes of business owners about allocating resources to marketing. Most of my personal experience is B2B, and I have worked with many owners of technical B2B businesses who feel that, since they have a "better moustrap", they need not invest heavily in Marketing...

... while this is a frequent and unfortunate but not entirely unexpected phenomena, your candidates with B2C experience, if hired, might quickly become disilliusioned by the reluctance of your B2C business owner to spend "enough" money on marketing and promotion."

AndrewS:
"So if any of your guys have a B2C segmentation/profiling/data background, they should serve you well."

D4Demand:
"3) B2B has no broadcast budget.
For the most part B2B is one to one marketing at its finest. All the customers can actually be counted and met. As a result, THERE IS NO REMOTE CONTROL. B2C guys/gals who like pushing the buttons behind the scenes may not be at al comfortable on the tradeshow floor.

4) B2B demands integrity
No fluff promises make it through the B2B censors. The product either helps the customer make more profits, or it doesn't. No more B2C smoke blowing or puffery.

5) They have to be able to do it all by themselves.
If your company is like most, the marketing department has a micro sized staff. The B2C marketer might want to have "My guy" take care of that for him. In B2B there is no "my guy" to assist, its up to the marketer himself"

Secured:
"If this is your first marketing manager hire I'd suggest sticking with someone who has experience in the B2B arena. Ideally someone with both B2B and B2C - since B2C often gets a little more 'out there' and the practice tends to push the boundaries a bit more than B2B.

As a secondary hire I'd strongly consider adding in the counterpart - perhaps a more junior hire with heavier experience in B2C.

My reasoning - You're going to want your marketing lead to know what tools are available to B2B, who the market contacts are, what the deliverables are.... Let him or her hire that less experienced risk taker to help the company break down barriers.

I can also see exactly the opposite case, of course - much like the CEOs that are hired from other industries to 'kick-start' a market laggard. If you're hurting as a company you could try this... I still would put my money on buying the experienced leader and letting them hire the ambitious and risk-taking upstarts."

Many thanks again for all the responses and interest. I have winnowed down the candidates to three - 1 is primary B2C background, and 2 are B2B. Great insight and value here from the my posted question!

Cheers
Jason
 
Posted by: avinav2006* Member Response
3/4/2005 12:02 AM (CST)
There are various critical points where the consumer marketing differs from B2B.I agree with Rick, However there is a more technology usage in a B2B setting.

Say an IT company who are targeting the banking domain with their software. Issues :-
1. How do they reach to the target ?(apart from direct sales)
2.Create a word of mouth?
3. Brand their solution vis a vis competition?
4.Create awareness and education?

Reaching the target audience
The first step is to identify who are the decision making points and what do they read and see and hear (media Points)
A need analysis at this stage may be usefull.

Create a word of mouth and awareness
There are various tools adopted like educating seminars- calling the existing clients to upgrade.
There is a press campaign in the trade media read by the sector

Participation in Trade shows and conference to generate awareness and get genuine business querries

A competitive analysis would reveal the solutions which exist in the market, their positioning/pricing and other feature-benefit maping.
Matching this with the need analysis will create the positioning .
Branding here means that the message communicated is consistent and reaches through every medium about the product.

I am in the process of compiling a book with case studies in B2B marketing. For cosultation feel free to get in touch with me avinav2006@yahoo.com
 


Get more answers ... ReTweet this!

Would you like to post a response?
Welcome to Know-How Exchange!
This is a collaborative community. We welcome everyone's participation.
All you need to do is login. Enter your account info in the box above (top right).
Not a member? Not a problem. Register here (it's FREE and EASY).




Know-How Exchange powered by MarketingProfs


Sponsored Links

Buy a Link Now

Just Released ... Download Today!
Just Released ... Download Today!
Look inside
User Name:
Password:
Remember Me
Forgot your password?

Top 25 KHE Experts
(Strategy)
ASVP/ChrisB (39399)
Jay Hamilton-Roth (37964)
mgoodman (33759)
mbarber (29493)
Frank Hurtte (25534)
W.M.M.A. (24591)
telemoxie (24052)
CarolBlaha (22078)
wnelson (18720)
Peter (henna gaijin) (17108)
NuCoPro (16186)
michael (16156)
stevea (13364)
thinkmor (10820)
PhilGrisolia=Results (10684)
SteveByrneBranding (9958)
Gary Bloomer (9531)
Puru Gupta (8985)
Deremiah *CPE (8318)
Wiglaf (8292)
SRyan ;] (7862)
darcy.moen (7712)
Pepper Blue (7080)
Mikee (6119)
Michele (5978)
Recently Posted Marketing Jobs
Senior Marketing Associate
Demand Generation Sr. Manager
Web Consultant
Director of Marketing & Community
Content Acquisition Manager
Marketing Manager
Senior Marketing Executive - ICIS Americas
Vice President, Marketing
[more jobs]

Join over 357,000 members ... SIGN UP!

My email address is and I'd like my password to be .

Already a member? Sign In!

My email address is , and my password is .


HACKER SAFE certified sites prevent over 99.9% of hacker crime.