How Should a Business Market to Resellers
Paul Swarnapandian - (MAICD)
I help Businesses & Government departments bring customers closer to their services using Data & Digitalization so that employees have accurate information & customers are delighted
The current digitalized nature of the B2B ecosystem has propelled internal sales as a prevalent form of trading. As a result, the internal sales headcount of every company becomes a crucial operational factor capable of affecting sales capacity, productivity, and overhead. Today, the success of B2B companies depends on how well they can accelerate business growth without significantly adding to internal sales headcount; however, it is easier said than done.
While there may be various strategies for achieving this, one key secret lies in developing a robust network of proficient resellers. This article explores the basics of B2B resellers, highlighting some effective strategies for identifying the top-performing resellers and implementing targeted marketing strategies.
Who are Resellers?
Resellers are pivotal in retail, serving as a link between manufacturers and the customer. As the name suggests, resellers typically purchase products and services from manufacturers and resell them to their customers for profit.?
Unlike B2B producers, resellers do not modify products; they connect manufacturers and consumers by providing finished goods to the end users. Their impact on the B2B ecosystem is evident, saving manufacturers time, money, and effort on marketing and sales.
While the responsibilities of resellers may seem simplistic, they effectively extend the selling potential of B2B sellers, providing a platform to reach markets that are otherwise inaccessible or expensive for internal sales teams to reach directly. Incorporating resellers as channel partners has proven effective in rapidly accelerating business growth, with a report by McKinsey forecasting such channel partners to drive a third of total global revenue by 2030.
How Businesses can Market to Resellers
Like other B2B buyers, identifying and marketing to top resellers can be complex. However, with the right strategies, you can partner with resellers to accelerate your business growth. Here is a proven checklist to identify and market products to the best resellers. That said, these strategies should be tailored to suit specific industry and business needs.
Successful businesses refrain from marketing to any reseller. Hence, companies must identify resellers that align with their specific goals and can reach their target audience. First, top resellers must possess a vast network and reputation in a particular market, ensuring they can reach your ideal customers.
Businesses should only consider resellers with comprehensive industry experience and technical expertise while aligning with their ethics. The resellers you partner with perform as an extension of your business; as such, you should only market to those capable of consistently providing customer satisfaction and support.
By first identifying the best reseller option, you can establish a foundation for effective marketing processes. This also provides a platform for productive partnerships with internal channel partners.
Unlike other B2B markets, the cost of some products and services across the reselling market cannot be over or under-priced, making pricing consistent. In such situations where prices are steady, B2B sellers must find new ways to stand out.?
One way to achieve this is by focusing on value. According to an HBR article on the B2B element of value , B2B transactions have become more commoditized and subjective, with some procurements demanding considerations on how the product can enhance the buyer’s reputation. As such, products should be marketed to emphasize value to the reseller and customer.
Every B2B business must look beyond pricing and recognize the full range of the rational and emotional factors driving each purchase. This remains the most effective strategy for tailoring value propositions and eliminating the chances of commodity traps.
Research, like the one carried out by PartnerPath , has identified industry events as the best location for identifying, interacting, and marketing to resellers. Hence, businesses should consider trade fairs, conferences, and industry-specific events for developing partnerships with potential resellers.
Prior to these events, it’s best to get accustomed to attendees and identify which might make a potential reseller. Create a solid booth with compelling marketing elements, exhibiting the product and demonstrating its value to potential resellers.
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Furthermore, you should take full advantage of the networking sessions at these events. Interact with promising resellers, pitch your product, and underscore its importance to spark interest. Finally, you can’t completely market a product in these events; you should also follow up on leads and explore your desire to partner with them.
As a B2B seller, you must recognize the impact of recommendations in driving any successful business. A new study diminished the need for expensive advertising budgets, with word-of-mouth recommendations capable of driving sales than other marketing influences.
If your business already has connections with B2B companies, always remember to ask for recommendations on top resellers. For instance, collaborating with other B2B businesses can help save time and effort by accelerating your search for specific resellers.
That said, not all recommendations are helpful. Ensure you provide your connections with your ideal buyer persona to get more streamlined recommendations.
Traditional B2B sales and marketing are becoming obsolete. Today, B2B buying has evolved significantly, incorporating a more digitally dominant behaviour. And while the new digital behaviour of B2B sales features some concerns in influencing buying behaviour , businesses can also utilize this trend in their marketing efforts.
Social media represent robust platforms for connecting and marketing to potential resellers. While most businesses reserve social media for lead generation, it can also serve more focused marketing purposes. Your social media strategy should emphasize engagement, interaction, and value provision for resellers.
Alliances between companies are a fact of life in business today, and this also holds between manufacturers and resellers in the B2B ecosystem. Developing a productive partnership remains a crucial corporate asset regardless of the length and goal of any business alliance.
According to PartnerPath research, resellers seek new vendors when they discover a new customer need. If your business can address those needs, then you should work towards developing a long-term partnership. Make any transaction transparent and straightforward; this can help build trust and establish a common trading ground.
Difference Between Marketing to Producers and Resellers?
Every B2B market transacts differently; however, producers and resellers exhibit similar procurement processes. This is because some products serve as components relevant for producers and stand-alone final products for resellers.
That said, producers and resellers are different buyers with different objectives and requirements. Hence, businesses looking to market to any of these buyers must first understand their unique distinctions.
The first distinction stems from the buyer’s main objectives. Typically, producers identify suppliers and negotiate with them to ensure the product they procure suits their needs. However, resellers look beyond personal benefits, also considering how products can help improve customer demand. This makes value proposition, as well as product promotions, prevalent strategies in marketing to resellers.
The number of decision-makers involved also determines the marketing process. Producers typically comprise several members representing distinct areas. Marketing to producers becomes more extensive, with businesses tailoring their strategy to suit each member. Conversely, fewer members are involved in the trading process with a reseller, making the marketing process more straightforward and shorter.
Furthermore, many producers require businesses to design products that meet their requirements, ensuring they stand out. While marketing negotiations with resellers may affect product elements like packaging, size, and design, it doesn't change the product.
Other distinctions like price or value prioritization, supplier reputation, and promotional approach also influence the marketing process for producers and resellers. These differences could also overlap with other B2B buyers. Ultimately, successful businesses recognize the foundation of marketing: understanding the customer.