Marketing + Communications

‘We were beaten on price’ is an excuse – and a lousy one at that

One of the key distinctions between business-to-consumer (B2C) and business-to-business (B2B) communications is the difference between marketing to an individual, and marketing to a group. 

Group dynamics matter far more in B2B buying than individual preference – no matter how well you know John the QS or Jane the Director.

Building relationships remains crucial for getting a seat at the table, but sealing the deal? That’s a broader game. 

When selling, tendering, pitching, whatever in B2B, you’ll encounter two sets of buyers: your direct targets (like Jane, the Director of Development if you’re a town planner) and the ‘hidden’ buyers from departments like procurement, legal, finance, even IT.  

Two groups of wooden pawns with male and female leader facing each other Concept of competition and male vs female leadership

What do we know about buyer groups? 

  • Both sub-groups (target and hidden) hold equal sway 
  • Hidden buyers often make decisions driven by emotion 
  • Brand recognition across the entire group is often more decisive than price or service quality 

If you think “we only lose because of price,” think again. Being well-known and trusted by the whole buying group can easily outweigh having better services, or passionate (even expert) advocates within the client. 

Why? 

No one ever got fired for hiring IBM 

Because no one wants to risk being blamed for a bad decision. The fear of failure far outweighs the fear of missing out, usually making well known, larger brands the safer bet. 

Your target buyers crave features, transformational potential and innovation. But hidden buyers? They want reliability, peace-of-mind, proven brands, and assurance that their career won’t implode with a bad decision. 

Neither buyer category will choose future business growth over personal career uncertainty. 

Take Modern Methods of Construction (MMC). Specialist contractors in this sphere tend to get challenged on “price”. But the group buyers might not know MMC from a hole in the ground and fear making the wrong call, sticking to what the whole group knows, and going with the traditional method.

How can you get around this?

Make it easy for everyone to agree

Forget the excuse of being beaten on price. Hidden buyers equate strong, well-known brands with non-negotiables: reliability, trust, peace-of-mind, even if they don’t have first-hand experience working with that brand. 

If you’re one of the biggest brands in your sector, congrats, that awareness is what’s winning you business. But what if you’re not (yet) a major player?  

Help the buyer group agree 

Accept that: 

  1. Buyer groups readily compromise on price or quality to expedite agreement 
  2. People are hugely unwilling to make a decision that colleagues don’t readily agree with 
  3. The expertise of your individual contacts does not reassure the more cautious of the group. 

Okay, cool, that’s all well and good, how does it actually look? This sort of awareness is why you… 

  • Sponsor events and get your logo everywhere worthwhile 
  • Speak on industry panels. Expertise, please 
  • Contribute to trade publications and become a reliable source 
  • Garner some good press – no scandals, thanks 
  • Build relationships widely within target organisations 
  • Show up at key networking opportunities 
  • And be absolutely consistent while doing it all 

If you’ve ever been to an event and you thought someone was joking when they said they didn’t know you for one of your main services, you need better brand awareness – give Luma a call if you need help with that. 

Selected industry experts bring you insight and expert advice, across a range of sectors.

Subscribe for free to receive our fortnightly round-up of property tips and expertise

Selected industry experts bring you insight and expert advice, across a range of sectors.

Subscribe for free to receive our fortnightly round-up of property tips and expertise

Sign up to receive the Place Daily Briefing

Join more than 13,000 property professionals and receive your free daily round-up of built environment news direct to your inbox

Subscribe

Join more than 13,000 property professionals and sign up to receive your free daily round-up of built environment news direct to your inbox.

By subscribing, you are agreeing to our Terms & Conditions and Privacy Policy.

"*" indicates required fields

Your Job Field*
Other regional Publications - select below