B2B Marketing: A Growth Catalyst for B2B Businesses

In the intricate realm of B2B sales, the significance of branding and marketing is vital yet frequently overlooked. A Forrester report reveals that 74% of B2B buyers perform over half of their research online prior to making a purchase decision.

In a crowded marketplace filled with similar offerings, effective marketing stands out as the key factor that can propel a business ahead of its rivals. Even so, numerous B2B companies concentrate mainly on product development, neglecting the impact of strong branding and strategic marketing.  

In this blog post, Opla and I, along with you, dear readers, will delve into the pivotal role of marketing, particularly product and brand marketing, in B2B sales. We'll highlight renowned case studies and share compelling statistics to support our insights.

UNDERSTANDING B2B MARKETING

In the B2B context, marketing encompasses the various strategies and activities that companies employ to showcase their products or services to other businesses. In contrast to marketing aimed at individual consumers, marketing directed towards businesses emphasizes the importance of cultivating relationships, showcasing value, and addressing the unique requirements of business clients. It requires a thorough grasp of industry trends, challenges, and the distinct decision-making processes that businesses navigate.

Key components of Marketing in a B2B Sales:

• Market Identity: distinct presence and image a business projects within the industry

• Consistency: messaging, visuals, and interactions across all channels reinforces this identity and helps build recognition and loyalty

• Reliability: B2B clients must have confidence in a company's ability to deliver on promises, which is fostered through reliability, transparency, and strong communication.

Smart marketing is essential in influencing how businesses view a company and what it has to offer. Through clear, consistent, and persuasive communication, marketing establishes a company as a leader or expert in its industry. It showcases distinct value offerings and caters to the particular requirements of business clients, ultimately influencing perceptions. It's clear that major companies such as Oracle, Dell, and many other B2B businesses have made significant strikes in B2B marketing, showcasing successful campaigns that highlight their strong presence in the industry.  

THE POWER OF PRODUCT MARKETING IN B2B SALES

As for B2B companies, the concept of product marketing is increasingly becoming more popular nowadays. So, what actually is product marketing?

In the book Loved: How to rethink marketing for tech products, Martina Lauchengco explains why the need for good product marketing has never been more urgent or important. In a market where most of the products are identical, there is no way for a product to stand out and win unless its entire go-to-market engine is carefully coordinated, and it holds a clear market position.

If you have read the book Hacking Growth: How Today's Fastest-Growing Companies Drive Breakout Success, you would have known the case study that is mentioned throughout the book, BitTorrent.

At BitTorrent, the team’s original intent is to focus solely on "the top of the funnel”, which is customer acquisition [Figure 2]. However, it was completely overturned with the arrival of an experienced product marketing manager, Annabell Satterfield. She brings a whole new data-driven approach, which focuses more on the “bottom part of the funnel”, to the product team of BitTorrent. This innovation led to a rapid increase in revenue throughout the rest of the funnel and conversion from traditional marketing and product silos to an open team where product and marketing play a crucial role in product development.

THE RISING OF BRAND MARKETING IN B2B BUSINESSES

Unlike product marketing, branding, which is arguably more of an umbrella concept, provides a strategic approach to building relationships between B2B companies and their customers.  

Branding in the B2B space is more than just a memorable logo or an appealing tagline; it embodies the core of your business. In a bustling landscape filled with comparable options, your brand stands out by showcasing its differentiation and conveying its fundamental mission—its "why." This core reason is what attracts customers to you, highlighting the importance of strong branding.

The value of B2B branding not only be reflected in word-of-mouth, but also in the statistical side. B2B companies, according to BCG company, show a relatively positive result from investing on branding:

• 74% higher ROI on branding investment

• 46% higher market share than weaker brand

• 50% more KPIs completed than nascent organizations

Recently, dentsu B2B has released The Superpower Index 2024 Global report, which shows that B2B buyers are increasingly valuing companies that build a strong brand, placing less priority on customer conversion compared to 2023. It is identified that 3 major trends differentiating the winner and loser for B2B businesses [Figure 3].

It highlights the growing importance of building a brand, improving customer experience, and customizing marketing strategies in the B2B environment. As buyers grow more discerning, B2B companies need to prioritize building strong brands, providing exceptional experiences, and tailoring their marketing strategies to address unique requirements. This shift is driven by a focus on trust, knowledge, and personalized engagement, which can significantly impact sales processes and the overall achievement of a company.

To have a closer look into this trend, B2B buyers seek reassurance from the brand's proven history of success, which acts as the #1 priority for their decision-making [Figure 4]. Coupled with the increasing recognition of being seen as a good employer - an indicator of a brand's reliability, it's evident that the significance of brand reputation is on the rise.

HOW TO SYNC BRANDING AND PRODUCT MARKETING IN B2B BUSINESSES?

Some people believe product marketing is led by the head and brand marketing is led by the heart. In the denstu B2B report, marketers are aware of building brand awareness also known as ”top of funnel”. This term is mentioned earlier in the product marketing section, where Morgan Brown and Sean Ellis emphasized the importance of product marketing in building strength in the rest of the funnel.

Although brand and product marketing may not seem to overlap significantly, both are essential for building and growing your business and, when properly aligned, they can create synergies and reinforce each other.  

For example:  

A B2B software company launched a project management tool. The branding team emphasized innovation and simplicity, portraying it as user-friendly, while the product marketing team highlighted advanced, customizable features for tech-savvy users.

At a tech conference, this disconnect became evident. Small enterprises were drawn to simple branding, but demos showcased complex features suited for large corporations. Prospects felt misled by the mixed messages, resulting in lost opportunities and reduced trust. Why? Because there is a disconnection between branding and product marketing.

So how to sync these two marketing teams together?

Early stages

• Product marketing is essential for executing the go-to-market (GTM) strategy by conducting market research, competitor analysis, and highlighting actual product benefits.  

• Concurrently, brand marketing should focus on building awareness and introducing the brand identity without necessarily centering campaigns around the product.

Expansion and Growth stage

• Product marketing should pivot towards refining messaging and positioning based on updated market insights and customer understanding. This includes optimizing market segments, sales strategies, and pricing.

• Brand marketing should aim to strengthen emotional connections with existing customers, fostering brand loyalty and encouraging word-of-mouth promotion through strategies like affiliate.

QUICK CONCLUSION

In sum, marketing plays a crucial role in achieving success in B2B sales. It allows businesses to connect with their target audiences, stand out from the competition, and communicate the distinct value of their solutions. Through comprehensive market research, enhancing brand visibility, and creating engaging messaging, marketing strategies drive the sales pipeline and nurture enduring client connections.  

For business growth, it's essential to align your product and brand marketing strategies. This integration creates a unified approach where product marketing delivers data-driven insights to customize messaging and positioning, while brand marketing enhances the emotional connection and loyalty to the brand. By working in harmony, they develop a cohesive strategy that effectively draws in and converts potential clients while fostering enduring relationships with customers, ultimately leading to sustainable growth.

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