Strategy for Auto component marketing - Right Mix of B2B & B2C

There is generally a debate on 'Separate Marketing Approach' for B2B and B2C business in many industries like Consumer, Consumer Durable, Automotive etc etc.

My own learning from more than 40 years of experience in leading marketing / sales Team in Tractors, Cars, Auto Components, Batteries, industries both in manufacturing and Trading Companies is that it is always the Right Mix of B2B and B2C Approach which creates effective and successful strategy specially in Auto Component Industry due to following -

> First step in developing marketing strategy whether it is B2B and /or B2C business scenarios is Same - that is " To identify the Customer and understand why he needs to listen/ receive your message on Product or Service offered by you thereafter approach may differ .

> B2B- It is to sell the product directly to other business house with a aim to maximize the relationship value thru focused efforts on educating / communicating to potential end customers /users about value of product being offered. Thus the relationship is built on Trust and creditability. eg OEMs, First Tier Suppliers to OEMs, Distributors in Replacement Market, and Importers for export business.

>B2C - It is to sell the product directly to end customers and /or Users with a aim to meet their need /demand which is achieved thru effective merchandising / displays at shop fronts, Deals, discount, contest etc offered to attract the customers's attention to build their interest eg Garages, Fleet owners, Retailers

ESSENTIAL ELEMENTS OF BUSINESS COMPLEXITIES

B2B- 1. Build Awareness for potential customers on the value and benefits of product to meet the demand/ need eg POP, Brochers, CO's profile, Advt in Media / Trade Journals

2. Focus on in-depth Knowledge , Relationship Building Efforts, eg plant visit, seminars, video conferences.

3. ROI study and Business viability presentation to educate other business house who can become your trading/business partners in taking the products to end customers.

Once the Business House sees the benefits they will then deep dive into your business reputation, history of service provided , important referral and business ethics etc.

B2C- 1. Study / care about product benefits and how it can relate personally.

2. Ease of Product availability and level of customer/user friendly.

3. Influenced by POP, product display/ demonstration, deals/ benefits, Brand awareness campaigns, Company's image.

4. Purchase is based on Status, desire, Price / value for Money and reassurance on product performance.

CUSTOMER SERVICES NEEDS

B2B- Customer Service comes into play even before or prior to start of sales . The process is Identification of potential party and its appointment who agrees to business policies and returns in principle eg Distributors and in case of OEMs who analyze and study long term benefits is quality, cost saving, reassurance of timely service/ product availability.

B2C- Customer services is required after the sales is affected based on promise made, trust and customer loyalty based on experience of dealing eg warranty services, timely availability, quick response to product performance and general queries.

Success of Auto Component marketing Strategy based on above learning can be summarized as under -

B2C- End Customers/Users makes the decision to purchase based on Status, Security, Assurances,Quality, Customer benefits/ service and price/value for money for special features.

B2B Business House makes the decisions based on enhancing their Profitability, Improving their Productivity, and reducing their cost of operations resulting into better ROI.

Since B2C requires products, service after sales, reassurance on quality and performance, best value for money, it leads to creation of B2B network for logistics to satisfy the need.

Keeping the above learning in view it establishes beyond doubts that success of Auto Component marketing strategies has to be perfect mix of B2B and B2C where product is desired , delivery is needed in time, with assurance of best after sales support to make product as most preferred Brand and the Company as the most respected in the market. eg Tyota, Honda, Bosch, GS, Shriram, EVL etc

Conclusion- SUCCESS MANTRA for Effective and Successful marketing Strategy in Auto Component Industry should be based on " Right Mix of B2B & B2C approach to meet the Aspirations of Customers .

UKJ