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Why Your B2B Marketing is So Lousy

June 25th, 2009 @ 6:30 am

12 Comments

Categories: Management, Marketing, Rant, Sales Process, Watercooler

Tags: Message, Messaging, Broadcast Message, Sales Strategy, B2B, Marketing Research, Sales, E-business/E-Commerce, Internet, Marketing

Ever wonder why most B2B marketing is so gawd-awful?  The reason: most B2B marketeers wrongly believe that B2B products in the 21st century should be marketed the way that consumer products were marketed in the 20th century.  Unfortunately, what made Coke and Nike successful doesn’t work today, especially not with B2B.  Not to worry, though.  Once you understand the real problem, there is a way to fix it and make your B2B marketing actually helpful to the sales team.  Only one question: does your top management have the guts (and brains) to do what’s necessary?…

The reason most B2B marketing is so lousy is that most B2B marketeers were trained to think of marketing in terms of “broadcast messaging.”   This textbook marketing strategy consists of three basic steps:

  • STEP #1: Create a product that has a broad appeal so intense that demand “pulls” the product through the sales channel.
  • STEP #2: Reach as large an audience as possible with a message that appeals to as many potential buyers as possible.
  • STEP #3: Replace desire for the product with desire for the brand, so that the brand can be extended into additional product categories.

Whenever I’ve written about marketing, I’ve gotten dozens of comments endorsing this view of marketing.  And that’s not surprising, since it’s the one that’s universally taught in business schools under the guise of “best practices.”  (See the post “Peter Drucker was Totally Clueless“.)

HOWEVER, when it comes to B2B, there are two problems with this traditional “broadcast messaging” approach :

PROBLEM #1: Broadcast messaging is losing its effectiveness.

The explosion of media outlets and the proliferation of advertising venues has created a state of “brand overload.”  There are so many brand messages flying around everywhere that consumers tune out 99.44 percent of them.  And broadcast messaging was never all that effective, even back in the 20th century.  Probably less than 1 out of 100 branding efforts was actually successful, if measured in terms of increasing revenue or profit, and today that ratio is probably more like 1 out of 1000.  In any case, there are only a handful of really successful consumer brands.  Most marketing groups, even with a big budget, have about as much chance of creating a “Coke-like” brand as they have of winning the lottery.

PROBLEM #2: B2B products must be narrowly targeted.

B2B products are fundamentally different than consumer products.

Successful B2B firms do not sell products.  They sell change.  More specifically, they are selling the change that will occur in the customer’s business as the result of buying the product or service.

While it’s true that consumer products also sell “change,” it’s usually just an emotional change, as is “you’ll feel great with these sneakers on.”

With B2B, the change that being sold completely different.

For one thing, it’s quantitative change, not qualitative change.  Businesses are all about money, not “lookin’ good” or “feelin’ great.”  B2B offerings must therefore be able to have some kind of integral effect on a company’s financials (business model, supply chain, cost structure, etc.).

Because the financials of every company and industry is different, the change that’s sold through B2B is necessarily different for every customer. Therefore, B2B marketing requires “narrowcast messaging” that appeals to a small, highly targeted audience.  Such messages, to be effective, must:

  • Address a limited set of customer problems, rather than have a broad swath of appeal.
  • Emphasize a limited number of relevant capabilities, rather than a broad set features.
  • Target a specific industry, industry sector, or even a specific customer.
  • Aim at firms of a certain size, because startups, SMBs and enterprises are completely different.

In other words, the messaging requirements for marketing B2B are the EXACT OPPOSITE of the requirements for a consumer product.

ENTER THE LOUSINESS

When B2B marketing groups emulate the behavior of consumer marketing groups, it creates a company that’s “bi-lingual.”  The marketing group talks one language (broadcast messaging about a product) while the sales group talks another language (narrowcast messaging about a solution).

This is expensive because two marketing campaigns (the official marketing-driven one and the unofficial sales-driven one) cost more than one.  It’s also a recipe for internal conflict because the marketeers (who are convinced they are right) will continually try to force the broadcast messaging down the throat of the sales team, even though the sales team knows, from experience, that those messages don’t work.

It’s also confusing for the customer, who may be exposed to both messages simultaneously.  I’ve seen examples where what the broadcast message was almost the exact opposite of the narrowcast message coming from the sales group.

For example, I’ve seen at least a dozen high tech vendors with marketing groups broadcasting a “one-stop-shop” message, but with sales engagements that require industry-specific partnerships. The broadcast message forces the partners to see the vendor as competition, thereby making it MORE difficult for the sales team to recruit partners to develop individual sales opportunities.

It’s important to emphasize that we’re not talking about two equally valid messages.  The broadcast message is stupid and doesn’t work, while the narrowcast message is smart and does work.  In other words, the marketing group is wrong and the sales group is right.  However, before we fix the problem, we need to know why the situation continues to exist.

THE ROOT OF THE PROBLEM

The obvious solution to the problem is that we must wean B2B marketeers away from their addiction to broadcast messaging and instead focus them on narrowcast messaging that supports the solution-selling process.  However, that’s very difficult, for three reasons:

  1. Many Marketeers have MBAs. Many marketing professionals are the products of MBA programs that provide case studies and training in broadcast-oriented marketing methods.  Broadcast messaging techniques are easy to teach to a broad range of students who are working or intend to work in a broad range of industries.  Solution selling is too unique and situational to be taught in a classroom, particularly by an academic whose sole sales experience was running a lemonade stand.
  2. Many Marketeers are Lazy. Broadcast messaging is less work than narrowcast messaging.  It takes a lot less time, effort, and research to create one set of marketing tools for everyone rather than a customizable set of messages for each targeted industry sector.  Broadcast messaging also lends itself well to lazybones generalities like “improves productivity” and “state-of-the-art” — the kind of verbiage that sounds “business-like” to most marketeers.
  3. Many Marketeers are Clueless. The vast majority of marketeers never sold anything.  As such, they lack the basic capability to build a narrowcast message that could actually make it easier to sell.  There are exceptions to this rule, but as I’ve pointed out before, selling is like sex.  Unless you’ve done it at least one or twice, you’ve got no business telling other people how to do it.  A marketeer telling sales pros how to sell is like a eunuch writing a sex advice column.

HOW TO FIX IT

I wish there were an easy fix to the problem, but there isn’t.  If you’re a B2B firm that’s got a marketing group that’s doing broadcast messaging, the root of the problem is that you’ve hired people with wrong skill set.  So the only way to fix the problem is through a general housecleaning:

  1. Put sales and marketing under the same management.
  2. Eliminate funding for all broadcast-oriented marketing.
  3. Fire all marketers who haven’t spent least a year in sales.
  4. Fire your Chief Marketing Officer, who is obviously an idiot.
  5. Compensate marketing based upon its ability to reduce cost of sales.

Do the above, and I guarantee you’ll start seeing “narrowcast” marketing that supports solution selling by addressing 4-5 business problems in a particular industry sector.

I write this knowing full well that most top managers are too stupid (or too hypnotized by their own MBA experience) to take the rather obvious steps above.  So those marketeers who have managed to read this far will be happy to learn that they’re probably not going to find a pink slip on their desk tomorrow morning.

Even so, if I were in B2B marketing, and didn’t have any sales experience, I’d be looking to get a temporary transfer to the sales team ASAP.   In B2B, the ONLY way to learn how to market is to do some selling.  Period.

BTW, while the “fix it” plan above is my own, the observation about broadcast versus narrowcast comes from a presentation by Bob Schmonsees, a noted authority on marketing and sales alignment.  I wish I were smart enough to have made that observation originally, but I’m not, alas.

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  •  
    1

    slubahn@...

    06/25/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    In the list under "How to Fix It", I agree 100%!! Most of my career has been in companies with a B2B focus, and I have spent time in engineering prior to moving to marketing. I have help positions that include product manager, marketing manager, VP of marketing, account manager, VP / Director of sales and marketing, and CEO / general manager.

    Have both sales and marketing under one leadership really makes helps to give the right focus. That leader needs to be very careful to spend adequate time on marketing, as it is easy to spend the bulk of your time on sales (especially if your commission or bonus structure is based on aggressive sales growth

    Appointing someone CMO can put the power in the wrong place. A strong sales leader should be crowned king, since if you do not have revenue you cannot have anything else in the company.

    Having spent time in sales, and especially direct selling with a high percent of compensation has been invaluable to me, and spending time in sales really changes your focus of what is important on the marketing side.

  •  
    2

    Graeme Bowman

    06/25/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    As a Hoax Speaker and Corporate Comedian who creates low-cost product launch concepts based on humour, I get to see the effectiveness of narrowcast messaging first hand. Finely focused targeting gets the right people in the room, then off we go.

    Interestingly, though, there seems to be less creative effort put into many B2B campaigns and launches. Maybe that's partly because, as you say: 'Businesses are all about money, not ?lookin? good? or ?feelin? great.?' It's all very serious.

    However, what many marketers fail to realise is that they will get a better result at a launch or other customer event if the audience members are "feelin' great" than if they are "fallin' asleep". Make no mistake, if the presentation is not engaging, individuals will soon stop listening and start fiddling with their BlackBerry or thinking of sex. I know I do!

    So, on top of all the great advice you give in your article, let's issue a call to action for as much energy and creativity in B2B as there is in B2C.

  •  
    3

    macmcintosh

    06/26/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    As someone who tracks B2B leads and sales results from marketing-generated activity, I get to see what works and what doesn't.

    With this in mind, I agree with many of your comments. However, I'm afraid that people will confuse your use of "broadcast marketing" with "push" marketing.

    The world is all atwitter about inbound marketing, and I'm all for letting prospective customers lead the parade some of the time, but B2B marketers who are doing both inbound and outbound (push) marketing are getting better results than those that do only one or the other.

    If you build a better mousetrap, the world won't beat a path to your door unless they know about it. Push marketing to the right narrowcast audience is one way to let them know about it. And if you sell a B2B solution that your prospects don't know exists, push marketing is even more important as they won't know to go looking for your content otherwise.

    Mac McIntosh
    www.sales-lead-experts.com

  •  
    4

    Geoffrey James, Sales Machine

    06/26/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    Re Note 3:
    There's nothing wrong with outbound marketing per se. My main proviso is that all marketing activities should be measurable. So if you run a "narrowcast" ad in, say, a trade journal, it needs to have an identifiable offer so that you can track the impact of that ad back to revenue/profit. That way you don't get the kind of "corporate branding" that's really just brand SPAM.

  •  
    5

    kathlenequinn

    06/26/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    I agree.

    Nearly all members of our marketing team rotate working trade shows, which has proved to be a good way to get everyone's feet wet when it comes to sales, understanding competition, seeing what works and why, how the sales cycle works - and many more reasons.

    It's important to remember that not everyone has a personality cut out for selling, so this short-time approach has been a great solution. It's expensive to send extra people, but think our company has invested wisely by doing this.

  •  
    6

    missas

    06/26/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    GAH, merging departments is exactly the kind of thing I'm trying to avoid! (It's complicated, I'll spare you the details) Love your article, man, but please oh please, I hope my boss doesn't read this.

  •  
    7

    Geoffrey James, Sales Machine

    06/26/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    Re Note 5:
    I don't know whether sending marketing folk to trade shows is going to be a good substitute. Most trade shows have a 5 to 1 ratio of marketing folk to real customers. And most of the activity that goes on there is lead generation, which is marketing work, not sales work. Sales means closing business by working a sale all the way through the sales cycle. I've done both marketing and sales and, let me assure you, I never saw anything going on a trade shows that was 1/10 as difficult as developing a sales opportunity.

    The "personality" issue is a fair one. I'd say that the solution is to have the marketing person "shadow" a sales rep for at least a month. Go to all the sales meetings, sit in during the cold calls (and make some, too), etc. My experience is that once marketeers actually SEE how selling works, their respect for the art and science of it increases enormously.

  •  
    8

    stevem99

    06/26/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    It is amazing how clueless a lot of enterprise marketing departments really are. If there are too many MBAs in a marketing department, nobody really understands or appreciates ideas like relationship marketing, permission marketing, event-based marketing, location-based marketing, etc. Instead they are all hung up on mass marketing and branding. Why? Because these new ideas are launched by smaller, younger, more agile and creative businesses. Which they are not! Great post!

    Steve - www.SPMsolutions.NET

  •  
    9

    ChrisSchermer

    06/26/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    Mr. James,

    I read your opinions with dedicated regularity; and most often agree, even though I am one of your alleged "perpetrators" - a marketing communications agency owner.

    While I appreciate your challenging perspe ctives, your voice has progressively become more bitter and full of bile lately.

    Although you probably feel your job is to "entertain" as well as educate, I suggest that would actually give your positions more validity and respect to present them with passion, not hostility.

    As one of your "customers", I ask you to share your point of view without such condescension and condemnation. Calling people stupid and calling for the end of their career makes you sound like someone filled with hatred. And in my experience, haters are the truly ignorant.

  •  
    10

    Geoffrey James, Sales Machine

    06/27/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    Re Note 9:
    If I seem a little harsh on CMOs, it's because they ought to know better. If anything, I've dialed down the "bile" as you put it. The problem with business writing today is that everyone is always making nice-nice, especially when it involves people who sign paychecks. And since marketing groups buy advertising, there are very few publications, online or otherwise, that are willing to point out that marketing groups waste money on stupid advertising. In the worst cases, marketing spending -- and the salaries paid the marketers -- approaches fraud. If I seem angry, it's because some anger is appropriate.

    In any case, I could rail on and on and on, every post, for weeks and not approach .1% of the bile that marketing groups and marketeers have heaped upon the sales profession.

  •  
    11

    ShelHorowitzEthicalMarketer

    06/28/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    Very good basis. Beyond that, a few additional factors the B2B marketer must take into account
    * Solution-oriented marketing is about listening more than you talk. You don't take a broadcast pitch and narrowcast it, but rather let the *client* identify the specific pain-points, problems, etc., before you ever start talking about solutions.
    * Even more than B2C, B2B is about developing relationships--creating the momentum to change vendors (to you), and then the inertia to stick with the decision to do business with you. Thus, honesty, integrity, and quality count for a whole lot.
    * When writing marketing copy, focus on the solutions that derive from the benefits that derive from the features--focus on what the client ultimately wants to accomplish.

    There's more--a lot more. I cover quite a bit of it in my award-winning sixth book, Principled Profit: Marketing That Puts People First, http://www.principledprofit.com - but I'll stop there for now.

  •  
    12

    dmorabito@...

    06/29/09 | Report as spam

    RE: Why Your B2B Marketing is So Lousy

    Usually, I disagree with everything you write, but I support most of what you have asserted here. However, you are still a jerk.

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