The $4.75 billion marketing wedding! What does this mean for the MarTech industry?

Finally, It happened.

On September 20, 2018, Adobe announced that it is buying marketing automation firm Marketo for $4.75 billion. The deal is Adobe’s largest ever and puts the company in more direct competition with Oracle and Salesforce. Marketo, owned by Vista Equity Partners LLC, is one of the leading marketing automation platforms.

Adobe, the maker of image-editing tool Photoshop, has sought to develop a software suite that includes advertising, analytics and e-commerce programs. Previously, Adobe purchased Magento Commerce for $1.7 billion in June to enter the market for e-commerce.

Why Adobe acquired Marketo?

Marketo.Inc. offers the leading Engagement Platform that empowers marketers to create lasting relationships and grow revenue. Consistently recognized as the industry’s innovation pioneer, Marketo is the trusted platform for thousands of CMOs thanks to its scalability, reliability, and openness. Marketo is headquartered in San Mateo, CA, with offices around the world, and serves as a strategic partner to large enterprises and fast-growing organizations across a wide variety of industries.

Marketo’s platform is feature-rich and cloud-native with significant opportunities for integration across Adobe Experience Cloud. Enterprises of all sizes across industries rely on Marketo’s marketing applications to drive engagement and customer loyalty. Marketo’s ecosystem includes over 500 partners and an engaged marketing community with over 65,000 members.

This acquisition brings together the richness of Adobe Experience Cloud analytics, content, personalization, advertising and commerce capabilities with Marketo’s lead management and account-based marketing technology to provide B2B companies with the ability to create, manage and execute marketing engagement at scale.

To participate in the business-to-business marketing-automation market, Adobe needed the functionality that Marketo brings,” Lori Wizdo, an analyst at Forrester Research Inc., wrote in an email.

How Marketo helps Adobe to expand sales:

1. Brings nearly 5,000 customers and will support and strengthen its portfolio of B2B marketing services.
2. Gives Adobe an opportunity to increase revenue within its Digital Experience business, which delivered $614 million in revenue for the company’s most recent quarter.
3. Adding Marketo’s engagement platform to Adobe Experience Cloud will enable Adobe to offer an unrivalled set of solutions for delivering transformative customer experiences across industries and companies of all sizes.

How a B2B marketing company expands sales of a B2C company?

1. B2B concentrates on Building relationship.

B2B marketing maintains a close, trusted relationship between buyer and seller.

Products need to be designed and advertised in ways that emphasize a benefit to the business. In this case, the client is asking, “How does this make my company more profitable?” This audience demands outcomes such as lower costs, higher revenues, a better customer experience or a more complete execution of company mission, vision, values and strategy.

Marketo offers leading unified marketing platform purpose-built to create lasting relationships and orchestrate end-to-end engagement. Deliver the authentic experiences your customers desire with the Marketo Engagement Platform.

2. Increase Company/Product Recognition Through National Retailers.

Retailers can carry the brand forward. If the company is operating in a lean manner and isn’t relying on external institutional funding to carry it through its initial growth stages, being astute about how products are taken to market is crucial, as the revenue generated from the sales will need to cover the company’s operating expenses. Without a hefty marketing budget, companies benefit substantially by having the product carried by major retailers.

This strategy achieves three important goals:

a. It exposes the product to a much larger audience.
b. It allows the product to be marketed and popularized by the large retailers who have more access and larger budgets.
c. It adds credibility to the brand because consumers are able to see it next to other popular products that, in turn, create more demand and a higher sell-through rate for the direct B2C approach.

3. Makes more Flexible.

Each market is different and can require a unique approach and, perhaps, some customization of a product in order to adapt to the requirements of a specific region.

Although there is a significant amount of work involved in tailoring the product to the use case of a specific region, the demands from retailers result in consumer interest. This creates opportunities to sell the product directly to consumers once the brand has been established.

4. Confirm Value Through Research.

Partnering with well-known research companies who can utilize your product for their studies is another great way to leverage partnerships and enhance company growth. This confirms the value of the product as a well-designed and well-made device and armed with the knowledge garnered from the research, consumers are more likely to trust and purchase the product. Armed with third-party data, it may be easier to bring on otherwise sceptical retailers.

Conclusion

These B2B marketing strategies will help a B2C company expand sales. With the recent acquisitions, it’s clear that major MarTech vendors have understood the importance of a multi-cloud solution for customer engagement.

If you are looking for B2B marketing support services and interested in a no-obligation conversation about our approach to marketing programs and support services? Call us at +1 415 800 3901 or write to us at hello@engage48.com for more information.