Seven Strategies for Increasing Profits Through Business-to-Business Internet Marketing

1. Seven Strategies for Increasing Profits ThroughBusiness-to-Business Internet Marketing Susan K. Jones, Professor of Marketing Ferris State University Presenting at the Research Summit Direct Marketing Educational Foundation San Diego, CA October 16-17, 2009

2. Background: Book Development for Class and Certificate at Ferris State University

3. Question: How do you teach B2B? • Dedicated Classes? • Integration? • Guest Speakers? • Cases and Case Histories? • Class Projects? • Other?

4. Challenging Economic Times Bode Well for Growth of Online B2B Marketing • E-mail is the most cost-effective medium ever devised – ROI of $40.00 plus per dollar invested per the DMA and a marketing cost per order of $7.00 per Email Labs • Online marketing is measurable – leads, orders, long-term value can all be calculated to the penny • B2B Social Networking generally costs time rather than money • Sponsored search and SEO are • Measurable • Cost-effective • Adjustable on the fly • Affordable for small business

5. The recession hastens what’s probably inevitable for many narrow niche B2B trade publications • In our field… • DM News now publishes biweekly instead of 50x yearly • Direct and Promo no longer exist as print publications http://www.penton.com/News/PentonMediatoLaunchChiefMarketerMagazine.aspx • They’re now folded into Chief Marketer, which is available • Free to those who fit its controlled circulation parameters • For $49.95 a year if you want it in print • All these publications offer a host of online newsletters and downloadable resources

6. In General…B2B Print Pages are down

7. While B2B marketers are going online…

8. Online Lead Generation is Cost-Effective and Accountable • Cost of a B2B sales call “has soared over $500” per B2B expert John Coe • Average B2B sale may require 4-5 sales calls • If direct/interactive marketing can open the door more efficiently, that cost can be controlled. Examples -- • Use variable data printing to lead prospects to a customized, value-added web site for their response • Gain leads through an offer with “something in it for them” like an online newsletter

9. Trade Shows are Shrinking and/or Going Virtual – again the economy hastens the trend. Example: • In our field… • Direct Marketing Association Announces second round of cutbacks aimed at decreasing dependence on face-to-face trade shows and increasing online resources • http://www.audiencedevelopment.com/2009/dma+makes+second+round+employee+cuts

10. Trade Shows are Shrinking and/or Going Virtual • The ultimate is a “Second Life”-type trade show experience such as http://www.6connex.com/ • "Only about one-third of interested people actually attend a show, so virtual shows [can potentially] reach 66-70% of the people who don't actually attend: -- Dr Allen Konapacki, President, INCOMM Center for Trade Show Research, Chicago, USA

11. Corporate Training Budgets fall…making free or inexpensive Internet Events attractive • http://www.accountingnet.com/x63914.xml • http://www.astd.org/TD/Special/0808_Steady_Under_Pressure.htm • These articles and many more point to coping mechanisms including • Looking outside the corporation for training options • Online options

12. Marketers see integration of online marketing as a challenge

13. Well-Conceived B2B Internet Marketing is Rooted in the Principles of DM • Like Direct Marketing – B2B Internet Marketing… • Can be controlled, tested, tracked, analyzed, refined and measured • Delivers value by generating leads and orders you can count • Yet B2B Internet Marketing does more • Now B2B marketers can actually close the loop and complete the marketing and sales cycle at one time, in one place, online. • That makes it truly accountable marketing

14. Seven Proven Strategies for B2B Internet Marketing • 1. Generating and qualifying leads with the Internet. • 2. Using Internet events to promote products and services. • 3. Executing e-fulfillment. • 4. Building customer relationships with the Internet. • 5. Using or establishing business communities and exchanges. • 6. Using the Internet to create and manage partner programs. • 7. Selling with the Internet

15. Generating and Qualifying Leads with the Internet -- The heart of most B2B marketing programs • Integrate the Internet with direct mail and telemarketing • Web Response Forms/Landing Pages • www.yourwebsite.com/promoidentifier • XM Pie web site has examples including responses/ROI • The Snackinar example on next slides

17. Snackinar Personalized Landing Page

18. Snackinar Web Response Form

19. Generating and Qualifying Leads with Online Advertising – a couple of tips • B2B Marketers should consider testing e-newsletter sponsorships versus traditional banner ads. Why? • Newsletter ad looks just like a banner or button • Most newsletters limit sponsors to one or a few per issue • Tend to pull a higher click-through rate and have higher conversion than traditional banners • More likely to be read because it’s with editorial material very relevant to recipient • Newsletters in narrow niches strategically and cost-effectively define your audience • B2B Marketers should try placing banners for their products, services and events on their own web sites • Integrate the look/feel of the banner with current ad campaign to supplement landing pages • See Cisco example (next slide)

21. Generating and Qualifying Leads via E-mail -- Examples • Typical Uses of B2B E-mail for lead generation and cultivation (cutting down on phone, fax, postal mail) • Customer and Prospect Communications • Follow-ups • Major Announcements and Alerts • E-mail and Online Surveys • E-mail Discussion Groups • A B2B e-newsletter offers value for the recipient and gains leads for the marketer to cultivate • If material is newsworthy and relevant (not merely selling products and services) prospects may be willing to receive it as often as 5x a week • Newsletters boost credibility and authority for B2B firms • Newsletters keep marketers top-of-mind for prospects without being overly pushy • See eMarketer example, next slide

23. Using Internet Events to Promote Products and Services Costly and frustrating problems with face-to-face events… …Can often be overcome with Internet-based events • Nightmare logistics – travel, hotels and venues, speakers, weather, traffic • Substantial investment • Quality control challenges • No-show rates of 50-60% for free seminars offered at a specific time and place • Minimal logistics – everyone “meets” at a URL or attends on demand • Much lower investment • Much more quality control • Attendees invest only an hour or so; may attend as a group; senior execs may attend; on-demand feature

24. Using Internet Events to Promote Products and Services • The Internet also can be used to promote and enhance traditional marketing events • Snackinar Example on previous slides • YouTube Videos – example: http://www.youtube.com/watch?v=Nht1tYY6lsw • Blogs and Groups on Social Networking Sites • Create a group to “follow” your event • List those already signed up to attend and provide easy methods for forwarding information about the event

25. Executing e-Fulfillment • Use the Internet to qualify prospects and instantly fulfill their requests for information • Saves money and time over traditional fulfillment • PDFs make e-Fulfillment easy and universal • Updating is easy and fast (no more outdated brochures) • The Web facilitates individualization of online fulfillment • Online demos and trials can offer a taste of an application that times out unless purchased • A smaller company that does this well: Advantage Engineering http://www.advantageengineering.com/literature/literature.php

26. Building Customer Relationships with the Internet Example: Dell’s “My Way”

27. Building Customer Relationships With the Internet – Some Pointers • Treat Customers Like Prospects (Don’t take them for granted) • Ask Customers What They Want – And Give it to Them (Based on their own expressed needs) • Explore New and Innovative Ways to Encourage and Reward Customers (Online access to special information or an Extranet) • Treat Customer Classes Appropriately/Differently (Appropriate incentives and rewards) • Make One-to-One Fun (Dell’s sports/horoscopes, etc.)

28. Offer a Customer Extranet to Best Customers for applications such as… • Password-protected access for your customers’ employees at different levels of authority • Inventory control and lists of past purchases • Real-time collaborative work space online • Opportunity to order samples • White papers and other materials available only to best customers • See Steelcase example on next slide

30. Business Communities and Exchanges -- Examples • Vortals (Vertical Portals) • PlasticsNet • IndustryGate (Greek Industrial Site) • Business.com • Auctions • eBay Business Shop • DoveBid • Business Communities and Exchanges – just a couple among many • LinkedIn (not hard sell – a social network for business) • ChemConnect (a 24/7/365 global trading network)

31. Creating and Managing Partner Programs -- Examples • The Starting Point: Affiliate Programs • Building an Internet-based Channel Partner Program • “Web-ize” the partnership • Link to each other • Or pick up entire pages to incorporate reciprocally • Link your employees’ communications electronically • Promote your partners online • Establish a partner service Extranet

32. Selling on the Internet – Learn from the Best: B2B Magazine’s 10 Great Web Sites • Adobe • Cisco Systems • Formway Furniture • InFocus Corp. • IT Toolbox • Johns Manville • Tech Smith Corp. • Suni ImagingThomasNet • USPS

33. Seven Strategies for Increasing Profits ThroughBusiness-to-Business Internet Marketing Susan K. Jones, Professor of Marketing Ferris State University Questions? Ideas? Great Thoughts? I’m at sjones9200@aol.com or joness@ferris.edu (616) 458-0305 (home office) or (231-591-2468 (Ferris State) Or look for me on LinkedIn/Facebook/Twitter (@sjones9200)