Been working together with Atlee Valentine Pope of Blue Canyon Partners on a paper investigating the question: “What is the role of the Corporate Marketing Function/CMO?”
Been navigating waters with several CMOs lately, it seems as if that question is another one of the perennials: “Why is it that it’s so difficult to define the best place for a Corporate Marketing Function to play in B-to-B?”
Atlee has started some very interesting insights in this area, and we hope to do some work on this over the next few weeks.
Ralph
Three Ways B2B Marketing is Changing
I wanted to share an interview I did this week with Mike Colucci of The SDG Group on the state of B2B marketing.
See the full interview here or read it below: http://www.thesdggroup.com/#/blog/4555170456/Three-Ways-B2B-Marketing-is-Changing/982659
Enjoy,
Ralph
Three Ways B2B Marketing is Changing
By Mike Colucci, Jan 30 2012 8:24AM
B2B marketing has its own set of challenges. And no one that I have met has as much insight into what those challenges are then Ralph Oliva, Executive Director of the Institute for the Study of Business Markets (ISBM), a research center in the Smeal College of Business at Penn State.
“We not only know B2B, it is all we do, and we love it! It isn’t our sideline, it’s our frontline!” Ralph Oliva on the focus and passion of the ISBM.
Because of Ralph’s knowledge, experience and current responsibilities he has his finger on the pulse of whats going on in the B2B space. I think the first question I always hear him ask me when we connect is, “So, how’s business?”
So I thought I would give Ralph a call and ask him a few questions this time. Of course, he beat me to the punch. So, after telling him how business is, we gone on with it.
Mike Colucci: Ralph, how do you see business marketing changing?
Ralph Oliva: I see there being three distinct areas where change is influencing B2B marketing.
MC: Okay, let’s start with the first…
RO: The biggest thing people are talking about now in marketing is social marketing. I think that the real question then for B2B is “is B2B marketing changing, or is it getting more the same?” Business Marketing has always been “social.” It has always been face to face and personal. What is happening now is that people and businesses are getting connected in more ways, lubricated by the different technologies and social media that are available. And this has its advantages and challenges
The implication is more about this new way for community to happen and how you can penetrate that community and mine for value.
The whole emphasis on marketing historically has been on everything we do before the sale to create, communicate, and capture our fair share of value. We need some new focus on what we can do after the sale. This is a new frontier. Customers are empowered in this area because of social media and social marketing. And so B2B marketers have to ask, “How do we create new value by utilizing this space? How much of this can happen through individual connections? Can you get a small group of people together and focus on it?”
This doesn’t necessarily have to be people who have been coined “creative.” Social media allows these dialogues to happen faster and on a greater scale, and that can get more people contributing to this dialogue. The rule now is no longer that you can control who plays, it is that everyone plays. And this rule allows personal creativity is amplified in these social situations.
MC: Are B2B firms at an advantage or disadvantage compared to B2C firms here?
RO: B2B firms have the advantage here because the “crowd” is easier to manage and engage. And that presents a great opportunity for this “after the sale” value mining. Not only is the number of people interested in becoming part of the community smaller, the people who are engaged are much more knowledgeable and carry a greater interest in seeing you succeed.
Where the B2B firm has to be very in careful is in understanding that a lot more clout and focused interests exist in these communities than in a B2C. If you have an advocate – or a detractor – it becomes a very powerful voice, so you need a clear strategy in order to succeed.
MC: Alright, the “social aspect” of marketing is the first change. What is the second?
RO: It is that we are redefining what “integrated marketing” means. The old style and definition relegated integrated marketing to the Marketing and Communications groups. The kind of questions they asked were around things like, “Is our messaging consistent in all of our literature?” “Is our logo and identity being deployed consistently?” “What is our brand?” “What is the company tag line?” The focus was on the way firms were communicating their message through materials and images.
Integrated Marketing now, in the new style, asks the question. “Can the whole firm be focused on achieving your objectives in the market place?”
Integrated marketing now involves lining up the entire company –and its assets – aligned to customers and markets. And it recognizes that to be truly innovative will require much bigger groups of cross functional teams.
MC: You mentioned being “truly innovative.” Can you expand on why you place that here in the “Integrated Marketing” space?
RO: Sure. Integrated Marketing can’t happen in a “Marketing Department.” Marketers can (and are) leading the way, and can bring frameworks for thinking, tools, and guidelines. But they also need to reach out to involve more people in that discussion and use of the tools if you are going to get the whole firm lined up to meet the objectives.
I think about Larry Keeley’s 10 pathways or 10 types of innovation. B2B firms really need to be thinking this way. The way I see you, and Larry, and others talking about innovation now is that anyone can do it with the right tools. And not only should they do it, they must.
MC: I like Larry’s quote, “Innovation is a discipline… you can require it of people.”
RO: That’s exactly it. And B2B firms are beginning to realize that innovation is not relegated to a select few just as “integrated marketing” is no longer relegated to one department. Firms need to be leveraging all of their resource and human capital.
Where your message resonates with Larry’s is about how Larry says this business of people not being creative is all wrong.
MC: And third?
RO: Most B2B firms are grappling with this question, “What is the role of the corporate marketing function?” We’re working with firms on this question all the time. One role of the corporate marketing function can be to bring state of the art tools that will make the whole firm better. Whether they find those tools internally and develop ways to share them throughout the firm, or whether they find them externally and bring them in to become a core competency of the firm… the question that should drive the corporate marketer is “How can I mobilize the innovative capability of the firm?” And it holds true for all of the other capabilities… Pricing, Segmentation, Social Media…
The corporate marketing function should have a powerful impact in connecting company strategy – at the executive level – to the customer, market, and the exact right demand. This is the thrust of our next ISBM Members meeting.
MC: Thank you Ralph. As always, very insightful.
If you want to know more about the ISBM or how they can work with your firm you can visit www.isbm.org. The meetings are always worth the trip and, having worked with Ralph in the past, I can tell you that they deliver on what they promise. Open enrollment courses in all areas of Marketing Excellence are also available for individuals who need focused content and training.
So the three ways Marketing is Changing for B2B firms:
The Rise of Social Marketing and the “after the sale” experience
The Redefining of Integrated Marketing
Defining the Role of the Corporate Marketing Function