Global Insights Magazine Issue 7 - Edited by Advertigo 2013
e3 insights New challenges in the building materials market
INSIDE THIS ISSUE
Direct-to-consumer model challenges the B2B industry’s classical approach
2 3 4 6 To From complementary B2B communication market path
Build correct ABC&d communication
End-user buying compass
A still-valid business model craves new communication voices
Understand the blueprint for successful ongoing communication
Which are the most important decision criteria to the end-user?
Take a more educational role and set the market standard for trust
From
B2B
Communication
New challenges to the classical B2B model
In recent years, most building materials and supply companies faced drops in sales and earnings. The market is shrinking and becoming more stressed and fragmented. Companies are struggling with cash bottlenecks, increased risk of partner insolvency (trade and contractors), the rising of raw materials costs, and seeing fewer contract tenders and jobs awarded. It has become apparent that the only solution is to take strong action and try new initiatives.
In the past, building materials companies had no direct contact with end users. Sales were managed through partners without direct marketing activity. The marketing and communications tasks were often left up to the individual sales reps offices. Each market was treated differently, with no consistent brand message.
For companies in the building materials industry that means changing and increasing the role of marketing in new business development. The previous B2B model of marketing, which relied mainly on partner’s voices (traders, contractors and influencers) for sales, left companies with little direct contact with end-users (the active potential client). Companies have realized they can no longer afford to let their partners be the sole face of their brand image on the market. In addition to creating specific sales strategies, it is essential to speak directly to the target audience, bringing the brand messages straight to the end-user.
building materials flow
The limits of the old B2B communication model have led companies toward a new model of targeting clients directly.
masons & other DIFMEs*
small local contractors
contractors big national & international
distributors & dealers
DIY big box stores
same category other competitors
trade
MARKET
state institutions
new investments renovations/remodeling DIY
architects other specialists NGOs
active potential clients
“echo� influencers
* - DIFME = do it for me
Marketer overview
professional influencers
The building materials market is a layered and dynamic seasonal maze. Built on price metrics or challenging innovation that often mirrors the political, social, cultural and economical environment, it seeks a new way to meet its beloved and hated master: the active potential client. Season by season, armies of professionals start the battle from scratch, as most active potential clients are almost always new prospects. How will they efficiently find and target active potential clients and turn them into actual clients? Are they finally ready to tackle more projects, proving they understood where the money comes from?
To complementary market path Build trust in brand/product Once a prospect decides that a building project is necessary and possible, he’s becoming an active potential client. Whether it is a corporate or domestic client, the next steps will be documentation and analysis, negotiations and tenders. Regardless of the business model or screening process, the decision to contract is a matter of trust. Assume an educational role Building materials companies usually supply a wide range of specialized products for diverse building usage.
Communicate Communicate Communicate
&
Product details are often important, but companies should take care to target the information to the type of audience, whether professional or end-users. Professionals are eager to learn more about the latest legal and technical updates, and best practice cases. This channel will prove its efficiency during contact with the target. Meanwhile, offer simplified but relevant information that will guide the end-user in decision making. For this category, the documenting phase plays an important role, balancing the subjective approach with the client’s need to feel secure about their own investment.
Contractors, professional NGOs, architects, project management and process specialized consultants, building body authorities and specialized universities, will appreciate messages adapted to their specific activity and goals. Content-rich product-related subjects aim to educate and broaden a pure technical perspective. The consequences are positive: general mass knowledge will grow, allowing the use of more efficient technical speech, and the acceptance rate will rise too, even among conservative professionals, who are not usually very open to changing the products they already use. Typically, these communication plans take years of constant effort to become successful, but the rewards are worth the effort.
Take the opportunity to supply professional NGOs, state institutions and trade schools with information about the brand, innovations and products. Communication projects with any of these institutions will positively impact the market.
8 major subject categories begging for discussion: - innovation - case studies - technical information - cross-educational projects - environment and CSR - legal information about the product or category - corporate and business news - policy and strategy
Build correct ABC communication & cornerstones
A+B
C
mass
influencers
C B+C
influencers professional & viral
decision
trade
-> ATL communication -> trade marketing -> promotions -> PR & content management -> CSR
d
domestic residential DIY, DIFME, contracted DIY + DIFME purchase
-> support materials -> presentations & seminars -> technical details -> legal updates & news -> visits to construction sites, factory -> ATL communication -> specialized fairs and exhibitions -> PR & content management specific for A -> academy, training, certifications -> support for tenders specific for B -> support for projects -> projects contests -> sponsorships
C
contractors
TRADE big box store distributors & dealers availability & price
A
small contractors & DIFME technical support
brand awareness
doc & analyse
enduser
DIFME & small contractor influence
internal communication
-> HR communication -> training sessions support -> corporate events -> news, media, other internal communication programs In many ways, communication projects in the building materials markets are similar to architecture projects: they involve coordinating related disciplines for a harmonious complex final construction.
Every end-user becomes a viral influencer. At each appropriate occasion, his attitude will reflect his former experience. The product journey doesn’t stop at the sale. Are companies ready to parent their products beyond the sale?
By taking a careful look at the various factors and stages that affect the product market path, building supply companies can find new cornerstones on which to build their marketing houses. They must also realize that the key target audience is primarily one without any building experience, and that it is a heterogeneous and permanently changing target. Centralizing communication around these key points will help bring the message to the right audience. By focusing on these cornerstones, companies can define and boost the brand, overcoming the limitations of small communication budgets.
after sales success communication
case studies
big residential, non-residential infrastructure investitions product purchase and usage
state institutions education system
B
consultant PM
investor public & private
Technical Corpus
B
tender
B
tender
contractor all
arch & other projectants
B
live promoters
A
professional
NGO
Why shouldn’t nice, successful building projects be brand and product ambassadors? Just ignite the information spark and the target audience will want to know more. Besides, professionals will likely to be paying attention to the brand’s real-life story, its effectiveness and function. All of them will try to imagine what their next project will look like, using the product. Such approaches will awaken interest in the market about future communications. Clients are proud to participate in a product’s success. Also, they need reliable and proven building solutions, and will be happy to share stories that prove it.
B building materials producer communication
Architect’s myth (in the eyes of building materials companies) An architect’s domain of competence and responsibility is wide. Technical competence is one of the most important, as the project’s final shape depends on it. Usually, building materials companies don’t proceed with further communication after product presentations. Successful companies are the innovative and flexible ones, ready to provide support for projects. Communicating in the product area is the first step. Building a real professional relationship and quality projects requires continuous two-way communication with architects. Remember that the architect is an important influencer, not a sales representative.
decision End-user buying compass
professional buyer
Communication & technical area
main technical brand awareness sources news & innovation product spec sheets fairs advertising seminars
brand awareness
brand previous positive active contact brand previous passive contact configuring, design and layout tools PR & content marketing advertising brand contact through search
influenced
influencers professional & viral
Business / commercial & technical area
loyal buyer
availability trade offer delivery price technical specs criteria contractors consider for recommending building materials
availability & price
architect buyer trade personnel contractor / mason & other DIFME specialized forums & blogs people around: family, friends etc. social media people who used the product price availability
budget buyer
delivery
technical support
after-sales warranty after-warranty Starting with market and product deep analysis, best multiple target profiles to be chosen, based upon objectives.
DIFME, trade personnel & small contractors have commercial based influence
documentation phase & analyse
Select the right channels Unless the client is completely loyal, the first thing he or she will do is to gather information. Brand awareness is one of the most important criteria in any buying decision. But building materials companies cannot build brand awareness by shouting... So, this has to be done in a smart and efficient way. Search engine ads can boost brand awareness, and so can using popular social media tools, such as Twitter or Facebook. Rich-content on the site’s blog backed with press releases can raise the brand’s profile. Success stories about the brand and products, “how to” or other video/image presentations will connect with the target audience.
Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Tangram-Switzerland for Baugerüste Bläsi AG Lorem ipsum Lorem ipsum Lorem Building industry professionals - Printipsum image campaign ipsum Lorem ipsum Lorem
They focused on increasing brand awareness for choosing the right partner.
Ansell & Möllers for HECO-Schrauben - B2B PR campaign
Advertigo for Rehau Geneo National Campaign 2012 Mass + Architects communication campaign backed with distributor locator web search engine
Rehau Geneo TVC Rehau Press Distributor Rehau Locator
PR campaigns can focus on more than technical properties and facts. Project reports help gain traction in mainstream news. A campaign from Ansell & Möllers in Germany for HECO-Schrauben focused on screws hold our world together.
cases Advertigo for INNOBUILD - Innovation based series of events, part of architecture and building industry communication projects
First event 2012, within Architecture Biennale Bucharest BNAB - more than 6000 specialized visitors saw the exhibition
Adsmith / China Advertigo / Romania & Bulgaria Aloft Group / USA Ansel-Mӧllers / Germany Audacity / USA Base One / UK BBC / Belgium Bernstein / Germany BMLab / Russia C&COM Advertising / Czech Republic Café Design / Hungary DAG Communication / Italy Epoka / Poland Igriega / Spain Kirnauskis 2.0 / Finland Maitri Advertising Works / India Mandate / Singapore Media Consulting / Portugal Netural / Austria Preferendum / France Quarry / Canada Recommended / Finland Recommended / Sweden S’P’S Marketing / Austria SanderWerbung / Germany Schindler Parent / Germany Tangram / Liechtenstein Tangram / Switzerland Trully Deeply / Australia
E3 NETWORK
Van Heertum Design VHD / Netherlands
E3 network
Building materials market strategy
Advertigo Romania
The E3 Agency Network is a closely integrated
Within the E3 network of agencies there exists
This issue of E3 Global Insights
coalition of independent brand strategy and
broad expertise in understanding and creating
Magazine was edited by Advertigo.
marketing communications firms from around the
effective communication projects for the
More info, contact:
world. With access to this wide pool of talent,
building materials & supply market.
gabriel.jelea@advertigo.ro
impact nationally and internationally.
Please contact us if you want to talk about
Advertigo Romania
Find out how the E3 perspective can help you.
building communication in this market area
str. Dimitrie Draghiescu 10, sect. 5
www.e3network.com
and how your organization can benefit:
Bucuresti 050579, Romania
Administration: veerle@e3network.com
buildingandconstruction@e3network.com
Tel. +40744372277
E3 agencies give clients a real chance to make an