2017 Gardner Business Media, Inc All Rights Reserved

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2 Overview Methodology HISTORICAL: Survey founded in 2010; 6 th edition Started as research on media usage in manufacturing; evolved to include buying behavior / vendor selection. NEW THIS YEAR A separate survey was delivered to equipment suppliers in order to investigate the relationship between end user buying behavior / media usage and supplier marketing intentions and perceptions : 1,637 responses collected between 10/24/16 12/12/16 Responses were collected exclusively online 60% respondents were Gardner Business Media magazine subscribers / 40% non-print magazine subscribers (events, webinars, web, social, e-newsletter, etc) 1

3 Objectives and Takeaways Objectives Examine how today s industrial buyer is using media? What content channels are most useful? What advertising channels are most useful? Explore what motivates and impacts the industrial buyers vendor selection and purchasing decision? What does today s buying team look like? What media are they using? What considerations most influence decision making? Takeaways What do the following topics mean to today s industrial marketer? Brand Buying Considerations Next Generation Digital Media The Industrial Buying Cycle Understanding the Relationship Between Push Media and Pull Media PUSH MEDIA Introduces consumers to information and products they do not know about or do not know they need. PULL MEDIA Provides consumers with information they know they need, but were not sure where to find it. EXAMPLE A manufacturing professional is most likely to discover something new inside the pages of a magazine or the exhibit hall of a tradeshow (push) and then conduct deeper research on a specific supplier or industry website (pull). 2

4 The Industrial Equipment Buyer The People Age 56% over 50 44% under 50 Job Title 40% Management 26% Engineer 12% Owner Observations Survey audience reflects the primary capital equipment influencers and approvers. Audience is represented by balanced mix of influencers over / under 50 and of varied job function. 3

5 The Industrial Equipment Buyer The Companies Observations Survey audience represents a balanced section of facility size and industry. Largest responding groups include the difficult to reach, but lucrative smaller, privately-held manufacturers. And, the larger facility that typically represents a larger, more diverse, mid-level buying team. 4

6 Please rate each type on how useful you generally find the Advertising in it Observations CONTEXT: The industrial buyer assigns unique value to advertising messages that appear in industry context and are surrounded by content. This is evident by the strong performance of tradeshows and by industry trade magazines and websites. DISCOVERY: Industrial buyers appear to equate advertising usefulness with learning and discovery. Top usefulness returners are push media that deliver or promote directly to the buyer and provide the opportunity to learn or discover something new. Takeaway Industrial marketers should maximize brand building and demand generation through leading advertising vehicles. These vehicles increase visibility, brand awareness and increase the value of pull investment. 5

7 Please rate each type on how useful you generally find the Content in it. Observations When searching for specific information, industrial buyers are most likely to access pull media like supplier websites and search. This tendency underscores the importance of brand recognition as researchers are much more likely to select search returns from sources they already know and because the number one action taken from advertising is visiting an industry website. Takeaway Strategic leveraging of push and pull media is becoming increasingly more important as industrial buyers are confronted by more and more options. 6

8 The Relationship Between Advertising & Content Observations Print magazines represent the smallest usefulness gap as buyers find similar use in the content and advertising. Most telling is the difference between buyers perception of the usefulness of video and search as a content resource compared to an advertising vehicle. Industry resources like, magazines print, industry conferences, industry websites, open houses and tradeshows represent the best balance of content and advertising usefulness. 7

9 The Industrial Buying Team Size and Function Observations Nearly 70% of purchasing decisions are influenced by teams of 3 or more. Managers, engineers and purchasing / production are the most likely departments represented. Takeaway The size and diversity of buying teams necessitate an integrated marketing strategy that reaches key influencers and decisions makers via content and advertising vehicles throughout the industrial buy cycle. Further, your messaging should appeal directly to the buying considerations of engineers and managers! 8

10 Rate how important the following is to your company s buying decision. Observations Buyers want benefits! When evaluating vendors and considering purchases, buyers place a premium on service. While the obvious takeaway is to incorporate service-oriented messaging, the more general point is to focus on the benefits of the buyer. They are looking for value and they see value in service and technology, first. Of course price matters. But, it matters less to decision makers than the value and impact a purchase will have on their business. 9

11 Please rate the following on how important it is to emphasize in your company s advertising. From 2017 Industrial Suppliers Marketing Survey Observations While industrial marketers are rightly emphasizing technology, brand and solutions, there is a clear disconnect between the premium a buyer places on service compared to the suppliers emphasis of service in sales and marketing messaging. Takeaway There is a great opportunity to evolve messaging by incorporating service and user benefits into brand and demand based marketing. Especially in marketing that appeals to manager and engineer titles. 10

12 The Power of Push + Pull Push advertising and brand recognition drive demand generation. Three of the top 5 advertising drivers are push related. The other two (search and supplier sites) are brand dependent. 11

13 TAKEAWAY #1 Your Brand is Your Business Brand is the prerequisite for industrial marketing. 93% of industrial buyers indicate they are most likely to select search results from companies they recognize! Your brand messaging should speak to your audience and should be built on your commitment to technology, service and solutions The most powerful ways to build brand are through print advertising and event display As you build your brand, your website and content marketing channels become essential SUMMARY: Build your brand through push; build your business through pull. 12

14 TAKEAWAY #2 Buyers Want Benefits Buyers want benefits. Your brand is built on benefits. Focus on them. SERVICE, SOLUTIONS, TECHNOLOGY Service is a differentiator. It s the primary buying consideration. Service matters most to owners and managers Technology and solutions are also primary considerations. Technology matters most to engineers SUMMARY: Deliver your message when and where your customers and prospects are looking. 13

15 TAKEAWAY #3 Buyers Want Benefits Your brand is built on benefits; focus on them! Service, solutions and technology drive purchasing decisions. Service is a differentiator. It s the primary buying consideration. Service matters most to owners + executives Technology and solutions are also primary considerations especially when marketing to engineers! 14

16 TAKEAWAY 4: Prepare for the Next Generation Buyer. The Next Generation is Coming, but they re not Buying. Yet! Nearly 65% of purchasing approvals are from professionals over 40 with the biggest percentage (37%) residing with titles over 50 years old. Next generation relies more heavily on digital for research, but doesn t want to be advertised to in the process. Especially in search and in video. Significant gap between video and search advertising vs. content usefulness Invest in solutions rich, search and social friendly, tools like video and website content Next generation trusts validated sources events, industry outlets, etc. Gravitates more towards industry websites, industry conferences, industry shows SUMMARY: Senior level professionals still drive purchasing decisions. But, industrial marketers should be laying a foundation for next generation decision-makers. Much like their predecessors and mentors, the next generation is conditioned by push media and captured by pull media. Specific areas to evolve are in video and website development. 15

17 TAKEAWAY 5: What To Do with Digital Content is Number 1 Digital adoption continues to increase, but its content-based channels that are moving the digital needle. Content is also Number 2 Invest in your website, invest in video, invest in content + invest in solutions that push to your website, feature your video, amplify your content. Engage Mix in social, but as a complement to not as a replacement for Observations: Social ranks in the bottom in content and advertising usefulness regardless of age! Buyers do not expect to contacted after engaging in non-registration digital transaction. YouTube and LinkedIn continue to be the strongest social performers. Age Next generation may be mobile and they may be digital, but they re not social (at least not for business) 16

18 Takeaway 6: What To Do with Digital Takeaway New marketing and analytics tools empower the industrial marketer to market and remarket to users who presume anonymity. This chart looks at buyers expectations regarding activities they expect to be contacted after. 17

19 SUMMARY The size and composition of buying teams is becoming more varied. The number of outlets available to reach buyers is becoming more vast. The availability of data is increasing. Times continue to change. Here s ways you can evolve with them: Build your brand Develop content Focus on solutions As a result, it s become more important to reach influencers throughout the industrial buying cycle. HOW? An integrated marketing program that relies on building awareness and demand through thoughtfully-messaged push components that drive prospects to solutions-based, benefit-driven pull destinations. Don t just count what you can count; count on what counts to your customer! Buyers do not want to be looked as a set of data or as a lead. They want to be educated and serviced. 18

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