B2B Demand Generation: In-Market Buyers GTM Strategy

The 95:5 rule (backed by research by Linkedin and the Ehrenberg-Bass Institute) where only 5% of B2B buyers are actively in-market at any given time—is worth consideration when setting any business' Go-to-Market (GTM) strategies-- especially when considering sales development campaigns. This isn't a rigid law; it's a guiding principle. It's also worth sub-dividing by type of market your business is in. 

Let's understand its implications for both red ocean and blue ocean markets:

Red Ocean Markets

• Definition: Red oceans are crowded, competitive spaces where existing players fight for market share. These are often (commonly) B2B service businesses, as well as mature product markets where buy-cycles are well understood. 
• Characteristics:
  • Intense Rivalry: Incumbents engage in zero-sum battles.
  • Incremental Innovation: Companies tweak existing offerings.
  • Existing Demand: Focus on capturing the pie (market share).
• Strategy Implications:
  • Positioning: Differentiate within the existing framework. Selling often equals: For me to win, you have to lose (incumbent vendor) 
  • Channels: Leverage established channels (e.g., industry events, partnerships, Account Based Marketing, advertising).

Blue Ocean Markets

• Definition: Blue oceans are untapped, uncontested territories where demand isn't fully defined. These are often innovative tech products where nothing existed prior (ex. Generative AI tools, for now).  Buying cycles are being established. 
• Characteristics:
  • Innovation Opportunity: Create new demand by offering novel solutions.
  • Market Expansion: Expand an overall pie / paint the white space.
  • Not-Right-Now Buyers: Turn them into I've never considered this...
• Strategy Implications:
  • Positioning: Define the problem you uniquely solve.
  •  Category Creation:  Help define how to think about the problems your solution solves.
  • Channels: Explore non-traditional avenues (e.g., social media, influencer marketing, direct response education).

Positioning and Channel Strategies by Market Type

Sales Development Implications

By tailoring their approach to the unique dynamics of red and blue oceans, Sales Development teams can more effectively navigate the 95/5 rule and drive meaningful pipeline. It's not about working harder, but working smarter by aligning tactics with market realities. Therein lies the key to unlocking growth in an ever-evolving B2B landscape.

• Red Ocean: Focus on identifying the "in-market" 5% actively seeking solutions. Messaging should emphasize differentiation and competitive advantages -- potentially leaning hard into pricing advantages. Utilizing advanced referral strategies, including following buyers to new companies (Movers & Shakers), are advisable. Targeted Intent-data strategies that tie into direct mail, telemarketing, and email marketing work well too.
• Blue Ocean: Educate the broader market about the problem and your solution. Messaging should articulate the unique value proposition and category creation. Leverage content marketing, social media, influencer outreach, and thought leadership initiatives. For Sales Development purposes, leaning hard into multi-channel content strategies (+sharing) make a lot of sense. 

Shift Happens

In essence, for Blue Ocean markets, the concept of the 95:5 rule requires a radical reinterpretation. Unlike the red oceans where the game is about attracting the small percentage actively looking to buy, in blue oceans, the goal is to create the very awareness that spurs buying interest in the first place. Here, every potential customer could be brought into that active 5% not through direct competition, but by cultivating an entirely new demand.

This shift demands not just innovative products but equally innovative go-to-market strategies that educate and inform. Here, traditional sales tactics are replaced by strategic storytelling and educational engagement, which are crucial in nurturing early-stage market interest into mature demand. It's strongly encouraged to think through the offer and get creative with your Call-to-Action. Inspiration for types of first conversations include: 

The sales development process in blue oceans is less about conversion at first touch and more about gradual engagement, educating the market on new possibilities that they had not previously considered.

Current Examples

For instance, the deployment of cutting-edge technologies like generative AI in business contexts might initially meet with skepticism or lack of understanding. Companies pioneering these technologies can't rely solely on traditional demand capture strategies because they aren't just selling a better solution to an existing problem—they are proposing a new way to think about the problem itself.

This is where content becomes king—not just any content, but that which is capable of driving thought leadership. Through blogs, white papers, podcasts, and webinars, companies can begin to sculpt the market's understanding of their innovations. These materials should not only highlight the unique benefits of the product but also the broader implications of adopting such innovations, thus positioning the company not just as a vendor but as a visionary in the field.

Moreover, leveraging social media and influencer partnerships can amplify this educational content, reaching potential buyers who might not yet recognize they have a problem needing a solution. This is complemented by direct response strategies that invite potential customers to engage with the content on a deeper level—through free trials, demos, or exclusive webinars, which serve both educational and promotional purposes.

Conclusions Drawn

Ultimately, the success of go-to-market strategies in blue ocean scenarios hinges on the ability to shift market paradigms and redefine buyer perceptions. By focusing on education and engagement rather than direct sales, companies can not only create demand but also cultivate a new market space that they have the potential to dominate.

In summary, while the 95:5 rule offers a snapshot of buyer readiness in conventional markets, its application in blue ocean markets is less about capturing existing demand and more about creating and nurturing new demand. Here, success is less about fighting over a slice of the pie and more about baking a new one—an exciting, uncharted, and potentially lucrative endeavor that redefines the boundaries of what B2B marketing can achieve.

Conclusion: Sailing Beyond the Horizon

Remember, the 95:5 rule isn't a constraint; it's an invitation. Whether you're navigating red oceans or charting blue ones, adapt your strategies, position your solutions thoughtfully, and choose channels that resonate with your audience. Ready to set sail? 🌊🚀