2D Strategy vs. 3D Reality of the B2B Sales Environment
Fyodor Varfolomeev
MBA with 20+ Years of Experience | Dyslexic Thinker | Author | Sales Professional
There is a dramatic contrast between the basic, almost one-dimensional marketing concepts exemplified by strategies such as the "4Ps" and the deep, multi-layered complexity that characterizes B2B sales interactions. This article attempts to highlight these differences and shows that success in B2B sales requires the recognition that the relationships between actors in the B2B environment are a complex network-based, dynamic partnership.
The 2D view
Let's say you want to launch a new brand and take market share from the competition. The classic "4P" marketing view looks like the following.
Price - Offer an atractive price below the current market leaders.
Product - Ensure that product specifications and features rival or exceed those of the competition.
Place - Increase the availability and visibility of the product to key customers.
Promotion – Invest in advertising to increase brand awareness.
This is classic marketing, which is often the mindset of management. The movement of goods and relationships is perceived as straightforward.
Make a compelling offer and the customer will take it to the end-user, with the sales department acting only as the messenger of this 'good news." To some degree, this approach, let’s call it 2D, can be efficient, but the problem surfaces when you can no longer afford aggressive marketing or the market response falls short of projections. In this situation, relying on this strategy can be disastrous.
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Explore the 3D reality
The B2B world is not as simple as the 2D view suggests. It is a complicated network with many players, connections and dependencies. To succeed in this space, you must either integrate into an existing network or build a new one. Experienced sales professionals are aware of this complication, but often fail to communicate this to management. When the market doesn't behave as predicted, management often blames sales.
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Take an example from the heavy automotive industry. The component manufacturer supplies the bodybuilder, who then transports the finished vehicles to the OEM's stock and OEM distributors. While OEMs often determine component selection, bodybuilders, distributors and end users also have a major influence.
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The OEM cannot ignore the opinion of the distributors, and the distributors must listen to the opinion of the end-users. The end-users' opinion is not only formed by the work of the equipment, but also by the interaction with the after-sales service and the opinion of other influential end users. The large fleet owners can dictate terms directly to the OEMs, but the bodybuilder also has an opinion and can influence other players. We can go on like this and still only touch the surface. A true representation of B2B relationships would require a 3D matrix showing the various interactions and connections. Engineers and sales departments, as well as management and finance, are all stakeholders. Each has their own priorities, external and internal contacts, and mutual influence.?
These are network-based business relationships in which multiple companies work together to provide value to the end user and benefit from these joint activities. A company can manage the influence of the network well even without a conscious understanding of the process. An experienced professional sales manager can do this for the company. He/she is able to manage this complex web of relationships with intuition and highly developed social skills, but often has difficulty explaining to management what is going on and how. This leads to the suspicion that expensive sales professionals are not effective and could be replaced by good marketing.
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A good product, a good price and expensive promotional activities are not enough to guarantee a result in this situation. And even basic relationships with key players are no guarantee of a good result because purely These are network-based business relationships in which multiple companies work together to provide value to the end user and benefit from these joint activities. A company can manage the influence of the network well even without a conscious understanding of the process.An experienced professional sales manager can do this for the company. He/she is able to manage this complex web of relationships with intuition and highly developed social skills, but often has difficulty explaining to management what is going on and how. This leads to the suspicion that expensive sales professionals are not effective and could be replaced by good marketing. approach is not enough.
Capturing the depth and breadth of network-based partnerships is not only beneficial, but essential. While the tried-and-true "4P" strategy provides a basic entry point, its limitations in B2B are obvious. The true champions in this space, therefore, are the sales professionals who are equipped with a holistic 3D perspective and can penetrate the complex network of B2B interactions. Companies would do well to recognize, value and rely on this expertise for sustained success.
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