Steven Kleber presented on how marketing can help businesses increase market share during economic downturns. He recommends adapting marketing messages to show empathy for cost-conscious consumers. Remodelers should focus on high-value projects like kitchens and bathrooms since homeowners are staying in their homes longer. Kleber also stresses the importance of digital marketing, customer relationships, incentives, and maintaining a positive attitude during difficult economic times.

1. 2008 NARI Educational Day Forum Speech PRESENTED BY Steven L. Kleber, President Kleber & Associates

2. Overview 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.

3. Overview 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…

4. Presentation 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

5. Food 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.”

6. 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

7. 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.

8. 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

9. 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…

10. New 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

11. Smarter Marketing How to increase market share and thrive in this economic downturn? The secret lies in SMARTER MARKETING Let’s Get Started…

12. Marketing 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

13. Adapt 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. “ A New Day. New Ways to Save. ”

14. Adapt 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

15. Maximize 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)

16. The Bottom Line Examine each thing you do, can do and how you can get more return on your investment

17. Focus 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

18. Invest 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

19. Invest 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

20. Cultivate Consumer Relationships Differentiate your company by showing off your social skills Have frequent and personalized contact with your key customers and prospects

21. Pay 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

22. Emphasize 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

23. Sell 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

24. Sell Your Service as 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 Commercial

25. Offer 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

26. Offer Incentives Offer incentives to new and existing customers Money saving offers Monthly specials “ Dine-out” programs

27. Be Prepared for an Upturn It’s about strategic planning and being prepared for an upturn Plan for Phase II of your marketing strategy

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

29. Keep 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

30. Improve 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

31. Maintain 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

32. 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

33. Questions? Kleber & Associates Kleberandassociates.com 770.518.1000 Contact me directly: Steven Kleber [email_address] 770.518.1000 x203