Tarek elashraf marketing - the impact of digital technology on b2 b communication

THE IMPACT OF DIGITAL
TECHNOLOGY ON B2B
COMMUNICATION
Prepared By: Tarek Elashraf Under Supervision: Prof. Alaa Tarek

CONTENTS
 Beginning of digital marketing in B2B marketing
 Digital transformation of B2B sales
 Transformation from product sales to value-based
selling
 Relationship between Marketing and Big Data Analytics
 Traditional marketing vs. Omnichannel
 Integrated Communication for Omnichannel
 Role of digitalization in B2B relationships
 Conclusion

BEGINNING OF DIGITAL MARKETING IN B2B MARKETING
 In the 1990s, several researchers start to study the new digital technology, and
by time these kinds of researches start to gain importance and focus by
scientists and business owners,
 The impact of digitalization on some basic fundamentals has been increased
like the relation topics in the B2B business, such as the development of
relationships and trust.
 In light of technological development, for example, automation for B2B
content marketing, the use of big data technology for B2B marketing
innovation, and the determinants of corporate social media adoption became
crucial.

DIGITAL TRANSFORMATION OF B2B SALES
 There are many factors accelerate the changes in the sales and
marketing communication channels:
1. Customer have become more informative as an impact of digitalization
and they also became have right to get access for more information
comparing to the past,
2. Customers make their decisions in the early stages of buying process,
customers specially in B2B business make more than 60% of purchasing
decision before they start communication with the seller.
3. Advances in digital technology have changed the way customers and
vendors communicate. by 2025, and as a result of more digitalization
involvement in B2B interactions, more than 80% of sales interactions
will take place by using digital channels.

DIGITAL TRANSFORMATION OF B2B SALES
 Due to market segmentation, companies turn away from mass marketing, and
some companies even completely ignore traditional media.
 As a result of using social media is increasing, the communication channels
between the seller and the buyer became better which reflected on the
increase of customer satisfaction.
 B2B companies are investing more and more in social media marketing to
attract customers through social networks.

“create, inspire and share brand
information and dialogue with clients
and customers through a seamless
mix of paid, owned, acquired and co-
branded communication channels“
Fillip Kotler

TRANSFORMATION FROM PRODUCT SALES TO VALUE-BASED
SELLING
 Value-based sales are gaining increasing attention; this is a sales method
in which suppliers and customers interact to identify new business
development opportunities and potential needs
 B2B sales initiatives are not limited to the tasks of sales and marketing staff
only, but also project managers, coordinators, consultants and other
experts to create value for clients, constantly meet with clients in person
and manage their daily challenges.
 Value creation in B2B process is defined as a relation which take place
among different people even if across border and aims to co-create the
value propositions

TRANSFORMATION FROM PRODUCT SALES TO VALUE-BASED
SELLING
 Facilitating the buying process for commercial customers should include the use
of various digital touch points for continuous interaction throughout the
customer journey.
 From a customer's perspective, the primary issue in digital marketing and
content sharing is the valuable marketing content in itself, which should be
effective.
 Clients rate the quality of the information based on the reliability, relevance of
the forecast, as some of the most popular forms of digital content are webinars,
white papers, e-books, videos, infographics, blogs, and social media.
 Marketers must work hardly with the editors to help them understand and create
the value content based on customers’ needs and requirement.

RELATIONSHIP BETWEEN MARKETING AND BIG DATA ANALYTICS
 Multiple channels, and ad hoc strategies will require attention to big data
analysis, the competitive advantage is actually closely related to the
interpretation, reuse and integration of large amounts of data from multiple
sources.
 Companies that rely more on data-driven decision making perform better in
terms of productivity and profitability.
 New digital technologies and big data have improved the global value
system for companies, enabling the development of real-time flows and
exchanges between relevant participants.

 The following big data levers in the entire manufacturing value chain:
1. Research, development and design: Accelerate product development based on specific customer contributions.
2. Production: Using new simulation technology and big data improves the efficiency of the production process.
3. Supply Chain: Data analysis improves demand forecasting and supply planning.
4. Marketing and Sales: Mastering big data analytics tools is an important opportunity for consumer analysis, with
the goal of identifying users' social and demographic characteristics, types of interests, and purchasing decisions.

General Electric (GE) has appointed a CDO (Chief Data Officer) at the strategic level, and
the personnel of the executed operations (business managers, and data engineers), data
at the operational level. To this end, GE has developed Predix, a massive data platform
for real-time predictive data analysis to meet customer needs.
Telecom Italia also understands the importance of digital analytics, Telecom Italia
launched a Big Data Analysis Competency Center; the Big Data Competence Center is a
place for human resources to conduct training in big data analysis; Exploration and
prototyping services provided by the company for new use cases; And a lab to test
innovative applications and technologies in big data

TRADITIONAL MARKETING VS. OMNICHANNEL
 B2B companies have a very limited exposure that requires a specific product/service, so that their
marketing often aims to sell the main concerns of their products.
 B2C sellers outperform with individual consumers and explain reliance on social networking sites, such as
Facebook, Instagram, and Twitter. Millions of individual consumers activate here.
 The similarity is increasing despite the general assumption with a different use of digital platforms and
tools between B2B and B2C textures.
 The biggest transformation is taking place in B2B, and a very progressive formation has been made in a
typical feature of B2C.

 A B2B buyer is always in business, and his actions are unpredictable, and because marketing experts
arrive, this means that he has to pursue the pursuit through digital analysis
 All B2B and B2C customers have adopted the same buying strategy. Using online, platform talk to
friends and other customers, read their reviews, read vendors, and think they have what they need, and if
the seller does not meet his expectations at a high level, then soon he will go to the next seller.
 Therefore, in interactive, relational, and experienced environments of the digital landscape, B2B and B2C
models overlap and converge towards H2H ("the human being"), it is always a personal connection.

 The change in traditional marketing helps to simplify the communication,
providing the opportunity to implement the integrated strategy that
targets specific people, and can provide opportunities to provide unique
and operational marketing, which is the challenges of the Omnichannel
view.
 Omnichannel Marketing is the practice of integrating multiple channels,
regardless of which channel is used, therefore, Omnichannel Marketing
focuses on consumers and is a new approach to follow through their non-
polar journey, various traditional and digital touch points (outlets,
exhibition halls, call centers, advertisements, website, app, e-commerce,
etc.)

INTEGRATED COMMUNICATION FOR OMNICHANNEL
 IMC is seen as a regulatory response to a variety of technical and
social challenges.
 Integration is seen as a new system for managing relationships
with different types of stakeholders through interactive
communications.
 IMC is an audience-driven business process, the process
manages stakeholder outcomes, content, channels, and brand
communication programs in a strategic way,
 Recognizing the growth capabilities of consumers who are
gradually gaining control over the channels of communication is
the key to understanding the development of integrated multi-
channel communication.

INTEGRATED COMMUNICATION FOR OMNICHANNEL
 IMC plays an important role in channel synchronization, and the multi-channel IMC should be conducted
at a strategic level.
 Deeper thought is required in adjusting the IMC strategy to fit the customer journey and brand
development.
 Organization should use multiple communication platforms to build a "hybrid" communications
portfolio and increase customer brand engagement.
 Through the use of big data and cross channels, not only can marketers designate different touch points
based on their effectiveness, but they can also create integrated experiences, and invite the same
customers to participate in brand development profitably.

ROLE OF DIGITALIZATION IN B2B RELATIONSHIPS
 The digitalization impact on B2B affects the way of market operations and also the way which of which
the company’s product value could be understood, blockchain, artificial intelligence, the internet of
things, data security, data security and big data analytics are just a few of digital trends that’s play a big
role on affecting on understating and managing of B2B relationship
The
role
of
digitlization
in
B2B
relationship
Coopetition
Value co-creation
B2B Branding
Servitization
Innovation networks
Relationship dynamics
Power/trust

COOPETITION
 Coopetition is a dynamic and paradoxical aspect of
competition and cooperation between B2B partners in
the market,
 The globalization and complexity of relationship
between organizations has been grown, which allow
partners to compete and cooperate with each in the
same time.
 Traditionally, coopetition has been prompted and
sustained by the geographical location of competitors.
 Digitization can help solve some of the key challenges,
specifically, you can enable different forms of
collaboration without co-presence by enabling the
virtual co-location.

VALUE CO-
CREATION
 Value creation is the center of marketing by researching
the prevailing logic in service.
 The essence of B2B marketing lies in the idea that
suppliers and customers work together to create
excellent value that suppliers cannot provide on their
own.
 Digital technology in co-creating B2B value is the
present value which is seen primarily through
intangible attributes rather than tangible benefits,
 Digital technologies is overcoming the barriers entire
the organizations in respect of time and space
disruptions.
 Digital e-commerce sites such as Amazon, Alibaba, and
eBay are not only digital marketplaces for transactions
between buyers and suppliers, it is also become a rich
platforms for different collaboration across different
regions and place in order to create value

B2B BRANDING
 Branding mechanisms create and enhance buyer-
supplier relationships, because branding allows
advance information about potential partners, helps
achieve legitimacy, bolsters reputation, and sets
expectations for participation in B2B transactions.
 Recently research has recognized B2B brand
importance
 In order to get an affective B2B branding, all
stakeholders must have a unified, common and agreed
vision for the brand.
 Digitization has also intensified competition and
prompted companies to look for unique ways to
differentiate themselves in the B2B marketplace.
 Social media allows business customers to tell real and
empirical stories, not just companies sending out
marketing messages, therefore, digitization allows
talking about brands rather than promoting marketing
messages.

SERVITIZATION
 Service can be viewed as a commercial trend and a
transformative set of digitalization-compatible business
processes
 The B2B market is dominated by companies that
traditionally develop product-centric customer value
and product-based marketing logic.
 As a result of applying the digital technology in the
developed countries, mora than 60% of the product
companies have changed their service strategy which
allow the company to differentiate its products and
increase customer engagement.
 Digitization plays a vital role in service delivery, digital
service can be defined as the provision of digital
services that are rooted in physical products.

INNOVATION
NETWORKS
 Innovation networks are loosely coupled independent
business systems, “It contains many collaborative
relationships between companies and the formation of
members to engage in innovation support activities,
from research and development to marketing and
dissemination.
 There are different types of participants in network links
carry out a large number of activities, which stem from
innovation complexity and network complexity
 Advances in digital technology have brought significant
benefits to innovation networks:
i. First, it reduces connection costs, increases coverage, and
thus improves connectivity for innovative networks,
ii. Second, it increases the heterogeneity of network
knowledge by increasing the range and speed of digital
convergence.

RELATIONSHIP
DYNAMICS
 Relationship dynamics include the interaction of many
working individuals and the interaction within and
across organizational boundaries on a dynamic and
evolving basis.
 The digital elements of marketing can increase the
learning curve of partners and make them know how
the dynamics of partner relationships.
 A large number of e-commerce and digital tools
promote and maintain the digitization of business
relationships, which can be used in increase the
exchanges between the two companies
 Digitization can eliminate the need for manual
intervention, profoundly affecting the dynamics of
corporate relationships and directly affecting sales
professionals.

POWER/TRUST
 Strength and trust are key concepts inside and outside of
marketing and have traditionally been the basis of
research between businesses, strength is an innate concept
of a relationship, just like trust.
 Power and trust are related to the background, and can be
supported by technological advances such as digitalization
and socio-economic changes.
 The use of big data as a source of competitive advantage
can benefit a company's position of strength in a B2B
relationship.
 Digitization has also created digital trust; online
applications help build trust so that business relationships
can be developed
 Emerging technologies such as the blockchain are
promoting untrusted crypto transactions, so no longer
need to spend time building trust before engaging in
economic transactions.

CONCLUSION
 During the results obtained during the survey of more than 500 mid-
scale size and decision makers on a large scale. By the marketing
channel, the results show that 83% of these executives used social
networks when selecting suppliers, in addition, 92 % of this segment
argued that social networks have made a purchase decision
 By using the appropriate social networking channels, both sellers and
buyers can build their desired identity between connectivity and share
with the person concerned.
 User's behavior can also changed with social networks, B2B buyers
seem to have unlimited access to information to compare suppliers and
products.
 Millennials, most of them represent important decision-making roles,
including the position of C-Site.

Tarek elashraf marketing - the impact of digital technology on b2 b communication

Tarek elashraf marketing - the impact of digital technology on b2 b communication

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