"THE INDUSTRIOUS MARKETER" BLOG

Niche Marketing Strategy that Works Like Fly Paper

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If you're a B2B marketer anywhere in the English-speaking world and have searched the Web for best practices, there's a high probability that you've run across "Inbound Marketing" as advocated by HubSpot.

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The provocative set up.

Earlier today, I spied this LinkedIn question:  "What type of marketing campaigns work well to get attention of a target market for a B2B product? Would you use something like a cold call, letter, brochure, email, or other mailing?"

For me, posing such a question is akin to the toreador waving the red cape. I was compelled to answer; an edited version of which appears below. Hopefully, this fellow won't feel gored.  

The fly paper argument for B2B marketing.

Ok, let's say your B2B product involves....customized solutions....is niche focused...and your ideal customer can't easily justify internal resourcing to match your capability or capacity level. So you go to market with a full service client services approach, which adds critical value (by virtue of your niche market knowledge and attention to detail). This also differentiates your firm from the competition. And let's assume that you have ascertained that your target market believes that your offering is worth the cost and the effort, that you are prepared to communicate the value clearly and concisely, and that there are a sufficient number of targets to make it worth your while, too.

Are you with me so far? (i.e. you've nailed the initial strategy work on Product, Pricing, Market Size, Value Proposition, Positioning and Key Messages.)

Further, let's assume that by "get attention of a target market" you mean "generate qualified leads" that will fill your pipeline. In B2B, we tend to be focused on the terra firma of business development (sales and deal opportunities) rather than the abstract benefits of pure brand awareness.

Now, you can hunt for organizations that fit your ideal customer profile (or come close) by placing ads where your targets are likely to see them, exhibiting at trade shows they're likely to attend, and buying lists to send them info that will reach them directly (email, direct mail) or allow you to phone them, plus a number of other outbound marketing tactics. These efforts will connect you with some good prospects, but you'll also have wasted precious resources on finding the wrong sorts. Including some who've just completed purchase of an alternative or aren't really in the market for other reasons. Money down the drain, with a high opportunity cost.

Wouldn't it be better if you could attract the right sorts to your website in a manner that prompts them to contact you?  So that you can invest your finite resources on the highly qualified prospects?  Like fly paper. Makes sense, right?

Don't swat the air, entice and snare your targets. 

This is what Inbound Marketing is all about. It rejects outbound cold prospecting. Instead, it employs coordinated marketing tactics that expose, educate, engage, excite and enlist qualified prospects to reach out to you. Inbound Marketing leverages online techniques (e.g. web content, search engine optimization, social networking) and offline tactics (e.g. events, white papers, phone contact). While campaign designs vary widely, a key principle of Inbound Marketing is that it nurtures prospects based on their buying process stage. If Outbound Marketing interrupts with "I've got something to sell, wanna buy it?", Inbound Marketing joins the conversation with "Here's info you can use, wanna learn more?". It marries the best of marketing strategy (well designed Web sites, specific & relevant content on landing pages, keyword optimization, carefully crafted offers, etc.) with the best of consultative selling styles (industry knowledge, responsiveness to needs, attentiveness without stalking, relationship building, helpful information at the right time, etc.).

Generate demand and overcome objections.

In B2B we typically like to hook prospects early, before they've decided what the "best" solution is, so that we can mold their perception of value in a way that favors our offering. Inbound Marketing helps here, too. Moreover, it engages multiple people involved in the buying process, which helps overcome the dreaded "NO" gatekeeper problem.

Of course, certain campaign designs may work better in some circumstances than in others, or with one industry niche better than others. Industries develop dominant cultures/norms based on the inherent structure (scale, supply chain, regulatory constraints, location, etc.) and on prior experience of its people, since industries tend to hire leaders or experts with prior experience in similar businesses, who then perpetuate these norms. Here, too, Inbound Marketing tactics make it easier to refine and customize the prospect's interaction with you, making lead generation more efficient and effective.

Somewhat more effort, but exponentially greater yield.

Ah, you say, but isn't this a lot more work? Can't we just craft better copy that will increase response rates from print ads, PPC and search engine marketing?  And improve telemarketer/inside sales training? Well, you probably should do these things, too.  Making these improvements still leaves you groping and hoping that you'll see the fly and snatch it midair. With Inbound Marketing you set out the fly paper and watch 'em land and stick.  

Six B2B Essentials for Launching the "New New" Mousetrap

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The "new new" mousetrap is that thing that suddenly appears from nowhere and changes our lives. The paradigm shifter. The game changer. Whether the "new new" is service, manufactured good, or applied science, the marketer's challenge is huge. Your target customer hasn't a clue that they need it. And, even if they're intrigued, they probably lack what it takes to assess the potential value. Not a particularly auspicious set up for your sales team.  

Don't tell me, yada yada.  Prove it.

Why, then, do companies launch major new products on the naive premise that "show and tell" is a viable business development strategy?  It may happen in consumer-land, but in the B2B world, new concepts don't get scooped up by simply arriving on the scene.  Even the seemingly overnight successes cultivated their business opportunities very deliberately over time.

For argument's sake, let's assume that the venture backing the "new new" has enough funding to sustain the development period ahead, and that the core value proposition is both real and well articulated. 

With the basics in hand, here are six essentials for "new new" market development: 

#1   SALES BUILDS ON NICHE MARKET STRATEGY

In launching the "new new", you're up against skeptics and entrenched beliefs about business process that don't change easily. The marketer's job is to promote the benefits/advantages of change, to reduce the perceived risk of change in general, and the risk of selecting your particular solution. Niche strategies allow you to do the ground work more efficiently and to secure a core client base at lower cost. Focus on one or two specific market contexts where your solution presents distinct advantage over the alternatives. Niche strategies target very narrowly defined uses, in terms of vertical markets, functions or process supply chains.

#2  ASSEMBLE IRREFUTABLE LOGIC ABOUT THE VALUE

Define, document and quantify the value proposition in your market's language.  Do beta installations/set ups (for nothing, if you must) and get out there in the trenches to follow the value chain in order to prove the concept in use. Building a strong business case in one market niche will produce a fat file of references to help you jump to the next niche. Much, much faster.

#3   GET KNOWN FOR EXCEEDING EXPECTATIONS

Get known for the excellence with these first niches, then use them to network your way into additional sectors that have similar challenges. Provide clients with a "cookbook" on how to maximize the value of your product in use.  And be very specific without fear of giving away your secret sauce. Provide whatever client services support is necessary to make them successful users, even if that means contributing your expertise to assist in their process redesign if they won't or can't do it themselves. (You may find need to price in the consulting services; having testimonials attributing successful transition to your attentive client services will help.)

#4   EVERY CUSTOMER IS A CASE STUDY

Profile each new client's experience using your product, at all levels of use, in as many contexts as you can. Make the case study development bits part of your "onboarding" or "implementation" process--so that you can understand why and how they made the decision to use your "new new" from their perspective. Capture executive testimonials that attest that the value promised was delivered-and that your firm goes beyond. Then produce formal case studies that tell the story from the client's viewpoint. Write white papers that discuss the options and trade-offs, comparing your solution honestly.

#5   EXPLOIT NETWORK RELATIONSHIPS

Now, you're positioned to launch your "new new" into more niches. You have the data to back your unique selling proposition and real people who will vouch for how your company does business. Now you have something of interest to say, face-to-face, in print, on the web, at conference, et al. Substance that will help you sell. And contacts that you can ask to introduce you to others with similar problems or needs.

#6   SWITCH TO INBOUND MARKETING TACTICS

Inbound marketing educates, excites and engages prospects where they're looking for insight at different stages of their buying cycle. It's inherently a content marketing approach, but also fundamentally sales oriented. Web-centric integrated marketing infrastructure is vital; every tactic contributes to the overall success and metrics guide improvement.  Do it well and you'll pull your targeted prospects through the awareness-interest-specifications-commitment pipeline without wasting much on the tire kickers.  And since inbound marketing prompts prospects to contact you, this also means no more cold calls. Your sales team will love you. 

No magic, just good planning & diligent execution.

One final comment. There is no "magic bullet". It's not about the size of your ad budget, creative branding, or becoming a media darling. These things are admirable, but not sufficient. Marketing the "new new" requires the diligence, discipline and process quality approaches akin to what your product engineers do. Work that's not always so glamorous and definately not a one shot deal. The most effective B2B marketing is systematic to begin with and "new new" marketing requires more than the usual number of touches.

Don't be confused.  Your strategy doesn't position you to sell, it gets you aligned with how your prospect buys. In the case of a "new new" mousetrap, this means blasting a hole in their perceptions.  Because, frankly, they aren't even aware that they should buy what you're offering.

The Half-Life of B2B Marketing

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There’s no question that these are challenging times.

Doing more with less—or simply doing less—is an economic necessity.  You cut what you can, you keep what you must.

Across my network—across global industry—marketing and sales budgets have been slashed to the bone as business volume continues in freefall. The rationales vary. For some, this is a short-term tactic. Others restructure to drastically reduce above the line expenses to keep operating margins at target level—recognizing significant restructuring cost below the line, of course. And, then, there are the fortunate few in the right business at the right time who are capturing new business, yet still trim marketing spend because they [believe that they] can afford to. They’re all banking on the half-life of last year’s marketing effort to carry them through. And, when it comes to sustaining market awareness, it will.   

As if that were all that good marketing does.

What’s really expendable?

That, I find, depends on business orientation. If your game is managing the channel (wholesale distributor), you’re a marketing business by definition; customer retention and transactional efficiency are top priority. If you’re in an operating business that make things (manufacturer) or makes things happen (complex services provider), production, supply chain, and customer service will take precedence. In any case, for many engineering-oriented, operation-focused, sales-driven organizations, marketing isn’t strategic, it’s simply sales support.

Thus, the cuts. Leaving the business exposed.

We're talking game-changing risk.

Attending to restructuring and capacity shifts are mission critical. But the big risk is that you focus too much on what’s happening inside your company—and neglect your market. No, this isn’t about promotion, this is about how you will compete in the most dynamic business environment our generation has experienced. Unless you’re strictly a commodity business, your company’s future rests on your ability to deliver more value, more consistently, to more buyers who are like your best customers.     

Now is the time to invest in strategic marketing.

Mine that customer data in your CRM. Get your arms around distinct market segment needs, behaviors and trends. Probe the market to get research insight on what and where you need to tweak your offerings. Evaluate your portfolio, investigate expanding it via acquisitions or narrowing it via divestiture. Uncover new revenue streams and growth ideas. Forge new channel relationships and partnerships.  In other words, invest in your company’s future. 

Call it whatever you want. This is the marketing that industrial B2B needs now.     

What's more, do it well and your business development team will cheer.

Over the next several posts, The Industrious Marketer will drill down to what you can do on a tight budget (we’re realists, after all) to get started.   

DOWNLOAD OUR LATEST WHITE PAPER
In the meantime, read my recent post about B2B market research and download our B2B Point of View white paper "Ten Tips for B2B Market Research". 

B2B Market Research: Peer-less Insight

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Launching a blog, I’ve learned, is like trying out for American Idol.

You walk in thinking you’re the next great pop star and then—ephiphany!—you find that your destiny is to be the next great opera diva (a bit like the French soprano’s Natalie Dessay’s story).  It takes getting up on stage to find the right voice.

The Power of Authenticity. 

This is to say that, after some reflection (and target market feedback), we’re shifting the style a bit.  Less dense, more sporty. The Industrious Marketer’s goal is to add some insight on all things B2B marketing, but not necessarily to break new ground with every post.  And, for the blogger, a little less pressure and a lot more fun!

More Chapters Yet To Come. 

There remains a place for the serious, instructive, analytic, white papery content.  Allow me to introduce the new marketingFOLIO B2B Point of View Series.  The first article, “Ten Tips for B2B Market Research”, was modified from a 2006 client memo I wrote about the value of targeted research, input to a new strategic market segmentation initiative.  (We got the gig, which combined web-based “customer” surveys and in-depth industry executive interviews to capture full spectrum data.) 

Readings to Share.

After revamping the piece this week, I was happy to find two good articles that discuss trends in B2B market research.  The first came from eMarketer CEO Geoff Ramsey ("Why Now is Not a Good Time to Slash Your Market Research Budget") citing three recent studies (AdMedia Partners, Duke Univ/AMA, MarketResearchCareers) that suggest that B2B companies may actually use the current economic situation to advantage by investing more in research.  The second was a BtoB article ("Online Market Research Takes Off—Internet surveys combined with traditional research methods are becoming the norm") that echo’d my contention that support for B2B research suffers unnecessarily due to fear of small sample sizes.
 
Other than budget constraints, another pushback against research is “inside information”.  Not the SEC kind; I refer to senior executives who strictly rely on personal experience to guide strategy decisions. I’m always a bit shocked to find this, despite years of experience working for engineer-oriented, operations-focused, sales-driven companies that should have inured me to the insularity of it all.  Being customer-centric may be a stretch for some businesses, but to be customer deaf is a problem.  Especially now, as market norms are shape-shifting as we watch.

As the saying goes, knowledge is power. 

Don't Mistake Responsiveness for Strategy

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It was a perfectly reasonable question from today's LinkedIn questions: 

During the current economic crisis, have you and your organisation actively reviewed your sales strategy or are you simply responding tactically?

And my well-reasoned answer was totally wrong.  My first thought was, yes, our clients have hunkered down and made certain adjustments and sacrifices. (Read my full LinkedIn Answer here.) They're focused on getting marketing and sales priorities aligned, and have narrowed target market initiatives to the essential value propositions that help prospects/customers save money, save money, or stretch existing resources most.  While Marketing still invests in long term brand awareness, there's much greater emphasis on pipeline filling lead generation programs.  Sales is concentrating on near term new business deals and doing whatever it takes to retain existing customer relationships.  They are doing what comes naturally, working more collaboratively and with a new urgency of disciplined purpose and process.

But then, I thought, these are all just tactical responses, aren't they?  Sure are.

What strategic responses would address what may be a lingering global economic malaise?

• Prove the value of trusted relationships; assemble the best insights and ideas for improvement and bring them to the customer now
• Innovate new products quickly, to fill the gaps exposed by market weakness; get trusted customers involved in beta iterations
• Look beyond the organizational boundaries and find ways to collaborate now with supply chain partners (and even competitors) 

Tactics feel productive. Strategy is painful.  Collaboration, in particular, has potential to drive new value and new opportunities with both short term and long term impact.  Our research in late 2008 probing how executives make decisions on B2B outsourcing found that industry execs want specialist providers to work in concert and fashion solutions, not just provide quality in their distinct realms.  And this goes way beyond operations, by the way.  Market intelligence consortiums.  Multi-client systems or process management.  Multi-company national account sales teams, cooperating with firms that you partner with but don't directly compete with. This isn't an updated version of "synergy", it's an entirely different way of thinking about commercial strategy.

The momentum of change has started, by economic force majeur, if not by design.  We'll see whether B2B leaders have the capacity, creativity and commitment to use it productively. Now.

The Great Industrial Marketing Treasure Hunt

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The more we champion new tools that make marketing and business development more efficient and effective, the more resistance we encounter.

Is this human nature at work or humans not working to get strategic alignment?

In the last month, senior B2B managers in my network have related their challenges in convincing C-level execs that it's time for a change in marketing and sales process. 

Lest you think this is just an "early adopter" social media marketing issue, it's not.    

• A basic CRM implementation that still isn't catching fire a year after launch because the five sales guys won't share info and the CEO won't press the issue.
  
  
• A well conceived CRM set up that manages the pipeline just fine (for Sales Management) but which Marketing can't rely on for direct marketing or lead nurturing programs due to a huge bad data problem.  Sales points at Marketing for support; Marketing points back for better input; collaboration is at a stand still.
  
  
• A company with a Web-centric integrated marketing strategy whose CEO concedes that prospects do, in fact, use the Internet as the first step to finding solutions, but won't acknowledge the qualified leads now originating from that channel (despite documentation). 
  
  
• An industrial services marketing team whose proposed web-oriented marketing plan (email, SEM, inbound marketing) was dismissed by the new CEO as unnecessary--because his former company didn't do such things. 
  

Finding the buried treasure isn't as simple as reading the map.

What's the root cause here?  In operations-focused, sales-driven industrial companies, the comfort level with Marketing and Strategy is often low to nil.  And we Marketers can be our own worst enemies if we fail to lay the ground work to secure top exec buy-in before introducing new methods and job-changing process improvements.  This is "show me the money" kind of spade work.   

Last month, the B2B Social Marketing group on LinkedIn engaged in a lively discussion of these issues (Join the group and search for the discussion thread: "Why do you think social media is a hard sell for B2B?") and Chris Brogan provocatively prodded for comments (and got dozens) about: "The B2B vs. B2C Thing" 

What are your stories of treasure sought, fought for, and won or lost?

I invite you to add your comments and tales from experience.  In 2009 marketingFOLIO will address these issues on a regular basis and blog about case studies that exude success.  

What would Darwin do?

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Having just marked the 150th anniversary of publication of Darwin's Origin of the Species, I was struck by this line in John Mariotti's latest comments in his e-newsletter "The Enterprise":

"Innovation is the only true path to profitable growth."

Origin of Innovation

A former manufacturing industry executive and author of The Complexity Crisis (2008), John offers tough love for businesses struggling with the dismal economy.  Companies, he says, are trapped by complexity: too many products, too many layers of management, too many markets.  And complexity steals attention from what's really important: a laser focus on understanding markets and producing what customers value. As he points out, if you really analyze profitability by product and account, most of the economic value comes from the top quartile--while the bottom 25% is "almost all losers, destroying value and consuming valuable resources."  

To survive this recessionary challenge, John says, you must  dump the bottom, refocus and innovate.  Don't forget, he chides, "profitability is the goal, not just sales for growth sake." In other words, Natural Selection, business style: 

• do the math and dump your marginal sales
• reduce complexity and free up your time to innovate 
• rethink what you offer and where the real value lurks--and consider new technology factors
• get help, if you need it!

Manage Your Own Selection

Whether you're a large enterprise or a small business, here are three things you can get started quickly to adapt to the new opportunities:

Analyze your profitability by account and by offering.  If you haven't done this already, do it now. Get enough insight to take action. You can iterate later. 

Know your value to your customers. Not your margin--dig into the economic value they derive, directly and indirectly. Expore it, quantify it, verify it and share it externally (sales presentations, case studies) and internally. 

Build a simple segmentation model, a visual map of your ideal customer by offering. Pick segmentation variables that will help you assess competitive market opportunity:  Is it real?  Is it worth it?  Can we win?