B2B Marketing of Commodities

by admin

B2B Marketing of commodities, especially building materials, is distinct from retail marketing in that in B2B marketing, the company sells directly to a large buyer like a developer, commercial organization or government for building a commercial space, factory, warehouse, public building, infrastructure, etc. Purchase decision is often after vetting the options in the market and involves inputs or influence from several stakeholders.

A few stakeholders or influencers in B2B marketing are Architects & Interior Designers, Builders & Developers, Project Management Consultants (PMCs), specialist consultants like structural consultant, facade consultant, etc. and Government officials (for Government funded constructions).

Types of B2B marketing of commodities

Broadly, two types of B2B marketing of commodities happen in an organization.

Project specific pitch: The sales person has information of an upcoming project and he wants to influence the stakeholders to use his/ her company’s material. The sales person will start from one lead and try to gather information about all the influencers and decision makers for the product and try to get appointments with them. Project specific products are only discussed. It is explained to them how the product can contribute to making construction cheaper/ faster, more energy efficient building, aesthetically improved look or improve in some other pain area. If needed, samples are sent or mock-ups are done for the client to get the touch & feel and to do any performance test.

The sales person, often needs to be accompanied by people in technical or manufacturing department from his company where the usage of the product is not straight forward and needs some designing activity or change in manufacturing process before supply. Feature – Advantage – Benefit (FAB) framework is an optimal way to pitch for a specific project.

General influencer marketing: This is like sowing the seeds for future crop in B2B marketing of commodities. In-house presentations, sample delivery, get-togethers, gifting to influencer, loyalty programs, etc. are a few ways used by commodity companies to impress the influencers and get leads of projects. Generally all the products available in the company relevant for the type of projects done by the influencer is showcased. The influencers need to be periodically met so that the recall for the brand stays in their minds. The discussion with the influencers can be on any relevant topic and internal trainings go a long way in preparing the salesforce for such meetings.

Apart from these, a lot of companies participate in events like trade shows, design competitions, award functions etc. so that at a single platform, they get leads for multiple influencers.

Value Proposition

Most salespersons when given an opportunity to present on their product, enlist all the benefits which their product offers, without knowing much about the customer preferences or project requirement. This often is like a wild goose chase and does not result in order closure mostly. In B2B marketing of commodities, it is important to know the customer needs and aim for achieving customer delight.

One of the better framework used in B2B marketing of commodities to show the value proposition of the product portfolio is Feature-Advantage-Benefit model. FAB approach is a data driven approach where the benefits are quantified to justify the price. It has to be preceded by a questionnaire to understand the customer profile, preferences and needs.

A second approach which can be used by salesperson, especially when the client has already decided or specified a competition brand is the Points of Difference model. In this, the focus is primarily on the superiority or exclusiveness in our brand vis-à-vis the competition brand.

In all the approaches, case studies of projects completed with our product and snaps of completed projects help in convincing the client/ specifier. In B2B marketing of commodities, it is very important to convince the specifier of long term durability or weather resistance of the product.

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