As we emerge from the pandemic-driven market crash and enter a world of supply chain shortages and a looming recession, B2B marketers can be forgiven for worrying at worst and panicking at worst. True founder Richard Parsons wrote that in difficult times, comfort and strategic direction can be found "on a regular basis."
The rule of three has stood the test of time
The Rule of Three is a hypothesis about the evolution of industry governance and structure, first proposed in 1976 by Bruce Henderson, founder of the Boston Consulting Group. its market share is no more than four times that of the smallest of them.
This is a theory that has been repeatedly revised and confirmed over the following decades. And its ongoing relevance is that, in the face of the maturity of a rapidly changing hot market, companies face two outcomes: buy or be bought. How could it be? Because in every sector of activity there will always be a rule of three (or rather, "rules of three and four", using Henderson's official name).
To understand how this will affect purchasing decisions for individual B2B businesses, and to what extent all business purchases are subject to the same pressure, we examine B2B case studies from 23 industries in 26 of the world's top economies to identify and measure marketing effectiveness. .
Our goal is to debunk myths about B2B marketing and explain how business products and services are acquired to demonstrate the relationship between creativity and performance. Here's what we found...
Various B2C and B2B sales channels
The B2B sales model is different from the B2C sales model because the B2B and B2C sales channels are different. In B2C, standard sales channels filter out fewer customers with high brand awareness and many long-term prospects that upstream brands have yet to achieve. And affiliate sales models tend to provide the broadest brand exposure and the highest financial returns.
However, our research shows that in B2B, buyers start with three brands, then increase the number of suppliers they consider up to 10 (including three genuine ones) before finally narrowing down to one supplier they buy from. Hence the smaller sales channel; more like a diamond that is for sale.
B2B brand awareness is very important
Due to the different nature of B2B and B2C sales channels, brand awareness is very important for the top three competitors.
We found that while size and market share determine which three brands to start with, brand awareness determines which seven brands to consider next. 't. Creative campaigns are 12 times more effective for business success.
The most effective B2B brand awareness campaigns are balanced
Most marketers consciously choose to focus on both sides of the marketing funnel, either by increasing awareness of existing leads and customers, or by increasing sales. But our results point to the need for a more specific set of goals associated with each touchpoint used to influence consumers through initial review, active evaluation, and closure.
As a result, B2B branding campaigns must be balanced. This means a balance of emotional and rational elements, because emotional messages are better remembered and can contribute to brand and sales success. It also means balancing great long-term branding ideas with things that need to be sold immediately.
Look to the future with confidence
Our work shows that the invisible forces that operate within the rule of three in mature markets are also present in people's microbuying decisions. Indeed, for a mature market, macroeconomic observations are simply the accumulation of many microdecisions over time.
Our research shows that 70-90% of all B2B buyers buy from brands they recognize early in the buying process. The more popular a brand is among a wide audience, the more likely it is to be in the top three in that market.
By understanding this and then acting on it, B2B marketers can look to the future with confidence.
Richard Parsons, founder and CEO of True.
To find out more, register for B2B World Fest on November 9 and 10 for free.
