Why a Robust Marketing Strategy is Essential to Sustain Yourself in the Chemical Industry
Marketers often come up with hundreds of marketing ideas for FMCG or any consumer-facing brands. The same managers will often struggle to bring about many such ideas when it comes to B2B marketing. Such limitations are caused by the finite number of channels available for promotions and advertisements. Marketing gets even tougher when it comes […]
Marketers often come up with hundreds of marketing ideas for FMCG or any consumer-facing brands. The same managers will often struggle to bring about many such ideas when it comes to B2B marketing. Such limitations are caused by the finite number of channels available for promotions and advertisements. Marketing gets even tougher when it comes to the chemical industry due to stringent regulations, product diversity, and globalization.
However, marketing strategy is essential for chemical companies for their survival and global expansion. Product differentiation can be hard to achieve as all chemicals are usually made up of same components, and their content is usually mentioned in the packaging itself. Consequently, players in the chemical industry have to look at a innovative marketing strategy to compete in the regional as well as global market.
Branding is a critical part of the marketing strategy for not only consumer goods, but also in B2B communication. Although consumer brands spend millions of dollar in developing brand awareness, marketing industrial products doesn’t need the same kind of commitment.
Customers in the chemical industry are ready to switch brands if they get the chemically equivalent product. Chemical companies need to fight hard to create a unique brand-name in the market. Delivering quality product consistently and providing support and consultancy can help build a reputable brand name. As a result, branding is highly dependent on pricing and performance of the supplier. This is the reason why buyers aren’t hesitant to purchase from established brands such as BASF SE, DuPont, and Dow Chemicals.
Since chemicals are a complex commodity, there’s a lot of information that needs to be conveyed to a prospective customer before finalizing a sale. Mass marketing mediums don’t work well as it can only communicate a limited amount of information.
Consequently, a strong sales team is required to persuade the client to purchase by presenting company’s superior product portfolio. It is essential that all members of the sales team are on the same page with each one of them trying to promote the same key product delivering similar messages. The role of a salesperson is more consultative in nature as they try to suggest the right product that will fit customers needs. Additionally, providing samples and demonstration can increase the possibility of sales.
Offering multiple service levels
Although most chemical components will have similar pricing across all suppliers, the price varies because of additional service provided by the supplier. In a bid to exhibit pricing competitiveness, chemical companies can offer multiple service levels at different price points rather than bundling the same service across all products. For instance, companies can include only essential services with their standard products and use automation to lower costs.
There’s a saying that’s gaining prominence in the world of digital marketing which goes, “Your business does not exist if it’s not there on search.” Today, a vast majority of new players and companies who are looking to expand rely on Google and other search engines to identify capable suppliers. They do their groundwork in terms of product offering, pricing, and other services. Thereby, becomes essential for chemical companies to have a functional website with a good search ranking and all the relevant information which are required by the customer.
They can also bolster their online presence using search engine marketing (SEM) and native and display advertisements. A mix of traditional and online marketing often delivers impressive results. Additionally, social media can also be leveraged to generate brand awareness. Recently, many companies have utilized YouTube videos to share their B2B success stories and convey their product capabilities.
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