B2B Marketing

UK Market overview 2008

Publication Date	February 2008
Publisher	Key Note
Product Type	Report
Pages	110
ISBN Number	not applicable
Product Code	KEY00002

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Summary

Business-to-business (B2B) marketing is emerging from under the shadow of its larger business-to-consumer (B2C) marketing cousin as businesses are increasingly recognising the importance of taking an holistic approach to how they conduct their business - not just with regard to their customers' but also in terms of how they are perceived by employees and other business stakeholders, such as partners, suppliers and shareholders.

B2B marketing has long been associated with product marketing; the product launch, the sales campaign, trade press advertising and mailshots have all served to identify what B2B marketing is about.

However, this is changing. Customer relationship management (CRM) has demonstrated the need for businesses to make the requirements of their customers central to their operations, with the same high standard of service provided at all customer `touchpoints' (customer contact points). This has led to businesses more closely scrutinising their business processes and articulating the values that govern the way in which they operate.

This process inevitably draws a picture of the `brand' - the package of values that businesses associate with themselves - and B2B marketers are strongly advocating that the brand-marketing techniques that are employed so successfully in the B2C arena are also essential to successful B2B marketing.

It is tempting to consider B2B marketing agencies as direct marketing (DM) agencies specialising in the B2B sector. However, the sector embraces an extremely diverse number of services. There are, of course, many full-service agencies working across the full spectrum of marketing channels - but there are also many specialist agencies working in individual channels, such as e-mail marketing or online advertising. Some specialise in providing marketing services for particular vertical sectors, such as construction, healthcare or IT, and others take a more holistic approach, working in brand marketing.

Marketing to businesses is more complex than marketing to consumers. There are similarities - segmentation, data analysis and data modelling are all techniques that are used to target the most likely buyers in B2B as they are in B2C - but the business-buying process is more complicated. The decision to buy is often made after a lengthy process and by a group of people - the decision-making unit (DMU) - rather than an individual. There are many hurdles to jump before the DMU is reached, with the gatekeepers and influencers having to be won over first, followed by the procurement team (whose role is becoming increasingly important to buyers).

Increasingly tight regulations have also presented difficulties for marketing to businesses. The introduction of the Corporate Telephone Preference Service (CTPS) in 2004 meant that many organisations could opt out of being approached for marketing purposes, and created a need for business lists to be constantly refreshed and updated.

As a result of these conditions, the expertise held by specialist B2B marketers has been in increasing demand and this sector has grown. Key Note estimates that the B2B marketing sector was worth 11.34bn in 2007.

One of the fastest-growing channels used by B2B marketers is e-mail marketing; volumes in this channel are already on a par with those for direct mail. Direct mail volumes have been decreasing but this could represent more focused targeting, which makes for smaller mailshots.

Research has shown that companies are spending a fifth of their online budgets on e-mail marketing, with the main use being newsletters. There are, however, obstacles here: spam continues to dog e-mail marketing and the increasingly sophisticated spam filters used by organisations to combat it can also filter out legitimate e-mail marketing messages. Nonetheless, e-mail marketing does allow B2B marketers the opportunity to build relationships and its use is set to grow faster than any other channel.

This report focuses on three important sectors: B2B marketing agencies; B2B marketing channels; and data providers. Key Note conducted much direct research for this report among practitioners within the industry itself. Unique insight is given in a `virtual roundtable' at which some of the industry's leading figures have provided commentary on some of the most pertinent issues facing B2B marketing today.

Content

Executive Summary
1. Introduction
- Overview
  - Definition
2. Strategic Overview
- Market Dynamics and Segmentation
  - Market Sectors
  - Total Industry Value and Growth
  - B2b Advertising
  - Table 1: Advertising Expenditure on Business and Professional Magazines and Directories at Constant Prices (m and %), 2003-2007
  - B2b Direct Marketing
  - Table 2: The Total UK Market for Direct Marketing by Channel by Value at Current Prices (m and %), Year Ending 31st December 2006
  - Table 3: Direct Marketing by Type of Activity by Value at Current Prices (bn and %), Year Ending 31st December 2006
  - Table 4: UK B2b Direct Marketing Expenditure by Channel by Value at Current Prices (m), 2006 and 2007
  - Conferences
  - Exhibitions
  - Corporate Hospitality
  - Total Value of B2b Marketing
  - Table 5: The Estimated Total UK Market for B2b Marketing by Sector by Value at Current Prices (m), 2007
- Industry Developments
  - B2b Best Practice Alliance
  - B2b Marketing Agency Survey
- Competitive Structure
  - Advertising
  - B2b Awards
  - The B2b Marketing Awards
- Marketing Trade Publications
  - Table 6: Abc-Audited Marketing Magazines by Net Circulation Size, 2006-2007
- Trade Fairs and Conferences
  - Trade Fairs
  - Cmp Information
  - Technology for Marketing and Advertising
  - Reed Exhibitions
  - International Direct Marketing Fair
  - Centaur Exhibitions
  - Online Marketing Show
  - Rising Media (Germany)
  - Search Marketing Expo - Smx London
  - Incisive Media
  - Online Information
  - Conferences
  - Centaur Conferences
  - Transforming Public Sector Communications
  - Marketing Week Nma Interactive Summit 2008
  - Brands Summit 2008
  - Marketing & The Olympic Games
  - Data Protection
  - Data Training for Marketing Teams
  - Haymarket Events
  - B2b Marketing Success
  - Successfully Integrate Online and Offline Marketing
  - Search Marketing Conference
- Number of UK-Based Companies
  - by Industry Group
  - Table 7: Number of UK Vat-Based Enterprises by Industry Group, 2007
  - by Turnover
  - Table 8: Number of UK Vat-Based Enterprises by Turnover Sizeband and Type of Business (000, Number and %), 2007
  - by Vertical Sector
  - The Automotive Sector
  - Biotechnology and Pharmaceuticals
  - Construction
  - Education and Training
  - Electronic and IT Hardware
  - Financial Services
  - Food and Drink
  - Household Goods, Furniture and Furnishings
  - Legal Services
  - Leisure and Tourism
  - Motorsport
  - Public/Private Partnerships
  - Software and Computer Services B2b
  - Telecommunications
  - Mobile Telecommunications and Data
  - Internet and Broadband Services
  - Third-Generation Services
- Market Forecasts
  - Economic Forecasts
  - Table 9: Forecast UK Rate of Inflation (%), 2007-2011
  - B2b Marketing Forecasts
  - Table 10: The Forecast UK Market for B2b Marketing by Value at Current Prices (m), 2008-2012
3. B2b Marketing Agencies
- Background
  - Table 11: Top 20 B2b Marketing Agencies by B2b Gross Income (m, %, Number and Rank), 2006/2007
- Market Size
- Industry Trends
- Marketing Activity
  - Awards for B2b Marketing
  - The British Interactive Media Association Awards
  - The Connect Awards
  - The Dma Awards
  - The Idm Facet Awards
  - The Marketing Society Awards for Excellence
  - Precision Marketing Response Awards
- Distribution
4. Marketing Channels
- Background
  - Table 12: Company Telephone Numbers Registered to The Corporate Telephone Preference Service (Number and %), 2004-2007
- Market Size
  - Table 13: UK Estimated B2b Direct Marketing Expenditure by Channel by Value at Current Prices (m and %), 2007
  - Table 14: Most Popular Disciplines and Services (% of Respondents), 2007
- Channel Profile - E-Mail Marketing
  - Table 15: The Biggest Challenge to E-Mail Marketing (% of Respondents), 2007
  - Table 16: Five Highest Priority Areas for E-Mail Marketing Improvement (% of Respondents), 2007
  - Table 17: E-Mail Marketing Objectives (% of Respondents), 2007
  - Table 18: E-Mail Usage among E-Mail Services Provider Clients (% of Respondents), Fourth Quarter 2006
  - Top Tips for E-Mail Marketing Success
  - Channel Profile - B2b Mailings
  - Table 19: UK B2b Direct Mail Response Rates by Industry Sector (% of Mailings), 2004 and 2005
  - Table 20: UK B2b Response Direct Mail Rates by Action Requested (% of Mailings), 2004 and 2005
  - Table 21: UK B2b Direct Mail Responses When Used alongside Other Media (% of Mailings), 2004 and 2005
- Channel Profile - Digital Media
  - Online Advertising
  - Table 22: B2b Advertising Revenue by Format (Average %), 2007
  - Search-Engine Optimisation
- Sector Focus - Integrated Marketing
- Distribution of Channels by Industry
5. Data Providers
- Background
  - Permission-Based Marketing
- Market Size
- Competitive Structure
  - List Owners
  - Table 23: Top 15 B2b List Owners by Volume of Names Traded in 2006 (Million), 2007
  - List Brokers
  - Table 24: Top 15 B2b List Brokers by Volume of Names Traded in 2006 (Million), 2007
  - List Managers
  - Table 25: Top 15 B2b List Managers by Volume of Names Traded in 2006 (Million), 2007
- Industry Trends
- Database Tools
- Data Security
- Marketing Activity
- Distribution
6. An International Perspective
- Introduction
- Market Developments
  - Table 26: Future Marketing Approaches (% of Respondents), August 2004 and January 2006
- Competitor Environment
  - Information Sources
  - Central Intelligence Agency
  - European Commission - Eurostat
  - Organisation for Economic Co-Operation and Development
  - Direct Marketing Association
7. Pest Analysis
- Political Factors
- Economic Factors
- Social Factors
- Technological Factors
8. Industry Dynamics
- Industry Research
  - Interviewees
  - Gary Brine, Chief Executive Officer/Founder, Gyro International Ltd
  - Kim Cook, Product and Marketing Manager, Thomson Directories
  - Joel Harrison - Editor, B2b Marketing Magazine (Also on Dma B2b Council)
  - Annette Holmes - Managing Director, Prospect Swetenhams Ltd and Market Monitor Ltd
  - Iain Lovatt - Managing Director, Blue Sheep Ltd
  - Shane Redding - Owner of Think Direct Ltd and Co-Founder of Cyance Ltd
  - John Stanton, Chairman of Association of B2b Agencies and Joint Managing Director of Base One Group
- Questions and Answers
- 1. What Are The Three Main Concerns Facing B2b Marketing Practitioners Today?
  - Gary Brine
  - Kim Cook
  - Joel Harrison
  - Annette Holmes
  - Iain Lovatt
  - Shane Redding
  - John Stanton
- 2. What Are The Three Main Trends You Are Seeing in B2b Marketing?
  - Gary Brine
  - Kim Cook
  - Joel Harrison
  - Annette Holmes
  - Iain Lovatt
  - Shane Redding
  - John Stanton
- 3. Which Are The Leading Channels for B2b Marketing?
  - Gary Brine
  - Kim Cook
  - Joel Harrison
  - Annette Holmes
  - Iain Lovatt
  - Shane Redding
  - John Stanton
- 4. How Has This Changed over The past 5 Years?
  - Gary Brine
  - Kim Cook
  - Joel Harrison
  - Annette Holmes
  - Iain Lovatt
  - Shane Redding
  - John Stanton
- 5. Are There Any Differences in The Way Different Vertical Sectors Use B2b Marketing Channels?
  - Gary Brine
  - Kim Cook
  - Joel Harrison
  - Annette Holmes
  - Iain Lovatt
  - Shane Redding
  - John Stanton
- 6. How Can B2b Marketers Address The Problems That Exist between Marketing and Sales and Marketing and Procurement?
  - Gary Brine
  - Kim Cook
  - Joel Harrison
  - Annette Holmes
  - Iain Lovatt
  - Shane Redding
  - John Stanton
- 7. What Are The Three Main Functions of B2b Marketing (E.G. Lead Generation, Brand Awareness, Relationship Development, Etc.)?
  - Gary Brine
  - Kim Cook
  - Joel Harrison
  - Annette Holmes
  - Iain Lovatt
  - Shane Redding
  - John Stanton
- 8. to What Extent Is B2b Marketing Addressing Environmental Issues?
  - Gary Brine
  - Kim Cook
  - Joel Harrison
  - Annette Holmes
  - Iain Lovatt
  - Shane Redding
  - John Stanton
9. Company Profiles
- Overview
- Base One Integrated Marketing Communications Ltd
  - Corporate Strategy
  - Strengths and Weaknesses
  - New Product Development
  - Brand Development
  - Innovations
  - New Research
  - Appointments
  - Future Company Developments
- Blue Sheep Ltd
  - Corporate Strategy
  - Strengths and Weaknesses
  - New Product Development
  - Brand Development
  - Innovations
  - New Research
  - Appointments
  - Future Company Developments
- Cyance Ltd
  - Corporate Strategy
  - Strengths and Weaknesses
  - New Product Development
  - Brand Development
  - Innovations
  - New Research
  - Appointments
  - Future Company Developments
- Gyro International Ltd
  - Corporate Strategy
  - Strengths and Weaknesses
  - New Product Development
  - Brand Development
  - Innovations
  - New Research
  - Appointments
  - Future Company Developments
- The Mission Marketing Group Plc
  - Corporate Strategy
  - Strengths and Weaknesses
  - New Product Development
  - Brand Development
  - Innovations
  - New Research
  - Appointments
  - Future Company Developments
- Prospect Swetenhams Ltd/Market Monitor Ltd
  - Corporate Strategy
  - Strengths and Weaknesses
  - New Product Development
  - Brand Development
  - Innovations
  - New Research
  - Appointments
  - Future Company Developments
- Silver Bullet Publishing Ltd
  - Corporate Strategy
  - Strengths and Weaknesses
  - New Product Development
  - Brand Development
  - Innovations
  - New Research
  - Appointments
  - Distribution
  - Future Company Developments
10. The Future
- Market Developments
- Market Forecasts
  - Table 27: The Forecast UK Market for B2b Marketing by Channel by Value at Current Prices (m), 2008-2012
12. Further Sources
- Associations
- Publications
- Government Sources
- Other Sources
- Bisnode Sources