Digital marketers often come up with dozens of marketing ideas for chemical or any consumer-facing brands. The same marketers often struggle to bring about such ideas when it comes to B2B marketing. Limitations caused by the B2B niche are infinite. However, there is a finite number of channels available for advertisements and promotions. Marketing gets tougher when we talk about the chemical industry due to product diversity, stringent regulations, and globalization.
Marketing strategy is essential for every chemical company such as a hydroxypropyl methylcellulose manufacturer, hydroxyethylcellulose manufacturer for their global expansion. Product differentiation becomes harder to achieve as every chemical is usually made up of similar components while their content is typically mentioned in the packaging itself. Consequently, companies in the chemical industry need to look at an innovative promotion strategy to compete in the region as well as in the worldwide market.
Branding is a crucial component of the marketing strategy for consumer goods as well as in B2B communication. Although millions of dollars are needed in developing brand awareness for consumer awareness; however, promoting industrial products doesn’t require the same commitment. Customers operating in the chemical industry remain ready to switch brands if they are offered products that are chemically equivalent.
Chemical companies must fight tooth and nail to establish a distinct brand name in the marketplace. Delivering a high-quality product on a regular basis, as well as providing support and consulting, can help you establish a reputable brand.
Resultantly, branding becomes highly dependent on the performance and pricing of the supplier. This is the reason why corporate buyers are not hesitant to buy from already established chemical brands.
Direct Chemical Sales
Since the chemical is a complex commodity. Also, there is loads of information that demands to be conveyed to prospective customers before finalizing a sale. Mass marketing channels don’t work effectively as they can communicate only a limited amount of relevant information.
Consequently, a robust and experienced sales team is needed to persuade clients to buy by presenting the company’s best product portfolio. It is quintessential that every member of the sales team is on one page with each one of them making efforts to promote the key products delivering similar messages.
A salesperson’s role is more consultative in nature, as they try to recommend the best product for the customer’s needs. Providing samples and demonstrations can also increase the possibility of a sale.
Offering multiple service levels
Although many chemical components will contain similar pricing across different suppliers, the price will vary due to additional services offered by the supplier. In an effort to exhibit price competitiveness, instead of bundling the same service across all products, chemical companies can offer multiple quality services at different price points. Companies can, for example, include only essential services with their standard products and save money by automating the process.
There is a popular saying that is getting importance in the digital marketing world that goes, “Your business does not exist if it’s not there on search.”
Today, Google and other search engines are used by the vast majority of new players and companies looking to expand to find qualified suppliers. In terms of product offerings, pricing, and other services, they lay the groundwork. As a result, it is critical for chemical companies to have a functional website with a high search ranking and all of the relevant information that customers require.
They can also use Search Engine Marketing (SEM), as well as native and display advertisements, to improve their online presence. The use of a combination of traditional and online marketing techniques frequently yields impressive results. Furthermore, social media can be used to increase brand awareness. Many businesses have recently turned to YouTube videos to share their B2B success stories and demonstrate their product capabilities.
Marketing Strategies Solving Big Problems
Increasing industry competition
In the chemical industry, a new, more competitive environment is forming. Due to increases in automotive, construction, and pulp production, the Asian chemical industry is expected to own two-thirds of the global chemical sales market by 2030.
Because the US chemicals market is relatively healthy and diverse, it is expected to grow through 2022 and beyond. High-demand markets in the food, healthcare, and electronics industries will grow local demand for chemicals despite supply chain shortages and higher commodity prices.
Shortages and Rising Prices
Price fluctuations in raw materials and material shortages wreak havoc on entire industries. Nearly 85 percent of distributors report at least one imported item as out-of-stock, according to a survey of 84 members of the National Association of Chemical Distributors. A supply-demand imbalance can be triggered by a sustained rise in natural gas or oil prices. The chemical industry’s manufacturers and distributors are facing rising costs for semiconductors, plastics, and wood products, which are threatening their profitability.
Changing Policies and Regulations
Market turbulence is common as a result of policy changes, which can also shift long-term customer preferences and demand. New petrochemicals legislation is being passed in the Middle East and China, which has the potential to disrupt supply chains. Continued trade tensions between China and the United States could have unanticipated consequences for the US chemical market, exports, and overall profitability.