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Building and Promoting your brand on Internet. Problems and opportunities for online marketing in the industrial sector. We will talk about our vision of how an industrial sector can profit from online marketing activities to increase their sales And also for a very special reason, they depend on a large percentage on the exportations to foreign countries
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Bulding and promoting_your_brand_on_internet
- 1. Building and Promoting your brand on Internet. Problems and opportunities for online marketing in the industrial sector Overalia is certified partner: Guillermo Vilarroig Theran, 4th febrary
- 2. PROBLEMS OPPORTUNITIES A FEW IDEAS
- 3. The problem…low use of internet The reality of the online presence of industrial enterprises in 2010 Are onl ine cata log s Var % 09 Var % 09 Company presentation 1,77 new Privacy policy -2,77 Access to catalogs and prices 13,73 Customize and design products by client -57,73 Online orders -41,86 Online payments new Online order tracking 8,57 Customizable page by clients 62,52 Jobs, C.V. reception 2010 2010 data are Calculated only on those industrial empeora worst than those companies that have a website respecto of 2009 (66.1% of total) 2009 Source: IT (TIC) in medium and large Spanish companies. Red.es 2010 Edition
- 4. The problem…ourselves The ONLINE ecosystem Workers who believe that What is fashionable Off line Decision Makers Companies are slow this is too complicated might not be a priority Agencies, freelances, Who do I believe? consultants and gurus too Sales process is a trauma! Technology companies want and need to sell
- 5. The problem…to know what has to be done It is becoming more complex for us all Keywords, ad copy,promotional offers, landing page, design, customer Social segmentation, Google CRM call to action, conversions, Analytics ting Tes PP C KP I s forms, downloads, rs B anne s te Affilia contacts, goals, es al rs s funnels, alerts, ... S fe of om r o SEO Investme nt ... P
- 6. El problem… the machine tool sector Machines that build other machines N. of companies: 85 Turnover:1.056 Million € Export: 69 % Direct employment: 5.000 persons Indirect employment: 11.000 persons
- 7. The problem… revising the basics A brief analysis of the visibility of companies and their online strategy The company has a Website Languages of website 2.0 elements Do PPC campaigns Have Google Analytics Have on page SEO Reputation International capabilities Source: data collected by observation in January 2010.
- 8. El problema…somos nosotros mismos Implementation level of on line marketing basics Actualización hace 1 mes Actualizado el último mes Sin actualizar el último mes 94% 6%
- 9. El problema…somos nosotros mismos How companies use Social Media *Sobre base de 71 empresas (todas menos 3 empresas sin web) Método: Revisión manual sitio por sitio Nº de empresas: 74 + Asociación AFM
- 10. The problem…some companies are too slow Converting large and slow campanies into mice (quick and agile)
- 11. El problem…companies don’t occupy their space The importance of occupying the space you deserve
- 12. The problem…loss of opportunity The real problem the cost of opportunity The challenge of integration It is not about online or offline Marketing. It’s about getting SALES!
- 13. The problem…cost of opportunity ? Loss of opportunity for the machine tool sector? Year 1: 1.056 M x 0,3 % = 3,1 M€ Year 2: 1.056 M x 0,6 % = 6,2 M€ Year 3: 1.056 M x 0,9 % = 9,3 M€ TOTAL = 18,6 M€ Source: turnover information from AFM
- 14. The problem…ourselves Major clusters and associations Could we improve • Aeronautics (2008): 1,230 M this figures with • Appliances (2009): 1,800 M online marketing? • Industrial and Automotive Components (2008): 11,000 M • Electronic and Information Technologies : 3315 M • Energy Cluster (2009): 20,000 M • Basque Maritime Industry (2008): 1,380 M • Machine Tools (2009): 1,056 M • Environmental Industries (2009): 1,694 M • Paper Cluster Association of Basque Country (2008): 839 M Total is 42.314 million Euros Source: Observatory of Industrial Situation - SPRI
- 16. The opportunities Powerful and industry-leading companies from the industrial sector Have Quality certificates Are internet orientated 68 % 5% O ff line com panies O n l com panies ine The challenge of integration It is not about online or offline. It`s about SALES!!!
- 17. Currelas que piensan que esto es demasiado complicado
- 18. The opportunities Once you come back from your trip, you will need a plan
- 19. The opportunities The plan
- 20. The opportunity Client: Guillermo are you sure about this??? And that we have to sepnd the money on this? Online, you live in And now, we have to consider this the Middle Age!! take a space trip “strange type” as together your guide to complete the road map You just have to believe, try and succeed. If you don’t try you will never know.
- 21. The opportunity THE OPPORTUNITY… To occupy the space that doesn’t belong to you !!!
- 22. The opportunity THE OPPORTUNITY… To be faster and more agile than competitors
- 23. The opportunity THE OPPORTUNITY… To do it at a very reasonable cost, unthinkable a few years ago
- 24. PROBLEMS… OPPORTUNITIES… A FEW IDEAS
- 25. Industrial clients: Cases Bascotecnia Steel: Industrial Sale of steel plants and melt shops – engineering and turnkey - worldwide The problem: Low presence on the Internet: they were virtually invisible Very generic web page. Passive online catalog Really needed international visibility The solution Work on, present and implement an online marketing plan Identify selling points Analyze the competition Quantify the volume of searches Redesign the website Keep track of results Maintain work cycle with feedback received The results 30million €+ turnover from only one online contact Seven years after they are still our client
- 26. Industrial clients: Cases Turnover 30 million € !!!
- 28. Rugui: Industrial Cold rolling mill: manufacture of steel beams The problem: The Web was a reflection of the catalog done in pdf Very generic web page. Passive online catalog Need for international visibility Solution Create an online marketing plan Identify the niche market Define the sales pitch Study keywords Website development New campaigns PPC and other Keep track of results Adapt plan with feedback Results 3000% Increase in Conversions 2000% Traffic Increase Our client for 5 years
- 29. Industrias Arizaga: Industrial Manufacture of parts in Zamak The problem: The Web was a reflection of the catalog in pdf Very generic web page. Passive online catalog Need for national visibility The customer does not know the possibilities of the product Need to get out of the automotive sector The solution Create and implemt an onleine marketing paln Identify the niche market Define the sales pitch Study keywords Website development Campaigns Keeping track of results
- 30. garizaga.com inyeccionzamak-arizaga.com inyeccionplasticos-arizaga.com suministrosindustriales-arizaga.com
- 31. One stop shop, niche, coverage, frequency and multiformat SEO Parts Molds Materials: zinc, plastic, derived PPC Many keywords Audience They make parts for many different sectors in which parts manufacturing gets no positions. As: Hardware parts Elevator parts Top Car parts Etc ... “Long Tail” Keywords high traffic. Crosswords: manufacture + part + specific sector
- 32. A few ideas and conclusions Just to summarize let me give you a few conclusions of what we think about industrial marketing. By the way this can be general for many B2B companies and situations • Industrial companies and their brands don’t occupy the space they deserve on the Internet (they receive less than > 3-5% qualified traffic) • Although you might don’t deserve it, just occupy as much space as you can. Your competitors are elephants. Take advantage of it, be a mouse. Try to gain online quota. • The big problem, the drama is the loss of business. The opportunity to increase sales with relatively low marketing cost. • If you do nothing, nothing will happen. The online activity must have a profit and loss account. You must know what you gain and what it costs. But for success you need resources. If you don’t have resources, there is no (online) future. • Opportunities are out there in the market. It is all about explaining well where the profits are($$$$$). Telling the dinosaurs how elephants should behave as mice. • I insist. Online it not just about being there. It's about trying to sell: products, brands, image, service, loyalty ... • We are ALL needed. Integrate online with what you already know and do offline. It is more effective, you know your business better than anybody else. • Do not think about what it costs. Think about what you can earn ($$$$) and the ROI • The cheapest actions are not always the best. I did my website almost for free; but hardly anyone sees it. • Minimizes the HIPPO effect (Highest, Paid, Person's Opinion). Dedicate time to explain plans and influence manager’s opinion • DO YOU HOMEWORK! For online success you NEED AMBITION, illusion and resource
- 33. Many thanks from me and some friends Guillermo Vilarroig gvila@overalia.com #g_vilarroig
Notas del editor
- This presentation is about online marketing opportunities in a particular industrial sector in the Spanish market . We will talk about our vision of how an industrial sector can profit from online marketing activities to increase their sales And also for a very special reason, they depend on a large percentage on the exportations to foreign countries
- We will talk about: The situation and problems of the use of online marketing in this sector The opportunity they have in the use of online marketing. As we see it. Ideas for a better use of online marketing and a change in the company ’ s (online) culture By the way, most of the problems and opportunities are very similar to other b2B sectors, companies and countries , so ideas and solutions for them are also very similar
- Let ’ s see first the online situation of the entire sector in Spain To get an idea of the general context, we can see the situation with the official survey data available. In 92% of the answers the most common use the companies gives to their website is as the company ’ s presentation . The second use is as a simple online catalog in 63% of the companies studied. All other uses are practically not implemented or not considered. As you can see in the chart the industrial sector has the lowest number of possible uses of their website . From here we can deduct that use of online marketing is practically non existent But not only the figures are bad, there are worst than previous year . Not to mention that only 66% of the companies in the survey had a proper website .
- Ups this is not an animals presentation but it helps to understand how is the ecosystem where we are Message i: Is easy to us tell you all you have to do Dinosaurios For us it is very easy to say that you must use new technologies , but if we review what we see on the market is not so simple. On one side, are the people who make decisions and say yes to investments, which are like dinosaurs and do not understand much or control the Internet medium . Message ii: Elephtans These dinosaurs are part of firms that in most cases are very slow in making decisions . They are like big elephants who need time and effort to move and with new issues involving cultural change rather than technological changes. Message III: inside the companies, we have different user profiles . Many of them are like hedgehogs, which defend and reveal to all that is a change or effort . But we must also say that there are sharks who want to receive medals for new projects and people who are like dolphins and mermaids ( which are quick and charming ) and accept and engage in change management. Is Spain there are more hedgehogs than memaids Message IV : On the other hand , there is much confusion with the whole revolution 2.0 . An amazing revolution that in many cases is more confusing than helpful . Especially in some companies that want to go from 0.0 to 3.0 in a month ’ s time . Message V: dos clics we also have agencies, freelancers and many people who have lost their jobs and that now are selling themselves as successful consultants . This added to the enormous pressure of the online industry to sell their products, advertising ... everything is for sale on the Internet. And of course the dinosaur at the end says is this good for something? Who do I believe? What are my priorities? WHO do we believe! What do we have to do to improve our online activity with sales results ? Because to be honest if we don ’ t make money in new sales this entire online thing is useless! ----------------------------- Let me give an idea how we see the general situation in the industrial sector. And we can because we have experience working with industrial companies. Also we are based in the Basque country in the north of Spain a region with a long industrial tradition This is how we see the online ecosystem in the industrial sector. And NO this is NOT a presentation about animals !!! We use these similitude ’ s, because it is easy to understand how we perceive animals as representation of human characters. Dinosaurs: Decision makers (referring to online decisions) they are slow, out of date and probably don ’ t believe on online marketing. This has nothing to do with their ability to manage very profitable and modern industrial companies, some of them worldwide leathers in their line of business. Workers: all this online stuff is very complicated as represents more work for us. Thought personally most of them use online for communication and entertainment. Companies: elephants that are slow reacting to changes that don ’ t affect directly their main business
- The problem is that our industry, online marketing, is a complex world . For us professionals who are dedicated to this sector we are in a changing and stressful environment, yet attractive in its intensity . And in this changing situation , where things move by fashion, we always make jokes saying: Let ’ s see what ’ s fashionable this year. Those professionals who come from the off line world have a very important barrier to enter our ecosystem. And as clients they suffer from this situation and sometimes it is difficult for them to see the panorama and the continuous new developments. People have their day to day work and to learn the most important disciplines of online marketing is an extra effort that many people do not want to do. While opening an account in Google Analytics is free, and instantly, in reality when you try to obtain interesting results, is turns out to be more complex. Online marketing is not only about positioning a few words in search engines . It is about having a plan that integrates many actions and online possibilities. And above all the plan has to be consistent with the human and economic resources available for online. And Google is partially to blame for this situation for their ability for continuos innovation . It takes a lot of coffee to keep pace with them.
- The research we will use for our presentation is a study on the industrial sub – sector of machine tools. Machine tool companies are those engaged in designing and manufacturing machines used to manufacture other machines . For example milling machines, lathes, drilling units, etc… It is a very important sector in Europe and Worldwide. The companies are grouped into an association called AFM. To give you an idea of the importance of this industry sector here we show some relevant data for 2010 I would like you to note the importance of exports for these companies . This is one reason why we decided to make the report. For companies that export most of their products marketing online can be the key to attain new contacts that will finally serve to increase sales. The study was conducted at the end of 2010. The case is significant because it illustrates three aspects of online marketing: Diagnosis of a situation: we have researched the sector by observation and using some tools Solution: we suggest ideas and possible solutions , given our experience with industrial customers Opportunity costs: we have done an estimate of the value of lost sales for not doing online marketing. Naturally this is a theoretical estimation supposing the best possible scenario and bearing in mind the importance of exportation.
- The study is brief; we have not intended to be exhaustive. It has been done by direct observation and by using some simple tools. The issues we have chosen are the basics to see if the website has the features that we believe essential for such companies. We also wanted to see some of the aspects that determine and affect visibility in search engines. And important for the sector is to see if the page is ready and is visible in the process of internationalization. The issued revised are: The company has a Website Languages of website 2.0 elements Do PPC campaigns Have Google Analytics Have on page SEO Reputation Internationalization capabilities
- Profiles created on Social Networks As you can see in the chart 67 out of 75 companies do not have a profile on any Social Network To illustrate actual situation 24 % of Fortune Global 500 companies have 3+ profiles
- For those of you who have been in my other presentation, here we have our friends The elephant and the mouse Industrial companies are slow, they react slowly. Possibly because their products evolve slowly and they spend lots of time in R+D. Also because achieving the highest quality is tough and slow. They are very good and competitive building machines. But unfortunately this culture doesn ’ t work for online. Online thing are evolving continuously, changes are fast, and competition is tough. Nowadays you have to be agile and fast to react to changing markets. If you want to succeed online you have act fast and continuously. Be agile and clever, like a mouse.
- First problem. Industrial companies don ’ t occupy the online space they deserve . This means t hat in the real world they have a space in the market , they are well known and have a reputation. But what happens online? Here we have new clients, younger buyers and engineers, new developing countries, the BRIC ’ s. They may or may not know the companies, but for sure they navigate and search for new suppliers, developments, news or new sales opportunities. And most of the companies we are talking about are simply not there . They are do not occupy their online space. Worst of all, others can be talking up your space, like directories, resellers, wholesalers, brokers and specially competitors!!!!
- The real problem - the challenge - our goal – is to increase sales. Every company looks to increase sales and profit . In a competitive global environment as the market for machine tool, this sales increase might be a necessity for survival. From our side we believe that to compete in global markets all companies need to integrate a realistic online marketing strategy with their offline marketing. And we firmly believe that sales can be increased through this strategy. That online marketing is way to generate new contacts and boost sales . We now that by preparing and executing an integrated online marketing plan, you will be able to increase turnover. The challenge of integration! It is not about online or offline Marketing. It ’ s about getting SALES!
- Just to give an idea of possible turnover increase Under good possible conditions, with all companies doing their homework on online marketing we estimate 0, 3% sale increase first year, 0. 6% and 0.9 second and third years. That is 18 million euro in 3 years of incremental sales . With this money you can do good online marketing campaign and on top of this make a profit What we say is that with a small spend on online marketing, it pays it self easily and you make a profit. At least this is our experience with most of our industrial companies
- The question is, if can we apply this theoretical sales increase to all the industry in the Basque country. Well that a big question Then we would we working on figures around 43.000 million euro………………..
- But let ´s go to be a bit positive on this!!
- The opportunity As you can see 68% of the companies have worked really hard to obtain European quality certificates . The maximum quality you can obtain. But as we saw before only a 5% demonstrate an orientation for online marketing . It doesn ’ t make much sense. This sector is clearly outdated regaining online marketing Again, it is all about boosting sales. Some of our clients sell to companies like Boing, Airbus, Siemens, GE…etc
- We have start in black and we want to see the light….. And to change this situation, we propose an space trip with the dinosaurs . The goal is for them to see the light (and understand the basics) This way , they will not see us al Martians . We will be on the same world and speak the same language . They will see a new world to explore And together, we can open up incredible business opportunities (we are doing actually with clients)
- This plan starts with integration of your on and off line activities. Then you need to define a road map with the rigth people, resources, phases and timelines And then you can target the world And next comes our friend the Hippo or HIPPO (Highest Paid Person ’ s Opinion) What does the boss say? So how do we convince him to spend on online marketing plan ? But the main line is what experience tells us If we do online marketing but the book, carefully and with a plan we will soon have positive results Normally the goal is to gain new contacts, or recover old ones, and this will happen. And normally this new contacts will represent new sales, and this will become a circle if we keep on working. From our experience this will happen with a low investment in marketing compared to new sales volume obtained. Those are the arguments for the boss The difficulty is not be devoured by the ecosystem we talked about before
- So now the client will ask me Guillermo are you sure of what you are telling us? the client is really far behind, in the middle age We have to go together on a space trip, to understand the new world And you have to consider me as your guide to complete the road map we talk before
- Once you have you own space Why don ’ t occupy the space that doesn ’ t belong to you? Small companies can beet the big ones, online The theory of mice and elephant Why not gain visibility quota? To be more competitive, to gain online visibility quota, to be the first on the SERP ’ s The better position, popularity and visibility you obtain on internet the more possibilities to obtain contact . And the primary online goal, is to gain contacts that eventually will became clients And it is all about gaining quota
- The opportunity To be faster and more agile than competitors. The fastest, the agile, will have advantage in the markets And client loves it
- And this can be done at a cost that was unthinkable some years ago Online marketing is not for free. But depending on the business sector, costs are reasonable. Normally cost depends on competition, but sometime actions can be done at low cost in certain markets. It is all changing continuously, And this happens in the industrial sector, were online cost are not high, specially if you see them as a percentage of possible sales increase
- Empresa Rugui: Fabricación de plaquetas Aumento de un 3000% de las conversiones Aumento 2000 % el tráfico
- Just to summarize let me give you a few conclusions of what we think about industrial marketing. By the way this can be general for many B2B companies and sit uations Industrial companies and their brands don ’ t occupy the space they deserve on the Internet (they receive less than > 3-5% qualified traffic) Although you might don ’ t deserve it, just occupy as much space as you can. Your competitors are elephants. Take advantage of it, be a mouse. Try to gain online quota. The big problem, the drama is the loss of business. The opportunity to increase sales with relatively low marketing cost. If you do nothing, nothing will happen. The online activity must have a profit and loss account. You must know what you gain and what it costs. But for success you need resources. If you don ’ t have resources, there is no (online) future. Opportunities are out there in the market. It is all about explaining well where the profits are($$$$$). Telling the dinosaurs how elephants should behave as mice. I insist. Online it not just about being there. It's about trying to sell: products, brands, image, service, loyalty ... We are ALL needed. Integrate online with what you already know and do offline. It is more effective, you know your business better than anybody else. Do not think about what it costs. Think about what you can earn ($$$$) and the ROI The cheapest actions are not always the best. I did my website almost for free; but hardly anyone sees it. Minimizes the HIPPO effect (Highest, Paid, Person's Opinion). Dedicate time to explain plans and influence manager ’ s opinion DO YOU HOMEWORK! For online success you NEED AMBITION, illusion and resource