Ingredient branding is a key concept in B2B marketing for companies whose products serve as parts of other products. It sets their offerings apart and shows how crucial they are to more well-known products. Research by Industrial Marketing Today indicates that ingredient brands are reallocating budgets and resources from traditional industrial marketing to inbound marketing. While some executives were doubtful about the effectiveness of content marketing in driving sales, the current buying process has changed their views. The decision journey involves various decision-makers who seek new methods or want to know how a component fits into their systems. Different types of content hold varying levels of authority and impact at each stage of the journey, and each decision-maker has their own preferences for reliable sources of content.
Today ingredient brands need to sell their smarts; not their products. Component manufacturers need to overcome their “vender” mentality and instead create a content strategy that demonstrates their value as a visionary partner. Old school content such as product collateral, sell sheets or component catalogs and price books, still have a place on the roadmap but do little to convince the multiple decision-makers of the company’s innovation, solutions orientation or provide an experience that makes them “need” to work with a specific partner.
A recent conversation with Carlos Abler, Leader – Online Content Strategy at 3M, focused on some of the complexities faced by ingredient brands in selling to OEMs or system integrators. According to Abler, “Ingredient brands need to deepen their customer centricity to a more role-based approach. They need to holistically understand the tasks undertaken by each role that ultimately touches or influences the buying decision.”
Companies selling to OEMs, for example, need to consider multiple roles, including:
- Industrial designer, who is interested in ideas and applications
- Design engineer, who wants to know the specifications
- Process engineer, who needs to determine if the solution will work in the company’s manufacturing environment
- Compliance officer, who ensures the components are environmentally compliant in all manufacturing locations
- Program manager, who wants to find companies that can contribute to multiple projects
- Economic buyer, who negotiates terms and pricing
- Partners, who can integrate products into net new solutions
This suggests a complex sales construct with multiple cells, which needs to be reflected in the content strategy. Companies can no longer act transnationally with customers and prospects. The content strategy needs to combine thought leadership with innovative use cases that span multiple industries and sectors. The content strategy also needs to provide great evaluation and simulation tools; this type of content underscores the partnership mentality of the company vs. the transactional view of a “vender”. According to Abler, “Buyers want an ideational partner. They want to work with visionaries who can articulate and demonstrate future possibilities and share application content that demonstrates this. If the ingredient brand waits until the buyer is at the specification stage, they are too late.”
Another consideration is NDA compliance, which can prevent ingredient brands from disclosing their coolest or most innovative applications. This requires a lot of creativity to communicate their vision and ability to be a creative thought partner without disclosing actual applications.
BASF handled this issue through their long running ad campaign, which established its brand as a component that made products better. Their advertising showed multiple applications that never disclosed customer names. The campaign used arresting visuals of familiar products in engaging situations with a voice over that said things like:
“We don’t make the dress, we make it brighter”“We don’t make the motorcycle; we make it quicker.”“We don’t make the sand board; we make it lighter.”BASF. The Chemical Company.
3M positioned its innovation for the electronics industry through a video with a science fiction theme. It featured various futuristic applications such as wristbands with flexible displays, glass touchscreens and wearable technology. The video highlighted 3M’s innovation without ever showing any customer’s actual application. Yet, it appealed to designers wanting a partner who could take them to “what’s next”.
Ingredient brands also need to include “to” and “thru” content as part of the roadmap. This is important for communicating with partners and for helping with intra-role interactions. Partners need content “to” them that spells out why the ingredient brand’s applications and innovations matter to the partner’s customers. They also need “thru” content that helps with sell-through to their customer base. These dynamics also apply within a prospect company. Ingredient brands need to speak the language and address the needs of each role and help those in those roles communicate up and down the chain. This is a huge gap in many content strategies.
Huge organizational and cultural challenges exist that prevent component manufacturers and integrators from adopting this type of matrixed content strategy. Often, the corporate level has the best horizontal view of the impact it can have on industrial design across industries and organizations. Yet, the budgets for content live in the product or business level, which tends to have a more parochial view. In some instances, multiple products can compete for the same piece of business, each offering a different solution or application. These divisional or product siloes prevent the company from presenting an overarching story that tells the big “ideation” and “innovation” story. If this becomes a centralized function, they can tap the divisions or product areas for deeper, role focused content.
The resulting content strategy will reflect understanding through the lens of the customer and further refract it into the subtopics and interests of the multiple decision-makers. Ultimately, ingredient brands need to inspire design and product engineers, inform program managers and instill confidence in economic buyers. Your sales people may or may not have relationships with all decision-makers and influencers. A content strategy that offers spec sheets and price lists will leave your potential as an innovation partner undiscovered.
Originally featured on Industrial Marketer.