Introduction
Business-to-business (B2B) marketing describes the strategies and tools used by
companies to promote their offerings to other businesses(BingAI, 2023). Unlike
business-to-consumer (B2C) marketing, where the end consumer is an individual, B2B
marketing is categorized by the targeting of organizations and companies(BingAI,
2023). This involves longer sales cycles, more research and sales efforts which
ultimately leads to more complex decision-making processes. In this research paper, we
will explore the latest trends and best practices in B2B marketing and we will link these
trends and best practices to some of our course material. Using the Harvard Business
Review’s 2022 article aptly named: “What B2Bs Need to Know About Their Buyers”, we
will also examine the challenges faced by B2B marketers and discuss how they can
adapt to the ever-changing market conditions.
This article was published in the Harvard Business Review on 20 September 2022.
Written by: Saber Sherrard, Rishi Dave, and Mollie Parker MacGregor, the article aims to
be a guide to business-to-business sellers about the particular nuances and approaches
needed to close business-to-business sellers. The article points out that B2B sellers
often do not realize that B2B buyers already have a list of potential vendors in mind
before starting their search process(Sherrard et al., 2022). Furthermore, 90% of the time
they end up going with the sellers on their earliest lists. The article argues that B2B
sellers tend to woo the top decision-makers, paying less attention to the much wider
group of influencers and users at the B2B buying firms(Sherrard et al., 2022).
Furthermore, they rely too much on specific digital channels, limiting their reach at the
expense of alternative digital channels that could be far more valuable(Sherrard et al.,
2022). With more tools discussed in the article, we will be picking the most relevant
tools to our course material and linking these tools to at least 3 topics we covered this
semester related to B2B Marketing.
Methodology
The research methodology we will be utilising in the compilation of this report will be
based on secondary research gathered from a Harvard Business Review article as well
as other scholarly articles and course material. Using the HBR article as our framework
and the main point of reference we will systematically highlight the key tools needed to
thrive in the Business-to-Business Marketing landscape, especially as a B2B seller.
The key tools/tips highlighted in the article are: Buyers tend to make a list of vendors for
consideration before starting the search process. Buyers tend to prefer vendors they
have a history with. Buyers tend to rely on colleagues for recommendations. Using these
three tips we will be linking to the procurement process to further understand how the
B2B buying process actually begins.
The following tips and tools are also highlighted in the article: Understand who shapes
the decision. Demonstrations and trials can make or break the deal. These
aforementioned tools and tips will be linked to the decision-making process as well as
the decision-making units within an organisation. By uncovering the various nuances
and individuals involved in B2B decision-making, we will ultimately shed light on some
of the general principles B2B sellers can follow in order to maximise their B2B sales.
The final tips and tools we will be analysing are: Vendor websites can strongly influence
the search. A strong digital presence goes beyond the website. These two insights from
the article will be linked to content management, which continues to grow in importance
as businesses become increasingly digitized. Telling stories is important in
Business-to-Customer Marketing. Business-to-Business Marketing is no different.
Decision-makers in organisations are still human beings and if B2B sellers can connect
with these individuals by sharing authentic stories and experiences related to their
offerings, they can capture their hearts and wallets.
Analysis
Our first area of research will be the procurement process. In its essence, procurement
describes the activity of sourcing the goods, materials, components and additional
products you need from other vendors. This process includes the selection of the good
or goods, placing the order, receiving the order and paying for that order(Lawrence,
2020).In the B2B context, procurement encompasses all interactions a business has
with another business(Lawrence, 2020). While the steps in the B2B buying process may
seem quite similar to those in the B2C sales process, the process as a whole is much
more complex in its nature and execution. It is much longer and more intense because
the stakes are much higher. The right or wrong B2B purchasing decision can have an
incredibly significant effect on the operations of an organization(Big Commerce, 2023).
The HBR article correctly highlights that in light of the aforementioned characteristics of
the B2B buying process, B2B Buyers tend to prefer vendors they have a history with. B2B
Buyers need to ensure they receive the right products, at the right place, at the right
time, at the right quality, at the right quantity and at the right cost. The success of B2B
sellers with their current B2B customers goes a long way toward securing their future
purchases(Sherrard et al., 2022). This remains true even if that B2B buyer moves to a
different company(Sherrard et al., 2022). By establishing an effective and fruitful
relationship with a buyer, a seller can ensure repeat business even in the unfortunate
event of a buyer leaving the buying organization. To further illustrate this point, the HBR
article also makes reference to the fact that buyers tend to rely on colleagues for
recommendations. Because the B2B buying process is so complex, with higher stakes,
trusted colleagues tend to carry weight among buyers. B2B buyers tend to value the
experience and advice of their colleagues. This is why it is important for B2B sellers to
place great emphasis on the relationships they build with their buyers because even if
the buyers do not make the ultimate purchase, they will be quick to recommend them to
another potential buyer.
The second area of our research is to relate the decision-making process and the
decision-making units to the article. In the first step of the decision-making process,
buyers first recognize their need to purchase goods and services (Makhitha & Cant,
2020). According to the article, B2B buyers go through a series of steps before making a
purchase decision. The first step is identifying the problem or opportunity that needs to
be addressed (Sherrard, Dave, & MacGregor, 2022). The second step is to commence an
information search related to the need recognized in the awareness step (Kotler &
Armstrong, 2012). Sherrard et al. (2022) points out that the following steps include
researching potential solutions and evaluating competing vendors (Sherrard, Dave, &
MacGregor, 2022). The article points out that at this stage, B2B marketers should focus
on providing buyers with valuable information such as case studies, testimonials, and
product demos to help buyers make informed decisions. The next step is making the
purchase decision, which involves obtaining internal buy-in and negotiating with
vendors. Finally, after the purchase is made, buyers evaluate the decision and seek to
optimize the relationship with the vendor (Sherrard, Dave, & MacGregor, 2022). Sherrard
et al. (2022) highlights the need for B2B marketers to understand the various
stakeholders (key players in the “internal committee”) involved in the decision-making
process and tailor their marketing messages accordingly, particularly within the
purchasing stage. In terms of the final purchase or implementation stage, Sherrard et al.
(2022) suggests that B2B marketers should focus on providing excellent customer
service and support to help buyers achieve their desired results. In the final stage the
post purchase behavior in which the results of the purchase are evaluated, the survey
conducted by Bain & Co found that previous experience with suppliers is important and
highly influences the following cycle in the decision making process (Sherrard, Dave, &
MacGregor, 2022).
Sherrard et al. (2022) highlights the importance of identifying DMU[1]s in B2B
organizations, which often consist of multiple stakeholders with different roles in the
decision-making process (Sherrard, Dave, & MacGregor, 2022). These stakeholders can
be (end-) users, buyers, decision makers, influencers, initiators, and gatekeepers (de
Backer, 2022). The article relates this to an internal committee comprising of three
levels: the “ultimate approvers” – the final decision makers; a “core buying committee” –
who researches guides the process; and “internal influencers”, which includes end users
(Sherrard, Dave, & MacGregor, 2022). Understanding the decision-making units is crucial
for B2B companies to tailor their marketing strategies. The initiators and
decision-makers are influenced by the influencers (de Backer, 2022). The authors
suggest that influencers are the most significant unit when buyers are selecting a few
suppliers for final evaluation step (Sherrard, Dave, & MacGregor, 2022). Sherrard et al.
(2022) goes on to argue that B2B companies should prioritize building relationships
with these decision-makers by addressing their individual needs and concerns.
Furthermore, article also emphasizes how crucial it is to understand the viewpoint of
the customer in the B2B decision-making process (Sherrard, Dave, & MacGregor, 2022).
The final area of our analysis examines how content management can be linked to the
source. Deshpande (2020) defines B2B content marketing as a collection of tactics
focused on using content to build audience engagement, promote brand awareness,
create, and nurture leads, and ultimately increase sales. (Deshpande, 2020). B2B
companies can create and share relevant content that appeals to their target audience
by determining the types of information buyers are looking for and on which platforms
they are searching for it. The supplier’s websites can strongly influence the search in the
in the second step of the decision-making process where the different options are
evaluated (Sherrard, Dave, & MacGregor, 2022). A content strategy that matches the
wants and needs of the target market is necessary for effective content management in
B2B marketing, and the article suggests that buyers want an informative, easy-to-use
and navigate website(Sherrard, Dave, & MacGregor, 2022). In addition, B2B companies
need to ensure that their content is shared on the right platforms and at the right time.
The article highlights that a digital presence is more than just an effective and efficient
website (Sherrard, Dave, & MacGregor, 2022). Sherrard et al. (2022) states that beyond
the suppliers’ website, buyers resort to industry publications, industry influencers for
example Gartner, and editing and reviewing websites for publishing and promotion
purposes, though desired sources differ depending on the industry (Sherrard, Dave, &
MacGregor, 2022).
Conclusion
The purpose of this report was to define the article selected and reveal three links
between the article and our business marketing course. The article "What B2Bs Need to
Know About Their Buyers" written by Saber Sherrard, Rishi Dave, and Mollie Parker
MacGregor examines the significance of understanding B2B companies need to
understand and know about their customers. The article goes on to examine the
importance of understanding B2B buyers and their decision-making process in
developing effective marketing strategies. This can be linked to the decision-making
process and decision-making units’ chapters of the course. Sherrard et al. (2022)
highlights the importance of identifying DMUs in B2B organizations, which usually
consists of multiple stakeholders with different roles in the decision-making process
(Sherrard, Dave, & MacGregor, 2022). This article highlights the importance of
understanding the decision-making process in a B2B organization, which often includes
a procurement process that can be complex and involve multiple stakeholders. The
article suggests how critical content management is in B2B, which involves creating,
organizing, and distributing content that addresses the needs and concerns of buyers at
each stage of the decision-making process (Sherrard, Dave, & MacGregor, 2022). The
article emphasizes how critical a user-friendly supplier website is to a buyer, and beyond
these buyers rely on industry publications, industry influencers, and evaluating websites
(Sherrard, Dave, & MacGregor, 2022). To ensure this, B2B marketers need to engage in
content management, which involves creating, organizing, and distributing content that
resonates with their target audience. Overall, the article is highly relevant to the B2B
course chapters on procurement process, the decision-making process as well as the
decision-making units, and content management.
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Conclusion
References
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