Andys Blog
Andy Graham is the founder of One
Brand Group. He's positively brimming
with thoughts and ideas, not just about
B2B marketing, but about other things too.
Have a read, or – if you'd prefer to have a conversation – get in touch.
More thoughts here at Andy's site.
Have a read, or – if you'd prefer to have a conversation – get in touch.
More thoughts here at Andy's site.
Failure is not an option - it is essential
29/07/2010
Recession-proofing the marketing strategy
29/07/2010
29/07/2010
Recession-proofing the marketing strategy
29/07/2010
B2B is different - or is it?
Added 26 November 2006
Over the past 6 years we have taken a position to provide competitive advantage to B2B companies using the intangible powers of marketing. This focus has given us the opportunity to observe the most common perceived differences in marketing terms between B2C and B2B. From the evidence we could be excused for concluding that B2C marketing principles are fundamentally different to B2B. We argue that the mix might be different but the principles are the same.
It is true that B2C businesses overall spend significantly more of their marketing budget on marketing communications creating value by focussing their investment in the softer marketing activities.
For example the Red Bull marketing communications budget reportedly represents a staggering 30% of revenue. Marketing communications is their differentiator; investing in two formula 1 racing teams and the air racing series not to mention their traditional media spend, whilst their product is ubiquitous year on year. Coca Cola achieved the dominant position by consistently spending 10% of revenue on marketing, again the product remains the same (when they did try and change the taste, there was a very expensive customer backlash). Similarly Heinz beans or Marmite, the product stays the same the marketing message moves with the times. Even Levi jeans arguably make stylistic rather than true product developments.
And B2B invests marketing budget in harder marketing activities, often spending up to 10% of revenue on new product development to achieve their competitive advantage in the market place. On the evidence and from our experience it appears that an understanding of the value of a consumer approach is alien to most B2B companies, but this does not mean it is wrong or without value to them, quite the contrary. Often the B2B marketing manager or director desires to implement a consumer-like initiative but is likely pushed back leading to considerable frustration - we are here to explain; to support a more objective rounded view of the value of different marketing activities and how to spot gaps and opportunities.
Added 26 November 2006
Over the past 6 years we have taken a position to provide competitive advantage to B2B companies using the intangible powers of marketing. This focus has given us the opportunity to observe the most common perceived differences in marketing terms between B2C and B2B. From the evidence we could be excused for concluding that B2C marketing principles are fundamentally different to B2B. We argue that the mix might be different but the principles are the same.
It is true that B2C businesses overall spend significantly more of their marketing budget on marketing communications creating value by focussing their investment in the softer marketing activities.
For example the Red Bull marketing communications budget reportedly represents a staggering 30% of revenue. Marketing communications is their differentiator; investing in two formula 1 racing teams and the air racing series not to mention their traditional media spend, whilst their product is ubiquitous year on year. Coca Cola achieved the dominant position by consistently spending 10% of revenue on marketing, again the product remains the same (when they did try and change the taste, there was a very expensive customer backlash). Similarly Heinz beans or Marmite, the product stays the same the marketing message moves with the times. Even Levi jeans arguably make stylistic rather than true product developments.
And B2B invests marketing budget in harder marketing activities, often spending up to 10% of revenue on new product development to achieve their competitive advantage in the market place. On the evidence and from our experience it appears that an understanding of the value of a consumer approach is alien to most B2B companies, but this does not mean it is wrong or without value to them, quite the contrary. Often the B2B marketing manager or director desires to implement a consumer-like initiative but is likely pushed back leading to considerable frustration - we are here to explain; to support a more objective rounded view of the value of different marketing activities and how to spot gaps and opportunities.