“Navigating brand positioning in the saturated B2B tech market demands a strategic approach that cuts through the noise. Companies must not only articulate a clear and compelling value proposition but also establish themselves as trusted thought leaders within their niche. This requires a balance of precision messaging, a deep understanding of customer pain points, and a focus on differentiation.”
Dina Petrosky, Smart Connections PR partner & co-founder.
The B2B technology industry is forecasted to continue growing in the upcoming years, with the US market projected to exceed $70 billion in 2025 (+9% growth from 2024), and close to $80 billion in 2026 (+8% growth from 2025).
Software & cloud will lead growth in this sector over hardware sales, with a projected US market valuation of $40.5 billion in 2026, compared to $33.6 billion in 2024.
However, the B2B tech market continues to face oversaturation challenges, with further growth expected to compound on this issue, making brand positioning more difficult than ever before.
This post will explore the B2B tech market’s oversaturation challenges and offer tactics to make your brand stand out and prosper in this highly competitive environment.
Challenges For Brand Positioning In A Crowded B2B Tech Market
When establishing a brand in a competitive environment, B2B tech companies encounter a number of difficulties. Some of these can be attributed to fundamental problems in the industry (such as long sales cycles), while impacts from the overall economy in recent years has created new difficulties for B2B tech companies to tackle. Mastering brand positioning in this market requires an understanding of these difficulties.
Long Sales Cycles & Stakeholder Complexity
The most persistent problem in the B2B technology industry is lengthy sales cycles. B2B tech transactions involve multiple stakeholders who often need to consider their existing tech architecture in the decision making process. According to Gartner’s B2B Buying Report (PDF), the number of stakeholders in a B2B buying decision on average is between 5 and 11. Every one of them has their own priorities, concerns, and opinions on the deal. This makes sustaining a consistent message across a lengthy sales cycle (that involves a lot of back and forth) difficult to manage.
Additionally, organizational changes within enterprises can derail decision-making altogether, as they account for 99% of B2B purchases (PDF), which is especially impactful in the B2B tech industry which sees rapid tech innovations and solutions entering the market.
Lack Of Differentiation Amid Digital Noise
The second primary challenge to effective B2B tech brand positioning is the level of digital marketing saturation today. Even though the number of communication channels B2B decision-makers have used during their decision making process has steadily increased over the years (In 2005, it was 5 channels; by 2019, it was 7, and by 2021, they were leveraging 10 different channels), without a clear differentiator, even the most innovative branding ideas become lost in the digital noise. Consider the fact that more and more
Buyer Pessimism & Vendor Fatigue
A report by Gartner shows 75% of tech buyers expected to experience ‘buyer pessimism’ in 2024 (PDF), with tech providers observing “negative sales pipeline effects due to new buyer behaviors that are colliding with outdated go-to-market (GTM) models”. We can
When coupled with limited differentiation between solutions, vendor fatigue can present. This fatigue often results in decision paralysis, causing buyers to delay or even abandon purchasing decisions altogether; it also doesn’t help when the solution providers’ websites look more or less the same, are saying the same things, using the same corporate lingo, all marketing talk and almost no authentic business-t0-client communication where creativity is smartly employed.
Commoditization & Price Wars
With market saturation comes pricing wars, and to survive, B2B tech brands tend to commoditize their offerings. The prime example of this tactic is the Software as a Solution (SasS) market. Here, new entrants adopt aggressive pricing strategies to carve a niche for themselves. While this approach does offer short-term gains, it ultimately, according to Forbes, undermines the value of brands in the long run.
Commoditization also has a secondary impact. It essentially pushes brands to adopt reactive strategies where the focus shifts to competitive pricing over innovation. Not only does this steadily erode margins, but as far as a B2B tech buyer is concerned, it can also diminish a brand’s perceived value.
Balancing Scalability & Customization
Another key challenge in B2B tech brand positioning is walking the fine line between customization and scalability.
Personalization is the expectation today, with generic products facing the risk of losing a competitive edge by not specialising towards a particular niche or customer pain point. However, creating customized solutions comes at the cost of scalability.
So, how can a brand stand out? Let’s explore.
Differentiating Your B2B Tech Brand In A Saturated Market
Differentiating your brand in the current B2B tech market conditions requires a two-pronged approach: focusing on a unique value proposition and meeting the B2B tech market’s most pressing needs or expectations.
Here’s how to go about it effectively:
Find A Niche In The Market & Target It
Identifying specific niches and gaps in the market that you can capitalize on as a brand is a fundamental element for brand positioning through differentiation. Extensive competitor research during the conception phase of a new product or service is an integral step, along with a clear understanding of your target market and customer needs.
Focusing on a niche will allow you to benefit from differentiation at a fundamental level, which can naturally position your brand as a unique enterprise (which can form the core messaging during PR campaigns) to help stand out from the competition.
Offer Exceptional Post-sale Support To Build Long-Term Relationships
A second approach to differentiate yourself is to cement your reputation as a brand that offers unmatched post-sales support.
A 2024 B2B tech buyer behaviour report showed that 42% of buyers reported poor customer service from their current vendor as a trigger to look for alternatives. Promoting a high quality post-sales support service during the decision making process can help distinguish your brand from competitors, especially with buyers who have previously had a negative experience in this area.
If you are a SaaS brand, this point is of utmost importance to you as your renewals and upsells can depend on the level of continued support and development offered for ongoing products and services. If you position your brand as a reliable partner rather than a one-time vendor, you will create a value narrative that extends well beyond the initial transaction.
Capitalize On The Latest Tech
The words “artificial intelligence” and “blockchain” have entered almost every conversation around business today. In fact, B2B tech companies that don’t capitalize on latest tech trends (such as AI) could see significant declines in stock value, with Samsung being a clear example of this recently. Utilising the latest tech innovations (such as AI) appears to be more of a ‘standard’ than a diversifying factor in recent times. So how can B2B tech companies use the latest technology to differentiate themselves?
According to Gartner’s 2024 Tech Provider Top Trends report (PDF), vertical AI solutions are going to have a lot more appeal than generic horizontal market offerings. This therefore requires utilisation of existing knowledge of a particular niche along with clear understandings of how technology (such as AI) works. The vital step is to then combine your knowledge of your target industry, market niche, and your target clients’ needs in order to create a highly specialised and unique product that no other competitor can provide. This can include enhancements to marketing, communications, customer support, and offering effective sandbox environments without the need for sales reps. Along with utilising owned data sets in AI services that no other competitor can offer.
Highlight Sustainability As A Unique Selling Proposition
Once just a buzzword, sustainability is now required for B2B tech brand positioning. According to a 2022 report on sustainability for B2B tech brands, companies that prioritize and implement sustainability outperform their rivals in terms of sales and consumer perception.
As a B2B tech company, you may greatly improve your brand’s reputation by implementing eco-friendly procedures into your business operations and, more crucially, by incorporating sustainability messaging into your marketing.
A great example of this being Microsoft’s sustainability journey, which outlines clear timelines & commitments, along with showcasing their current work towards these goals. Effective media relations can be used to target publications you know your target customers are reading to help raise awareness of your brand’s sustainability goals to help you gain a differentiator edge via sustainability signals. We wrote before about the importance of media relations in helping B2B tech businesses get their services in front of their targeted audiences.
Highlight Cybersecurity As A Competitive Advantage
According to IBM, the average cost of a global data breach in 2024 will be a staggering $4.88M. With digitization becoming the norm, a robust cybersecurity feature set is an essential buying criterion for most B2B tech decision-makers.
In fact, cybersecurity is the top consideration for B2B tech & telecoms buyers, according to McKinsey’s research on B2B buying trends for 2024.
Most B2B tech companies highlight cybersecurity as key elements in their product offering and marketing materials (such as detailed specifications of security protocols and standards used). Therefore in order to differentiate, targeted content creation strategies can be implemented (such as the procurement of testimonials and case studies) that backup claims of high cybersecurity efforts will be key, along with showcasing thought leadership content around the area of cybersecurity / technology utilised in your offering to build trust and perceived safety with key decision makers.
Focus On Ease Of Integration & Adoption
The goal of a B2B tech buyer’s search for solutions is to improve their current operations, not to interfere with them. They are not benefiting from a product that does not work with their current or planned tech stack. This culminates in the issue of how much time it takes to onboard a new tech product or service, which can be a key challenge for B2B tech providers.
It is crucial to build and present your product as one that easily interfaces with a variety of enterprise technologies, such as CRMs, ERPs, or even legacy systems without the need for additional or custom development. The speed at which a product can be integrated and brought ‘online’ can be a key differentiating factor, and so incorporating ease of integration with existing systems can help set your brand apart from the competition.
Strategies To Overcome B2B Tech Brand Positioning Challenges
Now that we’ve explored the common challenges of tech brand positioning in a saturated market, let’s dive into some additional strategies you can implement to help differentiate your brand:
Co-create Thought Leadership Content With Influencers Or Clients
One of the key challenges we highlighted was the difficulty in differentiating a brand in an ocean of digital noise.
Co-creating thought leadership content with industry influencers and other prominent success champions in your niche will help position your brand as a beacon of insight and innovation.
According to LinkedIn research conducted for its B2B Marketing Benchmark report in 2023, nearly 57% of B2B marketing leaders intend to use thought leadership content as a marketing technique. With LinkedIn’s updated 2024 report (PDF) showing thought leadership content as 1 of the top 3 types of content in B2B marketing.
Co-creating thought leadership content with influencers or clients can help differentiate your content and brand from the increasing outflow of everyone else’s thought leadership content by ‘doubling up’ or ‘multiplying’ the perceived authority effect of having many experts or trusted sources collaborating and agreeing on a particular topic, product, feature, or story. The same way a panel of experts all collaborating on a singular topic can garner more perceived authority than just one speaker.
Build A Partner Ecosystem To Enhance Product Functionality & Reach
We mentioned that offering customized solutions was one way to set yourself apart but also highlighted its challenges with scaling. You can overcome this hurdle by partnering with complementary solutions providers to utilize new opportunities and amplify your brand value proposition.
For instance, if you offer a cloud based data analytics platform that offers real-time business intelligence, you can pair it with a solution from a leading cybersecurity company that specializes in advanced threat detection, data encryption, and compliance support for enterprises. This partnership will not only expand your product’s functionality but allows you to position your brand alongside established companies. This can help differentiate your brand from competitors through the perceived value of partner collaboration with other trusted brands.
Position As A Consultative Partner, Not Just A Vendor
According to a 2024 report by McKinsey, B2B decision-makers increasingly expect hyper-personalization and tend to value brands that act as partners in helping them solve specific challenges instead of primarily focusing on selling their brand.
Positioning your brand as a consultative partner will help you address all the concerns multiple stakeholders will raise over a lengthy B2B tech sales cycle. It will also help you go beyond a transactional buyer-seller dynamic to become an indispensable part of their buyer journey that can continue into the post-sales customer support stage.
Focus On Solving Specific Pain Points Over Broad Promises
Making lofty claims about innovation won’t help you in a crowded market. B2B tech buyers are constantly looking for answers to their most urgent issues and every B2B tech brand incorporates innovation into their branding. Promoting your product as “innovative” won’t get you as much attention as focusing your messaging on the details of how your brand or product may address a particular issue.
This requires detailed knowledge of your target market’s industry pain points and the specific needs your target customers have. Followed by a strategic messaging campaign to increase visibility of your unique offering within your target market.
Conclusion
B2B tech brand positioning in a saturated market is no doubt fraught with challenges. The key is brand differentiation and the correct positioning of your brand within your competitive landscape and target markets. Whilst we’ve covered a number of challenges and solutions around this topic, each B2B tech provider will have their own set of challenges and specific tactics required for their unique situation.
If you require expert guidance on navigating this process, Smart Connections is here to help. We specialize in assisting B2B tech brands with creating tailored PR strategies to help with market positioning and differentiation.
Our expertise covers thought leadership, market differentiation, and the know-how to create lasting impressions. Learn more about how we can help your B2B tech brand or get in contact to talk about your unique challenges.
Sources
- Three Years of Escalating Sales Growth Forecast in US B2B Technology – Circana
- B2B Buying Report – Gartner
- Next-gen B2B sales: How three game changers grabbed the opportunity – McKinsey
- 2024 Tech Provider Top Trends – Gartner
- The End Of The SaaS Era: Rethinking Software’s Role In Business – Forbes
- 2024 B2B Tech Buyer Behavior – Inbox Insights
- Samsung’s Sudden $122 Billion Wipeout Shows the Cost of Sleeping on AI – Bloomberg
- Sustainability shows its worth for the world’s most valuable B2B tech brands – Kantar
- Our Microsoft sustainability journey – Microsoft
- Technology and telecommunications B2B customer buying trends – McKinsey
- Cost of a Data Breach Report 2024
- The B2B Marketing Benchmark 2023 – LinkedIn
- The B2B Marketing Benchmark 2024 – LinkedIn