B2B Researched Marketing Truths.

The Institute for the Study of Business Markets celebrated its 25th anniversary this summer, with a two-day conference probing the current and future state of business marketing practice.

How many of these “indelible truths” apply to your business?

Understand, quantify, demonstrate and document customer value. When both seller and buyer focus on creating value and sharing its benefits, everyone wins.

Look beyond what customers say. Finding customers’ real hot buttons, and understanding how different purchasing influencers work together on buying teams, are keys to successful selling to business.

Your customers can develop valuable new offerings for you if you let them. Customer co-development programs and studying how your most innovative and unusual customers use your product will spur innovation in market-oriented directions.

Take a long- as well as a short-term view of markets. Even in times of economic recession, marketing is a necessary investment.

Implement STP. Following the discipline and logic of “segmenting,” “targeting,” and “positioning” ensures marketing efficiency and focus.

Never doubt the power of brands in business markets. A brand name built and nurtured to connote value opens business customer doors and impresses buying decision makers.

Keep the right customers; lose the wrong customers.

Communications are no longer from “us” to “them.” The communications models of the 20th century don’t describe a digitally networked world.

Cost and price have never had a fundamental relationship. Effective segmentation goes beyond the obvious ways of categorizing customers, such as industry, size, or location.

In B2B, customers are a scarce resource. Many times you know all of them. “Go deeper” with customers you have, to create and capture additional value.

Email and Social Networking: Can’t We All Just Get Along?

We all know about Twitter and its phenomenal growth during the past year. Last night I read a post about Facebook’s share of social networking traffic jumping from 20% to 59%, leading the vast migration to social networking sites, or what I like to call the “Famous for 15 Minutes. . .Or Less” web sites.

Then, today, comes this article from the Wall Street Journal about the demise of email and a follow-up piece from OnlineMediaDaily suggesting that email might still have a role to play in the way that people communicate.

All this makes me wonder if the growing popularity of social networking sites like Facebook and Twitter are slowly killing off email as an effective marketing tool?

It’s important to put the email versus social networking contest into perspective. As the WSJ itself points out, email continues to grow, as does social networking, albeit at a faster rate:

In August 2009, 276.9 million people used email across the U.S., several European countries, Australia and Brazil, according to Nielsen Co., up 21% from 229.2 million in August 2008. But the number of users on social-networking and other community sites jumped 31% to 301.5 million people.

The problem with the Journal’s “death of email” article is the assumption that two methods of communication cannot coexist, each having a unique role to play. For decades now, television and radio have managed to survive — and even compliment each other — even though many media experts believed that TV would kill off the radio box. Likewise, the Internet was supposed to kill off everything — but it hasn’t (though I know some magazine and newspaper publishers who believe the Net gave them two shots in the hat).

Email and social media both have a specific utility. One does certain things better than the other — and that utility can and will change over time. Right now email works best for longer messages, communicating with more personalized, targeted audiences, and adding embedded content. Social networking offers greater immediacy, ease of use, a sense of personal empowerment, and potentially higher levels of frequency.

Email and social networking sites are used in different ways and communicate different kinds of information. One easily compliments the other. Like many of you, I tweet, participate on social networking sites, and send out and receive tons of email.  (I also blog, manage several web sites, and participate in various forums, but that’s another story!)  I don’t see the two as competing for my attention. I use them in the way that I need to and choose my tool according to the task I have in mind.

Given the increase in email use by 20% in the past year, I think we can safely say it is not going away. What does alarm me, however, is the attitude within some companies that social networking is somehow evil and should be ignored by employees and the marketing department.

Ignoring 300 million users on social networking sites? Unless you’re selling cruise missiles to the Pentagon and don’t care about consumers, that’s more than a little short-sighted.

How To Evaluate A Home Business Opportunity

How does someone know if a home business opportunity is worth the effort? As a home business owner myself, and as some who is asked by clients to help them decide on a home business, I thought it was time to put some of the basics down in writing.

Although some of my 25 years of marketing and advertising experience is bound to creep in, I have tried to keep this a simple as a I can and focused on home businesses:

1) Is is real?

I consider this the most important question. Thanks to the web, people are frequently being offered opportunities that do not really exist. Yes, they exist on a web page just like an advertisement in a magazine exists. But is there really a company? Products? A legal entity? Real customers? Real software that works? A real office: in a home or a business with a telephone and people who work there?

Before “buying in” to the business opportunity, send an email and ask for references and testimonials with names of people you can contact. If you don’t hear back or don’t like what you hear, move on.

2) Is there a need?

You will no doubt require customers. Do they really need your product or is their interest solely based on the fact that you are their cousin or best friend? Would they want this product from anyone other than you? Is it possible that you are so in love with your idea that you do not see its real market potential, either positive or negative? Do some low-cost market research. Create high/medium/low sales estimates.

3) Can the customer buy?

Wanting something and being able to afford it are two different things. Can the people who want your product really afford it? Another angle on this is whether customers are “willing to spend” money for your product or service? They might have the actual cash to buy, but if they don’t see the value you in it, you’ll never see the cash.

4) Will the customer buy?

OK, I want your product, I can afford it, but will I buy it? Maybe there are risks or discomforts that are holding me back. Maybe I think I can get a better deal. Maybe a better product is coming out soon? You need to explore these reasons or no sale!

5) Can you win?

Can you sustain your business over the long term? Is the product competitive? On promotions? On pricing? Is the timing right? Is your company competitive? In production? In your sales and distribution? In management?

6) Is it worth it?

There are as many reasons for starting a home business as there are people starting them. So let us take a first look at this questions from the perspective of your lifestyle. Will this opportunity offer you the chance to live your dream life? That is an important question. Aside from money, what are the other benefits your new business will offer you?

7) Is the return adequate?

Simple math. Are you getting back in income the level you need to a) support the business, b) pay your bills, c) have something leftover to use for your other goals?

Does it satisfy other needs?

These needs are often very unique to your situation: an obsession about running your own show, putting your daughter through college, getting an operation that you needed, taking care of a sick relative.

To summarize, the three main questions are:

1) Is it real 2) Can you win? 3) Is it worth it?

Sure we can do more qualitative analytical stuff with business and market numbers, but these questions are the basics. Especially with #1, do not take shortcuts. If something looks like a rock, turn it over! You might be pleasantly surprised.

Your last “to-do” is to help another small business owner when you can It is a big world and a land of plenty. Do not be afraid to help. What goes around, comes around, and there is enough to go around for everyone.