When it comes to industrial markets, it’s tough to communicate, both for producers and the advertising firms they hire. The objective is to capture the attention of potential buyers, but producer markets tend to be overcrowded and so it’s hard to make your voice heard, especially if you’re selling a pipe, a piece of accounting software, a wood-working machine, consulting services etc.
For products like these, it’s hard to appeal to emotions, situations, feelings, as it’s normally done with consumer products. So, while many stick to the tenets of traditional marketing and limit themselves to technical product descriptions, others forgo talking to the rational buyer by appealing to baser instincts, and showing scantily-clad women uncomfortably sitting on pieces of machinery and the like. In fact, neither detailed pictures of the product nor pin-ups offer the information potential buyers are looking for.
A recent study conducted by CERMES, Bocconi’s research center on industrial markets and products, highlights the fact that, when selecting a supplier, products or services offered count for only 40% of the decision, while skills and competencies weigh for the remaining 60%. Competency is key, because in B2B products enter the production process of the client, which is always highly specific and requires complex capabilities of adaptation.
Clients seek suppliers that can turn into active partners. In the case of making fabrics, this means knowing about fashion trends in consumer end markets; in the case of making pipes, knowledge about the technical issues affecting final industries; in case of consulting or software, knowledge about processes and markets pertaining to the client. A competent supplier is expected to actively build value for the client, and to have a view of the whole production chain, from intermediate inputs to final usage.
How to communicate such competencies? It’s not easy, but firms attentive to markets issues and changes important for their clients have obtained encouraging results. In their ads, they speak of the markets of the clients of their clients, and on their Web sites they present solutions differentiated according to the typology of buyer. In addition, many support their campaigns with experiential communication and experience marketing, by participating in industry events, trade fairs, open houses, and the like. Direct contact acts as a sort of anticipation on the promotion of competence, and is particularly appreciated by potential buyers. Also discussing the investments made by suppliers to assist their customers resonates well, because it means they are betting on their clients’ success.
by Francesca Golfetto,
Full Professor of Marketing, Competitive Analysis and Market Strategy, and Director of the Master in Communication Marketing and of the Master in Exhibition and Event Management at Bocconi