Tag: sales influencers

B2B Marketing of Commodities

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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.

Role of influencers

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No industry will be so peculiar like building materials wherein the consumers’ decision is shaped so much by the influencers. The role of influencers like masons/ glaziers, engineers, architects, retailers, shop managers, friends, family members, contractors and star endorsers is immense, not to forget the influence by the wholesalers/ distributors. Their influence is because consumers do not know much about these products and there is no second opportunity for them to build a house. It should not come as a surprise if the mason is insisting on a specific cement or steel brand or the contractor is insisting for one paint brand.

The role of influencers is so high that companies are running incentive schemes for these influencers so that they promote their brand more often. Companies are sending the engineers & architects for foreign leisure tours, giving white goods to masons and shop managers and felicitating high sales volume retailers.

Role of influencers
Role of influencers varies with awareness level of end user

Role of influencers

Masons, glaziers, plumbers, electricians, painters etc.

Role of influencers, who have become specialists in their job, because of their know-how earned through years of experience, have a lot of clout among the customers. Their influence is higher in rural areas. As these people have worked with the commodities like cement, steel, pipes, cables, paints, etc., consumers think that they will provide correct feedback. Consumers often go against the other influencers and well-wishers’ advice to procure the brands suggested by this lot. Their influence reduces in urban places where they act on the recommendations of the contractors.

Contractors

Individual house builders are now-a-days outsourcing construction to contractors. Here, the contractors becomes the biggest influencer. The contractor recommends brands with which cost of construction is minimum or there is a special incentive for promoting a brand.

Engineers & architects

In urban areas, it is a trend to hire engineers and architects/ interior designers for house construction. These technical people often recommend certain brands according to the durability and design needs. Brands try to bring them under their loyalty fold by creating awareness programs for them and through referral programs.

Retailers & Shop managers

Role of retailers or shop managers appears at the point of purchase, especially if the customer has not come with a pre-determined brand in mind. They are often able to influence him to the brand which is most profitable to the store’s business.

Other influencers

There is another set of influencers like friends and family, and celebrities promoting a brand in advertisements. That is why we see that several actors and sportsmen now-a-days are advertising for cement, steel, paints, etc. The role of influencers varies with awareness level of end user.