Welcome to B2B: Push & Pull and The 4W's Approach. In this segment we will cover two important concepts. One, which is how B2B and B2C ultimately have to be linked. And two, how to bring all the B2B concepts that we've learned together into one summary strategy framework. So, let's get started. Okay, B2B and B2C, we tend to separate them. But as for me, I like to actually bring them together, and call them B2B2C. And it's because ultimately, all B2B ends with the end user, and hence, we have to add to C. So in that sense, all B2C is also B2B, from the standpoint that you have distribution, you have wholesalers, and retailers, that act like buyers for manufacturers. So, I think the misconception with B2B is that it's only something that pertains to industrial products, not true. Okay, so related to my argument about B2B to B2C is that in marketing you have push at a complimentary, and let me say that again, complimentary strategy of push. So it's not push or pull, it's push and pull. So let's learn what they both mean. So we see in this diagram that a manufacturer can reach a consumer in one of two ways. One, which is through other people, and that's what push means. So they could offer discounts to the manufacturer who then offers discount to a retailer, who then is pushed along to offer discounts to the consumer. But the other way, the other way is to go directly. And that's what we call a pull strategy. And even though a lot of marketers tend to think it's one or the other, again, I like to argue that you need both. Because it's like physics, say that I'm pushing something, that I'm pushing the camera, and the camera trusts me as huge. [LAUGH] So I could do it, but very painstakingly. But if someone were to pull from behind the camera, my pushing of the camera will be that much easier. So marketing's like that too. This is what I call pulled enabled push. And we see this being exemplified beautifully by Intel. That practice is push and pull. And even though Intel produces what's normally considered to be a very heavy B2B product, they manufacture, of course, these microprocessor chips. Nonetheless, they are [LAUGH] one of the largest advertisers that aim to make their presence known among end users, among consumers. And it's consistent with the concept of derived demand in B2B. And, there's been this long running debate about why they spend so much, and I think the reason is rather simple. It's because, again, they want to create this pull enabled push. They want to imbue consumers with the sense that what they're buying, so they're framing the. That what they're buying are not really PCs, are not the hardware, but what's inside the hardware. And that is, of course, what enhances the performance of the PC. And that is the microprocessor. And that is why they have branded their components, their ingredients. And so this is what they can then take to their OEM, their original equipment manufacturers that produce these PCs. And they can argue, that again, the buyers [LAUGH], they demand that each PC have an Intel chip. So the end result is a greater bargaining position and ultimately margins for them. Okay, so what does this all mean for strategy? Well, let me offer you a very easy way to summarize your B2B marketing situation. And I've been teaching B2B marketing for a long time and this resonates with many students, especially executive students that have taken my course. And it's an extension of the decision matrix concept, where we look at who, when, what, and wait. And hence, the four W's. So here we can summarize who's involved in the buying center, denoted by the b's and the numbers. We know the process in which it takes place. We know what each member wants in terms of the buying criteria. And, finally, the numbers denote the weight, the voice that each member carries. So the key takeaway here is that not everyone is involved at every stage. I've highlighted the two key stages, where at stage one only one department or maybe member is involved, and therefore we can maybe just concentrate our efforts to him, especially to the service criterion. And the other key point maybe at stage five where, one member, and let's assume that he is the financial controller, has the greatest say in terms of which to supplier offered the best total cost package. So, this just a brief summary of the take aways from that matrix. That we need sequential targeting, that not everyone has to be targeted at every stage. And so, it's really about timing, knowing at which stage to focus on whom and on what criteria. And we also summarized that those stages might be, for that particular situation, stages 1 and 5. And so the task for you is to make sure that your point of difference, your strengths, are aligned to the or the demand criterion for each buying center member at each stage. So, wrapping up, we learned that all B2B is actually B2C. And therefore, it's not just us pushing, but to the extent that pull can help us in that push, we also have to formulate some pull related strategies as well. And even though B2B marketing can be very very complex, they can be summarized very neatly into, what I call the 4W's Approach.
