英文【领英】2030 年 B2B 经济危机报告：十年以来向(英文版)

2030

B2BTRENDS

ContrarianIdeasForTheNextDecade

TableofContents

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04

05

07

19

31

FOREWORD:MARKETINGASAMINDSET

ABOUTTHEAUTHORS

INTRODUCINGOUR2030B2BTRENDS

TREND01:

THEWARONBRAND

--BrandBenefit#1:Short-TermSalesBrandBenefit#2:Long-TermSales--BrandBenefit#3:PricingPower

--BrandBenefit#4:CategoryOptionality--BrandBenefit#5:CompetitiveMoats--BrandBenefit#6:TalentAcquisition

TREND02:

BLOCKBUSTERMARKETING

--CreativePrinciple#1:BigBets

--CreativePrinciple#2:SurprisingFamiliarity

--CreativePrinciple#3:ExtremeDistinctiveness--CreativePrinciple#4:TotalMerchandising

TREND03:

THEDEATHOFHYPER-TARGETING

--Hyper-TargetingCrime#1:SubprimeData

--Hyper-TargetingCrime#2:ChangingBuyingNetworks--Hyper-TargetingCrime#3:Multi-Dimensionality

--Hyper-TargetingCrime#4:InherentUncertainty

--Hyper-TargetingCrime#5:ImaginaryEfficiencies

Foreword:MarketingAsAMindset

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DIRECTOROFTHEB2BINSTITUTE

JannSchwarz

GLOBALLEAD,THEB2BINSTITUTE

TyHeath

2030B2BTRENDS

“It’shardtomakepredictions,especiallyaboutthefuture,”NielsBohr,theDanishNobellaureateinphysics,famouslyquipped.Thisisespeciallytruetodaygiventheverystrangetimeswearelivingthrough.

AtTheB2BInstitute,wetakethisadvicetoheartwhentryingtodeterminethekeytrendsthatwillshapethefutureofB2Bmarketinganddecisionmakingoverthenextdecade.

Thereisalreadyanabundanceofpublishedopiniononhowthepandemicchanges

everything,andwewon’taddtothatinthispaper.Instead,wewanttofocusonwhathasalwaysbeentrueandcontinuestobetrue–westepoutofthepresentandlooktothepasttodivinethefuture.

Thecoreofourevolvingthesisiscapturedbythethreecoretrendsincludedinthis

e-book.Takentogether,theyadduptoablueprintforreestablishingmarketingasa

disciplinedrivinglong-termbusinessgrowthandstrategicinnovationforB2Bcompanies.

Butembracingthisthinkinginpracticerequiresabigmentalshifttowardseeing

marketingasamindsetforgrowth,notjustasatacticforcustomeracquisition.Whyisitsodifficult?

Incidentally,“GrowthMindset”isalsothetitleofaveryinfluentialbook(Mindset:The

NewPsychologyofSuccess)byStanfordpsychologyprofessorCarolDweck.Itssimpleandcompellingmentalmodelhasshapedthethinkingofbusinessleaderssuchas

Microsoft’sSatyaNadella.Peopleandteamswithagrowthmindsetareinitforthejoyoflearning.Theyrelishtheambiguityandtemporarydiscomfortofbeingbadatsomethingtogetgoodatitovertime—inanenvironmentofabundantopportunity.Thistakesself-confidence,self-awarenessandcourage.

Incontrast,thosewithafixedmindsetseetheworldasmorezero-sum.Theyfocus

oninnateability,clingtotheirperceivedstatusandexpertise,andarefearfulof

beingchallengedandpushedoutsidetheircomfortzone.Self-limitingbeliefsanda

deterministicattitudetendtoholdthemback.AsDweckpointsout,thisisnotbinary.Mostofushaveaspectsofbothgrowthandfixedmindsetswithinus,dependingonthecontextortopicathand.

TheB2BInstitute

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TheB2BInstitute

2030B2BTRENDS

Unfortunately,thedisciplineofB2Bmarketingseemstobesufferingfromaseriouscaseoffixedmindset.

MostB2Bmarketersobsessaboutputtingefficiencyaboveallelseandendupforsakingstrategyfortactics.Whyinvestincostlylong-termbrandbuildingwhenlead-gensoftwareandABMtechnologiesprovidethequickfixyoursalescolleaguesareaskingfor?Why

makebigboldbetsoncreativecontentfranchisesthattakepatienceandcourage,if

insteadyoucanjustthrowstuffagainstthewallandquicklytestandlearnyourwayto

success?Why“waste”impressionsonbroadreachwhenyoucanhyper-targetexactlythepeoplewhomakethebuyingdecisions?Asthise-bookexplains,youcouldtrytofocusonefficiencyaboveallelse.Butyouwouldbedeadwrong.

Tobefair,mostotherstakeholdersinB2Bbusinesses—acrosssales,product,finance

andthec-suite—similarlyhavefixed-mindsetblindspotsandself-limitingbeliefsaboutthetacticalroleofmarketingthatholdusmarketersbackfrommakingamorestrategiccontribution.

ButasourresearchpartnerRorySutherlandwiselystates:“Thegreatestopportunitiesexistwhereeverysignificantactorinamarketsegmentallsharethesamesetofself-limiting

assumptions.”Bythatlogic,it’sneverbeenabettertimetobeaB2Bmarketer.Agrowthmindsetapproachtellsusit’suptousandthatwe,asindividualsandorganizations,canexpandourhorizonsifwepushourselvesoutsideofourcomfortzonesandcanlook

beyondconventionalmarketingtactics.

We’reexcitedtoembarkonthisjourneywithyou,challengeourassumptionsandlearnnewthingsforthepurejoyoflearning.

VisitB2BItoreadourresearch.

TheB2BInstitute

2030B2BTRENDS

AboutTheAuthors

4

PeterWeinberg

PeterisaGlobalLeadattheB2BInstitute,whereheresearchesanddevelopscontrarianmarketingstrategiesdesignedtogiveLinkedIn’sclientsa

competitiveedge.Peterhasspentthemajority

ofhiscareeratLinkedIninavarietyofsales

andconsultingroles.PriortoLinkedIn,Peter

workedincreativeplanningatDentsuandmediaplanningatGroupM.OutsideofLinkedIn,Peterisaprofoundlyunsuccessfulsciencefiction

novelistandadevotedNintendoplayer.Peterwasborn,raisedandwilleventuallydieontheislandofManhattaninNewYorkCity.

JonLombardo

JonisaGlobalLeadattheB2BInstituteat

LinkedIn,whereheresearcheshowmarketingcontributestothecreationofsizableand

durablecashflows.Jontriestobringan

“outside-in”approachtomarketing,lookingtoapplymentalmodelsfromotherdisciplines—TheLindyEffectbeingafavorite—to

marketing.Jonobsessesover“TheContrarianMatrix”andsearchesforcontrarianandrightideas.PriortoLinkedIn,JonledGE’sSocial

MediaCenterofExcellence,wherehefocusedoncommercialeffortsacrossmajorsocial

platforms.Jonis“66%confident”inwhathe'swrittenhere.

IntroducingOur2030B2BTrends

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GLOBALLEAD,THEB2BINSTITUTE

PeterWeinberg

GLOBALLEAD,THEB2BINSTITUTE

JonLombardo

2030B2BTRENDS

Forthepastfiveyears,ourteamhastriedtospottrendsinB2Bmarketing.Everyyear,wereleaseaneweditionofour(beloved!)franchise“B2BTrends.”Butthisyearisdifferent.2020hasbeenoneofthemostdifficultperiodsinmodernhistory.Thepandemichas

thrownacloudofuncertaintyoverthenext6-12months.Sothisyear,we’vedecidedtotakeadifferentapproach.Thisyear,we’vedecidedtolookfarahead…to2030.

Inthisreport,we’llcoverthethreemacrotrendsthatwilldefinethenext10yearsofB2Bmarketing.Thefirsttrendwilladdresstheincreasingimportanceofbrandbuilding.Thesecondtrendwillexplorecreativestrategies,andthefinaltrendwillcoverdistribution—thetwobuildingblocksofeffectivebrandmarketing.

Alltheideasinthisreportsharetwoimportantcharacteristics,whichwillbecomerecurringthemesineachsection:durabilityandcontrarianism.

TheMostProfitableIdeasAreDurableIdeas

Althoughwe’rewritingaboutthefuture,wemuststressthatthesearenotfuturistictrends.JeffBezos,thefounderofAmazon,oftengetsasked,“Whatwillchangeoverthenext10years?”Bezosinsiststhatit’sthewrongquestion.Therightquestionis,“Whatwillnot

changeoverthenext10years?”Bezosknowsthatin10yearsbuyerswillcertainlystillwantcheaperpricesandfasterdelivery,andheadvisesustobuildbusinessesaroundtrendsthatare,asheputsit,“stableintime.”

We’llbetakingthatadviceandfocusingonthetimelessstrategiesthathaveworkedinthepastandthatweexpectwillworkinthefuture.That’swhywe’veconductedameta-analysisofallourpastB2BTrendstoidentifyconceptsthathavewithstood"thetestoftime".Oldideasthatwithstandthe“testoftime”aredurableideas.Andinbusiness,themostdurableideasarethemostprofitableideas.

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TheB2BInstitute

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TheMostProfitableIdeasAreContrarianIdeas

Youcould,hypothetically,adoptallofthesetrendstoday.Thatsaid,youprobablywon’t.Why?Becausethesetrendsarecontrarian.Herewemustreferenceourfavoritementalmodelinallofbusiness:theContrarianMatrix,picturedhere.

TheContrarianMatrix

Consensus

Contrarian

Wrong

Right

X

X

X

Source:HowardMarks

Inanydecisionyoumakeinlife,youcanberightorwrongandyoucanbeeithercontrarianor

consensus.Inotherwords,youcandowhateveryoneisdoing(consensus)oryoucandowhatnooneisdoing(contrarian).Nowifyou’rewrong,itdoesn’treallymatterifyou’rewiththecrowdor

againstthecrowd.Infact,it’sparticularlyawkwardtobecontrarianandwrongbecauseeveryone

hatesyouandyou’rewrong(trustus).That’swhymostpeopleprefertostayfarawayfromcontrarianideas.

Butthequadrantsontherightarewhereitgetsinteresting...

Marketersoftenassumethatmakingtherightdecisionswillguaranteesuccess.Butifallofyour

competitorsmakethesameexactdecision,thenyouwindupwithnocompetitiveadvantageandatthatpoint,youmightaswellbewrong.Thelessonissimple:youdon’tjustwanttoberight.Youwanttobetheonlyonewho’sright,sothatyoualonecapturealltheupsideofthedecision.

Asofthiswritingin2020,theideasinthisreportarerarelyputintopractice.Butby2030,webelieveallmarketerswillbefollowingthesebestpractices.By2030,thesetrendswillreflectconsensus

opinion,andthemomentthathappens,theseideaswilloffermuchlessofacompetitiveadvantage.Fortunewillfavorthebold.

Ouradvice:searchfarandwideforideasthatareright,contrariananddurable.

Thosearetheideasthatmatter.

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2030B2BTRENDS

TREND01

TheWarOnBrand

TheBattleBetweenBrandBuildingAndSalesActivation

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2030B2BTRENDS

TREND01:

TheWarOnBrand

Whatisthemostinterestingmarketingideaofthepast10years?Ifyouaskus(andyouhave

implicitlyaskedus,byreadingthisreport),wewouldsayit’sTheLongandtheShortofIt.Inthatseminalreport,researchersLesBinetandPeterFieldadvancedaverysimple,veryusefuland

verycontrarianidea…

Theideathattherearetwotypesofmarketing.

Thefirsttypeofmarketingiscalledsalesactivation.Salesactivationdeliversshort-termgrowth.Itincreasessalesrightaway,buttheresultsdecayquicklyanditseffectivenessdoesn’tincreaseovertime.

Thesecondtypeofmarketingiscalledbrandbuilding.Brandbuildingdeliverslong-

termgrowth.Itdeliverssomeshort-termlifts,butthetruevalueofbrandbuildingishowitcompoundsovertimeandinfluencesfuturesalesfromfuturebuyers.

InB2B,weusuallycallsalesactivation"leadgenerationor"demandgeneration",butthat’snotanaccuratedescriptionofhowitworks.Salesactivationdoesn’tcreatedemand;itjusthelpsbusinessescapturethedemandthatalreadyexists.Brandbuildingiswhatactuallygeneratesdemand,inboththelongtermandtheshortterm.

ThereAreTwoTypesofMarketing:

Short-TermActivationandLong-TermBranding

Salesupliftoverbase

Brand

Short-termeffectsdominate

~6months

Activation

Time

Source:5PrinciplesOfGrowth,TheB2BInstitute(2019)

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TheB2BInstitute

2030B2BTRENDS

Itmakessensetousthattherearetwotypesofmarketing,becausetherearealsotwotypesofcustomers:in-marketandout-of-market.In-marketcustomersarereadytobuyyourproductorsolutionrightnow.Out-of-marketcustomersarenotreadytobuytodaybutwillbereadytobuyfromyouinsixweeks,ayearortenyears.Successfulmarketersharvestshort-termdemandfromin-marketcustomers,whilebuildinglong-termdemandamongout-of-marketcustomers.

Now,ultimately,youneedbothbrandbuildingandsalesactivationtogrowabusiness.Butas

youcanseeinthebreakoutboxbelow,youneedtoadoptdifferentcreative,distributionand

measurementstrategiesforthesetwotypesofmarketing.Conflatinglongandshortisamistake.

BrandBuilding=LongTerm=Out-of-MarketCustomersActivation=ShortTerm=In-MarketCustomers

Whatworksintheshorttermisrarelywhatworksinthelongterm,bothinmarketingandinlife.Intheshortterm,wewouldbehappyeatingEntenmann’scrumbdonutsforbreakfast,lunch

Brand:"OutMarket"Buyers

Activation:"InMarket"Buyers

anddinner.Butinthelongterm,thisstrategywouldmakeusquitesickandquitesad.Intheshortterm,slashingyourmarketingbudgetwillincreaseyourprofits.Inthelongterm,itistheroadtoruin(justlookatKraftHeinz).

RationalMessage

NarrowerSales

TargetingMetrics

EmotionalMessage

MemoryMetrics

BroaderTargeting

Source:5PrinciplesOfGrowth,TheB2BInstitute(2019)

Marketersneedtobalancelongandshort,brandandactivation.OurownresearchwithBinetandFieldshowsthatinB2B,theoptimalbalancebetweenbrandandactivationisa50/50split:

50%long-termbrand,50%short-termactivation.Thatishowyoumaximizegrowth,accordingtoourrigorouseconometricanalysis.

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TheB2BInstitute

2030B2BTRENDS

TheTideIsTurningInTheWarOnBrand

50%brand,50%activation.Thatsoundslikeareasonablebalancetous.But,unfortunately,themarketingindustrydisagrees.Marketinghasbecomefundamentallyunbalanced.Forthepast10years,wehavebeenlivingthroughaviciouswaronbrand,abattleoverbudgetandpower.Ononesidestandtheleadgenerationmarketers,armedwithperformancedata,promising

cheaperleadsbynextweek.Ontheothersidestandthebrandbuildingmarketers,clutchingtheirbrandimpactreports,ravingaboutbrandloveandbrandadvocates.

ImagineyouareaCFO.Onemarketercomesinwithaplantodeliver10,000leadsforthesalesdepartment.Theothermarketercomesinwithaplantoincreaseawarenessbyfivepoints.Whodoyouthinkisgoingtogetthemoney?

Inatragicirony,theleadgenerationmarketersaremuchbetteratbrandingthanthebrand

builders.Activationpositionsitselfasperformancemarketing.Brandpositionsitselfasartsandcrafts.Toquotetheever-quotableRorySutherland,“Talkingtoafinancedirectoraboutbrand

iconographyislikegoingtotheheadsurgeonatSt.Mary'sHospitalandsuggestingtheytrustinthehealingpowerofcrystals.”

Itshouldcomeasnosurprisethatthebrandbuildersareverymuchlosingthiswar.

Inourexperience,themajorityofLinkedIncampaignsarerunonacost-per-click(CPC)basis.ButCPCisnotalong-termbrandbuildingmetric;itisabottom-funneldirect-responsemetric(andaprettypooroneatthat).Accordingtoarecentsurveyweconductedofover4,000B2Bmarketers,only4%measuretheimpactoftheircampaignsbeyond6months—eventhoughBinetandFieldshowbrandeffectstakeatleast6monthstokickin.

TodayBrandMarketersAreLosingtheBudgetBattle

4%

ofB2BMarketersMeasureBeyond6Months

75%

ofB2Bcampaigns

are"optimized"within

thefirsttwoweeks.

Source:LinkedInROIStudy

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TheB2BInstitute

2030B2BTRENDS

Consensusopinionsaysthereisonlyonetypeofmarketing,leadgeneration,andit’stheonlytypeofmarketingthatworks.Thatisbothconsensusandwrong.Contrarianopinionsaysthattherearetwotypesofmarketingandthatbrandbuildingisthemoreeffectivestrategy.Thatiscontrarianandright.Butitwon’tbecontrarianforever…

That’sright,thetideisturninginthewaronbrand.Slowlybutsurely,B2Bmarketersare

beginningtorealizethatwehaveover-investedinleadgenerationtactics.Betterargumentsarestartingtocirculatethroughouttheindustrythatwillhelpbrandbuildersfightbackagainsttheinflatedclaimsofperformancemarketers.Thereisacaseforgreaterbrandinvestment,andoverthenext10yearsthatcasewillonlygrowstronger.

TheSixBenefitsOfBrandBuilding

Wehavechosenasideinthewaronbrand,andwearedeterminedtoseeoursideemerge

victorious.Wewantmarketerstoinvestatleast50%oftheirbudgetinbrandbuilding.Andby2030,weexpectthatbalancetoshiftdecisivelytowardbrand.

It’sneverasmartideatobeonthelosingsideofawar.Ifweareright,andbrandisthefutureofmarketing,thenyoushouldswitchsidesnowforthegoodofyourcareer.B2Bbrandbuilderswillbethemostin-demandmarketersby2030.

Butforthisfantasytocometrue,wewillneedmorepersuasiveargumentsforbrand.Financialarguments.Incontrovertibleargumentsthatexplainwhyinvestinginbrandbenefitseveryoneinthebusiness.So,whatmightthoseargumentslooklike?

Well,asweseeit,thereisafundamentalasymmetrybetweenbrandandactivation.Brand

createsfarmorevaluethanactivation,onceyouzoomoutandconsidertheholisticimpactofmarketingonabusiness.

Let’stakeaminutetocomparethebenefitsofbrandandactivation.

BenefitsofBrandandActivation

CategoryOptionality

CompetitiveMoat

Long-TermSales

PricingPower

Talent

Acquisition

Short-TermSales

Brand

Short-TermSales

Activation

Let’sbreakthosebrandbenefitsdownonebyone.

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TheB2BInstitute

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BRANDBENEFIT#1

Short-TermSales

Brandbuildingdoeshaveapositiveeffectonshort-termsales,evenifactivationhasastronger

effect.Wearemuchmorelikelytobuyfromcompaniesthatwehaveheardofalready.Bypriming

potentialbuyerswithbrandmessaging,youwillfindthatyouractivationcampaignsworkmuch

harder.Brandthuslowersactivationcosts,increasingitsoverallefficiency.Ifyoudon’tbelieveus,tryremovingthebrandnamefromyourleadgenerationadsandseewhathappenstoyourCPAs…

BrandImprovesActivationPerformanceThroughPriming

1.5%

1.2%

ConversionRate

1.0%

0.5%

0.2%

0.0%

AcquisitionOnly

Brand&

Acquisition

Source:LinkedInInternalData

Weseethisclearlyinourdata.WehaverunexperimentswhereweexposeLinkedInuserstobothbrandandactivationmarketing,inisolationandincombination.Aboveisanexamplefromamajorcreditcardcompany.Whenuserswereservedonlyactivationmarketing(“SignUpForACredit

CardNow!”advertising),theconversationratewasapaltry0.2%.Whenuserswerefirstexposedtobrandmarketing(“WeAreACreditCardCompany!”advertising)andthenactivationmarketing,theconversationrateincreasedto1.2%.Thatisa6Xperformancelift.BinetandFieldhaveobservedsimilarpatterns.AbrandcampaignfromBritishTelecomintheUKloweredacquisitioncostsby17%andimprovedROI316%.Youcanandshouldtestthisforyourself.

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TheB2BInstitute

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It’salsoworthpointingoutthatinmanyB2Borganizations,thereisalreadyamassiveteamfocusedonshort-termsales—it’scalledthesalesteam!WebelievethereisanargumenttobemadethatinB2B,yoursalesforceisthebottom-of-the-funnel.Inthefuture,weexpecttoseeacleanerdivisionoflabor,wheremarketingfocusesonlong-termgrowthandsalesfocusesonshort-termgrowth.Thisstrikesusamuchhealthierapproachthanthecurrentdynamic,wherebothmarketingandsales

obsessoverthesameshort-termdealsandthenbickeroverwhogetsthecredit.

Conflictariseswhentwogroupswantthesamething.AsRenéGirardhasfamouslyexplained,wefightbecausewearethesamenotbecausewearedifferent.Onboththegeopoliticalandcorporatelevel,warsareusuallyfoughtoversharedresources.

ACleanerDivisionOfLaborForMarketing/Sales

Maybemarketingandsaleswouldfightlessifwesplitthefunnelinhalf.

Marketing

Longterm 1:ManyImpersonalized

Brand

Activation

Sales

Shortterm1:Many

Personalized

BRANDBENEFIT#2

Long-TermSales

Perhapsthemostcompellingcaseforbrandisthatithasapowerfuleffectonlong-termsales,

whereasactivationhasessentiallyzeroeffectonfuturegrowth.Andcontrarytoconventionalwisdom,long-termsalesaremuchmoreimportantthanshort-termsalesforafewreasons.

Firstofall,thereismuchmoremoneytobemadeinthelongtermthanintheshortterm,especiallyinB2B.Let’ssayyousellcloudcomputingsolutions.There’sgoingtoberelativelyfewcustomers

lookingtobuycloudrightnowinthenextonetothreemonths.Theremightbeonly10accounts

in-market,and,sure,activationcampaignsmayhelpyouwinoneofthoseaccounts.ExpertsfromtheEhrenberg-BassInstituteestimatethatatanygiventime,only5%to10%ofcustomersarein-marketinagivencategory.

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TheB2BInstitute

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Butthere’sgoingtobemanymorecustomersbuyingcloudoverthenextonetothreeyears.

Todaytheremaybe10accountsin-market,butwithinthenextthreeyears,theremightbe100accountsin-market,andbrandcampaignswillhelpyouacquirethosefuturecustomers.Brandcreativeis“sticky”—itbuildslastingmemorystructuresinthemindsoffuturebuyers,memoriesthatarelikelytoberecalledwhenthoseout-of-marketbuyersbecomein-marketbuyers.

Nowwhenwetellclientstofocusonfuturesales,wealwaysgetthesamereaction.“Sure,that

soundsnice,butIcouldneverconvinceourCFOtospendlotsofmoneyondealsthatwon’t

closeforoneorthreeyears.”Well,ifthat’strue,youmustnothaveaverygoodCFO(nooffense).GoodCFOsunderstandthatbusinessesarevaluednotoncurrentcashflowsbutonfuturecashflows.Bysomeestimates,80%ofthevalueofyourstockisbasedonsales10+yearsinthefuture.ThesmartmoneyonWallStreetcaresaboutdurable,long-termgrowth,soyoushouldtoo.

Towinthewaronbrand,brandbuildersneedtostartevangelizingthebenefitsoflong-term

growthtointernalstakeholders.Andtohelpyoudothat,we’vedevelopeda(beautiful!)conceptthatwecallTheCashFlowFunnel.

BeholdTheCashFlowFunnelinallitsglory!

Themostpopularmentalmodelinmarketingistop-of-funnelandbottom-of-funnel.Butwethinkit’dbemorehelpfultoflipthefunnelonitssideandthinkaboutgrowthovertime.Insteadof

TheCashFlowFunnel:FutureCashFromFutureBuyers

"In-Market"Buyers

CurrentCashFlows

20accounts

"Out-Market"BuyersFutureCashFlows

200accounts

s

s

s

s

s

s

s

s

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TheB2BInstitute

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BRANDBENEFIT#2

Long-TermSales,cont.

“topoffunnel”versus“bottomoffunnel,”weshoulddistinguishbetweenin-marketcustomersandout-of-marketcustomers.

Thisisamorecustomer-centrictakeonthefunnel.“Top-of-funnel”ismarketinglanguage

thatmeansnothingtoanon-marketer.“Out-of-market”isbusinesslanguagegroundedinthecustomerexperience.AndthisfunnelalsomapsmuchmorecloselytofinanceandhowCFOsthink.Out-of-marketbuyersdeliverfuturecashflows,whichishowcompaniesarevalued.

Torecapallofthisinsimplerterms:

SalesActivation=In-MarketCustomers=CurrentCashFlowsBrandBuilding=Out-of-MarketCustomers=FutureCashFlows

Ifyouwantmorebrandinvestment,buildacashflowfunnelandshareitwithyourCFO.Countyourcustomers,countyourcashflowsandwatchyourbudgetgrow.

BRANDBENEFIT#3

PricingPower

InB2Bmarketing,allweseemtocareaboutisdrivingmoreleads.Werarelystoptoask

ourselvesanimportantquestion:howmucharethoseleadswillingtopayforourproductsandservices?Weobsessivelytrackourimpactonsalesandcompletelyignoreourimpactonprice.Butitturnsoutthatincreasingpricingisoftenamoreprofitablewaytogrowabusinessthan

increasingvolume.Infact,decreasingpricesensitivitymightbethesinglemostimportanteffectofmarketing.

AsmarketingacademicMarkRitsonexplainsinhisonlineMarketingWeekMiniMBAprogram,therearefourmainleversofprofitabilityinabusiness.Youcanincreasesalesvolumeandprice,oryoucandecreasefixedandvariablecosts.Andifyoupullalloftheselevers,you’llfindthat

BrandsCanRaisePrices

nonehasagreaterpotentialreturnthanincreasedpricing.Increasingpricingbyjust1%canliftprofitabilityby10%.Increasingsalesvolumeby1%,ontheotherhand,deliversonlya3%liftinprofitability.Thatisthemagicofpricingpower.

Strong

Price

Salesvolume

Fixedcosts

Variablecosts

Change

1%increase

1%increase

1%decrease

1%decrease

Profitability

10%increase

3%increase

2%increase

1%increase

Source:MarkRitson,MiniMBAProgram

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WarrenBuffet,thegreatestinvestorofalltime,saysthesinglemostimportantdecisionin

evaluatingabusinessispricingpower.Goodbusinessescanincreasetheirpricesandgain

morecustomers.Badbusinessescan’t.Andwhatdrivespricingpower?Marketing—specificallybrandmarketing.Buyersarewillingtopaypremiumpricesforstrongbrands.Thisiswhyluxurymarketersneverrunactivationmarketing.“BuyNow!”advertisingcheapensthebrandand

weakenspricingpower.OurresearchwithBinetandFieldshowsthatbrandbuildingbecomesmoreandmoreimportantasbusinessesattempttoraiseprices.

Commonsensesuggeststhatmarketingisbetteratincreasingpricesthanitisatincreasing

sales.MostB2Bbuyershavenoideawhataproductorserviceshouldcostandcanberelativelyinsensitivetoprice—it’snottheirmoney,afterall.YouknowyouneedgraphicdesignservicesfromTimmy’sDesignShackandanadwon’tconvinceyouotherwise,butwhat’stherightprice?AdsfromTimmy’sDesignShackwillsignalthequalityoftheirproductandallowtheirsellerstoanchorathigherpricepoints.

Accordingtooursurveys,only30%ofB2Bmarketersbelievethatmarketinghasanyeffect

onpricing.Thisisatravesty.Itmeansmarketersareunderrepresentingtheirimpactonthe

business,anditisoneofmanyreasonswhybrandmarketinghasbeenneglected.Intheoldendays,thepricingfunctionwaspartofmarketing.Thatresponsibilityhassincebeenstolenby

thefinanceteam.Butevenifwenolongersettheprices,thatdoesn’tmeanweshouldforgetourinfluenceoverprices.

Theinfluenceisreal,whetheryoumeasureitornot.Startmeasuringit,please!

Thesinglemostimportantdecisioninevaluatingabusinessispricingpower.

CHAIRMANANDCEOOFBERKSHIREHATHAWAY

WarrenBuffet

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2030B2BTRENDS

BRANDBENEFIT#4

CategoryOptionality

Soonerorlater,allcategoriesdie.

Horsesgetreplacedbycars,telegraphsgetreplacedbytelephon