2008 NARI Educational Day

Forum Speech

2008 NARI Educational Day

Forum SpeechPRESENTED BY

Steven L. Kleber, President

Kleber & Associates

PRESENTED BY

Steven L. Kleber, President

Kleber & Associates

OverviewOverview

Marketing in a “Low” Time

Some of our clients include:Gerber Plumbing Fixtures,Innovative Stone, Cifial,

MonierLifetile, SEN Design Group, Mr. Steam, KOMA Trim Products, to

name a few.

Marketing in a “Low” Time

Some of our clients include:Gerber Plumbing Fixtures,Innovative Stone, Cifial,

MonierLifetile, SEN Design Group, Mr. Steam, KOMA Trim Products, to

name a few.

OverviewOverview

• Member of NARI, NAHB, NKBA• Regular contributor to noted industry publications such like Remodeling, Kitchen+Bath Business, Housing GIANTS, and others

• Original White Papers that include: Missing Males; Kleber IQ: Think Global, Act Local; Generation Green…

• Member of NARI, NAHB, NKBA• Regular contributor to noted industry publications such like Remodeling, Kitchen+Bath Business, Housing GIANTS, and others

• Original White Papers that include: Missing Males; Kleber IQ: Think Global, Act Local; Generation Green…

Presentation TakeawaysPresentation Takeaways

• Why marketing in a “low” time helps to both sustain and increase market share

• Challenging economic times are actually an opportunity to grab new market share and increase sales

• Why marketing in a “low” time helps to both sustain and increase market share

• Challenging economic times are actually an opportunity to grab new market share and increase sales

Food for ThoughtFood for Thought

• Ninety-four percent of Chief Marketing Officers and marketing executives agreed with the statement, “A tough economic period is precisely the time when marketing plays a key role.”

• Ninety-four percent of Chief Marketing Officers and marketing executives agreed with the statement, “A tough economic period is precisely the time when marketing plays a key role.”

Why marketing in a “low” time well positions you for a market upturn

Why marketing in a “low” time well positions you for a market upturn• Consumers seeking remodeling projects are more apt to reach out to those companies that are top of mind

• Remodelers that maintain their market position will be better situated to convert prospects into valued consumers when the market picks up

• Consumers seeking remodeling projects are more apt to reach out to those companies that are top of mind

• Remodelers that maintain their market position will be better situated to convert prospects into valued consumers when the market picks up

Why marketing in a “low time”…Why marketing in a “low time”…• Mohawk Industries maintains its $10 Million marketing budget despite hellish U.S. Real Estate and Housing Market - giving them a competitive edge.

• Mohawk Industries maintains its $10 Million marketing budget despite hellish U.S. Real Estate and Housing Market - giving them a competitive edge.

Why marketing in a “low time”…Why marketing in a “low time”…• Successful launches in economic downturns include: CNN, MTV, Wal-Mart, Wikipedia, Apple during the recessions of 1980-82, 90s, and after Sept. 11th

• Successful launches in economic downturns include: CNN, MTV, Wal-Mart, Wikipedia, Apple during the recessions of 1980-82, 90s, and after Sept. 11th

Why marketing in a “low time”…Why marketing in a “low time”…• CNN and MTV reshaped media consumption habits and TV programming for a generation

• Wikipedia and iPod transcended society into an open-source and portable media and music network

• These companies maintained consistent marketing position despite the urge to cut back on marketing…

• CNN and MTV reshaped media consumption habits and TV programming for a generation

• Wikipedia and iPod transcended society into an open-source and portable media and music network

• These companies maintained consistent marketing position despite the urge to cut back on marketing…

New ProspectsNew Prospects

• With the bad comes the good - not all is “doom and gloom”

• Good news for remodelers - homeowners are staying in their homes longer

• Prospects for kitchen and bath upgrades, and maintenance and renovation projects

• Proving your value = new customers

• With the bad comes the good - not all is “doom and gloom”

• Good news for remodelers - homeowners are staying in their homes longer

• Prospects for kitchen and bath upgrades, and maintenance and renovation projects

• Proving your value = new customers

Smarter MarketingSmarter Marketing

• How to increase market share and thrive in this economic downturn?

• The secret lies in SMARTER MARKETING

Let’s Get Started…

• How to increase market share and thrive in this economic downturn?

• The secret lies in SMARTER MARKETING

Let’s Get Started…

Marketing in a “Low” Time TipsMarketing in a “Low” Time Tips• Adapt your marketing messages• Show empathy for your customers’ current state of affairs and emotions

• Add value to their lives

• Adapt your marketing messages• Show empathy for your customers’ current state of affairs and emotions

• Add value to their lives

Adapt Your Marketing MessagesAdapt Your Marketing Messages• Target’s TV spots tout the tagline “a new day. new ways to save.”

• Target’s new language appeals to the “average American” family who is cutting back… a new approach to living a cost-conscious lifestyle.

• Target’s TV spots tout the tagline “a new day. new ways to save.”

• Target’s new language appeals to the “average American” family who is cutting back… a new approach to living a cost-conscious lifestyle.

““A New Day. New Ways to Save.”

Adapt Your Marketing MessagesAdapt Your Marketing Messages• Consumers are spending more time at home - that’s an opportunity

• The kitchen has again become the focus for quality time with family and friends

• Looking for savings, consumers are seeking refuge in remodeled or expanded spa-like bathroom or an at-home workout area

• Consumers are spending more time at home - that’s an opportunity

• The kitchen has again become the focus for quality time with family and friends

• Looking for savings, consumers are seeking refuge in remodeled or expanded spa-like bathroom or an at-home workout area

Maximize Your Marketing DollarsMaximize Your Marketing Dollars• The best marketing campaigns have a multi-dimensional approach

• For example: The Remodeling Show– Network with other remodelers– Assess your competition– Bring a press kit (for the media)

• The best marketing campaigns have a multi-dimensional approach

• For example: The Remodeling Show– Network with other remodelers– Assess your competition– Bring a press kit (for the media)

The Bottom LineThe Bottom Line

• Examine each thing you do, can do and how you can get more return on your investment

• Examine each thing you do, can do and how you can get more return on your investment

Focus Your MarketingFocus Your Marketing

• Know who you are specifically targeting

• Think of who you’re not trying to attract

• Understand your target market - what makes them buy and how they purchase

• Focus on who is really going to pay for your services

• Know who you are specifically targeting

• Think of who you’re not trying to attract

• Understand your target market - what makes them buy and how they purchase

• Focus on who is really going to pay for your services

Invest in Digital MarketingInvest in Digital Marketing• The majority of today’s businesses have a website

• Consumers use websites for general information, contact and service information, photos, pricing, competitive analysis, customer testimonials…

• You can show before and after projects• Communicate referral sources

• The majority of today’s businesses have a website

• Consumers use websites for general information, contact and service information, photos, pricing, competitive analysis, customer testimonials…

• You can show before and after projects• Communicate referral sources

Invest in Digital MarketingInvest in Digital Marketing• Myspace, facebook, Linkedin, twitter and other social networking sites

• Blogging your expertise• Podcasts, webinars and website RSS feeds

• Sixth-three percent of the 175 marketing executives surveyed by Epsilon see an increase in their spending on interactive/digital marketing

• Myspace, facebook, Linkedin, twitter and other social networking sites

• Blogging your expertise• Podcasts, webinars and website RSS feeds

• Sixth-three percent of the 175 marketing executives surveyed by Epsilon see an increase in their spending on interactive/digital marketing

Cultivate Consumer RelationshipsCultivate Consumer Relationships• Differentiate your company by showing off your social skills

• Have frequent and personalized contact with your key customers and prospects

• Differentiate your company by showing off your social skills

• Have frequent and personalized contact with your key customers and prospects

Pay Attention to Current CustomersPay Attention to Current Customers• Current customers hold

the key to your success• Increase sales to

existing clients• Offer welcome back gifts • Foster the customer

relationship

• Current customers hold the key to your success

• Increase sales to existing clients

• Offer welcome back gifts • Foster the customer

relationship

Emphasize Quality and ValueEmphasize Quality and Value• The majority of shoppers are changing the way they shop:– Shopping less often– Buying more strategically – Doing more research before they purchase

• Sell your service at a price with clear deliverables and guarantees

• Increase your perception of value

• The majority of shoppers are changing the way they shop:– Shopping less often– Buying more strategically – Doing more research before they purchase

• Sell your service at a price with clear deliverables and guarantees

• Increase your perception of value

Sell Your Service as an InvestmentSell Your Service as an Investment• Remodeling that will pay dividends to your client

• It has to be more than a cliché claim• Promote the benefits of your remodeling service

• Use past clients (testimonials)• Use language your customers are fluent in

• Remodeling that will pay dividends to your client

• It has to be more than a cliché claim• Promote the benefits of your remodeling service

• Use past clients (testimonials)• Use language your customers are fluent in

Sell Your Serviceas an InvestmentSell Your Serviceas an Investment• Wal-Mart used the economic downturn to its advantage

• New tagline “Save money. Live better.”• Focuses strictly on the idea of “saving money”, versus its “ always low prices”

• Wal-Mart used the economic downturn to its advantage

• New tagline “Save money. Live better.”• Focuses strictly on the idea of “saving money”, versus its “ always low prices”

Wal-Mart Commercial

Offer IncentivesOffer Incentives

• Word-of-mouth and referral sales• Bank of America gives its current customers $25 when they refer someone to open a checking account

• Ask for testimonials• Testimonials add credibility and validity to your work and brand

• Word-of-mouth and referral sales• Bank of America gives its current customers $25 when they refer someone to open a checking account

• Ask for testimonials• Testimonials add credibility and validity to your work and brand

Offer IncentivesOffer Incentives

• Offer incentives to new and existing customers

• Money saving offers• Monthly specials• “Dine-out” programs

• Offer incentives to new and existing customers

• Money saving offers• Monthly specials• “Dine-out” programs

Be Prepared for an UpturnBe Prepared for an Upturn• It’s about strategic planning and being prepared for an upturn

• Plan for Phase II of your marketing strategy

• It’s about strategic planning and being prepared for an upturn

• Plan for Phase II of your marketing strategy

Have a Marketing PlanHave a Marketing Plan

• Have an actual marketing plan• Implement it• There are three legs to a profitable business:– Product/service development– Sales– Marketing

• Have an actual marketing plan• Implement it• There are three legs to a profitable business:– Product/service development– Sales– Marketing

Keep Your Employees HappyKeep Your Employees Happy• Valuable employees are the heart and soul of a flourishing business

• Don’t lose exceptional team members due to:– Unsatisfactory salaries– Limited career advancement opportunities– Lackluster benefits

• Loss of team members costs management time, energy and money, lowers company morale and disrupts company dynamics

• Valuable employees are the heart and soul of a flourishing business

• Don’t lose exceptional team members due to:– Unsatisfactory salaries– Limited career advancement opportunities– Lackluster benefits

• Loss of team members costs management time, energy and money, lowers company morale and disrupts company dynamics

Improve Customer ServiceImprove Customer Service• Many consumers like

Ruppies (retired urban professionals) place customer service above quality and value

• A slow time is the best time to work on your customer service skills as a company

• Many consumers like Ruppies (retired urban professionals) place customer service above quality and value

• A slow time is the best time to work on your customer service skills as a company

Maintain a Positive AttitudeMaintain a Positive Attitude• If you sit back and

retreat into a state of worry and apprehension, your business will only be the worse for it

• If you sit back and retreat into a state of worry and apprehension, your business will only be the worse for it

Smarter Marketing is Key to Success in a Downturn

Smarter Marketing is Key to Success in a Downturn• Get out there• Take action• Decide your own business fate• Consider it a challenge to overcome• It’s not necessarily about spending more money, but spending wisely

• Get out there• Take action• Decide your own business fate• Consider it a challenge to overcome• It’s not necessarily about spending more money, but spending wisely

Questions?Questions?

Kleber & AssociatesKleberandassociates.com

770.518.1000

Contact me directly:Steven Kleber

sk@kleberandassociates.com770.518.1000 x203

Kleber & AssociatesKleberandassociates.com

770.518.1000

Contact me directly:Steven Kleber

sk@kleberandassociates.com770.518.1000 x203