What is B2B marketing?Promoting for sale a company’s productsand services to other businesses for theirbusiness use.
Why B2B marketing?• 80% of revenue is from advertising• Market share against competitive media
Share of Media Spending Magazines Network TV 25% Newspapers 21% 20% 20% 19% 18% 18%Percent Share 15% 10% 5% 0% 1998 1999 2000 2001 2002 Source: PIB, CMR
Why B2B marketing?• 80% of revenue is from advertising• Market share against competitive media• Fluctuating economy
Case Study – AshevilleReply CardSurvey Sales Flyer
Why B2B marketing?• 80% of revenue is from advertising• Market share against competitive media• Fluctuating economy• Manage resources wisely• Current solutions inadequate• Good business sense
The Fundamentals• Data• Technology• Competency• Application
Business Data Options• InfoUSA• D&B• Experian• Acxiom
“After verifying data accuracythrough research and talking withthe companies, it became clearboth companies had strengths andweaknesses, but not onedominated another.” -- Bill Truett Market Development & Research Director New York Times Regional Newspaper Group
“They happen to be local…theirservice is very good, we have anattractive pricing arrangementwith them, and no data problemsthat may cause me to questiontheir accuracy and shop around.” -- John Graham Manager of Marketing & Research Services Daily Herald/Chicago
Buying Business Data• Do your research• Challenge the vendor – demand service• Negotiate• Multi-year contracts w/updates• Test data• Acquire match key fields
Advertising Billing System Data• Account number hierarchy• Company name• Address (Billing versus physical)• Phone numbers• Agency data• Salesperson/team numbers• Last ad date• Ad revenue data
Challenges & Discoveries• Matching addresses• Out of market or virtual advertisers• Agency matching• Duplicates• Transient data• Conversions• Dirty data
Competencies – What We Learned • Differences in same system • Standard definitions … fuels/contributes to cultural change
Case Study - AshevilleChallenge/Situation:• Data Hygiene - review over 6,500 advertiser accounts.Strategy:• ConneXt match process to identify and prioritize advertiser data that need correcting.Results:• Manually reviewing every record was estimated to be 6 minutes per record – if nothing major found wrong. Averages to 650 hours or $6,500
Case Study - AshevilleData Hygiene Effort:• Ledger account inactivation - inactivate and/or purge inactive accounts before matching with outside business data• Use reports for match evaluation/cleanup• Establish account cleanup workflow/responsibilities• Review account set up process for efficiency improvement – Master setup form changes for account maintenance
Case Study - AshevilleData Hygiene Effort (…continued):• Transient To Ledger Conversion – Verify procedure to prevent forming duplicate accounts w/ existing retail – Classified accounts need to be established with SIC codes, not class codes• Agency Accounts – Verify (if not done already) create agency accounts flagged as "Agency“ – Link client accounts to "Agency" accounts – Option - bill sequence code for grouping of invoices for agencies
Database Cleanup Process• Business rules for entering new advertisers• Dirty/incomplete addresses• Prioritize cleanup teams – Matched data – Potential matches – Local unmatched – Ad agencies• Within sub-segments prioritize by ad revenue, SIC, Zip Code• Duplicate records
Basic B2B ApplicationsStrategy:• Special sections and features targeting• Classified directory listings• Segment prospectingTactics:• Distributing sales leads• Direct mail with telesales follow-up
Case Study – Sioux FallsChallenge/Situation:• Targeted health and medical segment due to revenue decline in 2002• Increase penetration and revenue through cold- calling using targeted lead listsStrategy• Analyze SIC segments within category• Generate lead lists aimed at Dentists, Chiropractors, other small practices• Develop specific sales & research presentations
Case Study – Sioux FallsResults:• Segment rep required to email results• Internal segment reports used as secondary tracking• In 5 weeks, 25 prospects contacted from list of 800, 5 have begun advertising• In 1 month, generated $9,790 in new revenue• Internal segment reviews show 89% increase over prior year and 17% increase over prior month.
Case Study – WilmingtonChallenge/Situation:• Increase ad revenue in Discovering Delaware editorial focus that runs every monthStrategy• Pull lead lists of current advertisers• Soften market with direct mail piece followed up by sales call
Case Study – WilmingtonResults:• 43 sales closed between March – August• Ad rate of $30/inch with ads ranging from 4 to 10 inches• Approx. total sale over 6 months = $10,110
Case Study – Des MoinesChallenge/Situation:• Increase advertiser penetration in Clive Zip Code 50325.Strategy:• Target new prospects or lapsed advertisers with a discount incentive.• Create direct mailing piece and print in-house for cost savings - $300-400 only.• Stagger mailing over four weeks followed up by sales call.
Case Study - AshevilleChallenge/Situation:• Find new ad revenue to support a new 6 page weekly product being launched in neighboring county to our NDM.Strategy:• Pull lead lists of current advertisers• Soften market with direct mail piece followed up by sales call
Case Study - AshevilleResults:• 26 new contracts worth an estimate of $75,000 sold to support the new product out of lead list of 800.• 3 new contracts for the AC-T worth an estimate of $8,600• Served as a team building exercise between marketing and advertising.
Case Study - AshevilleChallenge/Situation:• New Business Development Leads – Golf Courses – PetsStrategy:• Produce lead list for outbound telesales.
Case Study - AshevilleResults:• Pets – 5 advertisers out of 37 leads worth $1,090.• Golf Courses - 2 advertisers out of 38 leads worth $4,200. 10 to 12 leads pending.• Developing procedures with advertising to forward data corrections for data hygiene efforts.
Case Study - AshevilleChallenge/Situation:• Produce Online Dining GuideStrategy:• Produce lead list of area restaurants for online sales executive starting with current, then former and prospective customers.• Call and collect restaurant information and verify addresses.• Offer up-sell for bold listing and restaurant coupon offer
Case Study - AshevilleResults:• 12 Clients for listing upgrades and coupon offer generating $3,600 in new revenue.• Developing procedures with advertising to forward data corrections for data hygiene efforts.
Competencies – What We Learned • Differences in same system • Standard definitions • Strategic vs. tactical tool • Measuring and tracking
“If you think about whatmarketers should be doing, theyshould be analyzing the resultsof previous initiatives andcampaigns, and then using thatinsight to drive new executions.” -- Daniel Lackner VP/General Manager of Marketing Automation Products/Siebel Systems Inc.