October 20, 2010 Santa Clara University Leavey School of Business speaker slides for the Mktg 551 MBA course, presented for discussion with Professor Ravi Shanmugam's class.

1. MKTG 551: Marketing Analysis and Decision Making
Class 10: B2B Buyer Behavior
Laura Ramos
Vice President, Industry Marketing
Xerox Global Services, NA
October 20, 2010
Professor Ravi Shanmugam

2. Laura Ramos
Vice President, Industry Marketing
• Xerox Corporation, Services Group
• Forrester Research VP, 9 years
• Stanford BSME, Santa Clara LSB MBA
Background
• Stratify, Verity, Vitria, Resumix, Sybase, Tandem
• Director Product Marketing 10 yrs
• Before then: software and hardware program management and
product development for 10 years
• Blogger: www.b2bmarketingpost.com
• Follow me on Twitter: @lauraramos

3. Agenda
What is B2B marketing and how different than B2C?
Why must B2B marketers know their buyers?
What are the fundamentals of understanding B2B buyer behavior?
• Segmentation
• Profiling
• Personas
• ―Behavior‖-graphics
Final thoughts and questions

4. B2B Marketing definition
► Marketing activity performed at firms
that sell high-involvement products
to other businesses through a direct
sales force.

5. B2B marketing circa 1990: what we did
Events Advertising
PR Promotions

6. What do B2B marketers do today?
“Which of the following marketing tactics does your marketing organization use?”
Base: 317 B2B marketing professionals
Source: Forrester Q1 2009 B2B Marketing Budgets And Tactics Online Survey with MarketingProfs

7. What do B2B marketers worry about?
―What are your top five B2B marketing challenges?‖
Reaching decision-makers 54%
Measuring marketing results 53%
Improving lead quality 48%
Generating more leads 44%
Working within budget constraints 40%
Deepening relationships with customers 40%
Developing the company‘s brand 37%
Increasing product awareness 37%
Improving data quality and availability 28%
Understanding prospect behavior 27%
Retaining customers/developing loyalty 25%
Improving partner relationships 21%
Improving relationship with sales 20%
Allocating the marketing budget 16%
Base: 569 B2B marketers
(multiple responses accepted)
Source: Forrester‘s Q2 2006 Business-To-Business Marketing Effectiveness Survey

8. What does this mean?
The explosion of new marketing tactic choices overwhelms marketers
Get caught on the execution treadmill
Sales gets in the middle
Lose sight of impact marketing has on buyer
Marketing seen as a cost center, not a source of business value
B2B CMO tenures hover around 26 months
To reach decision-makers, generate qualified demand,
and demonstrate Marketing‘s value to the business
– know your buyer and how they buy

9. Marketing must know and manage the buyer‘s
journey
Source: Forrester Research, January 15, 2009, “How To Avoid B2B Marketing Obsolescence ”

10. It‘s key to choosing where you play in the market
Strategic overview Choosing value Providing value
• What can we do? • Define market • Execute in market
• What do we do • Segment market • Analyze results
now? • Position offerings • Refine
• Where’s the • Design mix • Expand
opportunity?

11. First of a 4-step process to set marketing strategy
P People
Assess customer profile and activities
O Objectives
Decide what you want to accomplish
S Strategy
Plan for how relationships with customers will change
T Tactics, Tools, Technology
Decide which marketing approaches to use

12. Agenda
What is B2B marketing and how different than B2C?
Why must B2B marketers know their buyers?
What are the fundamentals of understanding B2B buyer behavior?
• Segmentation
• Profiling
• Personas
• ―Behavior‖-graphics
Final thoughts and questions

13. How do you ―know‖ your audience?
► Segment: homogenous group that behaves in the same
way or has similar needs, distinct from other segments.
► Segmentation: ―who you want to talk to‖ — separate from
targeting and positioning.
► Persona: a representation of a real audience group.
Includes a user‘s context, goals, pain points, and major
questions that need answers — ―what you want to say to
them.‖

14. Analytics to Action at Xerox
Analytical insight and fact-based marketing enhances sales pipeline and productivity
1. Identify and prioritize target 2. Account intelligence
accounts using analytics planning
 Segment and profile  Account /
existing customers Company
 Identify look-a-likes Analytical Engine information
 Prioritize non-customer Customer data integration  Develop contact
opportunities External data
data
Qualitative data
 Perform data assessment Measurement  Integrate with
salesfore
automation
5. Qualify opportunities &
enable engagement 3. Segment & identify
 Lead scoring opportunities within
 Time triggers accounts
 Corporate relationship  By offerings, needs,
4. Generate demand
mapping Telequalification: roles, functions
• Market awareness and education
ID role, BANT  Competitive contracts
 Cultivate contacts within accounts
 By industry
 Retain and grow
 Competitive switching

15. What is a persona?
A model of user goals, attitudes, and behaviors
Distilled from observing real people
Presented as a vivid, narrative description
Of a single ―person‖ who represents a customer segment
Used consistently throughout the decision making and design process
Goal: Reduce many users to a handful of user models by capturing
critical user attributes while leaving out irrelevant attributes

16. Analyze customer purchase history, interviews, sales
meetings, etc. to uncover clusters of key attributes
Source: InContext Enterprises

17. It doesn‘t have to be that complex!
Source: InContext Enterprises

18. Identify similarities to reduce persona complexity

19. Create personas based on attributes relevant to
purchase decision-making

20. “I have to focus on the big picture – I
need a partner that understands my
Carl supply chain.”
the Coordinator Seeks to stay on top of operations performance
Prefers direct communication
Needs customized solutions
Personal Profile Personal Information
As Logistics Director, Carl ensures that things run smoothly and supplies are distributed to construction sites. Carl Profession: Director, Global Civil Engineering Company
has clear ideas about how shipping should run and he expects his shipping partner to share that vision. When he Location: Baltimore, Maryland
switched to our firm nine years ago, he wanted a partner with the capabilities and responsiveness to help him
manage his supply chain. We stepped up to the plate by understanding his business and making solid Age: 42
recommendations, but ultimately, the success of each project is a direct reflection of Carl‘s ability to manage all Marital Status: Married
aspects of the supply chain.
Personality: Assertive, no-nonsense, out-going
Carl occasionally uses <tool>, but relies on representatives to provide customized reports and answer questions.
The nature of his business calls for detailed, up-to-the-minute information that canned reports just don‘t provide. UPS Shipping Information
Shipping Information
He doesn‘t ask for this kind of service on every shipment – just the critical ones. He knows he‘s a bit demanding –
but as a preferred customer, he feels entitled to a certain level of personalized service. Years with firm: 9.4
Products / Services used: xx
Carl wants us to acknowledge his high volumes across channels and provide better rates and visibility. His
experience with the web site and tools has been hit or miss. He wishes he could get comprehensive information Tools used: xx
and set up customizable reporting templates that could be saved and easily altered to meet his needs. He wants Competitors used: xx
access to electronic copies of international documents from the online tools rather than requesting them from the
Knowledge: High
local office and waiting for a copy to be faxed to him. For routine communication, Carl prefers emails (ideally from
his representative) for efficiency, but when urgent issues arise, he wants to know there‘s a voice on the other end % of day spent on tasks: 24%
that is working towards a solution for him.
Internet Usage
User Goals Business Objectives Internet experience: Intermediate - Expert
When Carl visits the site, he wants to… We want Carl to… Primary uses: Email, news, banking
Leverage the tools to manage and improve the Utilize the web tools for information rather than relying Favorite sites: MSNBC, AMEX, Google
company‘s supply chain on the local office to provide it
Hours online per week at work: 25
Access detailed information and specifications Register and log in when he uses the online tools
Hours online per week at home: 14
about services and capabilities
Use the web tools for routine reporting
Receive customized reports about freight
Recommend the online tools to his staff
operations cost and efficiency performance
Become aware of key tools and service
Use the tools to collaborate with the local
representatives and his staff

21. The CIO/CxO
The Strategic Risk Manager Focus
“I want to make strategic investments Business
in IT that support the vision for the
company and build competitive edge.”
Now Future
Age: 52
Chief Information Officer
Large Enterprise, Inc.
Technical
My Role My Work Life
A large part of my job is just keeping things running reliably and securely, but my main goal is making sure
My Goals My Frustrations our technology and applications align to our business priorities. This can include cost reduction, making our
• Align IT to business priorities • Negotiating the terms of global workforce more efficient, or rolling technology into services our customers will pay for.
• Control costs and maximize implementations
investment • Educating my team on the business I‘m a strategic business person who understands IT, but that doesn‘t mean I want to become an expert on
• Make IT a strategic asset and issues, when they focus more on the your speeds and feeds. I got to where I am by being a strong generalist and applying my management skills
provide a competitive technology from one role to the next. I rely on the people working for me to evaluate vendors. In fact, I may not have
edge/advantage to the business • Shrinking budgets in the face of even heard of you if you‘re not IBM, Cisco, Microsoft or Oracle. I will only approve your inclusion in any major
• Simplify processes and operations needing to do more RFIs if you‘re reputable and stable.
• Keep up with macro-trends in IT • The CEO or CFO doesn‘t always
• Make it easier for our customers to understand technology‘s impact on I don’t want to hear about your products. I need to understand how you will help me create
do business with us the business competitive edge for my business -- while understanding the risk/cost drivers.
• Achieve/maintain regulatory
compliance—mitigate security risks I don‘t interact with vendor sales and marketing teams. They‘re fended off by my gatekeepers. If my team
recommends a vendor I haven‘t heard of, I deeply value the direct experiences of my network of analysts
and my industry C level peers. I want to know if you‘re stable, trusted, and have proven customer references.
Media & Information Touchpoints If everything checks out, then I may approve a vendor for testing in our environment with our data. If the
technology is good (and by good, I mean proven) and fits a our business need, that‘s great.
But I also need to know the vendor has the headcount and services to support us during and after
implementation. I don‘t take ‗unnecessary‘ risks and lean toward established companies with sophisticated
service and support offerings.
My Motivations
Proof Reassurance
• You do the math, I‘ll check the • Wants recommendations from fellow CIOs
answer • Consults with analysts on major
Europe • Business-case driven implementations
• Looks for measurable value for • Prefers high-level introductions with
justification potential vendors

22. Agenda
What is B2B marketing and how different than B2C?
Why must B2B marketers know their buyers?
What are the fundamentals of understanding B2B buyer behavior?
• Segmentation
• Profiling
• Personas
• “Behavior”-graphics
Final thoughts and questions

23. Buyer behavior example: Understanding social behavior
• Publish a blog
• Publish your own Web pages
Creators • Upload video you created
• Upload audio/music you created
• Write articles or stories and post them
The Social Conversat- • Update status on a social networking site*
Technographics® ionalists • Post updates on Twitter*
• Post ratings/reviews of products or services
ladder Critics
• Comment on someone else‘s blog
• Contribute to online forums
• Contribute to/edit articles in a wiki
• Groups include people participating in at least one • Use RSS feeds
of the indicated activities at least monthly. Collectors • Vote for Web sites online
• *Conversationalists participate in at least one of • Add ―tags‖ to Web pages or photos
the indicated activities at least weekly.
• Maintain profile on a social networking site
• Visit social networking sites
Joiners
• Read blogs
• Listen to podcasts
• Watch video from other users
Spectators • Read online forums
• Read customer ratings/reviews
• Read tweets
Inactives None of the above
Source: Forrester Research, April 28, 2010, “Social Technographics®: Business Technology Buyers”

24. Technology buyers are socially active
2009 B2B tech 2010 B2B tech
2010 US adults
buyers buyers
Creators 24% 43% 49%
Conversa-
tionalists 33% — 37%
Critics
37% 58% 65%
Collectors
20% 48% 57%
Joiners
59% 55% 73%
Spectators
70% 91% 95%
Inactives 17% 5% 2%
North American And European B2B Social Technographics® Online Survey, Q1 2010
Source: Forrester Research, April 28, 2010, “Social Technographics®:
North American And European B2B Social Technographics® Online Survey, Q4 2008
Business Technology Buyers”
North American Technographics® Groundswell Heroes Online Survey, Q4 2009

25. Peers influence purchase decision making
Which 3 information sources had the greatest impact when
deciding your last purchase?
Peers and colleagues (word of mouth) 60%
Consultants, VARs, or SIs 39%
Your vendor salesperson 33%
Industry analyst firms 22%
Vendor, industry trade, or professional Web sites 21%
Industry events, trade shows, or conferences (in person) 21%
Technology or business publications, magazines 16%
Discussion forums, support sites 12%
Web based events, Webinars, Webcasts 8%
Search engines, paid search ads 8%
E-mail or electronic newsletter 4%
Interactive media: podcasts, video, online demos, RIAs 4%
Social networking sites (Facebook, LinkedIn) 4%
Virtual trade shows or virtual conferences 4%
Blogs 3%
Base: 1,011 business decision makers at firms with 100 or more employees in the United States and Europe
Source: Forrester's North American And European B2B Social Technographics® Online Survey, Q1 2010

26. Align buyer behavior to business objectives
Social Objectives Functional Alignment Success metrics
•Customer insight
LISTENING Research •Improved segmentation
•Reduced pain; alignment of offering with need
•Changes in reach, impressions, brand awareness
TALKING Marketing, education •Increased share of voice
•Higher quality of responses to offers
•Increased velocity of messages in market
ENERGIZING Sales •Increased recommendation, promotion, advocacy
•Higher trust, brand trust perception
•Faster deployments at new customers
SPREADING Professional services •Existing customers create new business capacity
•Reduced support costs
Customer service, •Higher customer satisfaction
SUPPORTING
technical support
•Less churn
Development, product •Deliver products faster to market
EMBRACING •Increased loyalty, increased advocacy
marketing
Source: Forrester Research, October 21, 2008, “Making Social Media Work In B2B Marketing”

27. Know how to engage buyers across decision
process
1. Problem recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior

28. Final thoughts
Know your customers, and how they buy, to make smart marketing
strategy and execution decisions
What business buyers ―do‖ is as important as ―who‖ they are

29. Questions? and Thank you
Laura Ramos
laura.ramos@xerox.com
Twitter handle: @lauraramos
Post-Class Assignment:
Visit my blog
www.b2bmarketingpost.com
and write a (short) comment about this class content, share
your thoughts on B2B buyer targeting, or ask a question after
reflecting on our discussion.
Feel free to visit:
www.facebook.com/managingprint
www.consulting.xerox.com/