CMO Confidential: Episode Summary

Episode Title: Tom Stein | Chairman, Stein IAS | The Inherent B2B Marketing Problem & What to Do About It
Release Date: November 12, 2024
Host: Mike Linton
Guest: Tom Stein, Chairman and Chief Brand Officer at Stein IAS

Introduction

In this insightful episode of CMO Confidential, host Mike Linton welcomes Tom Stein, Chairman and Chief Brand Officer at Stein IAS, to discuss the inherent challenges within B2B marketing and potential solutions. Tom Stein brings nearly four decades of experience in B2B marketing, steering Stein IAS to win numerous awards, including the B2B Agency of the Year by the ANA in 2023.

Understanding the B2B Landscape

Tom Stein opens the discussion by challenging the notion that B2B marketing is in a "trough" or recession. He emphasizes that B2B is experiencing "a sense of energy and momentum and opportunity" (02:32). Stein attributes this positive outlook to several factors, particularly the burgeoning impact of artificial intelligence (AI).

Notable Quote:
“I think that it's definitely glass half full, I would say, and much more so than glass half empty.” (02:32)

Driving Forces Behind the Momentum

AI as a Catalyst: Stein highlights AI as a significant driver, stating that companies leveraging AI are creating new business models and enhancing service lines, which injects substantial energy into the B2B sector.

Market Corrections: He acknowledges the recent market corrections but believes they are temporary setbacks. Stein predicts that “momentum starts to be in front of us” (03:26), signaling a promising future for B2B marketing.

Notable Quote:
“I think the propulsive power of AI is just beginning to be felt, and I think it will be felt more and more and more and more in different ways and across every meaningful subsector in B2B.” (03:52)

The Rise of B2B Brands

Tom Stein introduces the concept of brand valuation in B2B, revealing that B2B enterprises are leaving a trillion dollars of brand value unaccounted for in their overall enterprise value (11:19). He explains that this valuation has traditionally been confined to B2C sectors but is now being recognized in B2B thanks to firms like Brand Finance.

Notable Quote:
“In B2B enterprises, if you take the top 100 to top 150 and compare them to B2C counterparts, they're leaving a trillion dollars of brand value as a component of enterprise overall enterprise value on the table.” (13:09)

Challenges in B2B Marketing

Disconnect Between Brand and Demand Marketing: Stein identifies a critical issue in B2B marketing—the lack of alignment between brand (top-of-funnel) and demand (performance marketing) efforts. This disconnection often leads to ineffective marketing strategies and wasted resources.

Notable Quote:
“If you have two different organizations within an organization that are doing two different things that are not aligned and they're both marketing to the same customer... it all falls apart.” (17:52)

Creativity and Long-Term Ideas: He stresses the need for more creative and long-term strategic ideas in B2B marketing. Instead of focusing solely on easily measurable tactics like Marketing Qualified Leads (MQLs), marketers should develop “big long ideas” that span the entire buyer journey (15:01).

Notable Quote:
“An idea needs to be the big long idea... It needs to span a buyer journey. It needs to span all the channels, it needs to span the buyer journey stages.” (15:34)

Best and Worst Practices with Clients

Identifying Dysfunctional Clients: Stein explains that many clients may already recognize dysfunction within their marketing structures but fail to communicate it effectively to agencies. Successful collaborations require shared responsibility and clear alignment between marketing and sales teams.

Notable Quote:
“If they don't have that remit and it's a problem, it can often devolve into decision-making that is dispersed consensus-oriented decision-making... and how they're doing.” (24:51)

Structure vs. Trust: He emphasizes that trust is paramount. When organizations trust their marketing teams, structural issues can be resolved more effectively. Conversely, lack of trust often leads to marketing being viewed merely as a sales support group, limiting its potential impact.

Notable Quote:
“If marketing is considered a growth driver... a significant minority, say 25%, are considered growth drivers.” (25:55)

Advice to B2B CMOs

Recognizing the Complexity: Stein advises B2B CMOs to understand and appreciate the complexity of their roles. Managing various skill sets, technologies, and creative effectiveness is no small feat, especially in the B2B context.

Building Belief in Marketing: He encourages CMOs to build belief in marketing within their organizations. This involves gaining support from CEOs and the C-suite to allow marketing teams the freedom and resources to execute impactful strategies.

Questions for Job Seekers: For those looking to join forward-thinking companies, Stein suggests asking stakeholders, especially the CEO and CRO, about the role and perception of marketing within the organization. This can reveal whether the company views marketing as a strategic growth driver or merely a tactical expense.

Notable Quote:
“If you can't build the belief in the organization in marketing, then you should try really hard to do it. But ultimately, if you can, you should go somewhere where you can apply the power of marketing effectively.” (29:11)

Final Insights and Practical Advice

Embracing Risk and Creativity: Stein draws an analogy to modern football, where teams adopt a more dynamic and risk-taking approach compared to traditional, cautious strategies. Similarly, B2B marketing should embrace creativity and calculated risks to achieve significant results.

Personal Anecdote: Tom shares a humorous yet humbling story about falling off a stage during his early years as a bassist in rock bands, highlighting the importance of avoiding pitfalls in both professional and personal endeavors.

Notable Quote:
“The advice that comes out of the other end of that is don't fall off the stage.” (33:24)

Conclusion

In this episode of CMO Confidential, Tom Stein provides a comprehensive analysis of the current state of B2B marketing, highlighting both its challenges and opportunities. By emphasizing the importance of brand valuation, creative long-term strategies, and organizational alignment, Stein offers valuable insights for B2B CMOs aiming to elevate their marketing efforts and drive substantial growth.

Key Takeaways:

• B2B marketing is experiencing renewed energy and momentum, largely driven by AI.
• There is significant untapped brand value in B2B sectors.
• Aligning brand and demand marketing is crucial for effective B2B strategies.
• Trust and structural alignment within organizations are essential for marketing success.
• B2B CMOs should advocate for marketing as a strategic growth driver and seek supportive organizational structures.

Notable Resources Mentioned:

• Brand Finance B2B Brand Valuation Reports
• Previous CMO Confidential episodes on related topics.

Listen to the full episode on your preferred platform: Spotify, Apple Podcasts, YouTube, and the I Hear Everything network.