Communication Targeting
Helen Strong
Business Buying Unit
Communication Targeting: Purpose
This model applies in a business-to-business environment. It is intended to remind the marketing team that they are dealing with a buying unit, and that each individual within that unit has different information needs, depending on his or her function and role in the unit. It would be applied when preparing to engage with a new customer; when there has been a change in management at an existing customer; or perhaps prior to preparation of a tender document for a major project.
Communication Targeting: Structure and Description
This model is designed to remind the researcher to investigate the composition of the buying unit and to focus on the type of information that they require to form their decision as to the most appropriate product to purchase. It deliberately places the more senior, strategic players at the head of the triangle. These people are more likely to have the greatest influence on the buy or no-buy decisions (Figure 11.1).
The model is probably more appropriate for decisions involving nonroutine purchases, for example, for products that have a material impact on the nature of the end product of the buyer. Even when there is a limited source of suppliers, it is important for the supplying companies to raise industry entry barriers and to entrench their advantage through good communication.
Marketers will be aware that, while business purchases are supposed to be based on technical specifications, personal relationships and emotions
Marketing communication needs for the buying unit
are significant components of buying decisions. Hence the researcher will need to obtain information about both factual and emotional requirements within the buying unit.
In business selling, there is a great deal of preparatory communication that is required on a one-to-one basis to build awareness of the supplier, trust in personal credentials, and to convince the various players that the product meets the technical and commercial needs of the buying organization.
There are some general considerations that need to be taken into account. For example, as a result of leadership style every company has a personality and orientation, which guides their decisions. There is a difference in approach to talk to an innovative risk-taking organization as opposed to a conservative, use proven methods type of outfit.
Systems must not be ignored. Each organization has its own process, which needs to be followed to generate a request for quotation from their suppliers. Suppliers need to conform to the process to even have their proposal or tender considered.
On award of a tender, there will be a further set of processes that confirm the award. Suppliers may need to submit clearance certificates for such areas as proof of company registration; authority to sign agreements; (and in South Africa) good standing with South African Revenue Service (SARS) (tax); WCA; and Broad-Based Black Economic Empowerment (BBBEE) status. They will require bank details (to pay you), and possibly risk assessment and safety plans and medical fitness clearances (to protect the buyer from spurious claims).
Suppliers need to be aware of the purchasing systems so that they can submit invoices and receive payment timeously. If the closing date at the end of the month is the 22nd, all the invoices and signed-off delivery notes need to be in with the administrative department by the 21st.
Communication Targeting: Strategic Considerations
Your organization may have the most progressive and suitable product for an industrial application, but it will not be purchased unless the buying unit in a target organization is sure that all their needs have been addressed.
The content and manner of presentation needs to convince the buyer that the purchase carries the least risk of all the available alternatives. For example, life-cycle costing can be a major consideration.
In addition, because the supplier’s product is incorporated into another business process, quality issues and the longer term relationship are important. Not only must the product meet technical specifications, but the supplier must be:
- Financially and ethically stable
- Capable of meeting delivery commitments
- In a position to provide technical backup
- Provide postsales service and maintenance at a reasonable cost and within specified time constraints
Communication Targeting: Implementation
Gathering information for communication targeting is an extended process that takes place over time. We are assuming that the product being offered plays a significant role in the customer’s operations, is a significant item in their budget, or both.
The researcher (usually the sales consultant) needs to first have a comprehensive understanding of the product, its operation, and its key features and benefits. This is not superficial knowledge, but a detailed appreciation of why certain features are included in the design. The researcher must be aware of the role of the supplier’s product in their customer’s processes. How do the product and its attributes contribute to the process or design where it is going to be used?
With this understanding, the researcher will have helped to identify the target market for the product or service, and then within that industry the most likely prospects; that is, the organizations that match the technical level of the supplier, or perhaps would benefit from innovation, cost saving, or other benefits offered by the supplier’s product.
1. Secondary research is then necessary to establish:
○ Would the company want or be able to incorporate the supplier’s product in their designs and processes?
○ Stability and financial standing of the prospect.
○ Their reputation or otherwise for payment.
○ The structure of the company and its subsidiaries. (Where do they need delivery? Centralized or decentralized purchase?)
2. Exploratory research in the form of personal interviews and discussions to establish the structure of the company’s buying unit and their decision-making process. This will include:
○ Identifying who is involved
○ What is their role?
○ Who is the gatekeeper?
○ Who is the key influencer?
○ Who has the authority or standing to make a positive or negative decision?
3. Followed by a series of personal meetings (interviews) with the key personnel in the buying unit to establish the information in Table 11.1.
Table 11.1 Information for communication targeting
The information collected via the above-mentioned process needs to be documented clearly in sales reports within the target company’s file. It would be advantageous to conduct a regular (monthly?) review of the status and progress of the sales process. Using one’s knowledge of the people and their requirements, a communication strategy needs to be developed to ensure that the right people are reached with appropriate content (see Table 11.2).
Table 11.2 Communication focus
Communication Targeting: Conclusions
The above-mentioned aspects seem to suggest that information is gathered and imparted in a series of meetings and interviews. However, there are several other opportunities for communication and persuasion that can and should be used to interact with potential clients and develop relationships with people in the target organization.
Use can be made of conferences, workshops, professional association events, content marketing on the Internet, and social media such as LinkedIn, Facebook, and YouTube. Of course, traditional media cannot be ignored. Suppliers will make use of PR, advertising, and editorial in relevant magazines and newspapers, trade shows, technical training courses, videos, brochures, and sponsorship of industry events such as golf days.
What is important that the right people who influence purchase are identified, and provided with appropriate evidence (technical and emotional) to convince them about the value of doing business with the supplier.
References
Ahonen, T.T. 2013. “Around the World With Mobile: Global Insights and Regional Relevance of Mobile Marketing.” Presented at MMA Forum: Mobile’s Role in the Path to Purchase, New York, May 8 – 10. New York: Mobile Marketing Association. Available from: http://www.slideshare.net/vivastream/around-the-world-with-mobile-global-insights-and-regional-relevance-of-mobile-marketing-20847876
Bae, Y.H. 2012. Three Essays on the Customer Satisfaction–Customer Loyalty Association http://ir.uiowa.edu/etd/3255 (accessed July 3, 2013).
Barron, P. 2013. Force Field Analysis http://www.change-management-consultant.com/force-field-analysis.html (accessed October 22, 2013).
Bernstein, D. 2011. Value Proposition: A Free Worksheet to Help You Win Arguments in Any Meeting http://www.marketingexperiments.com/blog/general/value-proposition-worksheet.html (accessed July 10, 2013).
Boston Consulting Group. 1973. “The Experience Curve–Reviewed IV.” The Growth Share Matrix or The Product Portfolio, http://www.bcg.com/documents/file13904.pdf (accessed May 25, 2014).
Clayton Christensen Institute. 2012. Disruptive Innovation, http://www.christenseninstitute.org/key-concepts/disruptive-innovation-2/ (accessed July 17, 2013).
Content Marketing Institute, 2011, What is Content Marketing?, Cleveland,
Z Squared Media LLC. Available from: http://contentmarketinginstitute.com/what-is-content-marketing/ (accessed May 19, 2014).
Eslkevin’s Blog. May 16, 2013. Hofstede’s Cultural Dimensions Theory, http://eslkevin.wordpress.com/2013/05/16/hofstedes-cultural-dimensions-theory/ (accessed September 9, 2013).
Fleishman-Hillard and Lepere Analytics. 2013. The Authenticity Gap: Managing Expectations and Experience, http://fleishmanhillard.com/wp-content/uploads/meta/resource-file/2013/authenticity-gap-executive-summary-1367433000.pdf (accessed September 16, 2013).
Fu, B.; and T.P. Labuza. 2000. Shelf Life Testing: Procedures and Prediction Methods for Frozen Foods. St Paul, MN: University of Minnesota. http://www.google.co.za/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&cad=rja&ved=0CEYQFjAF&url=http%3A%2F%2Fwww.researchgate.net%2Fpublication%2F2402471_Shelf_Life_Testing_Procedures_and_Prediction_Methods_for_Frozen_Foods%2Ffile%2F9fcfd50ca4182953af.pdf&ei=G6rSUpTEIOHL0QW6wYGIBA&usg=AFQjCNF8mnmqOlASQwMO3-i2K_dcOMaEsA&bvm=bv.59026428,d.bGQ (accessed January 12, 2014).
Greenberg, M. 2009. Do the Math: An Easy Formula to Forecast Customer Growth, http://venturebeat.com/2009/08/25/do-the-math-an-easy-formula-to-forecast-customer-growth/ (accessed August 18, 2013).
Gunelius, S. 2011. Brand Equity Basics – Part 1: What Is Brand Equity?, http://aytm.com/blog/research-junction/brand-equity-basics-1/ (accessed June 3, 2013).
Jarvis, B. n.d. Conjoint Analysis 101, http://www.pragmaticmarketing.com//resources/conjoint-analysis-101?p=0 (accessed August 18, 2013).
Johnston, J. 2012. How Volvo Construction Uses Digital Marketing to Fuel Sales, http://www.marketingsherpa.com/video/volvo-digital-marketing-fuel-sales (accessed August 20, 2013).
Keaveney, S. April 1995. “Customer Switching Behavior in Service Industries: An Exploratory Study.” Journal of Marketing 56, no. 2, pp. 71–82.
Keller, K.L. 1999. Blending Branding Theory & Practice: Insights & Lessons from Applying the Brand Resonance Model, http://www.docstoc.com/docs/108016293/BLENDING-BRANDING-THEORY-and-PRACTICE (accessed May 25, 2014).
Keller, K.L. 2006. “Measuring Brand Equity.” The Handbook of Marketing Research: Uses, Misuses, and Future Advances, eds. R. Grover; and M. Vriens. Thousand Oaks, CA: Sage publication.
Keller, K.L. 2010. The New Branding Imperatives: Insights for the New Marketing Realities, http://exec.tuck.dartmouth.edu/downloads/350/msi_ff_10-700.pdf
(accessed June 3, 2013).
King, D. 2005. Ge 1300. Introduction To Human Geography Lecture 15. Location of Industry, http://www.csiss.org/classics/archive/lect15.htm (accessed September 12, 2013).
Kirby, J. 2013. A Unique Approach to Marketing Coca-Cola in Hong Kong, http://blogs.hbr.org/hbr/hbreditors/2013/02/a_unique_approach_to_marketing_coca_cola_in_hong_kong.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+harvardbusiness+%28HBR.org%29 (accessed July 15, 2013).
Klepper, S. 1997. “Industry Life Cycles.” Industrial and Corporate Change, Vol 6, No. 1, pp. 145–180.
Kotler, P. 2000. Marketing Management, Millennium Edition. Upper Saddle River, NJ: Prentice-Hall, Inc.
Kugytė, R.; and L. Šliburytė. 2005. “A Standardized Model of Service Provider Selection Criteria for Different Service Types: A Consumer-Oriented Approach.” ISSN 1392-2785 Engineering Economics 43, no. 3.
Kussmaul, M. 2012. Marketing: The Four P’s or the Four C’s, http://www.marketplacemotivations.com/articles/magazine-articles/54-marketing-the-four-p-s-or-the-four-c-s (accessed September 9, 2013).
Lasswell, M. 2004. Lost in Translation Time and Again, Product Names in Foreign Lands Have Come Back to Haunt Even the Most Brilliant of Marketers, http://money.cnn.com/magazines/business2/business2_archive/2004/08/
01/377394/ (accessed September 9, 2013).
Levitt, T. July–August. 1960. “Marketing Myopia.” Harvard Business Review 38, no. 4, pp. 45–56.
McClaren, D. 2013. Nike Takes Gamification to the Next Level with Nike Fuel Missions, http://www.theuksportsnetwork.com/nike-takes-gamification-to-the-next-level-with-nikefuel-missions (accessed July 15, 2013).
McSweeney, B. 2002. Hofstede’s Model of National Cultural Differences and Their Consequences: A Triumph of Faith – a Failure of Analysis, http://www.uk.sagepub.com/managingandorganizations/downloads/Online%20articles/ch05/4%20-%20McSweeney.pdf (accessed September 6, 2013).
MindTools.com. n.d. a. Porter’s Five Forces Assessing the Balance of Power in a Business Situation, http://www.mindtools.com/pages/article/newTMC_08.htm (accessed December 31, 2013).
MindTools.com. n.d. b. Cost-Benefit Analysis, http://www.mindtools.com/pages/article/newTED_08.htm (accessed January 6, 2014).
MSG. n.d. Brand Equity – Meaning and Measuring Brand Equity, http://www.managementstudyguide.com/brand-equity.htm (accessed June 3, 2013).
Mullins, J. 2013. The New Business Road Test: What Entrepreneurs and Executives Should do Before Launching a Lean Start-Up. London: FT Publishing.
Nichols, W. March 2013. “Advertising Analytics 2.0.” Harvard Business Review, 91, no. 3, pp. 60–68.
Olenski, S. 2012. The Engagement Marketing Disconnect Between Consumers and Brands Rages On, http://www.forbes.com/sites/marketshare/2012/11/26/the-engagement-marketing-disconnect-between-consumers-and-brands-rages-on/ (accessed August 19, 2013).
Palmer, D.; S. Lunceford; and A.J. Patton. 2012. The Engagement Economy: How Gamification Is Reshaping Businesses, http://dupress.com/articles/the-engagement-economy-how-gamification-is-reshaping-businesses/ (accessed July 10, 2013).
Parasuraman, A.; V. Zeithaml; and L. Berry. Fall 1985. “A Conceptual Model of Service Quality and Its Implications for Future Research.” Journal of Marketing 49, no. 4, pp. 41–50.
Parnitzke, J. 2013. How to Build a Roadmap – Gap Analysis, http://pragmaticarchitect.wordpress.com/2013/06/11/how-to-build-a-roadmap-gap-analysis/ (accessed August 20, 2013).
Pearson Education. 2013. Culture: The Nature of Culture, http://www.infoplease.com/encyclopedia/society/culture-the-nature-culture.html (accessed September 6, 2013).
Perner, L. 2013. Segmentation, Targeting and Positioning, http://www.consumerpsychologist.com/cb_Segmentation.html (accessed October 7, 2013).
Personal.psu.edu. 2001. Roger’s Diffusion of Innovations, http://www.personal.psu.edu/users/w/x/wxh139/Rogers.htm (accessed October 9, 2013).
Point of Purchase Advertising International (POPAI). 2012. 2012 Shopper Engagement Study Media Topline Report. Chicago: The Global Association for Marketing at Retail, http://www.popai.fr/textes/Shopper_Engagement_Study.pdf (accessed March 11, 2014).
Pulse Group PLC. 2009. Consumer Brand Loyalty in a Recession Final, http://www.slideshare.net/bobchua/consumer-brand-loyalty-in-a-recession-final (accessed August 18, 2013).
Rogers, E.M. 1995. Diffusion of Innovations. 4th ed. New York, NY: The Free Press.
Ryan, M.; A. Sleigh; K.W. Soh; and Z. Li. 2013. Why Gamification is Serious Business, http://www.accenture.com/us-en/outlook/Pages/outlook-journal-2013-why-gamification-is-serious-business.aspx (accessed July 10, 2013).
Sawtooth Software. n.d. What is Conjoint Analysis?, http://www.sawtoothsoftware.com/products/conjoint-choice-analysis/conjoint-analysis-software (accessed August 22, 2013).
Sawtooth Technologies. n.d. Perceptual Mapping, http://www.sawtooth.com/index.php/consulting/overview/perceptual-mapping (accessed August 22, 2013).
Shipham, S.O. 2010. “The MBA Research Process: Some Theoretical Considerations.” Management Today 28, no. 6, pp. 49–50.
Silverman, G. 2000. What to Do When Quantitative and Qualitative Research Contradict Each Other, http://www.quirks.com/articles/a2000/20001201.aspx?searchID=808886082&sort=9 (accessed September 10, 2013).
Smith, P.R. 2011. SOSTAC® Guide to Writing The Perfect Plan, www.prsmith.org; www.facebook.com/prsmithmarketing
Sorenson, L. 2011. 6 Core Benefits of Well-Defined Marketing Personas, http://blog.hubspot.com/blog/tabid/6307/bid/29583/6-Core-Benefits-of-Well-Defined-Marketing-Personas.aspx (accessed September 9, 2013).
Stevens, G. n.d. Product Lifecycle | Do You Know Where Your Business Is?, http://www.beasuccessfulentrepreneur.com/product-lifecycle-do-you-know-where-your-business-is/ (accessed December 31, 2013).
Stinson, J.E.; and W.A. Day. 1990. Developing Competitive Strategy, http://www.ouwb.ohiou.edu/stinson/Developing Strategy.html (accessed July 22, 2013).
Sunshine, J. 2012. 11 Brand Names That Sound Hilarious in a Different Language, http://www.huffingtonpost.com/2012/08/10/lost-in-translation-brands_n_1765812.html#slide=1362544 (accessed December 30, 2013).
Thomas, J.W. 1993. Product Testing, http://www.decisionanalyst.com/publ_art/prodtes1.dai (accessed July 10, 2013).
Thompson, R. n.d. Stakeholder Analysis: Winning Support for Your Projects, http://www.mindtools.com/pages/article/newPPM_07.htm (accessed August 20, 2013).
Wartzman, R. 2009. Authentic Engagement, Truly, http://www.businessweek.com/managing/content/dec2009/ca2009123_747440.htm (accessed October 7, 2013).
Wikimedia Commons. 2007. File:Servqual NL.gif, http://commons.wikimedia.org/wiki/File:Servqual_NL.gif?uselang=en-gb# (accessed January 7, 2014).
Wikipedia. 2012 a. Brand Equity, http://en.wikipedia.org/wiki/Brand_equity (accessed September 12, 2013).
Wikipedia. 2012 b. Ishikawa Diagram, http://en.wikipedia.org/wiki/Ishikawa_diagram (accessed October 7, 2013).
Wong, K.C. 2011. Using an Ishikawa Diagram as a Tool to Assist Memory and Retrieval of Relevant Medical Cases from the Medical Literature, http://www.jmedicalcasereports.com/content/5/1/120 (accessed October 9, 2013).
Zhang, K.Z.K.; C.M.K. Cheung; and M.K.O. Lee. 2012. “Online Service Switching Behavior: The Case of Blog Service Providers.” Journal of Electronic Commerce Research 13, no. 3, http://www.csulb.edu/journals/jecr/issues/20123/paper1.pdf (accessed January 20, 2014).
Zimmermann, A.; and C. Maennling. 2007. Mainstreaming Participation, http://www.fsnnetwork.org/sites/default/files/en-svmp-instrumente-akteuersanalyse.pdf (accessed October 13, 2013).
Additional Sources
Ballou, R.H. 2006. The Evolution and Future of Logistics and Supply Chain Management, http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-65132006000300002&lng=en&nrm=iso (accessed September 12, 2013).
Chronostrategy. n.d. ADL Matrix, http://chronostrategy.wikispaces.com/ADL+Matrix (accessed January 5, 2014).
Fruin, M. 2013. Competitive Strategy and Industry Environment, www.cob.sjsu.edu/fruin_m/Spring2013/ppt/chapter6.ppt (accessed July 20, 2013).
Gartner, Inc. 2011. Gartner Predicts Over 70 Percent of Global 2000 Organisations Will Have at Least One Gamified Application by 2014, http://www.gartner.com/newsroom/id/1844115 (accessed July 15, 2013).
Gurel-Atay, E.; G.-X. Xie; J. Chen; and L.R. Kahle. March 2010. “Changes in Social Values in the United States: 1976-2007 ‘Self-Respect’ Is on the Upswing as ‘A Sense of Belonging’ Becomes Less Important.” Journal of Advertising Research 50, no. 1, pp. 57–67.
Harquail, C.V. 2009. 7 Core Principles for Authentic Engagement, http://authenticorganizations.com/harquail/2009/05/11/7-core-principles-for-authentic-engagement/ (accessed October 6, 2013).
Hugos, M.H. 2011. Essentials of Supply Chain Management, 3rd ed. New York, NY: Wiley.
Kirkpatrick, D. 2011. B2B Gamification: Bold Strategy in Conservative Industry Increased Website Visits 108.5%, http://www.marketingsherpa.com/article/case-study/bold-strategy-in-conservative-industry (accessed July 16, 2013).
Kirkpatrick, D. 2012. Gamification: 6 Tactics for B2B Marketers, http://www.marketingsherpa.com/article/how-to/6-tactics-b2b-marketers (accessed July 10, 2013).
Lee, M. 2007. Book Summary: Crossing the Chasm by Geoffrey Moore, http://bizthoughts.mikelee.org/book-summary-crossing-the-chasm.html (accessed July 23, 2013).
Mullins, J. 2010 a. Markets and Industries: What’s the Difference and Why Does it Matter?, http://www.europeanbusinessreview.com/?p=2366 (accessed August 20, 2013).
Mullins, J. 2010 b. The New Business Road Test: What Entrepreneurs and Executives Should Do Before Writing a Business Plan. 3rd ed. London: Prentice Hall.
ODI. 2009. Planning Tools: Stakeholder Analysis, http://www.odi.org.uk/publications/5257-stakeholder-analysis (accessed August 20, 2013).
Olsen, Z. 2013. Product Adoption Curve Marketing, http://www.bydatabedriven.com/product-adoption-curve-marketing/ (accessed July 19, 2013).
Pressley, M.M. 2008. “Chapter 7: Competitive Strategy and the Industry Environment.” http://college.hmco.com/hjinstruct/powerpt/ch07/sld001.htm (accessed July 22, 2013). (Taken from Hill, C.W.L.; and G.R. Jones. 2008. Strategic Management: An Integrated Approach. Houghton Mifflin Company.)
Saltlane. 2009. Stakeholder Analysis http://www.saltlane.co.uk/Resources/stakeholder%20analysis.HTML (accessed August 20, 2013).
SCOR. 2013. What is SCOR?, http://supply-chain.org/scor (accessed September 15, 2013).
See also: www.newbusinessroadtest.com; www.johnwmullins.com
Supply Chain Management Institute. 2008. The Supply Chain Management Process, http://www.ijlm.org/Our-Relationship-Based-Business-Model.htm (accessed September 9, 2013). (The diagram comes from the book Lambert, D.M. 2008. Supply Chain Management: Processes, Partnerships, Performance, 3rd ed. Ponte Vedra Beach, FL: Supply Chain Management Institute .)
Toy, T. 2013. How To Develop a Killer Marketing Plan, Methods Used, General Rules, Six Key Steps, Business Models And Samples, http://tommytoy.typepad.com/tommy-toy-pbt-consultin/2013/04/how-to-develop-a-killer-marketing-plan-methods-used-general-rules-six-key-steps-business-models-and-samples.html (accessed August 23, 2013).
Walker, D.; A. Shelly; and L. Bourne. 2008. Influence, Stakeholder Mapping and Visualization, www.researchgate.net/publication/24078124_Influence_stakeholder_mapping_and_visualization/file/d912f (accessed August 20, 2013).
Wikipedia. 2013. Hofstede’s Cultural Dimensions Theory, http://en.wikipedia.org/wiki/Hofstede%27s_cultural_dimensions_theory (accessed September 2, 2013).
Willcocks, L.P.; S. Cullin; and M.C. Lacity. 2007. The Outsourcing Enterprise The CEO Guide to Selecting Effective Suppliers, http://www.outsourcingunit.org/publications/Selecting_Effective_Suppliers.pdf (accessed September 15, 2013).