“If only we were better at marketing!” It’s a lament heard many times when timber companies discuss their marketing and promotional activity.
So, is the timber industry poor at marketing? To answer the question we need to separate the “industry” from individual companies and their branded products. We must also avoid confusing “marketing” with advertising, PR and promotion. The latter are an important part of the mix but only one part of marketing effectively.
Looking at the timber industry overall, there are clear examples of marketing success: timber flooring has grown rapidly; timber frame housing goes from strength to strength; timber windows are enjoying a renaissance against uPVC and timber decking is buoyant. And these successes have taken place at a time when timber has been criticised by environmental groups, leading to a stream of negative headlines.
Wood. for good, building on the foundation of the TTF‘s Think Wood campaigns, TRADA‘s work with specifiers, and the UK Timber Frame Association‘s efforts to introduce quality standards all show that, as an industry, timber can be and is marketed effectively.
Yet when it comes to individual companies or brands, how many timber names really stand out?
Of course, there are successes. But, well-known companies with strong, well supported brands probably represent less than 5% of the total number of timber companies.
What makes these leading companies different? First is their refusal to accept the common excuses for not investing in marketing: “price is all that matters”; “our margins are too tight”; “marketing is too expensive”; and, worst of all, “timber is a commodity – it’s all the same”.
Traditional trading practices
Such statements often conceal a reluctance to break out of traditional trading practices – and other industries, facing the same price pressures, have overcome similar objections.
There is now a wealth of evidence that shows that effective marketing is a worthwhile investment. Studies prove that companies that increase their marketing activity in an economic downturn come through stronger than competitors who cut back.
“Studies prove that companies that increase their marketing activity in an economic downturn come through stronger than competitors who cut back” |
And, of course, when it comes to selling or acquiring a company, the goodwill value is often far in excess of the asset value and a company’s goodwill is centred on its reputation and brand, all built and sustained by effective marketing.
Competitive industries and leading companies in the timber trade start their marketing programme by asking five challenging questions:
Which customers do we want to do business with and how do we increase our share of their buying? Leading companies understand that customers are not equal, and a surprising number of customers do not generate profitable business.
What products or services do customers value? What new services or features are customers really willing to pay for and what are we doing that increases costs with no extra return? Leading companies are quick to add new services and products but equally prompt to cut failing or unprofitable ones.
What is the customer’s experience when they deal with us? Leading companies make it easy for customers to do business with them. They create customer loyalty as a driver of long-term profitability.
Brand value
What is our brand and what does it stand for? A true brand has a ‘meaning’ or value beyond the product. Often it makes an emotional as well as rational appeal to buyers, even for industrial products. Leading companies ask hard questions about what really makes their products different.
How do we communicate with our customers creatively, effectively and economically? Advertising, PR, literature, exhibitions, internet, sponsorships, direct mail – the list of potential promotional activities is endless. Deciding on the most effective mix of activities and implementing them effectively is taken very seriously by senior managers in leading companies.
To some managers these questions will seem too removed from day-to-day selling but they are all questions which the leading timber companies understand and discuss regularly in setting their business direction and strategy.
To answer all five questions honestly and rigorously, hard choices are needed and good advice is at a premium, but the results are worth it! Which is why, of course, the leading companies turn to experienced consultancies with a track record of helping timber companies market effectively.