There is generally a debate on the ‘Separate Marketing Approach’ for B2B and B2C business in many industries like the consumer, consumer durables, automotive, etc.
My learning from more than 40 years of experience in leading marketing/sales teams in tractors, cars, auto components, batteries, and industries both in manufacturing and trading companies is that it is always the Right Mix of B2B Strategy for Automotive Aftermarket – Right Mix of B2B & B2C and B2C approaches which creates effective and successful strategy, especially in the auto component industry due to following –
- The first step in developing a marketing strategy – whether B2B and/or B2C – business scenarios are the same. That is; “To identify the customer and understand why he needs to listen/receive your message on product or service offered by you. Approaches may differ.”
- B2B-It is to sell the product directly to other business houses to maximise the relationship value through focused efforts on educating/ communicating to potential end customers/ users about the value of the product offered. Thus, building relationship on trust and credibility. 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 to meet their need/ demand that achieved through effective merchandising/displays at shop fronts, deals, discounts, contests, etc offered to attract the customers’ attention to build their interest. Eg: Garages, fleet owners, retailers.
Essential Elements of Business Complexities
B2B:
- Build awareness for potential customers on the value and benefits of the product to meet the demand/need. Eg: POP, brochure, CO’s profile, advt. in media/trade journals.
- Focus on in-depth knowledge, and relationship building efforts. Eg: Plant visits, seminars, and video conferences.
- ROI study and business viability presentation to educate another 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 dive deep into your business reputation, history of service provided, importance referral and business ethics, etc.
B2C:
- Study/care about product benefits and how they can relate personally.
- Ease of product availability and level of customer/user friendly.
- Influenced by POP, product display/ demonstration, deals/benefits, brand awareness campaigns, and company’s image.
- Purchase is based on status, desire, price/value for the money, and reassurance on product performance.
Customer Services Needs
B2B-customer service comes into play before the sales starts. The process include, identifying a potential party and its appointment who agrees to business policies and returns in principle.
Eg: The distributors and in the case of OEMs who analyse and study long-term benefits are quality, cost saving, and reassurance of timely service/ product availability.
B2C-Customer services are required after the sales are affected based on the promise made, trust, and customer loyalty based on the experience of dealing.
Eg: Warranty services, timely availability, quick response to product performance, and general queries.
The success of the auto component marketing strategy based on the above learning can summarised as below;
B2C-End customers/users make the decision to purchase based on status, security, assurance, quality, customer benefits/service, and price/value for money for special features.
B2B business house decide based on enhancing its profitability, improving its productivity, and reducing its cost of operations resulting in better ROI.
Since B2C requires products, service after sales, reassurance on quality and performance, and best value for money, it can lead to creation of a B2B network for logistics to satisfy the need.
Keeping the above learning in view, it establishes beyond doubts that the success of auto component marketing strategies has to be the perfect mix of B2B and B2C where the product desired. Delivery needed in time, with the assurance of best after-sale support to make the product the most preferred brand and the most respected company in the market.
Eg: Toyota, Honda, Bosch, GS, Shriram, EVL, etc.
Conclusion
SUCCESS MANTRA for effective and successful marketing strategy in auto component industry should be based on the “Right Mix of B2B & B2C” approach to meet the aspirations of customers.
Author
Umesh Jhamb
Mentor & Advisor with Rich Marketing Experience
Country Head in Leading Indian and Multinational Corporation in
the Automotive / Tractor Industry
