Tuesday, January 13, 2015

Six Mistakes by Indian B2B in marketing strategies, are you doing THESE?

B2B businesses have always taken long time to change or re – work on their marketing strategies. Since earlier in 1970s and 80s they enjoyed monopoly business. Which emphasized any Indian company considering to import from international sellers had to obtain NOC from Indian B2B manufacturers of same line of products. This lead to the development of sloppy attitude and less focus on marketing. With change of policies for international B2B companies, these attitudes lead to either their closure or stagnant growth. The ones, who changed, stayed in business and experienced growth.
Now with progress in technology, B2B manufacturers are on the receiving end, as they are yet to embrace the new technologies like digital marketing, CRM (Customer Resource Management), ERP (Enterprise Resource Planning), etc. Though most B2B manufacturers are working on embracing technology and digital marketing, but fear of negative impact have made them conservatives.
The below points are my observations on some major marketing strategy mistakes which B2B business; especially manufacturers have been committing over the period. 

  1. Company doesn’t have a website: Most common problem with Indian B2B businesses, they don’t own a website of their organization, zero online presence. Most buyers are searching online; not having a website is as good as not running the business. 
  2. Have a website but only you visit it: Most B2B business design a website just for the sake of it, without having any vision or marketing plan. The websites are designed in old format of tables, without any conformity to W3C guidelines of Google, no meta tags in the website, etc. This is as good as not having website as it is difficult for search engines to crawl or rank it on search engine. 
  3. Website focuses on products only: It is important that B2B organizations focus on offering solutions, rather than products, as buyers are looking for solutions. This would increase engagement with buyer for better influence. 
  4. Solely depend on word of mouth/referrals for leads: With buyers increasingly dependent on search engine and engagement oriented communication, the dependence on word – of – mouth is less, though it is helpful for initial meeting, but cannot wholly depend as lead generation activity. 
  5. Mass Emailing campaign: Email campaign has long been changed, from mass emailer to database brought from different sources; it is now permission oriented email. This concept of mass email often leads to blacklisting of servers by firewall. On the other hand, this also results email reaching in SPAM folders instead of inbox of the customer. B2B organizations need to build strategy for building mailer list, of customer who wants to receive information. 
  6. Digital Marketing: If at all, B2B organizations ever venture in digital marketing, the focus is to have paid profile on Indiamart or TradeIndia and focus on SEO of the website for lead generation. Social Media is the last thing they ever plan to venture and that too is just focus on getting the likes and followers. All the strategies are only focused on lead generation, instead of engagement. But the ground rule is – engagement has to be top priority, while lead generation is outcome of engagement.

B2B Organizations need to venture in new marketing strategies for better engagement with informed buyers.

Saturday, January 10, 2015

Why Indian B2B Manufacturers will be out of business in near future?

Indian B2B manufacturers for long have been focused on promoting products rather than solutions. With the advent of technology the market is fast becoming a buyer’s domain than SELLERs. The focus of B2B manufacturers, whether in digital marketing campaigns or participation in exhibitions or cold calling is PRODUCT oriented. Most of these organizations spend huge amount of time in strategizing on how to launch products in market and not on learning about customer requirements.

This article tries to highlight aspects which are least focused by B2B Organizations and solutions for the same.

Problem: Number of stakeholders involved in buying cycle: The biggest different between B2B and B2C is the number of stakeholders involved in buying decision process. In B2B scenario people from purchase, quality control, research and quality assurance are involved, while in B2C its mostly impulsive buying. Most B2B buyers often conduct prior reference checks happen at all levels. This also lengthens the sales cycle as B2B manufactures have to ensure all the stakeholders agree to the solution and it has been documented.
Solution: Develop engagement strategy for stakeholders: Indian B2B manufacturers have to develop engagement strategy to solve problems faced by stakeholders rather than promoting products. Also have to focus on customer support, since most buying decisions are based on prior reference checks, having robust customer support can help to help to build word – of – mouth marketing.   

Problem: Informed Buyers: Most buyers are well informed about B2B Manufacturing Company, before floating enquiry for product. Most buyers often conduct prior research about the B2B Manufacturer, its clients, range of products and background reference checks from clients. The sales team is most often unaware about this research.
Solution: It is important for sales team to constantly engage with stakeholders, since this would help them to be a part of the research process and influence buying decisions. The engagement can work on two simultaneous levels regular discussion meetings to understand any issues they face in their current production and content marketing on social media for regular online chats.

Problem: Investing without researching: It has been observed most B2B manufacturers invest without venturing in research for launching new category of products, advertising or marketing. Most decisions are based on gut instinct and experience, which often results in losses. Research for most B2B organizations is just focusing in Google results, which is often influenced due to SEO.
Solution: Research has to be conducted from established agencies with proper focus on expected outcome and what decisions will be taken based on the outcome. There are different types of research agencies who work on collaborative report to reduce the cost of research for a single company. This same should be applicable when venturing for advertising or launching a new office.
Problem: Rise of social search engines: Last 10 years have seen immense growth in social media, search engine, smart phones and internet. All this has fueled profound implication on how a company strategizes its marketing and communications. Internationally most B2B manufacturers have embraced social media, but in India, they haven’t even begun. For B2B manufacturers, having website and accounts on Indiamart and Tradeindia is end of the story for digital marketing. And strategy is focused on getting enquiries for products not on engagement. The digital transformation resulted in buyers’ market, rather than sellers, now the buyer decides what they want, how they want, when they want and their terms.
Solution: To succeed in buyers’ market B2B manufacturers have to research and redefine their strategy. The strategy should focus on engagement online as well as offline, to influence the buying decisions. Campaigns can be focused on training the stakeholders on how to solve issues related to problems arising in production, product demo sessions, regular newsletters informing on new developments in technology and research, regular webcasts on social media websites, ensuring presence in media, etc. Involving customer support team for regular site visits, not just when the client requires, even when they don’t require helps to build confidence and trust for word – of – mouth marketing.

Problem: Technology: Indian B2B companies’ dependability technology is mediocre, except for investment for managing finance through Tally; they hardly invest to create a robust platform for observing sales trends. When most companies, especially their clients shifted to SAP or ERP, these companies hardly spend on implementing technology. The sales team still drafts quotations using excel or word and keep track on follow – ups using spreadsheet. With cloud model of CRM the biggest fear of Indian B2B manufacturers is that data will be hacked or stolen.
Solution: B2B manufacturers have to venture in technology in all aspects of business processes. It is a need of the hour for B2B organizations to implement CRM for managing sales cycle and ERP for other internal departments. Having a robust technology will help in getting analytics and trend of finance and purchase, while CRM would offer insights for sales and marketing team. Having cloud model of CRM is better than having no CRM as tracking of sales data is much easier.

Indian B2B Manufacturing companies have to invest in business process re – engineering to re define their vision. Lack of vision has been the biggest drawback for growth.

Friday, January 9, 2015

Digital Media Influence on Indian Consumer Buying Behavior

India has over one billion people with 120 dialects & languages. Three-fourths of the population lives in rural areas, contributing one-third of the national income. India ranks third, in terms of internet penetration in the world, while social media growth is by 37.4 percent. The e-commerce market is expected to grow from $11 billion in FY14 to $20 billion FY15. India is one of the most lucrative markets even though the per capita income is low, but has huge market for costly products. A recent development in India’s consumerism is the emergence of the rural market for several basic consumer goods.


Characteristics Of Indian CB 
“Indian consumers are noted for the high degree of value orientation; due to this Indians are labeled as one of the most discerning consumers in the world.” 
Even, luxury brands have to design a unique pricing strategy in order to get a foothold in the Indian market.

“Indian consumers have a high degree of family orientation.” 
Brands with identities that support family values tend to be popular and accepted easily

“Indian consumers are also associated with values of nurturing, care and affection.” 
Product which communicate above feelings and emotions gel with the Indian consumers.

Influence of Internet / Social Media / Ecommerce 
With the advent of eCommerce portals like Flip-kart, Amazon, Snap-deal, etc the buying behavior of Indian consumers has increased, as they meet shopping requirements of Indian consumers. 
Some of the facilities offered, which lead to growth of eCommerce in India are:
  • EMI options
  • Cash on Delivery
  • Huge discounts to buy online
  • Cheaper than brick – and –mortar stores
  • Increase in usage of internet through smart phones
  • Social reviews
But the major game changer being able to reach to rural India, since they already have disposable income, but no stores (Brick – N – Mortar) selling luxury branded products. With ecommerce and smart phones with internet, they are now able to order brands which they wish to wear, without traveling to city to buy those brands.

Different Segments of Indian Consumers

Socialites Consumer 
Socialites belong to the upper class. They prefer to shop in specialty stores, go to clubs on weekends, and spend a good amount on luxury goods. They are also brand and fashion conscious and would mostly shop at luxury malls, fashion designers boutiques or abroad.

Conservative Class of Consumers 
The Conservatives belong to the middle class; they are true reflection of Indian culture. 
Slow in decision making and seek a lot of information before making any purchase. Most often they look for durability and functionality of the product, but at the same time are also images conscious.

Working Woman 
This segment is the one, which has seen a tremendous growth in the late nineties and has opened the floodgates for the Indian retailers. Working women have disposable incomes and have their own buying decisions for products which appeal to them

Rural Consumer 
The Indian rural market has been growing at 3-4% per annum, adding more than 1 million new consumers every year and now accounts for close to 50% of the volume consumption of fast-moving consumer goods (FMCG) in India. The market size of the fast moving consumer goods sector is projected to more than double to US$ 23.25 billion by 2010 from the present US$ 11.16 billion.

Over the years, as a result of the increasing literacy in the country, exposure to the west, satellite television, smart phones, Bollywood movies, social media and newspapers there has been significant increase of consumer awareness among rural Indians. This awareness has made the Indian consumers seek more and more reliable sources for purchases such as organized retail chains that have a corporate background and where the accountability is more pronounced

The Indian consumers are price sensitive and prefer to buy value for money products. Here are few influences on the Indian consumer buying behavior, which a marketer should know.

Ecommerce Marketing 
Indian eCommerce industry is set to become a $0.5 trillion business in the next 10 years. With the sudden rise of eCommerce, most brand and cost conscious consumers are turning towards portals for buying or comparing product price with brick – N – Mortar stores. Currently the products Indian consumers are buying through online are smart phones, clothes, books, low value white goods, stationery, electronics, educational material and lately e Learning courses.

Celebrity Influence 
In India, celebrities are regularly used as brand ambassadors in marketing communication by marketers to lend personality to their products, increase trust factor and promote the brand. Celebrity endorsements work to a great extent for all class of consumers in India, as Bollywood and cricket plays a huge role in INDIAN life-cycle.

Quality Oriented Outlets 
Indian consumers looking for quality choose expensive brands as they feel that price is an indicator of quality. Most products in India have long shelf life, even after break down, they get it repaired. Most consumers ensure that products / brands have a service outlet in their nearby area for future break down repairs. If a product / brand don’t have any service centres, it is difficult to sell to INDIAN BUYERS.

Freebies 
Indian consumer’s buying behavior is influenced by freebies, discounts, one – on – free, 40% discount, etc. Freebies are consumer products given free of charge as gifts to purchases of selected products above a certain value. Freebies generally comprise tooth paste, soaps, detergent, cooking oil, cash back, USB, headphones, speakers, mobile covers, etc.

Changing Trends in Indian Consumer Behavior

Bulk Purchasing 
Urbanization is taking place in India at a dramatic pace and is influencing the life style and buying behavior of the consumers. Bulk purchases from hyper stores seems to be the trend these days with purchasing becoming more of a once-a-week affair, rather than frequent visits to the neighborhood store.

Trendy Lifestyles 
The current urban middle and upper class Indian consumer buying behaviour to a large extent has western influence. The Indian consumer has become much more open-minded and experimental in his/her perspective towards western trends. Most international Brands have presence in India and have gained wide consumer acceptance.

Buyers’ Market In The Making 
Post India’s economic liberalization, policies were initiated in 1991 for opening of market, many new product offerings have entered the Indian market and product variety has also increased manifold. Indian consumers have always preferred foreign goods and with liberalization, they have a choice vis-à-vis local products. 
The sellers’ market is slowly moving towards becoming the buyers’ market.

Social Media + Internet Influence 
Social media has played a spoilt sport, now people buy to get LIKE. Often, users check reviews on social media prior to purchase decision, even prefer movie review from friends rather than film critics. With lowest broadband connectivity, most Indians are turning towards smart phones with internet, often checking new offers and products on mobile app.

Consumer Spending Behavior 
Possibly the most challenging concept in the marketing is to understand the buyer behavior. The attitude of Indian consumers has undergone a major transformation over the last few years.  The Indian consumer today wants to lead a life full of luxury and comfort. Wants to live in present and does not believe in savings for the future.  
Consumers now have the power of information at their fingertips, enabling them to compare and shop wide range of goods and services anytime, anywhere. 
Lately, this trend has accelerated, as mobile apps have been playing larger trans-formative role to consumer fingertips.