OUTLINE MARKETING AND A ROADMAP TO...

The Precast Show 2018

NPCA 1

precast.org/education

MARKETING AND SALES:

A ROADMAP TO SUCCESS!

Brian Miller, PE, MBA, LEED AP,

GCP Applied Technologies


OUTLINE

• Overview

• Core Elements of Marketing• Market Research• The Precast Market• Customers• Branding/Positioning• 4 Ps• Promotion Tactics

• Selling What You Market

precast.org/education precast.org/education

APPLE HEADQUARTERS• Campus to House 14,000 employees

• 4-story Office Building (2.8 Million SF)

• 2 levels of Underground Parking (1.2 Million SF)

• 2 stand-alone parking structures (1.8 Million SF)

• TPS structure with integrated systems


• Marketing Overview• Sales Overview

• Basic Concepts of Marketing• Lead Generation

• Tactics• Customers

• Project Delivery


A KEY CHALLENGE BETWEEN MARKETING AND SALES IS


NPCA 2


WHAT IS MARKETING?


WHAT IS MARKETING, PROMOTION/ADVERTISING?


WHAT IS MARKETING?

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. - American Marketing Association


MARKETING• Market Research (identifies needs,

customers, markets - what are we going to sell?)


MARKETING• Market Research

• Branding (who are we, what is our unique value proposition)



• Branding

• Positioning (segmentation, customer, product) • To whom? (target customer), For how much? (price)


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• Branding

• Positioning

• Develops resources (collateral, website, training manual…)



• Branding

• Positioning

• Develops resources • Promotion

• Raise awareness, generate prospects

• What to say, how to say it, and where to say it


MARKETING

• Market Research

• Branding

• Positioning

• Develops resources • Promotion

• Evaluation (what is working)


WHAT IS SALES?


WHAT IS SALES?• Sales In general, is a transaction between two parties

where the buyer receives goods (tangible or intangible), services and/or assets in exchange for money.

• Sales - Selling is the process of helping customers to buy the products and services that you offer at a price that generates a profitable return for your business.

• Selling - is determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities


SIMPLIFIEDMarketing - everything to guide strategic business decisions, target and persuade customers• Research • Branding • Lead/prospect generation (a potential customer/customer that

needs/wants the product)• Product development

Sales – everything to take leads/prospects and turn them into profitable, loyal, customers• Relationship building• Helping customers buy• Executing deal• Ensuring expectations are met and customer service


NPCA 4


SALES/MARKETING

Marketing SalesTimeframe Long-term Short-term

TargetsLarge groups, many people

Small groups or individuals

Tactics Reaching many(e.g. advertising)

Targeting a few(e.g. personal

selling)Approach Less personal More personal

ResultsBranding,

Generating leadsRelationships,Closing deals

Common Goal – Build and Maintain Relationships


WHY INVEST IN MARKETING?

• Better quality leads

• Better informed prospects

• Increase number of bids turned to projects• Better price, more profit • Reduce the amount time spent on a sale


Market Research


WHY INVEST IN MARKET RESEARCH?

To better understand our customers : • Value proposition• Decision drivers • Decision making process• How to reach them• Where to reach them• What to say


WHY INVEST IN MARKET RESEARCH?

To better understand the market :• Market size• Trends and direction• External forces

To better understand our competition :• Number and size• Their position in the market


MARKET RESEARCH

Market Research – is the gathering of information/data on markets, customers, competitors, etc. which is then used on developing plans, making decisions, pricing, positioning, etc.

• Primary – specific research for your company, product, etc. (e.g. NPCA)

• Secondary – general industry research (e.g. McGraw Hill reports, Global Insights)


NPCA 5


MARKET RESEARCH

Quantitative – provides values such as market size, number of customers, market share – answers how many, who, where, etc…

• Ex. Surveys, data sources (permit offices, Census)

Qualitative - probes reasons, motivators, etc. answers why, how?

• Ex. Focus groups, interviews

1. Which of these provides insight to value?

2. Which of these provides insight into the magnitude of an opportunity?


Precast Markets


Bldgs/Walls,

$2,000

Bldgs Structural,

$3,300 Landscape, $80

Transportation Bridge,

$500 Transportation

(other than

bridge), $2,375

Onsite sanitary,

$975

Utility, $3,250

Stormwater

management, $5,425

Sanitary

management, $2,075

Burial Vaults, $350

PRECAST SALES = $20B, SEGMENT SUMMARY ($MIL)


MARKET SEGMENTATIONWhat is market segmentation?

Market Segmentation - strategy which involves dividing a broad target market into subsets (e.g. consumers, businesses, or countries) who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.

• How can you segment your market?


PRECAST MARKETS –SEGMENTATION BY PROJECT TYPE

Commercial and Entertainment• Office• Retail• Arena• Stadium

Housing and Residential• Condo• Apartment• Senior living

Institutional• K-12• Higher ed• Healthcare• Correctional

Manufacturing and Industrial• Storage• Data center• Food processing


PRECAST MARKETS –SEGMENTATION BY PRODUCT TYPE

Walls • Noise barriers• Insulated wall panels• Thin-shell walls

Structural Elements• Box culverts• Girders• Double tees

Fluid Conveyance• Manholes• Pipes • Inlets• Catch Basins


NPCA 6


MARKET SEGMENTATION – BY CUSTOMER TYPE

What type of customers do you have? • Age

• Profession (contractors, DB, etc.)

• History of paying (e.g. on time)• Ease to work with

• Appreciate value vs. low price


MARKET SHARE

What is market share?

Market share = precast sales / total potential sales (TPS) in a specific segment , or market.

Sales = $20,000TPS = $100,000

= 0.2 x 100 = 20%


STRATEGIC RELATIVE MARKET (SRM)

What if the total potential sales for your product were less than the total market?

SRM = identifies what portion of the market is eligible for you to sell to.

Sales = $20,000TPS = $75,000

= 0.267 x 100 = 26.7%

Total market = $100,000 x 0.75 = $75,000


Customers


WHO IS YOUR TARGET AUDIENCE?

Sometimes its hard to tell who is in charge


TWO MAIN GROUPS

• Decision Makers

• Influencers


NPCA 7


ROLES

Owners Designers Builders Users


TARGET AUDIENCE –OWNER/DEVELOPER• Role: provide funding/may

occupy • Duration : long- or short-term• Drivers:

• First-costs • Residual value• Life-cycle costs• Marketability

• Primary decision maker or influencer


TARGET AUDIENCE -ARCHITECTS

• Role : to meet all program requirements

• Duration : short-term and long-term (reputation)

• Drivers : • Aesthetics• Enclosure system

• Primary decision maker (typ)


TARGET AUDIENCE -ENGINEERS• Role: meet structural

requirements

• Duration: short-term

• Drivers: • Design flexibility• Safety• Reliability

• Primary decision maker on structure, influencer


TARGET AUDIENCE –CONTRACTORS/CM• Role : construction

• Duration : short-term

• Drivers : • Site impact• Schedule • Cost

• Influencer


TARGET AUDIENCE

What do all of these customers have in common?

They are all People!


NPCA 8


Branding


WHAT IS A BRAND?

A Reputation?

A Slogan?

A Logo?

A Philosophy?

A Website? A Culture?


WHAT A BRAND IS NOT!

A logo is design element, a visual representation of a brand’s message and position. A logo is a tool to help communicate a brand and represent a brand.


WHAT A BRAND IS NOT!

• A Brand is not a slogan, jingle or campaign• Coke-Cola Delicious, Refreshing, Exhilarating! (1886)• Its the Real Thing (1948)• Coke is it! (1982)• Open Happiness (2003)• Taste the Feeling (2017)

Campaigns need to support the Brand


What Draws You to a Brand Today?



NPCA 9


“The Ultimate Driving Machine”



WHAT IS A BRAND?


Brand Promise


No Brand Commodity Low Price

BrandUnique & Valued

High Price

Why is a Brand Important?


• A brand provides a means of identifying your products from the competition

• A brand identifies your key point of differentiationfrom the competition

• Your Brand helps the customer make choices by creating a knowledge and familiarity with the attributes of your business and products

Value of Branding


NPCA 10


DO BRANDS MATTER IN THE B-TO-B WORLD?


BRANDS DO MATTER IN THE B-TO-B WORLD

• Strong Brands can out perform weak ones by 20%

• Decision makers are willing to pay a premium for strong brands because established brands make their lives easier.

• Ex – Shampoo vs. mixer


CORE COMPONENTS OF A BRAND PROMISE

A Brand – must:

• Be Identifiable – resonate with and bring value to the customer

• Be Defensible

• Differentiate you from competitors (your seat on the bus)

Cannot be all things to all people!


DIFFERENTIATION

e.g. Schedule vs. Quality


DIFFERENTIATION

1. What makes your company different than your competitors?

2. What is your unique value proposition?


PRECAST Attributes of precast concrete, CIP, and Steel

Precast CIP SteelSpeed

Yes No Yes

Reduce site impact Yes No Yes

Aesthetical versatile Yes No No

Energy efficient Yes Yes No


NPCA 11


BRANDING • However, these attributes and benefits are relative to precast in

general, so how does a company use them to differentiate themselves?

• NPCA/PCI/ACPA help raise awareness and increase demand for precast

• Producers – must drive “why their precast”


HOW DO YOU DIFFERENTIATE YOURSELF?


DIFFERENTIATION

Starts with understanding your business environment, your markets, customers, etc.

• Environmental Analysis (e.g. S.W.O.T)• Market Analysis• Customer Analysis• Competitor Analysis

• Align with your inherent strengths – develop a sustainable competitive advantage


MARKET POSITIONING

• Cost Leadership Strategy

• Value Creation Strategy


MARKET POSITIONING – COST LEADERSHIP STRATEGY

Low Cost Producer

• Focused on keeping costs low

• Pricing is key to competitiveness

• Low prices & high volumes

• Broad markets

• Operationally Focused

• High Skills in Manufacturing and Process Control

• Predominantly Bid Work

• Differentiated by some aspect of performance• Quality, speed, reliability, etc.

• Only one in any market


• Products/Services that offer unique attributes• Customer Segmentation• Value Identification• Premium Pricing• High Skills in Product Development• Strong Sales Skills• Reputation for Innovation• High Focus on Negotiated Work

Market Positioning – Value Creation Strategy


NPCA 12


Cost Leadership Strategy

Value Creation Strategy

Market Positioning

Development of your strategy beyond lowest cost is dependent upon development of your Brand


EVERYTHING MATTERS!

Everything you do either supports or detracts from your brand!


A Brand Must Be Managed To Build Equity

Customer

Touch Points

and

interactions

TradeshowsProduct

Samples

Business

Cards

WebsiteCustomer

Service

Distributors

Employees Advertising

Voicemail Product

Delivery

Social MediaCalling your

office

Collateral

Accts

Receivable

Subcontractors Uniforms

emails

Packaging


Marketing 4Ps


MARKETING – 4PS• Product

• Price

• Place

• Promotion


PRODUCT

What do we sell?

Wall Panels Beams Manholes


NPCA 13


PRODUCT

What do we sell?

• Buildings and Systems


PRODUCT

How about:

• On time construction

• Efficiency/reduced life-cycle costs• Beauty• Safety

• Resiliency

• Piece of mind


PRICE MODELS• Cost +

• Cost to produce the product + a fixed fee

• Feature – based• Base model, with upgrades

• Value - based • Based on value product provides

to customer during TCO


PLACE• Place (FOB site, installed)


PROMOTION• To whom? (Target audience)

• What to say? (Message)

• Where? (Geographic - State(s) or the U.S., at their office, tradeshow)

• How? (print, online, in-person, third-party)

• When, how often? (frequency) • monthly, e-blast on Tuesday?, am or pm?


RESOURCES• Content Marketing

• Videos • Case Studies• Guides (Design, installation, maintenance, etc.)• Brochures• Etc.

• Website

• NPCA Resources (Marketing Toolkit, etc.)

• People


NPCA 14


PROMOTION TACTICS• Advertising

• Direct marketing

• Personal selling

• Public relations• Sales promotions, incentives

• Word of mouth, referrals


TACTICSAdvertising – paid, reach large groups, non-personal

• Ex. print ads, TV, radio, billboards, digital ads, etc.

Members can:• Advertise in Precast

Solutions, and other industry magazines

• Advertise in regional publications

• Digital ads


TACTICSDirect Marketing – paid, sent to a person or company.

• Ex. direct mail, e-blasts, newsletters, etc.

Members can:• e-blasts• Company mailer or

newsletter


TACTICSPersonal Selling – person-to-person interaction, two-way communication, typically smaller groups or one- on-one

• Ex. tradeshows, retail setting, box lunch, seminar

Members can:• Lunch and learns• Plant tours• Exhibit at local or

regional shows


TACTICSPublic Relations – free, third-party communication, increased creditability

• Ex. news release, article, news story, etc.

Members can:• Send news items to NPCA• Your company’s project in

Industry Magazines (e.g. Precast Solutions)

• Design Awards• Community involvement


TACTICSSales Promotion – aimed at getting trials or exposure to products, reduce inventory, or speed sales

• Ex. Sales, discounts, specials, etc.

Members can:• Provide incentives to key

accounts, or target accounts• Include other services or

products • Demo projects


NPCA 15


TACTICS

Social Media – essentially word-of-mouth on steroids

• Ex. Facebook, Twitter, Instagram, etc.

Members can:• Have a company social

media program (post consistently, and with a focus of providing value to your audience)

• Customer satisfaction program (e.g. surveys, follow-up, audits)


Selling What You Market


SAMPLE SALES CYCLE

• Initial Contact

• Qualification

• Presentation

• Evaluation• Closing

• Ask for Referrals


SELLING MODELS

• S.P.I.N. (Situation, Problem, Implication, Need-Payoff)

• N.E.A.T. (Needs [core], Economic impact, Access to authority, Timeline)

• Sandler

• CustomerCentric


SELLING

• In the construction industry a mistake can cost a business, or a life – Relationships matter

• Train your sales people in:• Value proposition, company brand• Tools and Resources you offer• Must resonate the same message throughout

Relationship SellingTransactional

Selling


SUMMARY• Marketing can help lead to more profitable and efficient

sales• Know what business you are in, who your real

customer is, etc. • A Brand is a Promise, of a core value

• Be Identifiable and Connect • Defensible• Differentiate

• Everything a company does either supports or detracts from their brand promise

• Take advantage of NPCA and other industry resources • Market your brand, Sell what you market, make what

you sell


NPCA 16


QUESTIONS

Brian [email protected]


MARKETING AND SALES:

A ROADMAP TO SUCCESS!

Brian Miller, PE, MBA, LEED AP,

GCP Applied Technologies

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