Make vs. Take Marketing

Ask a marketing major studying for an undergraduate degree and the interpretation of marketing will be abundant statistical data and case history laden. Ask an MBA candidate with the same major and you will receive a much more sophisticated analysis. In each case, this is preparation for the daunting task of understanding the complexity of marketing, more so in a rapidly changing economy with many geo-political implications.

Now – - ask a grizzled veteran who has endured years of preparation, projections, analysis and evaluation to define marketing with one added caveat – keep it simple. Here is how that explanation might sound:

Marketing is defining how to sell the right product (service) - in the right markets - at the right time - in the right quantities - to the right customers - at the right price.

How’s that for simplicity? Now let’s muddy the waters. I’ll inject a little known phenomenon known as 'make marketing vs. take marketing'. Moreover, this is a key if you are selling specialty products vs. commodities and particularly if you are selling directly to the user. To understand this phenomenon is to grasp the key issue for developing more leads – for more prospects – to whom to sell your products/services.

Simply stated 'take marketing' enables the seller of goods and services to analyze the market, then design a program which will enable the marketer to sell a satisfactory percentage of that market. Once accomplished, this is called market share. There is in the case of most manufactured goods rather accurate statistical analysis which defines how many automobiles (even by make, model, size and color) will be sold in the US. This is equally true of beer, clothing, carpeting -- in fact, most of the manufactured goods offered for sale.

The previous example is especially true regarding building materials. There is a rather accurate projection as to how many houses will be built, torn down or remodeled over the course of a year. An accurate projection can also be made as to how many square feet of piping, flooring, roofing and insulation, windows, etc. will be used. Those who offer goods in those markets will decide how to “take” the piece of that market which their product can accommodate by price, quality, and similar factors.

Next, compute what happens when there is a decline in new construction, and fewer people undertake remodeling. The marketer, unable to maintain their market position, downsizes, adjusts prices or undergoes similar machinations to try and maintain market size.

Now, let's examine make marketing, particularly in how it relates to building products, and more specifically, home improvement sales. The make marketer finds ways to stimulate prospects by offering them an opportunity to look, preview, see a demonstration, get free estimates and other similar tactics. The exhortation to participate in any of the latter utilizes almost every conceivable manner of communication, some a lot more effective than others - while some are complicated to understand.

Here are some examples (this is just a sampling and each method has numerous variations):

• Print media (newspaper and magazine)
• Direct mail and marriage mailings
• Shows and events
• Kiosks in malls
• Radio and television
• Direct and telephone marketing
• Internet marketing including social networking

Each of these methods requires an in-depth understanding of buyers’ habits, attitudes and a probe of value systems. Each also involves a special level of marketing know-how, together with tenacity and a budget which is accommodating. These are nonetheless, the means by which a marketer develops business - by interacting with prospects who are not yet committed. The technique works hand-in-hand with training salespeople how to present (demonstrate) a product or service that meets the specific needs of individual prospects and moreover, how to convince them that now may be the best time to buy. Above all it requires a make marketing attitude.

Incidentally, here is but one example of why and how this works. In early ’08, the statistics were released on the number of windows manufactured for residential housing in the US over the prior 12 months. Those statistics are revealing. Approximately 22 million windows for new construction and 33 million were used in replacement. I estimate that approximately 60% of the latter came because of make marketing which also drives and stimulates the market for others.

There are many other examples of make marketing:

• Canvassing, when done properly (most canvassing isn’t)
• Soliciting around installed jobs
• S.F.I. (sell, furnish, install) programs utilized by wise marketers such as Home Depot, Sears, Sam’s Club, etc.

All of these techniques require thoughtful preparation, supervised execution and budgetary controls.

To summarize, in most instances, it is the make marketer who thrives in a changing economy.

How to Pre-train Your Sales Force

One of my clients, recently came up with a fantastic way of training his sales force in our methodology.

When he hires a new salesperson he issues them a copy of our newest series, The Science of Successful In-Home Selling, but does so without giving them the workbook that normally accompanies it. He then tells them that they have to listen to the entire series prior to their training taking place (this period is approximately one week). He also makes sure to get a copy of their credit card, the reason for this being that if they decide to skip out with the copy of the album he will charge their card for the full retail price of the copy.

Then, he issues them a test which he has devised by removing some of the key concepts and ideas from the workbook. This occurs on day one of their training and ensures that the new trainee has taken the necessary time to listen to the material.

The learning curve of his first training class of the year improved dramatically because the new trainee had a fundamental understanding of the selling process prior to coming into training.

For more information on how you can accomplish this in your organization feel free to e-mail me at brian@briannsmith.com.

Attitudes & Affirmations

What are affirmations?

I like to define them as positive reinforcements that you give yourself to keep negativity from pervading your daily existence.

Here is a partial list of affirmations that I incorporate into my daily life

• All issues of life, painful and otherwise, are learning experiences.
• Those who reared you, despite their apparent flaws, were doing the best they could.
• In the moment of your greatest pain you may be experiencing your greatest opportunity to “grow”.
• The search for parental approval or acceptance can be destructive.
• Until we are affirmed by a significant “other”, our achievements will seldom give us sustained happiness.
• Negative actions by others in our development can be held to be a detriment to our growth and happiness.
• We are limited by our prevailing awareness.
  

The primary affirmation that I use in my daily life can be viewed in this powerful video.

How to Monitor Your Online Reputation

Last week I received notice that a company in Australia was selling our material on eBay. They cleverly packaged it with other people's recordings and renamed the product so as not to make it too obvious that they were an unauthorized reseller.

We went through the proper channels to file a complaint online and within one business day the seller's profile had been removed from eBay.

A few years back we would have had to rely on someone who purchased the product online to contact us directly, and there is a strong likelihood that we would never discover what was occurring (particularly since the company resides in Australia).

So how did we find out about this and resolve it so quickly?

We sign up for a service called Google Alerts that assists us in monitoring our online reputation.

All you need is a google account to get started - then - choose the search terms that are most important to your company or brand name and decide how often you would like these results to be delivered to you. Google will do the rest. The service will scour the Internet looking for any mention of your search term and will report it back to you in an e-mail.

Do you want to know if you are being slandered online? Google Alerts can help you with that.

Do you want to monitor your competition? It can help you in this area.

Or maybe you are considering breaking into a new market and want to know what the primary characteristics are - - It can certainly assist with this.

The only limit to the service is the creativity of the search terms that you come up with.

If this sounds too much like an endorsement that is because - - it is....How important is it to protect your brand name?

Review from the Summit: Show & Event Misconceptions / Recommendations

The next section of the Home Improvement Economic Summit focused on shows and events.

Two of our Senior Account Executives are experts when it comes to producing a quality event and avoiding some of the key errors that many companies make.

My son David began by discussing the misconceptions that many company owners and managers have about shows and events. Among these are:

• My promoters are at work
  
• My promoters follow the script
• My promoters are doing the best they can (considering the market we’re in!)

Frequently, the owner/manager is not involved enough in the event and as a result these three misconceptions cause him to accept the "status quo" as the best his company can do.

A more "hands on" approach is necessary to make your event successful and this is what Brian Smith discussed. Among his recommendations were that:

• Don’t use sales reps: They will contaminate the presentation process - use Promoters instead
  
• Don’t allow Promoters to work alone: They need to be managed
  
• Do not allow people to sit in chairs: This is supposed to be a job! Your people need to approach it that way. Sitting in a chair transmits low energy to the prospect
  
• Ensure you calculate fully-loaded costs: They’re a lot more than you might think
• Don’t just market at home improvement shows: There are lots of other great places to be.
• You need the right tools: Pictures, light-weight materials, uniforms, reminders
  
• You need documentation to control the definition of a lead: Unless you’re only working sweepstakes or some customer completed form.
• You have to control the conversation: Otherwise Promoters will say too much or too little.

In the next posting, I will review the presentation of one of the most creative minds in the business who has become a master of holding successful events. You will also have the opportunity to view an excerpt from his recent demonstration at a local show.

Review from the Summit: Shows & Events

The next focus of the Home Improvement Economic Summit was on Homeshows & Events. The panel consisted of three experts and we started off with one of the most creative minds in the industry today.

Joe Talmon is President of Larmco Windows - an Ohio based company. He is a 22 year veteran of the window and home improvement industry. He transformed a small regional wholesale window manufacturer into a respected retailer of high end replacement windows, siding and other products. His passion is quickly uncovered when you hear him speak about one call selling, sales training, and working shows and events.

He began his presentation by discussing the first event that his company held, at the Marion Count Popcorn Festival. Despite getting to the event late, and not getting a prime spot in the show they were able to be successful because they stuck to their strategy, "No-one walks by the booth without being stopped."

The results of the event were very encouraging (and a sign of greater things to come):

In 4 days (Thursday through Sunday) they set nearly 80 leads and sold just under $80,000 the first week after the event. Their overall costs were under $2000.

Two keys that Mr. Talmon learned early on were that:

1. People do not attend the homeshow or event to see what your company has to offer, they are there for their own reasons


2. Their competition was not just the other companies in their category. There may be 200 to 1,000 vendors and every one of them wants the same thing you want - the attention of the people who attend.

Once he had this down pat he was able to develop an effective action plan to succeed:

1. Have the right people working with the right approach


2. Make sure everyone is trained and knows their single purpose


3. Have the presentation scripted


4. Develop an interruption/attraction device


5. Hold a kick off meeting the day before the event


6. Have a practice session each day before the event opens


7. Manage the approach - fun is always a good thing


8. Observe!!!

One of his most recent event demonstrations is quite astounding. Note how the attendees are flocking to his booth in droves. Meanwhile, many of the other company's reps look on with bored and disinterested expressions as people walk past their booths one by one.

For more information on how he accomplished this feel free to contact Mr. Talmon at jtalmon@larmco.com or visit his website.

Review from the Summit: S.F.I. Programs - - The Promise and the Problems (Part 3)

The final presenter on S.F.I. Programs at the Home Improvement Economic Summit was Rob Levin. Mr. Levin holds a degree in Accounting and a CPA certificate, and moved through public accounting to became the controller at a large wholesale building supply company. In 1982 he became part of a newly founded retail siding and window company (American Remodeling) which became a licensee for Sears under their SFI program. AMRE eventually became a public company with average annual volume ranging from $250 to $300 million with 65 offices. He is currently president of Statewide Remodeling of Grand Prairie, TX, which was established in 1994, and is today listed as the 24th largest company in Remodeling Magazine.

Mr. Levin's extensive background in S.F.I. Programs made him an ideal choice to conclude this part of the program. A summary of his key points regarding S.F.I. included:

Positives:

• Brings a good lead flow
• National name gives credibility
• Excellent financing options are frequently available
  
• Can add income to your bottom line

Negatives:

• You are creating your own competition
• Seasonality of traffic
• Higher marketing cost due to licensing fees
• Cash flow difficulty at beginning
• Cash flow can be slower
• May affect core business

Steps for Success:

• Start slowly
• Keep the hours down
• Understand the seasonality factor
  
• Analyze S.F.I. business separate from core business
• Assign separate salesmen when possible
• Make one person responsible for in-store activities
  
• Build relationship with the store manager
  

If you did not have the opportunity make sure to read the previous two posts on S.F.I. Programs. You will discover that all of the presenters shared many of the same key points. The key take-away was that S.F.I. programs can be effective if the right elements are in place; however, they are not for everyone.

The next topic I will review from the Summit will be how to get the most out of shows and events.