Question

Topic: Career/Training

B2b High Tech Vs Cpg Marketing....the Same?

Posted by Anonymous on 5/17/2008 at 8:57 PM ET 500 Points
I'm in a recently acquired $30M tech division of a humongous ($6B) CPG Enterprise, most of their business is retail commodity goods. Of course they (or is it we) have superior brands and better products :) . I am being told by all the CPG marketers that "marketing is marketing whether you are selling toothpaste or CRM software". We have a niche, latent need B2B software product selling primarily through IT distributors and direct to consumer through the web at about a $200-400 price point. I feel like every time i go to a marketing training course i'm being brain washed. Seems to me it's like asking an internist to do brain surgery because he's got the same basic training as a neuro surgeon. Do i just given in and go with the flow or exhibit some managerial courage and tell them it just ain't so once you get past the very basics.
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by Shekar Prabhakar on 5/18/2008 at 5:30 AM Member
    They are right to the extent that the marketing fundamentals change because of the industry characteristics. The main difference between B2B and B2C is in the deeper understanding of individual customers required, the higher level of engagement with prospects before conversion, the spending of more marketing dollars further down the decision cycle as against upfront in a CPG.

    Some differences...hope it helps.

    Shekar Prabhakar
  • Posted by Jay Hamilton-Roth on 5/18/2008 at 8:47 AM Member
    In your opinion, what are the key differentiators? Can you back this up with studies, white papers, books, or other articles? Or, are you annoyed because your vision of marketing doesn't match theirs? Perhaps having a heart-to-heart with the (new) head of marketing would be good for you professionally (to get mentorship) and emotionally (to make sure your concerns are understood).

    At it's core, marketing is marketing. The types of messages and the tools that you use vary, but the fundamentals of understanding your market well, identifying their problem, ensuring your position in solving the problem, and building trust is universal. The language you use, the benefit statement, the lifetime value of a customer, the sales cycle, they all differ.
  • Posted on 5/18/2008 at 10:42 AM Author
    Yes, as Jay has pointed out, at its core marketing is marketing.

    But the devil is in the details. If you have a CPG marketing hammer in your hand everything looks like a nail. In this case a $2 mass market commodity consumer product - they want to use the same types of messages and tools - they are stuck in a rut. Direct to consumer, ecommerce, nuturing leads to sale rather than "buy now 20% off", 70%GM with 30% A&P (more on launches) and 15% R&D are all foreign concepts. The best example is their consumer driven stage gate process for product development. Lots of good principles to apply, but following the letter of the law as we are urged to do and it would take us 2 years and a lot of $ and human resoucreces to get a product to market. Sometimes that would be a good thing, but mostly it's not consistent with the rapid pace of tech.

    As for aligning business and brand strategies there's not a lot in common with what we currently do and that's probably the root of the problem and my frustration.
  • Posted by Frank Hurtte on 5/18/2008 at 9:43 PM Member
    I believe that selling technical products to businesses is much different than selling products to consumers.

    I have seen companies try. I have seen products driven down the drain. You are absolutely right in thinking there should be a difference.

    Drill down, ask them to identify the reasons for buying. Don't help them... just set back and see if they really have any ideas....

  • Posted on 5/20/2008 at 11:24 AM Accepted
    In one sense, they are right. Whether it's b-to-b or b-to-c you have to address the pain/solution question, regardless of whether you are selling software or toothpaste.

    Business to business buyers are still consumers, but they are consumers acting on behalf of a company, and spending the company's money, rather than their own.

    However, there are important differences. B-to-b purchases are typically larger, need more levels of approval, take longer, require more information, and more nurturing of leads. For instance, technical buyers often want a "spec sheet" for a computer purchase, but nobody asks for technical details about a tube of toothpaste.

    I think the underlying premises are similar, but it's critical to keep the differences in mind when you develop your marketing.
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Career/Training)