Contractors have significant influence over building product purchases and are an important audience for manufacturers. However, contractors are a diverse group that is challenging to market to due to fragmentation, economic changes, and differing ways they obtain product information. Effective strategies include understanding contractor demographics and interests; targeting specific segments like Hispanics; and communicating through the various sources contractors use, such as suppliers. Addressing these trends can help manufacturers overcome obstacles and better connect with contractors.
Sales lead generation has never been more important to marketers targeting construction decision makers, whether construction firms or building product manufacturers. This fact is reinforced by a recent Construction Marketing Association survey—2015 Construction Marketing Outlook—which ranked Lead Generation as one of the top priorities for next year.
So to understand where construction marketers are with lead generation—a baseline—we conducted another survey and share the results here, along with some checklists of key lead generation types, and an evaluation of the two largest lead services in the construction market—McGraw-Hill Dodge Reports and Construction Market Data. Finally, we identified several other construction lead sources that tend to specialize in regions, type of construction project or service offerings.
A recent (2015) survey about lead generation in construction conducted by the Construction Marketing Association via SurveyMonkey posed the following questions:
1. What lead generation techniques or sources do you use in marketing to the construction industry?
2. Which lead generation technique/source has shown the best results for your company?
3. Which lead generation technique/source has shown the worst results for your company?
4. Which lead generation technique/source do you foresee using more in the future?
5. What type of company are you?
The new and improved Construction Lead Generation - The Definitive Guide will share the results of our most recent national survey on construction lead generation. Importantly, the guide details the current state of the top two construction lead services: Dodge Data & Analytics, and ConstructConnect. Next, the guide identifies several other construction lead services that tend to specialize in regions, type of construction project or service offerings. Finally, other types of lead sources are identified and categorized by Traditional, Internet, and Social Media.
General Motors and Lyft; Target and Walmart; Netflix and Amazon - we call these “frenemies”. A strange trend is emerging as unlikely partner companies join forces, and they’re transforming industries around the world. Understanding what's driving the frenemies trend, knowing what options best fit your needs, and making yourself an effective partner are all critical to success.
These are the slides from the breakout session on Chatter Communities from the Becoming a Customer Company event. The event took place at the Metropolitan Ballroom in Minneapolis on July 17th, 2013. For more information, head to magnet360.com
This is the deck from the Big Data and Social Insights breakout session from the Becoming a Customer Company event on July 17th, 2013. For more information, please head to magnet360.com
This is the keynote address from the July 17th, 2013 Becoming a Customer Company event. This was a co-sponsored event by Magnet 360, salesforce.com, and Marketo. This presentation includes slides as presented by Peter Coffee, Andy MacMillan, Scott Litman, and Jeremiah Owyang.
30 trends that will shape European web & digital media business in 2012Marc Ziegler
In 2011, over 940 web companies in the fields of ecommerce, advertising and digital media have been funded by US investors with a volume of more than 13,6 billion US$. This is the tip of the iceberg of our analysis that investigated most investments by US venture capital companies and business angel in 2011. Beside the data we collected, I wanted to find out, which specific trends in each of the most relevant web business segments can be derived from the identified investment patterns and which impact these trends will have on investment behavior in Europe/Germany.
more on http://www.medien.nrw.de
Sales lead generation has never been more important to marketers targeting construction decision makers, whether construction firms or building product manufacturers. This fact is reinforced by a recent Construction Marketing Association survey—2015 Construction Marketing Outlook—which ranked Lead Generation as one of the top priorities for next year.
So to understand where construction marketers are with lead generation—a baseline—we conducted another survey and share the results here, along with some checklists of key lead generation types, and an evaluation of the two largest lead services in the construction market—McGraw-Hill Dodge Reports and Construction Market Data. Finally, we identified several other construction lead sources that tend to specialize in regions, type of construction project or service offerings.
A recent (2015) survey about lead generation in construction conducted by the Construction Marketing Association via SurveyMonkey posed the following questions:
1. What lead generation techniques or sources do you use in marketing to the construction industry?
2. Which lead generation technique/source has shown the best results for your company?
3. Which lead generation technique/source has shown the worst results for your company?
4. Which lead generation technique/source do you foresee using more in the future?
5. What type of company are you?
The new and improved Construction Lead Generation - The Definitive Guide will share the results of our most recent national survey on construction lead generation. Importantly, the guide details the current state of the top two construction lead services: Dodge Data & Analytics, and ConstructConnect. Next, the guide identifies several other construction lead services that tend to specialize in regions, type of construction project or service offerings. Finally, other types of lead sources are identified and categorized by Traditional, Internet, and Social Media.
General Motors and Lyft; Target and Walmart; Netflix and Amazon - we call these “frenemies”. A strange trend is emerging as unlikely partner companies join forces, and they’re transforming industries around the world. Understanding what's driving the frenemies trend, knowing what options best fit your needs, and making yourself an effective partner are all critical to success.
These are the slides from the breakout session on Chatter Communities from the Becoming a Customer Company event. The event took place at the Metropolitan Ballroom in Minneapolis on July 17th, 2013. For more information, head to magnet360.com
This is the deck from the Big Data and Social Insights breakout session from the Becoming a Customer Company event on July 17th, 2013. For more information, please head to magnet360.com
This is the keynote address from the July 17th, 2013 Becoming a Customer Company event. This was a co-sponsored event by Magnet 360, salesforce.com, and Marketo. This presentation includes slides as presented by Peter Coffee, Andy MacMillan, Scott Litman, and Jeremiah Owyang.
30 trends that will shape European web & digital media business in 2012Marc Ziegler
In 2011, over 940 web companies in the fields of ecommerce, advertising and digital media have been funded by US investors with a volume of more than 13,6 billion US$. This is the tip of the iceberg of our analysis that investigated most investments by US venture capital companies and business angel in 2011. Beside the data we collected, I wanted to find out, which specific trends in each of the most relevant web business segments can be derived from the identified investment patterns and which impact these trends will have on investment behavior in Europe/Germany.
more on http://www.medien.nrw.de
This is the Sales and Service Clouds presentation from the Becoming a Customer Company event on July 17th, 2013. This event was co-sponsored by Magnet 360, salesforce.com, and Marketo.
Business to Business to Consumer (B2B2C) is an emerging Ecommerce business model that finely integrates Business to Business (B2B) and Business to consumer (B2C).
Read more latest trending Business Articles click here<> http://www.bizbilla.com/articles
Technology is tempting some big names to do media buying themselves and cut out agencies, but as John Dunne argues, it’s not a binary decision. For more on this visit www.ignitedigital.ie or follow us on @IgniteDigitalIE
Inbound Marketing: Buy-In, Budgets and Best PracticesKuno Creative
You may have heard of inbound marketing, but how can you use it to effectively market your products and drive revenue? This presentation will show you how to get other stakeholders in your company on board with inbound marketing, how it will impact your bottom line and how it has worked for others.
Request a Consultation: http://enterpriseinbound.kunocreative.com/inbound-services-quote
Companies are designed to keep customers outHelge Tennø
Companies increasingly have to accommodate and work on the premise of the customer. Adding huge strain to the current model of management - designed to keep customers out.
International Transfer Pricing 2015/16, now in its 15th edition is an easy to use reference guide covering a range of transfer pricing issues in nearly 100 territories worldwide. It explains why it is vital for every company to have a coherent transfer pricing policy which is responsive to the rapidly changing markets in which they operate. The book not only shows why sound transfer pricing policies should be developed, but also why such policies need to be re-evaluated regularly. It offers practical advice on a subject where the right amount of effort can produce huge benefits in the form of a competitive and sustainable tax rate, and leave the company well positioned to defend against aggressive tax audits.
Dude where's my car. Product & Marketing Innovation Deep DiveGood Rebels
The Spotify and Netflix generation is as comfortable sharing and subscribing to their driving options as they are to their entertainment. Smart players will place equal emphasis on monetising services as they will innovating their product range.
If the trends seen in this report become reality, a business based purely on production and volume sales will fail. Traditional OEMs must become service-based businesses to thrive.
Find out how to thrive if you are a product or marketing automotive professional.
Broad-stroke view of framework developed to communicate agency's POV on impact of converged media and power of mobile to bring point of engagement and point of transaction closer.
Artificial intelligence and machine learning (AI/ML) present us with novel and efficient ways to solve challenging and persistent problems, particularly when it comes to predictions. Retail, due to its fast moving, trend powered, and fluid nature coupled to an extended logistics chain, relies heavily on making smart predictions. As improvements in AI/ML over the last several years have proliferated, not only in performance advances but deployability, there are exciting openings for experimentation in many domains of the retail value chain
https://runfrictionless.com/b2b-white-paper-service/
MAKE YOUR LIFE EASIER! – DEVELOPMENT OF THE
BUSINESS SERVICES BASED ON COMPETENCES
- Interview with Krystian Bestry, CEO at Adaptive Solutions & Advisory Group
Motorola two way radio construction guideDavid Martin
Material costs are high. Profit margins are thin. Construction contractors are counting pennies. It’s a prime time for business radio two-way retailers to emphasize the cost benefits of Motorola business two-way radios.
In these days of brutal budget cuts, hard-won sales often come with a hefty price tag
attached. The cost of sale for a number of the top 100 financial technology companies
has escalated to up to 70% of all revenues and potentially well over 100% of new
revenues. E2W analyses the true impact of tighter budgets on traditional sales and
marketing strategies and asks how vendors can adapt their approach accordingly.
This is the Sales and Service Clouds presentation from the Becoming a Customer Company event on July 17th, 2013. This event was co-sponsored by Magnet 360, salesforce.com, and Marketo.
Business to Business to Consumer (B2B2C) is an emerging Ecommerce business model that finely integrates Business to Business (B2B) and Business to consumer (B2C).
Read more latest trending Business Articles click here<> http://www.bizbilla.com/articles
Technology is tempting some big names to do media buying themselves and cut out agencies, but as John Dunne argues, it’s not a binary decision. For more on this visit www.ignitedigital.ie or follow us on @IgniteDigitalIE
Inbound Marketing: Buy-In, Budgets and Best PracticesKuno Creative
You may have heard of inbound marketing, but how can you use it to effectively market your products and drive revenue? This presentation will show you how to get other stakeholders in your company on board with inbound marketing, how it will impact your bottom line and how it has worked for others.
Request a Consultation: http://enterpriseinbound.kunocreative.com/inbound-services-quote
Companies are designed to keep customers outHelge Tennø
Companies increasingly have to accommodate and work on the premise of the customer. Adding huge strain to the current model of management - designed to keep customers out.
International Transfer Pricing 2015/16, now in its 15th edition is an easy to use reference guide covering a range of transfer pricing issues in nearly 100 territories worldwide. It explains why it is vital for every company to have a coherent transfer pricing policy which is responsive to the rapidly changing markets in which they operate. The book not only shows why sound transfer pricing policies should be developed, but also why such policies need to be re-evaluated regularly. It offers practical advice on a subject where the right amount of effort can produce huge benefits in the form of a competitive and sustainable tax rate, and leave the company well positioned to defend against aggressive tax audits.
Dude where's my car. Product & Marketing Innovation Deep DiveGood Rebels
The Spotify and Netflix generation is as comfortable sharing and subscribing to their driving options as they are to their entertainment. Smart players will place equal emphasis on monetising services as they will innovating their product range.
If the trends seen in this report become reality, a business based purely on production and volume sales will fail. Traditional OEMs must become service-based businesses to thrive.
Find out how to thrive if you are a product or marketing automotive professional.
Broad-stroke view of framework developed to communicate agency's POV on impact of converged media and power of mobile to bring point of engagement and point of transaction closer.
Artificial intelligence and machine learning (AI/ML) present us with novel and efficient ways to solve challenging and persistent problems, particularly when it comes to predictions. Retail, due to its fast moving, trend powered, and fluid nature coupled to an extended logistics chain, relies heavily on making smart predictions. As improvements in AI/ML over the last several years have proliferated, not only in performance advances but deployability, there are exciting openings for experimentation in many domains of the retail value chain
https://runfrictionless.com/b2b-white-paper-service/
MAKE YOUR LIFE EASIER! – DEVELOPMENT OF THE
BUSINESS SERVICES BASED ON COMPETENCES
- Interview with Krystian Bestry, CEO at Adaptive Solutions & Advisory Group
Motorola two way radio construction guideDavid Martin
Material costs are high. Profit margins are thin. Construction contractors are counting pennies. It’s a prime time for business radio two-way retailers to emphasize the cost benefits of Motorola business two-way radios.
In these days of brutal budget cuts, hard-won sales often come with a hefty price tag
attached. The cost of sale for a number of the top 100 financial technology companies
has escalated to up to 70% of all revenues and potentially well over 100% of new
revenues. E2W analyses the true impact of tighter budgets on traditional sales and
marketing strategies and asks how vendors can adapt their approach accordingly.
This is a case study of how Forecast Advertising planned and executed the communication plan
to position Prysmian as a global group known for it’s R&D expertise, diverse product range, customer service and quality and to promote the Ravin - Prysmian joint venture as a merger of strengths - technological and managerial know-how of Prysmian with the dynamism and competitiveness of Ravin.
Marketing Agility: A Brand Point Management PerspectiveSchawk, Inc.
This white paper discusses how brand point management improves a business’ ability to react to the marketplace more quickly. Brand point management promotes marketplace agility by considering three critical components: people, process and technology.
Chapter 3How We Get the Work In This Chapter ◆◆ How the .docxketurahhazelhurst
Chapter 3
How We Get the Work
In This Chapter
◆◆ How the contractor tracks down projects to bid on
◆◆ How the bidding process works
◆◆ How the constructor prepares for the
competition
◆◆ The different criteria used to
Before you can start managing any project, you must have a project to determine the winners
manage. To get a project to manage, the contractor must first find projects to bid and then win the opportunity to build them. Finding and getting work is a crucial factor in the success of a construction firm. Obtaining information about upcoming projects is a big part of the overall market- ing effort of the construction company.
Some companies can boast of a certain number of negotiated projects that are just handed to them because of reputation or prior dealings with a happy client. However, in the majority of cases, contractors must com- pete for their work and their livelihood. In the old days, this competitive process was pretty straightforward. But today it has become quite com- plex, and the strategies employed to win the project require abilities that were not needed before, such as negotiation, presentation, team-building, and communication skills.
The construction industry has always been a very competitive business, and today the competition has become even more aggressive. The stakes are higher, the margins are lower, and the skills that must be employed are at a different level. Today all aspects of your game must be operating at full capacity in order to win projects. Owners are much more sophisti- cated and make much greater demands. But the game is indeed a challeng- ing one, and the rewards can be significant.
◆◆ The various factors considered before competing
70 Chapter 3
Finding the Work
Like most industries, construction firms must battle for their share of the mar- ket. The bulk of a company’s workload will be secured through a rigorous price- bidding competition. But even before contractors decide to compete, they must first do some reconnaissance work and determine where the projects are, what they entail, and when they will be put out for bid.
The first step in the process is to determine who is preparing to build new projects and when they will be ready to start. It is imperative that the contrac- tor find and maintain a relatively constant stream of potential jobs in order to stay in business. For a construction company to be successful, it must engage in an intelligence-gathering effort—scoping out new work and keeping an ear to the ground, so to speak, regarding project design starts and capital improvement campaigns among investors and the corporate world. An uninformed contractor who does not find out about a project until it has already broken ground with equipment and materials being delivered has missed an opportunity to win that project. The bottom line is that there are more contractors competing for the work than there is work to compete for, and any missed opportunity is a mistake.
I do ...
Emerging digital media—from social networks to mobile advertising—have brought us to a breakpoint in marketing communications. Marketers are no longer crafting only one-way brand messaging but also curating interactive conversations with consumers online. In this context, chief marketing officers realize that 50 years of marketing-management approaches must dramatically change. A new BCG study explores how companies are tackling the new marketing realities. There is no single organizational model, but patterns suggest how companies could strengthen their digital capabilities.
1. A report from Point to Point
B E S T P R A C T I C E S F O R S E L L I N G B U I L D I N G
P R O D U C T S T H R O U G H C O N T R A C T O R S
2. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
EXECUTIVE In the past year, residential contractors spent an estimated $39 billion on building products.1 Overall spending
SUMMARY
for the construction industry in 2010 is projected to be $869 billion.2 And 99% of contractors are involved in
some way in their organization’s building product purchases.3 Contractors have tremendous influence over the
purchase of building products, and manufacturers must develop sound strategies for approaching this group.
Building product marketers who recognize specific contractor needs and create strategies to meet these needs
will ultimately succeed in selling through this audience.
But with a number of rapid changes occurring in the • Reaching Hispanic contractors
industry, it is becoming increasingly difficult to gain a solid (who will make up an estimated 63.2% of the workforce
understanding of contractors in the U.S. Using third party by 2025)4
data, interviews with individual contractors, and our own • Knowing how to address either broad audiences or specific
industry experience, we have identified major market trends, segments of the contractor audience
and the challenges they pose for building product marketers: (residential vs. commercial, new vs. remodeling, small vs.
• Addressing a disparate, fragmented group large, one trade vs. another)
• Connecting with contractors through a variety of outlets • Connecting with suppliers
(who often serve as a direct line of communication between
• Approaching individuals who are resistant to change in
manufacturers and contractors)
product use
• Creating product trial offers and guarantees
• Marketing during economic downturns
(a sure way to gain loyal customers)
• Understanding the impact of technology on contractor
• Using interactive marketing
decision-making
(the Internet, mobile marketing, and mobile apps)
• Reaching time-starved small businesses
For more insight on selling through contractors, read the
In a changing market, savvy building product marketers can following white paper. To learn how an in depth knowledge
transform these obstacles into opportunities. Some of these of the contractor cohort and an integrated marketing strategy
lucrative possibilities for marketers include: can be tailored to best meet the goals of individual building
materials manufacturers, contact advertising and interactive
marketing firm Point to Point today.
2
3. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
INTRODUCTION IN SHEER NUMBERS, CONTRACTORS Developing and implementing a strategy for reaching
ARE POWERFUL contractors is complicated. The contractor market is
multidimensional. Contractors are highly fragmented
• This year, spending in the construction industry was
and hard to reach. And the fact that the industry is
$869 billion.5
constantly evolving poses a challenge for building materials
• Before the recession in 2006, residential contractors alone manufacturers who must connect with contractors at exactly
spent $83 billion on building products.6 the right time in exactly the right way.
• In 2007, residential contractors spent roughly $27 billion
As building product marketers, what are best practices
on building products at The Home Depot.7
for reaching contractors? What trends in the market are
• In current terms, adjusted for the recent decrease in important? And how can you utilize knowledge of these
residential construction spending, residential contractor trends to win contractor support? This paper will provide a
spending for 2010 is an estimated $39 billion.8 method for understanding the contractor, highlight some of
the most challenging aspects of reaching contractors, and
In many of the instances where contractors do not have sole
suggest solutions for addressing these issues to successfully
purchase authority, they maintain involvement in building
sell building products through this complex group.
product decisions.
• 99% of general contractors say they are involved in some
way in their organization’s building product purchases.9
Given their influence, it is obvious that effectively reaching,
connecting with, and selling through contractors is
imperative for building product manufacturers. So who
exactly are the members of this important group?
Contractors are a diverse audience of painters, plumbing
& hvac tradesmen, electricians, carpenters, plumbers,
and other professionals who specialize in new and
remodeling construction for both the residential and
commercial segments.
3
4. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
UNDERSTANDING Contractor businesses range in size, capabilities, and Also of note, one of the overarching characteristics of
THE MAIN TRENDS: expertise. While there are over 330,000 businesses in the contractor firms is their status as small businesses.
THE MARKET
category, it can be divided into subcategories based on trade.
AT A GLANCE
CHART 3 | PERCENT OF FIRMS UNDER 10 EMPLOYEES
(AS OF 2006)
CHART 1 | CONTRACTOR FIRMS BY TRADE (2008)
Percentage of firms
Trade Number of Firms Trade
under 10 Employees
Plumbing & HVAC 96,821 Plumbing & HVAC 77%
Electrical 61,400 Electrician 78%
Painting 41,415 Carpenters 89%
Carpentry 34,577 Painters 87%
Masonry & Concrete 30,000 Drywallers 74%
Glass Glaziers 74%
Source: http://business.highbeam.com/industry-reports
Roofers 7%
Masonry 81%
CHART 2 | WORKERS BY TRADE (2008) Flooring 88%
Trade Number of Workers Source: http://www.census.gov/econ/susb/
Plumbing & HVAC 864,100
Electrical 694,900 In the United States, the contractor industry has been
Painting 450,100 undergoing significant transition, and these changes are
Carpentry 1,300,000
affecting the way in which building product marketers should
Source: http://www.bls.gov/oco
think about this target audience.
The majority (80%) of these companies specialize in
Some noteworthy trends include:
plumbing & hvac, electrical work, carpentry, concrete and
masonry, or painting, but glass glaziers, flooring contractors, • The increased utilization of information technology
and drywall contractors are also included in this segment.
• A greater focus on eco-friendly building
There are currently 832,100 residential building • Higher customer awareness of construction materials.11
contractors in the U.S., and 827,200 nonresidential
building contractors.10 As the economy changes and one The most notable change, however, has been the economy.
market becomes more profitable than the other, these While predictions suggest that there will be a need for an
categories begin to merge because some contractors take additional 1.1 million special trade contractors within the
jobs in both areas. next few years, the trend toward higher unemployment has
been dramatic.12 The unemployment rate in construction has
climbed from 6.2% in 2000 to 19.0 % by the end of 2009,
and up to 20.1% most recently.13
4
5. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
In spite of these changes in the construction industry, As a result of the transitions within the contractor market
contractors continue to have a steady influence on building and its tendency toward fragmentation, building product
product specification and purchasing. According to one manufacturers hoping to connect with contractors are
prominent contractor trade publication reaching over faced with a number of obstacles. The most pressing
80,000 individuals in the industry, its readers have challenges include:
specifying and purchasing authority over:14
• Addressing a disparate, fragmented group
• Doors 87% of the time • Connecting with contractors through a variety of outlets
• Windows 87% of the time • Approaching individuals who are resistant to change in
• Cabinets 82% of the time product use
• Floors 76% of the time • Marketing during economic downturns
• Siding 75% of the time • Understanding the impact of technology on contractor
• Tiles 75% of the time decision-making
• Plumbing fixtures 73% of the time • Reaching time-starved small businesses
• Insulation 73% of the time By understanding contractors’ interests, behavior, thought
• Lighting 72% of the time processes, desires, and concerns, manufacturers can
transform these obstacles into tools for improving their
• Faucets 71% of the time
marketing approach. Leveraging contractor market trends
and characteristics will allow building product marketers to
reach contractors at the right time in the right way, with as
little waste as possible.
5
6. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
CHALLENGE 1 With new tradesmen entering the profession, businesses Manufacturers who create Hispanic-directed messages
restructuring due to economic downturns, and immigration and place them in areas where there is a large Hispanic
FRAGMENTATION
AMONG CONTRACTORS influencing the demographics of the trade industry, the population can successfully take advantage of these
contractor market is becoming more and more fragmented. opportunities. According to recently released data,
Not only are contractors divided based on trades, but also California had the highest number of Hispanic-owned
in the sizes of their firms, the projects they undertake, and businesses (566,000) in 2007, with Florida coming in
their backgrounds. second, and Texas in third.18 Messages in these areas will be
particularly influential because not all marketers are focusing
SOLUTION: Building product marketers should
on this group.
understand the differences that emerge between contractors
while simultaneously taking into account overall trends in the UNDERSTANDING YOUR AUDIENCE BEYOND THEIR
industry. For those that do so, a number of opportunities for PROFESSION. Marketers must learn to view contractors
improved marketing strategies will emerge. as people rather than businesses. Those who wish to
gain a complete understanding of contractors should
REACHING HISPANICS. As of 2007, 690,000
think of them as people outside of their professions.
Hispanic-owned firms in the U.S. operated in the
One study of contractors who make purchasing decisions
construction, repair, or maintenance industries.15 In
and work at companies with fewer than 10 employees
2008, 30% of the U.S. building maintenance/construction
indicated contractors:19
workforce was Hispanic.16 By 2025, Hispanics within the
construction workforce are estimated to reach 63.2%.17 • Believe they are good at fixing things
Although there are a large number of Spanish-speaking • Want to get to the top of their careers
contractors in the United States, manufacturers, by and • Consider themselves creative people
large, do not focus on this group to the same degree they do • Look at the work they do as a career, not just a job
English-speaking contractors.
• Listen to the radio every day
The opportunities for marketers are numerous. • Believe it is worth paying extra for quality goods
• Cost savings. Spanish-language advertising venues After having made the effort to understand contractors as
are less expensive. more than just building product consumers, manufacturers
• Segmentation opportunities. Marketers can target can create messages that appeal to contractors in a deeper,
specific regions with a high density of Hispanics in order more meaningful way.
to reach the most relevant audience while mitigating
marketing waste.
6
7. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
One way to do this is to understand their hobbies
and interests. A survey of over 1,000 contractor trade
publication subscribers detailed some of these
notable facts:20
• 84% of contractors are male
• 82% are married
• 93% are homeowners
• Dining out is their favorite way to relax
• Going to movies is their second favorite leisure activity
• 70% vote
• 47% volunteer with nonprofits
• Enjoy bicycling, boating, fishing, golf, and swimming
• Enjoy travel
Taking these and other components into account, building
product marketers can make informed decisions about
promotions and media buying. In these instances, marketers
can place ads where they know contractors will see them (at
the movies, for example) and offer promotions contractors
will genuinely want (such as contests for free trips, boats,
or golf equipment). In this way, marketers can further
overcome the obstacle of fragmentation within the market.
7
8. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
CHALLENGE 2 Since contractors are a diverse group, it is no surprise that REACHING SPECIFIC SEGMENTS. Those who want to
their methods for obtaining building product information focus on one type of contractor must have different strategies
CONTRACTORS LEARN
ABOUT BUILDING also vary. While some contractors get product information based on where their target groups most often obtain
PRODUCTS FROM A from wholesale suppliers, fellow contractors, and trusted product information. In instances where contractors rely
VARIETY OF SOURCES sources at big box retailers or local hardware stores, others on big box stores, the opportunity for relaying information
rely on their own knowledge and experience with products is very limited, and the best approach is a direct line of
or take into account architect and design specifications and communication from manufacturer to contractor.
customer preferences.
For those who want to win the support of small contractor
In a recent study of construction buyers, respondents said firms, making the “little guy” feel as if he is important (by
they consulted professional publications, manufacturers’ assigning him sales reps and communicating with him
websites, Internet searches, and took into account word of frequently) is one of the best tactics.
mouth when making purchasing decisions.21
CONNECTING WITH SUPPLIERS. When it comes
Even on the individual level, contractors are relying on to new products, contractors often listen to suppliers.
multiple resources to learn about building products, making A 2006 Readex research study of masonry contractors
it difficult for product marketers to understand how to best acknowledged, “To help them evaluate masonry materials,
reach them. [masonry contractors] tend to favor information directly
from other people rather than non-personal sources like the
SOLUTION: Contractors cannot buy a product if they don’t
Internet. Most rely on dealers/distributors for this type of
know about it. So in order to ensure they stay up-to-date on
information.” 22 Based on this finding, one of the best ways
building materials, manufacturers should communicate with
to keep contractors informed about your products is
them based on where they are getting their information.
to constantly keep suppliers and dealers up to date.
REACHING BROAD AUDIENCES. Marketers hoping
When it comes to communicating with suppliers,
to reach all contractors (of any size and any trade) should
similar methods apply. Be sure to maintain clear product
be sure to educate suppliers (wholesale, big box stores, and
information on your website, and have your sales reps reach
localized hardware stores), create word of mouth among
out to suppliers and dealers either in person or over the
contractors, and advertise to the end consumers who will
phone. With suppliers, just as with contractors, you will
potentially request products.
be most effective if you only initiate contact when you have
valuable information for them.
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9. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
UTILIZING THE INTERNET. As is evident from recent
research, building product manufacturers should also
remember that contractors are increasingly using the
Internet for product information. 70% of contractors
research new equipment online, and more than 60%
visit manufacturer websites.23 And the number one thing
“If a customer has seen a construction buyers want from manufacturer websites, after
commercial on a product they product pricing, is ease of navigation.24 Manufacturers
may request it, so we want should have product details easily accessible on their
to be knowledgeable.” websites and focus on simple site design. Contractors are
busy individuals, and although this is a challenge in and of
- David, Carpenter itself, it is important that manufacturers use the Internet as
an efficient means of communicating with contractors.
And although social media isn’t particularly strong among
contractors today, marketers should view it as an opportunity
to capitalize on an emerging trend. Particularly during
difficult economic times, when contractors are looking for
free access to advice, marketers have the ability to pave the
way for effective social media marketing and communication
with contractors.
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10. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
CHALLENGE 3 Another hurdle for marketers is building brand loyalty.
Contractors use multiple building products on a daily basis
CONTRACTORS ARE
RESISTANT TO CHANGE and come to trust certain brands. Once a contractor has
become comfortable with a specific product or brand, he is PRODUCT GUARANTEE:
understandably hesitant to switch. A manufacturer may have
When we asked contractors what
a better product, but it is difficult to convince contractors
single action manufacturers could
that this is the case. Contractors often think like Eric, a take to gain their loyalty, here’s
carpenter, who said, “if a brand has been reliable in the what they had to say:
past, we continue to use it.”
• “If there is an issue with a
“Using a new product or brand product, knowing there is a
SOLUTION: In order to convince contractors to become
guarantee is the number one
would make me nervous.” your loyal customers, there are several steps you can take. thing that will keep us with
[the manufacturer]”
-Christy, Painting Contractor TRIAL OFFERS AND GUARANTEES. If contractors have
the opportunity to try your product and see how it performs, • “Manufacturers should
demonstrate support for their
they will be more likely to trust your brand and welcome
products. I want to know I can
the changes or improvements your product can provide. If talk to someone who is going
contractors know manufacturers will back up products with to provide a guarantee for the
guarantees, they are more willing to become loyal supporters. product if I have any problems.”
• “Give contractors a small free
DEALER SUPPORT. The Readex research highlights
sample so they can try
dealer support as being one of the top criteria in masonry the product on their own.
contractor selection of brands.25 Additionally, an Energy Contractors want to try new
Smart Marketers study of electrical contractors indicated products before they will trust
that contractors felt they could sell led lighting more them.”
effectively if manufacturers provided samples, sales
brochures, and product application guides.26 Manufacturers
who recognize the anxiety produced and the risks faced
when contractors switch products have an opportunity to
demonstrate a deep understanding of their customers.
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11. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
CHALLENGE 4 When the housing and commercial construction markets CHART 5 | BUREAU OF LABOR STATISTICS DATA:
MASS LAYOFF EVENTS FOR SPECIALTY
undergo slower periods, contractors experience a number
ECONOMIC TRADE CONTRACTORS
DOWNTURNS IN of economic challenges as they struggle to keep their Year Mass Layoff Events
CONSTRUCTION MARKET businesses afloat. 2000 546
2001 684
Evidence of this phenomenon is apparent within Bureau 2002 832
of Labor Statistics data about mass layoffs and employment 2003 880
2004 807
within the industry (Charts 4 & 5). But on a more individual
2005 868
level, one contractor told us, even when you get work, you see 2006 641
less on the bottom line: “I’ve had to come in lower on bids 2007 842
and to under-price things just to maintain jobs.” 2008 1,111
2009 1,392
2010 (As of April) 390
During periods of economic decline, two potential
Source: Bureau of Labor Statistics, http://data.bls.gov/PDQ/servlet/
challenges for building products companies emerge: SurveyOutputServlet?series_id=MLUMS00NN0059003&data_tool=Xgtable
(1) contractors change buying habits, and (2) messages
to a financially strained group may fall on deaf ears. SOLUTION 1: The challenge of selling through contractors
whose buying practices change during economic downturns
CHART 4 | BUREAU OF LABOR STATISTICS DATA:
EMPLOYMENT OF SPECIALTY SUBCONTRACTORS can be viewed as a branding opportunity. When the economy
Employees takes a dive and contractors lose work, those who survive
Year
(in thousands)
do so because of their commitment to quality work at low
2000 4243.7
prices. During tough economic times, contractors rely more
2001 4245.9
2002 4214.2
than ever on their reputations, on receiving bids through
2003 4332.8 referrals, and on giving customers low bids.
2004 4528.4
2005 4799.5 STRESS QUALITY. Marketers can connect with
2006 4899.3
contractors during economic downturns by highlighting
2007 4758.3
2008 4255.8
quality. Manufacturers should demonstrate their ability to
2009 3615.1 help contractors by offering products that will bolster their
2010 (As of April) 3522.7
ability to get and maintain work.
Source: Bureau of Labor Statistics, http://data.bls.gov/PDQ/servlet/
SurveyOutputServlet?series_id=CES2023800001&data_tool=Xgtable
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12. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
PROMOTE PRICE. According to a 2008 study, remodelers
felt that the number one thing manufacturers could do
to help improve their financial conditions was to offer
discounts and rebates.27 In reality, contractors (like most
customers) want the biggest bang for their buck. Getting the
best quality for the best price becomes an even bigger part
“Products aren’t maintaining of the decision-making process in a bad economy because
quality, so we have had a lot of contractors must continue to produce solid results for their
loss because my business is customers, even as they are dealing with lower work volumes
100 percent referral, my word is and competitive pricing. In this environment, manufacturers
all I have. I have to do things for who are able to offer deals on products while maintaining the
integrity of those products will succeed.
free when there are problems
with products, just to keep SOLUTION 2: When the economy takes a dive and
clients happy…my biggest contractors lose work, building product companies
challenge with this economy are hesitant to implement any kind of marketing that
has been that the quality of targets contractors.
materials has gone down.”
BE INFORMATIVE. Even when your customers are
– Eric, Carpenter struggling financially, it is important that they stay abreast
of new technology and services and invest in the future.
Manufacturers who advertise during these slow growth
periods can therefore gain a competitive edge.28 During hard
times, contractors continue to plan for the future, meaning
they still seek information about new products and pay
attention to what marketers are saying.
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13. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
CHALLENGE 5 As we have all experienced, there has been a rapid growth “We use computers a lot, we find our bids online, and we
in Internet and cell phone use over the past decade. Back in look at manufacturer websites for product information.”
TECHNOLOGICAL
2000, only 46% of adults used the Internet. In 2010, that
DISRUPTORS Staying up-to-date on technological changes and knowing
number reached 79%. In 2000, 50% owned cell phones.
how contractors are using technology remains a constant
82% owned a cell phone by 2010.29 For contractors,
challenge, but it is beneficial for manufacturers to be aware
technology has become an important part of keeping up with
of these changes in terms of what they mean for marketing.
business and conducting product research. At the same time,
many contractors are just beginning to fully embrace the SOLUTION: Although contractors may not be early
Internet and often remain skeptical of complicated websites adopters of technology, the overall trend in advertising is
that do not allow them to easily access information. a transition away from print and toward online. A recent
report quantified this shift: in 2009, online ad revenues
Increasingly, contractors are turning to the Internet to
continued to climb to $24.2 billion, while print ads fell
get information about building products, obtain bids,
28.6% to $24.8 billion. Additionally, the report suggested
and participate in online forums (Chart 6). In fact, one
“I always speak with contractor forum had over 60,000 members and almost
that by 2014 online ad spending would increase to $34.4
customers in person or on billion, and “digital technologies will progressively increase
950,000 posts at the time this paper was written, and the
my cell phone. It is easier to their impact across all segments of entertainment and
network of which it was a part had 112,00 members.30 More
communicate with customers media as digital transformation continues to expand and
importantly, a staggering 98% of general contractors used
when I can hear their voices escalate.” 32 It is already becoming clear that interactive
the Internet for product research in 2008.31
has become the dominant marketing medium. Although
and understand how
CHART 6 | WEB PERFORMANCE OF CONTRACTOR-RELATED contractors may not have fully embraced the Internet,
they’re feeling.” WEBSITES 2006-2010
building product manufacturers should understand
Website % VAR Page Views
-David, Carpenter interactive as the future of marketing.
Remodeling Online Growth of 48.8%
Replacement Contractor Growth of 266.9% GO ONLINE. In business-to-business marketing, there
Masonry Contractor Growth of 265%
was an increase in online marketing revenue of 7.5%
Source: Hanley Wood Business Media Web Performance Statistics for 2006,
2007, 2008, 2009, and 2010 during Quarter 1 of 2010.33 While 68.7% of the B-to-B
marketer respondents in an American Business Media study
Manufacturers should be aware that contractors are anticipated increasing their spending for online marketing
not flocking to the Internet as quickly as other groups, in 2010, only 27.9% planned to increase their spending
and contractors are not uniform in their acceptance of in print. And, between December of 2006 and March
technology. Eric, a carpenter, told us, “I hate email. I hate 2010, there was a 51.76% decrease in ad pages in building,
the computer. I prefer the phone or being face to face with engineering, and construction trade publications (Chart 7).34
customers and suppliers.” Masonry contractor Josh, on the For building product marketers, as for marketers in other
other hand, found the Internet invaluable to his work, saying, areas, the trend toward online advertising is clear.
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14. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
CHART 7 | CHANGE IN AD PAGES FOR BUILDING, MAKE AN APP FOR THAT. We now live in a world where
ENGINEERING, AND CONSTRUCTION
TRADE PUBLICATIONS
there is an “app” for pretty much everything. In fact, the
Year % VAR Ad Pages
mobile application marketplace is predicted to grow at a rate
2006-2007 -1.92 of 807% in the next three years.36 With the advent of the
2007-2008 -12.22 smart phone, it can be assumed that even the less-techno-
2008-2009 -37.62
savvy contractor will eventually access apps on his cell
Total (2006-2009) -51.76
“My office is in my van. Source: http://www.americanbusinessmedia.com/abm/Business_Information_
phone. Especially if those apps are easy to use and helpful.
I have a wireless laptop in my Network.asp?SnID=666088281 This explosive technology provides an excellent marketing
van and I constantly use it to opportunity for manufacturers, a handful of whom have
REEVALUATE YOUR WEBSITE. Knowing that the
visit manufacturer websites.” already created apps that aid customers and drive purchases.
Internet has a bright future among contractors and B-to-B
-Michael, Plumber marketers alike, building product manufacturers must view Sherwin Williams, for example, introduced ColorSnap,
their own websites as valuable marketing tools. Contractors an award-winning mobile phone application that allows
are becoming more acclimated with the Internet, but it is still customers to capture a color and get the closest matching
imperative that manufacturer sites are clear, easy to use, and Sherwin-Williams paint color, obtain coordinating colors or
have logical layouts. By having a user-friendly site, you will create a custom palette.37
be more likely to command contractor attention, even among
Similarly, Benjamin Moore’s app, ben® Color Capture,™
those who are just beginning to use the Internet. As one
is an iPhone application that, with the tap of the screen, lets
study concluded, with contractors “it’s really about being
you snap a picture of any color inspiration, anywhere in the
easy to navigate and providing product…information. It’s
world, and instantly match it to one of the more than 3,300
about the substance, not the style.” 35
hues that comprise Benjamin Moore’s color system.38
LOOK TO MOBILE MARKETING. Contractors widely
Another example of the building product manufacturer foray
use cell phones to conduct business, and knowledgeable
into this area is LumberCalc, a specialized lumber calculator
marketers should view mobile marketing opportunities as
that allows you to quickly convert a unit of lumber’s given
a lucrative possibility. Manufacturers, for example, could
dimensions to board feet, and calculate order totals given
build databases of customer phone numbers and send
an MBF price. It also allows you to submit a request for a
convenient messages about discounts directly to contractors’
quote to Bear Creek Lumber directly from your phone.39
cell phones. As we will explore in the final section,
Particularly among busy contractors who crave quick and
contractors do not always have time to speak with sales
easy access to information, mobile apps present an exciting
representatives or seek out discounts, and targeting them
new marketing possibility.
via cell phone, their lifeline to the outside world, could be
a hugely rewarding tactic.
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15. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
CHALLENGE 6 As of 2006, 82.4% of the top five contractor trades had BE AN ALLY. Due to the time constraint associated with
fewer than 10 employees.40 As small business owners, contractor-manufacturer interaction, manufacturers can
CONTRACTORS ARE benefit from knowing what contractors will consider useful
contractors must focus on obtaining new bids, advertising
TIME-STARVED information. For example, since contractors struggle to
their services, and managing employees, in addition to
working on construction jobs. maintain workloads during a bad economy, marketers can
provide tips for winning bids. Alternatively, understanding
All of these factors combined mean contractors are time- that contractors must be comfortable with new products
“I can’t spend hours on a starved individuals who must constantly prioritize in order before they use them could lead manufacturers to include
manufacturer website…so to balance their outside lives with managing successful free samples in product demonstrations. Overall, marketers
manufacturers need to have businesses. Connecting with a group of people who have hoping to win over contractors should take into account the
a basic search system I can very little time to dedicate to building product research is straightforward advice of one contractor: “we are busy and
an immense challenge for manufacturers. working, and manufacturers should come directly to us and
use to obtain product
details quickly.” SOLUTION: Reach contractors at their convenience, show us new products.”
and only when you have valuable information for them.
-Eric, Carpenter
If marketers can prove they understand the contractor
schedule, they have one more opportunity to win support
from this audience. Once a building product manufacturer
proves it will not waste a contractor’s time, contractors will
be more likely to trust the manufacturer and listen to what it
has to say.
“I am busy and I appreciate
those [manufacturers] who
come to me and are willing to
meet with me for ten minutes,
and show me new products.”
-Michael, Plumber
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16. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
SUMMARY OF BEST Best practices for selling building products through
PRACTICES FOR SELLING contractors center on creating customer loyalty based on
THROUGH CONTRACTORS a thorough understanding of the customer. If contractors
view a manufacturer as being trustworthy, dependable,
Best Practice: Having
and attuned to their needs, this will lead to a mutually
Coordinated Sales and
beneficial relationship. Marketing Departments
For this reason, best practices include: Having marketing and sales
teams with aligned strategies
• Understanding fragmentation within the industry contributes to overall company
productivity. A disconnect
• Reaching contractors through a variety of outlets between sales and marketing
• Allowing for product trial and creating product guarantees hurts the flow of information
and causes problems for
• Using Internet, mobile marketing, and mobile apps the manufacturer. The sales
department should be in
• Having flexible and informative sales representatives
communication with marketers
(and knowing which contractor type will benefit from and keep them informed
speaking to your representatives) about which products they are
currently selling, and report back
• Recognizing the demanding contractor schedule about what drove the sales.
• Knowing how your brand and products fit into the market Marketers, on the other hand,
should give the sales department
Although this white paper presents a basic strategy for all an idea of which products they
plan to market and when. Open
building product marketers, a comprehensive and integrated
lines of communication between
marketing strategy must be tailored to best meet the goals of sales and marketing will make
building materials manufacturers on an individual basis. As the odds of conversion from
an advertising and interactive marketing firm with extensive prospect to sale much higher.
experience in business-to-business and building materials
marketing, Point to Point can build upon these ideas to help
manufacturers develop specific methods for overcoming the
challenges that arise within this sector.
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17. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
1
http://www.bloomberg.com/apps/news?pid=newsarchive&si 28
2009 Economic Uncertainty American Business Media
d=a1FQ2lxxMkEY&refer=home Report, 2001 Yankelovich Harris Study, Pennsylvania State
NOTES
2
www.census.gov/const/C30/release.pdf University: ISBM Report, Raji Sriniva, Gary Lilien, and
3
Internet Use of General Contractors Hanley Wood eMonitor Arvind Rangaswamy, 2002, Buchen Advertising Inc. 1949,
Report 2008 ’54, ’58, ’61, Harvard Business Review: 1923
4
Source: 2000 – 2008, Bureau of Labor Statistics, US 29
http://www.pewinternet.org/Presentations/2010/Jun/How-
Department of Labor (Projections are based on a linear trend Media-Consumption-Has-Changed-Since-2000.aspx
using 2000 – 2008 Bureau of Labor Statistics data.) 30
http://www.quantcast.com/p-40K46e7R-kCVc, http://
5
http://www.census.gov/const/www/c30index.html www.quantcast.com/contractortalk.com
6
http://www.bloomberg.com/apps/news?pid=newsarchive&si 31
Hanleywood eMonitor Report 2008
d=a1FQ2lxxMkEY&refer=home 32
http://www.readwriteweb.com/archives/report_online_ad_
7
http://www.bloomberg.com/apps/news?pid=newsarchive&si revenue_will_soon_surpass_print.php
d=a1FQ2lxxMkEY&refer=home 33
www.americanbusinessmedia.com
8
www.census.gov/const/C30/release.pdf 34
http://www.americanbusinessmedia.com/abm/Business_
9
Internet Use of General Contractors Hanley Wood eMonitor Information_Network.asp?SnID=666088281
Report 2008 35
2010 BuyerZone Study
10
http://www.bls.gov/oco/cg/cgs003.htm 36
http://www.boygeniusreport.com/2010/03/05/
11
www.doe.mass.edu/cte/frameworks/trends_ov/plumbing.pdf mobile-application-market-could-grow-to-over-15-
12
www.doe.mass.edu/cte/frameworks/trends_ov/carpentry.doc billion-by-2013/
13
http://www.bls.gov/iag/tgs/iag23.htm#workforce 37
http://www.sherwin-williams.com/press/trade/
14
http://www.remodelingmediakit.com/audience/ releases/2010/0614_colorsnap_v2/
15
http://network.nshp.org/forum/topics/survey-of-business- 38
https://www.appstorehq.com/bencolorcapture-
owners iphone-36775/app
16
2008 U.S. Department of Labor Bureau of Labor Statistics 39
https://www.appstorehq.com/lumbercalc-iphone-83684/app
17
Source: 2000 – 2008, Bureau of Labor Statistics, US 40
http://www.census.gov/econ/susb/
Department of Labor (Projections are based on a linear trend
using 2000 – 2008 Bureau of Labor Statistics data.)
18
http://www.infozine.com/news/stories/op/storiesView/
sid/42337/
19
Spring 2009 SMRB Simmons Report
20
Hanleywood American Housing Conference Report
21
2010 BuyerZone Report
22
2006 Hanleywood Masonry Construction Buying Practices
Study
23
Reed Construction Data
24
2010 BuyerZone Study
25
2006 Hanleywood Masonry Construction Buying Practices
Study
26
http://www.digitalhomedesignline.com/news/218500649
27
Hanleywood M2 Research 2008
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18. B E ST P R AC T I C E S F O R S E L L I N G B U I L D I N G P R O D U C TS T H R O U G H CO N T R AC TO R S
23240 Chagrin Blvd, Suite 200
Cleveland, Ohio 44122
P O I N T O P O I N T 216 831-4421
pointtopoint.com
Point to Point is an advertising and interactive marketing
firm that helps our clients identify, bring into focus and
overcome complex marketing challenges. Our expertise
in branding, interactive marketing, social media, SEO
and media planning allows us to solve each client’s unique
problems in ways that maximize results. Our goal is always
to be a catalyst of change for our clients by moving them
from where they are to where they want to be.
To find out how we can help you build a more prosperous
future, contact us:
Scott Moss
Director of Business Development
216-364-0432
smoss@pointtopoint.com
18