outline marketing and a roadmap to...
TRANSCRIPT
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
precast.org/education
OUTLINE
• Overview
• Core Elements of Marketing• Market Research• The Precast Market• Customers• Branding/Positioning• 4 Ps• Promotion Tactics
• Selling What You Market
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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
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• Marketing Overview• Sales Overview
• Basic Concepts of Marketing• Lead Generation
• Tactics• Customers
• Project Delivery
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A KEY CHALLENGE BETWEEN MARKETING AND SALES IS
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WHAT IS MARKETING?
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WHAT IS MARKETING, PROMOTION/ADVERTISING?
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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
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MARKETING• Market Research (identifies needs,
customers, markets - what are we going to sell?)
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MARKETING• Market Research
• Branding (who are we, what is our unique value proposition)
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MARKETING• Market Research
• Branding
• Positioning (segmentation, customer, product) • To whom? (target customer), For how much? (price)
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MARKETING• Market Research
• Branding
• Positioning
• Develops resources (collateral, website, training manual…)
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MARKETING• Market Research
• Branding
• Positioning
• Develops resources • Promotion
• Raise awareness, generate prospects
• What to say, how to say it, and where to say it
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MARKETING
• Market Research
• Branding
• Positioning
• Develops resources • Promotion
• Evaluation (what is working)
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WHAT IS SALES?
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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
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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
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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
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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
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Market Research
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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
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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
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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)
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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?
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Precast Markets
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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)
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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?
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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
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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
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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
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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%
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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
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Customers
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WHO IS YOUR TARGET AUDIENCE?
Sometimes its hard to tell who is in charge
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TWO MAIN GROUPS
• Decision Makers
• Influencers
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ROLES
Owners Designers Builders Users
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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
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TARGET AUDIENCE -ARCHITECTS
• Role : to meet all program requirements
• Duration : short-term and long-term (reputation)
• Drivers : • Aesthetics• Enclosure system
• Primary decision maker (typ)
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TARGET AUDIENCE -ENGINEERS• Role: meet structural
requirements
• Duration: short-term
• Drivers: • Design flexibility• Safety• Reliability
• Primary decision maker on structure, influencer
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TARGET AUDIENCE –CONTRACTORS/CM• Role : construction
• Duration : short-term
• Drivers : • Site impact• Schedule • Cost
• Influencer
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TARGET AUDIENCE
What do all of these customers have in common?
They are all People!
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Branding
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WHAT IS A BRAND?
A Reputation?
A Slogan?
A Logo?
A Philosophy?
A Website? A Culture?
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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.
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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
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What Draws You to a Brand Today?
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“The Ultimate Driving Machine”
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WHAT IS A BRAND?
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Brand Promise
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No Brand Commodity Low Price
BrandUnique & Valued
High Price
Why is a Brand Important?
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• 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
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DO BRANDS MATTER IN THE B-TO-B WORLD?
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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
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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!
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DIFFERENTIATION
e.g. Schedule vs. Quality
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DIFFERENTIATION
1. What makes your company different than your competitors?
2. What is your unique value proposition?
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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
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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”
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HOW DO YOU DIFFERENTIATE YOURSELF?
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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
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MARKET POSITIONING
• Cost Leadership Strategy
• Value Creation Strategy
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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
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• 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
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Cost Leadership Strategy
Value Creation Strategy
Market Positioning
Development of your strategy beyond lowest cost is dependent upon development of your Brand
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EVERYTHING MATTERS!
Everything you do either supports or detracts from your brand!
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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
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Marketing 4Ps
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MARKETING – 4PS• Product
• Price
• Place
• Promotion
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PRODUCT
What do we sell?
Wall Panels Beams Manholes
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PRODUCT
What do we sell?
• Buildings and Systems
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PRODUCT
How about:
• On time construction
• Efficiency/reduced life-cycle costs• Beauty• Safety
• Resiliency
• Piece of mind
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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
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PLACE• Place (FOB site, installed)
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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?
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RESOURCES• Content Marketing
• Videos • Case Studies• Guides (Design, installation, maintenance, etc.)• Brochures• Etc.
• Website
• NPCA Resources (Marketing Toolkit, etc.)
• People
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PROMOTION TACTICS• Advertising
• Direct marketing
• Personal selling
• Public relations• Sales promotions, incentives
• Word of mouth, referrals
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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
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TACTICSDirect Marketing – paid, sent to a person or company.
• Ex. direct mail, e-blasts, newsletters, etc.
Members can:• e-blasts• Company mailer or
newsletter
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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
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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
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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
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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)
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Selling What You Market
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SAMPLE SALES CYCLE
• Initial Contact
• Qualification
• Presentation
• Evaluation• Closing
• Ask for Referrals
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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
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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
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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
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QUESTIONS
Brian [email protected]
precast.org/education
MARKETING AND SALES:
A ROADMAP TO SUCCESS!
Brian Miller, PE, MBA, LEED AP,
GCP Applied Technologies