Do you use the two types of marketing?

In our article " The danger of a short -term focus " we discussed the dichotomy of marketing by researchers Les Binet and Peter Field: sales activation and brand construction . Sales activation offers quick results in the short term, but the effect is declining rapidly. Brand construction ensures long -term sustainable growth. It also contributes to short -term results, but distinguishes itself mainly by how future sales influences.

In Marketing we usually call sales activation 'lead generation', but that is not an accurate description. Sales activation does not create a question; It only helps companies to cross the line that already exists. Brand construction is what actually generates demand, both in the long and in the short term.

Sales activation vs. brand construction

By using the right balance between sales activation and brand construction , brands are most effective. For Business to Consumer (B2C) companies, this ratio is 60% brand construction and 40% brand activation and for business to business (B2B) companies this is 46% brand construction and 54% brand activation.

Do you approach both in-market and out-of-market customers?

Just as there are two types of marketing, there are also two types of customers: 'in-market' and 'out-of-market'. In-market customers are now ready to buy your products or services. Out-of-market customers are not ready to buy today, but possibly in the future. Successful marketers harvest the short-term question of in-market customers, while they demand long-term on construction and out-of-market customers.

So make sure that your sales activation activities focus on short-term in-market customers, while your brand construction activities are aimed at long-term impact with out-of-market customers. There is also a difference in targeting, message and metrics. With sales activation you have a narrow targeting, rational message and you measure results with sales metrics. At Brand construction you target broadly, use an emotional message and measure your results with memory metrics. You can read more about the importance of creativity and emotion in your brand expressions in our article: ' Use the power of creativity '.

• Sales activation = short term = in-market customers
• Brand construction = long term = out-of-market customers

Talk to your future customers

There is much more money to be earned in the long term than in the short term, certainly in B2B. Experts from the Ehrenberg-Bass Institute estimate that at any time only 5% to 10% of customers in a certain category are on the market for a product or service. The vast majority of your customers are currently out-of-market. Below is an example from the 'B2B Trends report', from the LinkedIn B2B Institute, on which this article is based:

“Suppose you sell cloud solutions. There will be relatively few customers for the next one to three months who want to buy cloud solutions. There are perhaps only 10 accounts in the market, and activation campaigns can certainly help you to win one of those accounts. But in the next one to three years there will be many more cloud solutions. Today there may be 10 accounts in the market, but within the next three years there can be 100 accounts in the market. ”

When you use your full marketing budget on sales activation in the example above, you will only address 10% of your potential customers at that time. With brand construction you can address those other 90% potential customers. Brand construction is 'sticky', the construction T permanent memory structures in the minds of future buyers, memories that are probably called when out-of-market buyers, in-market buyers.

Ensure growth in the long term

You may think that you can never convince your organization to invest a lot of money in deals that you will only close in one or three years. However, good CFOs understand that companies are not appreciated on the basis of current cash flows, but on future cash flows. According to some estimates, 80% of the value of the shares of your company is based on sales over 10+ years in the future. The smart money on Wall Street gives for long -term sustainable growth, so you should do that too.

• Sales activation = in-market customers = current cash flows
• Brand construction = Out-of-Market Customers = Future Cash Flows

To help you to convey the benefits of long -term growth to internal stakeholders, Peter Weinberg and Jon Lombardo of the LinkedIn B2B Institute have developed a concept in the 'B2B Trends report that they call' The Cash Flow Funnel '. The Cash Flow Funnel is a counterpart to one of the most popular marketing models: top-of-tunnel and bottom-of-or-bunnel. By turning the funnel on his side and thinking about growth over time, you can make a better distinction between in-market customers and out-of-market customers.

Find the right balance for your organization

More and more companies are starting to realize that they have invested too much in short -term sales activities and therefore do not appeal to a large part of their potential customers. Find the right balance for yourself between brand construction and sales activation and approaching in-market and out-of-market customers. This way you achieve success in the short and long term.

Sparring about your marketing approach?

Do you want to spar about your marketing approach and the right balance between brand construction and sales activation? Feel free to contact us for a non-binding consultation.