The past two blog posts have dealt with the importance of product and price in developing effective marketing strategies. These have been explored within the context of the impact of the current economy and the emergence of social media on each of these marketing fundamentals. In this volume, the focus is on a third “P”, place (the remaining “P’s” are people and promotion).
Defining place
In marketing parlance, place refers to the distribution channels that are utilized to bring products and services to end users. Sometimes the end users are consumers while in other cases the end user is a company or employee. Either way, the impact of the current economy and the use of social media is changing the dynamics and use of traditional distribution channels.
The book industry is one example of the impact of social media on distribution channels. In a traditional distribution channel strategy, fans of an author visit a bookstore for a personalized autograph during a book signing. This strategy is still in use today and can be effective in select circumstances, particularly when the author has an established following.
In contrast, many authors also have blogs that enable direct communication with readers. These blogs serve as external links to online sites such as Amazon or Barnes and Noble. A common strategy is to use social media to connect readers and authors in ongoing dialogue, which attracts more readers and deepens the relationship with the existing fan base. Fans of the author can read blog posts or comment on Facebook pages, then simply click on a link to an online bookstore and order or download a book on the spot. (Personally, I’m a fan of bookstores and enjoy the process of browsing, exploring and interacting with the printed editions. There are times, however, when my schedule simply doesn’t allow a trip to the bookstore and the accessibility of an online purchase is preferable.)
Social media in B2B distribution channels
The impact of social media on consumer products is relatively obvious, but what about the B2B segment? Many manufacturers and industrial companies are reluctant to engage in social media due to perceived risks or the perception that their audiences aren’t active on social media sites. There are, however, several benefits that social media strategies can offer, such as:
- Improved client retention
- Greater yield from client relationships
- New client recruitment through networking
- Market intelligence
One scenario that applies to a B2B environment is the use of social media to facilitate advisory groups or committees. A group could consist of top 20 clients, specifiers, distributors or end users. Separate groups can be structured based on audience segments, geographic markets or industries. The manufacturer can act as the facilitator of these groups to create deeper engagement with key constituencies. Groups can be structured to require a secure login and ensure that all communications within the social media environment are reasonably protected. Potential benefits of such a scenario include:
- Closer engagement with top clients
- Controlled environment to test multiple social media strategies
- Minimal exposure
- Comparatively low cost
- Potentially global reach
- New revenue opportunities
Social media can clearly be utilized to test or open new distribution channels in both B2C and B2B environments. In the current economic climate, companies could be missing significant opportunities to market their products and services to new audiences if they are unwilling to explore social media strategies.
The next “P”: Promotion
Mike
