Steven Kleber, President of Kleber and Associates- a marketing and communications agency based in Atlanta, speaks at the 2009 Southern Building Show

1. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
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2. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
Introduction
My name is Steven Kleber, CEO and founder of Kleber & Associates, an Atlanta integrated
marketing firm that specializes in the home and building products channel. With more than two
decades of experience targeting consumers and influencers in the marketplace, I hope my
perspective is beneficial to you as you strive for business success, increased market share and a
strengthened competitive edge in today’s competitive marketplace and during our nation’s
challenging economic times.
Let’s start with a basic background about the current economic decline, and how it’s impacting your
business and marketing.
Basics about the Economy and Marketing
Many businesses jump on the idea of cutting back on marketing
spending when the economy slows and budgets are tight. When
they do this, they cripple their business operations.
Let me ask you this -- do you want to get a leg up on the
competition, or would you rather let your competitors pass you
by as you hide out from the storm?
Sluggish economic periods are the time when you should be
focused more on marketing, not less. If you accelerate your
marketing now, you will be more visible than ever. Challenging
business times are actually an opportunity to grab new market share
and increase sales, while positioning your brand, company,
product and/or service as a leader in preparation for the
inevitable turnaround.
You may be asking yourself -- “How is it possible to increase my market share and position my
brand for long-term success during an economic slowdown?”
The answer is simple. The secret lies in smarter marketing.
Today’s Presentation: An Overview
During today’s presentation, I’m going to discuss how to effectively market to today’s discerning
audiences by outlining 15 strategic marketing tips. All are simple to implement with proven
results.
At the end of today’s presentation, you will take away:
• Key marketing strategies and tactics that, when implemented, will help you grow your
business and market share
• Learn how to get more out of your marketing budgets (it’s not always about spending more
on marketing; it’s about smarter marketing)
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3. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
• Examples of companies that are using smarter marketing principles that you can use as
inspiration and a platform to develop your own business growth and marketing plans
• Great appreciation of what a fully integrated strategic marketing program can do for your
company’s bottom line and overall short- and long-term success.
Let’s get started . . .
Tip #1: Adapt your marketing messages
The housing market crisis, bleak state of the economy, the worldwide financial crises, elevating
unemployment rates, rising food costs, skyrocketing foreclosures rates . . . have you thought about
any of these issues lately? Don’t you think your customers are thinking about them, even living
them?
Show empathy for your customers’ evolving lifestyles. You can
attract today’s cost-conscious audiences with marketing messages
that appeal to their emotions and state of mind. If you have a
thorough understanding of what your customers are experiencing
and how you can add value to their lives, they’re more apt to do
business with you.
Target is a great example of a company using today’s austere
economy to capitalize on the opportunity to grow its marketing
share. The retailer’s TV advertising spots tout the tagline “A new
day. New ways to save.” and show families doing things at home
instead of spending money on extra expenses—things like working out in the comfort of their own
homes, spending the night in a Target tent with the entire family, watching a DVD at home instead
of going out to the movies, among others.
Target’s marketing language is a prime example of a company appealing to the ‘average American’
family who is cutting back, unable to afford the luxuries of additional expenses like a gym
membership or taking the kids out for dinner and entertainment. It shows a fresh way to approach
living a pared-down lifestyle. After all, it is “a new day.”
When targeting your customers, you need to speak to them in a language they understand, in
addition to showing the value your product or service provides to their overall lifestyle and general
well-being.
Tip #1: Adapt your marketing messages continued
Showing empathy and serious may mean lowering your prices in a downturn to show some empathy
won’t hurt, though make sure you don’t completely throw your carefully honed image of value and
intangible benefits overboard and go all cheap and bottom on consumers. Here are some examples I
liked:
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4. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
• Dunkin’ Donuts’ America’s Latte Break program offered 99-cent small lattes on weekday
afternoons between 2pm and 5pm, as part of a plan to entice consumers to take their daily
coffee break at Dunkin Donuts. The program ran from 1 October–11 November 2008.
And in non-frivolous, serious times, how about introducing serious-looking, information-packed
packaging? Brush up your seriousness quotient by learning from these health and beauty products
that went for a serious ‘look and feel’ before anyone else did:
• Australian beauty supply brand Aesop was developed by Dennis Paphitis in 1987 as an
alternative to overhyped and under-proven beauty tonics. Notice the austere, serious look of
its packaging.
• MALIN+GOETZ is a modern apothecary in New York's Chelsea neighborhood that sells
treatments for the face, body and hair. The products mix natural ingredients with
performance technologies designed to treat specific skin sensitivities, irritations and allergies
that can be caused by other beauty products with harsh ingredients. MALIN+GOETZ
formulas are designed to minimize the use of unnecessary detergents, colorants and synthetic
fragrances, are barely scented and are oil and residue-free. Their packaging? Wordy.
Traditionally ‘serious’ products like insurance should be able
to profit from more uncertain times:
• Insurance company New York Life launched a
“Selfless Gift” campaign end of 2008, combining
seriousness with GENEROSITY, urging consumers
to give the gift of life insurance during the holiday
season.
Tip #1: Adapt your marketing messages/products/services
Lowering your prices is one thing, offering innovative ‘recession-proof’ products and services is
another. Keywords: durability, advice and efficiency. Clever examples:
• Parents know better than anyone how expensive it can be to buy a new pair of shoes every
time a child goes through a growth spurt. InchWorm Shoes provides a solution to that
problem with its iFit technology, which allows the wearer to increase the size of his or her
shoes by pushing a button and pulling on the toe. INCHworm shoes grow in half-size
increments and have the capacity to stretch three sizes.
Expect price transparency to become even more popular, especially as straightforward comparison
makes way for tailored advice on how to save money:
• Validas offers to shave an average of 22% off customer’s mobile phone bills by analyzing
their current payments and suggesting changes. Customers can upload their bills and pay
USD 5 for a single report or purchase report bundles. These reports then offer a detailed
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5. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
breakdown of usage, carrier comparisons, and industry secrets and tips designed to help the
customer save money.
Tip #2: Maximize your marketing dollars
Whether you’re attending a tradeshow, educational seminar, sending out a press release, placing an
advertisement, distributing a direct mail piece, creating a press kit or embarking on a new social
media campaign, take advantage of every marketing opportunity and look for the added value for
each marketing initiative and marketing dollar you spend. The best marketing campaigns have a
multi-dimensional approach, incorporating numerous marketing venues and distribution methods
with the goals of:
• Reaching their target audiences
• Increasing brand awareness
• Managing reputation
• Increasing leads
• Increasing customer engagement and conversation
• Increasing Web traffic, etc.
For example, if you exhibit at the International Builders’ Show (IBS), look at it as an opportunity to
promote your products and services to customers and to network with other builders, remodelers or
industry professionals to gain insight on how they’re handling tough economic times. Tradeshows
are also a great venue to assess your competition, as well as allowing for the opportunity to
disseminate your press kits and seek out media opportunities. Every tradeshow has a media room
where the press can access your media kit. Look at it as another opportunity to augment company
awareness among influential and prominent media in your niche marketplace.
The bottom line is that you should examine each thing you do, and can do, and how you can yield a
higher return on your investment.
Tip #3: Focus your marketing
Whether your sales and marketing plan includes sales calls, direct mail pieces, advertisements, a
referral program, public relations or social media marketing, you need to know who you are
targeting. Sometimes it’s best to first think of who you’re not trying to attract. This strategic thinking
can be the key to leading you to your ideal customer.
What is the age range, gender, household income, discretionary income, personality characteristics,
consumer product and design styles that you believe will be most interested in what you have to
offer? And, who exactly are these potential customers and who are they not?
Before you can successfully attract your target market, you have to understand them, what motivates
them to buy and how they attack the purchasing process. Focus on your strongest targets first and
put the rest of the population on the B list. And don’t forget past customers, which can be
converted to repeat customers and brand evangelists through their word-of-mouth referrals.
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6. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
Tip #4: Invest in digital marketing continued
The majority of today’s businesses have a website. If you don’t, you might want to reevaluate your
business strategy, as this could be the most important tool in your marketing tool chest. Customers
use company websites to research all aspects of a product or service they are considering including:
• General information gathering
• Contact and service information
• Product and service availability
• Photos
• Pricing
• Competitive analysis
• Customer testimonials
• And even to make final purchasing decisions
online
A website is crucial to the success of your business. It’s also a great marketing tool. You have the
ability to feature product and service photos, communicate referral sources and customer
testimonials, provide pricing and information about what you’re selling, and even position you and
your company as a knowledge leader in your industry. The sky’s the limit! Use your company
website to its fullest potential.
If you already have a website – how interactive is it? Are you providing your customers with the
ability to comment on your brand, product or service, share their stories, and speak with other
customers who have used your brand?
And what about a Facebook, Twitter, LinkedIn or other social media profile? Do you blog? Are you
utilizing podcasts, online video, social bookmarking sites, paid and organic search options and RSS
feeds?
These are all mediums that your customers are utilizing, so you
need to jump on board . . . and fast. According to an Epsilon
Chief Marketing Officer Survey, 63 percent of the 175
marketing executives surveyed see an increase in their spending
on interactive/digital marketing as the future unfolds.
Your competition, customers and industry influencers are out
there, are you?
Tip #5: Cultivate consumer relationships
With the instant gratification of today’s evolving technology, many business owners don’t even pick
up the phone anymore. However, creating a dialogue with your customers is an important way to
secure good will and potential future sales.
Effective ways to do this, as simple as it sounds, include sending a handwritten note to thank
customers for their business, or, to ask them to pass on your company’s name to friends and family.
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7. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
Pursuing an in-person encounter with key customers to thank them for their business or with new
or prospective customers is another great way to secure that
coveted face-to-face time with customers.
Differentiate your company by showing off your social skills.
Have frequent and personalized contact with your customers and
prospects. Know their first and last names, design and product
preferences, favorite colors, how they take their coffee, their
children’s names . . . you get the point.
The most important thing is to simply create and maintain a
dialogue. It goes a long way and is more important to your marketing strategy than you may think.
Tip #6: Pay attention to current customers
Your existing customers are most often the source of your current and future success. Never forget
that. Recent studies consistently prove that it costs more to get a new customer than to keep an
existing one. In tough times, you will most likely make up
some of your sluggish sales by increasing sales to current
clients.
If you’ve been keeping the line of communication open and
building the strength of that relationship along the way, you
should have no problem. If you haven’t heard from them in
awhile, make contact. Invite them back with a welcome back
gift or other incentives.
The key is to foster the customer relationship so they want to do business with you repeatedly and
will tell their friends about your company – word-of-mouth marketing and referrals should be an
integral part of growing your market share and customer base.
Tip #6: Pay attention to current customers/create brand evangelists and watch out
disgruntled customers!
It is an in your face, SEE THROUGH world out there. Many
brands command little to no respect from consumers anyway,
and the current financial crisis hasn’t done much to enhance
the standing of the world of business either (another gross
understatement). And all of this disrespect is out in the open,
for billions of others to see and comment on.
Today’s world is frank. They have a point of view and
opinion. Some love brands! And some are angry and
discontented with brands they have bad experiences with. Look at the media world: no wonder
thousands of ‘new news’ sites, from tiny blogs to the Huffington Post are giving established outlets a
run for their money. Millions of consumers and readers flock to entities that are serving things up
RAW, inviting their readers and customers to join in.
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8. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
Tip #7: Emphasize quality and value
Today’s discerning customers are seeking quality and value in everything they purchase. Otherwise,
they’re not buying.
A new study from Unity Marketing, fielded just after the recent stock-market meltdown, found that
the majority of shoppers are changing the way they shop -- shopping less often, buying more
strategically and doing more research before they venture into a store.
In your marketing messages, make sure quality and value are mentioned frequently. Customers are
willing to spend money on things they see as bringing worth and eminence to their lives -- like cost
savings for example. Ensure all marketing materials support the idea of a high value proposition.
Sell your product or service at a price with clear deliverables and guarantees. Always speak in terms
of value and quality.
Tip #8: Market and sell what you’re offering as an investment
Sell and market your products or services as
something that is going to pay dividends in the end.
Yet remember, it has to be more than a cliché claim.
Tell your customers how exactly what they’re buying
will provide a solid return on investment.
Inform your customers how and why your product or
service will provide added value and alleviate everyday
expenses. Ask yourself how it will improve their lives
and then promote those benefits in everything you
do.
Case studies and testimonials are a great way to illustrate the benefits of your product or service via a
third party. This demonstrates to both new customers and old the value of what you’re providing.
With that said, always ask satisfied customers for testimonials. Testimonials add credibility and
validity to your product or service, and your brand. They speak volumes and have multiple uses such
as in your ads, direct mail pieces, on your website, as a quote in a press release, among others. Social
media tools like twitter and facebook also provide a platform for your customers to comment about
your company, product and service. They also provide ways for you to address customer needs and
concerns -- which can be yet another way to show that buying from you is an investment.
Wal-Mart is a great example of a company that has used the economic downturn to its advantage.
Changing its tagline to “Save money. Live better.” the company illustrates the amount of money
consumers can save annually by shopping at its stores in all marketing ventures. Its new marketing
campaign, launched in 2007, focuses strictly on the idea of “saving money” and how the company
helps you achieve that, versus its old tagline of “always low prices”. Shopping at Wal-Mart is an
investment -- it doesn’t just save you money but allows you to invest in that vacation you’ve been
waiting to take …
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9. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
Tip #9: Offer customer incentives
Word-of-mouth and referral sales are extremely effective and cost-efficient for companies. Offer
your existing customers awards for sending business your way. Bank of America, for example, gives
its current customers $25 when they refer someone to open a checking or savings account at one of
its branches. Direct TV offers both its current and new customer $50 each for referring its service.
Tip #10: Be prepared for an upturn
Why not focus on making the best if not more of the current situation? As you may have learned
from previous recessions, or from the now hundreds of ‘recession self-help’ publications from
marketing gurus and fellow trend watchers, tough times are perfectly suited to forging a better bond
with your customers. So… the golden trend tip for brands in a downturn? Care about your
customers. Deliver. Sympathize. Surprise them. Talk to them. Give to them.
Your customers and employees and investors will remember how you treated them when times were
tough, when they needed a break, when a little support meant everything. No one in particular will
remember how you acted during the boom times.
It’s not just about embarking on marketing initiatives and programs that allow you to sustain your
market share; it’s also about strategic planning and being prepared for an upturn.
Know what Phase II of your marketing strategy looks like so you can move forward as the market
starts climbing.
Tip #11: Have a marketing plan
Does your company have a strategic
marketing plan? Some businesses have no
marketing plan at all and they miss the chance
to build business as a result.
The process of developing a marketing plan is
very revealing and will help you uncover a lot
about your business offerings, your customers
and the existing marketing opportunity. It is a
critical tool that will keep you focused in a
fluctuating marketplace.
Having a plan is the first step toward
effectively converting prospects into new and repeat customers. Just like a stool, there are three legs
to any profitable business—product/service development, sales and marketing. Without the third
leg, your company will not stand up well, especially in today’s difficult economic times.
Tip #12: Keep your employees happy
Although this isn’t a traditional marketing tactic, it’s
important to remember that valuable employees are the
heart and soul of any flourishing business and even more so
during tough economic times.
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10. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
The loss of exceptional team members due to factors like unsatisfactory salaries, limited career
advancement opportunities or lackluster benefits, disrupts the company dynamic and costs
management time, energy, and money while lowering company morale.
To retain your top-performing employees, communicate openly, inspire and challenge them,
cultivate their talent, and recognize and reward them. What’s more, a happy staff can be extremely
effective marketers as they sing you and your company praises.
Tip #13: Improve customer service
Ranking high among the service attributes list is customer service. In fact, some of the older
generations like the Ruppies (retired urban professionals) actually place customer service above
quality or value.
There’s no better time than a slow time to work on your company’s customer service skills. Use the
“luxury” of a slower business cycle as an opportunity to better your team’s customer relationships
and service skills through training and team
development. When the market begins to improve, your
team will be ready for it and your company will reap the
rewards.
One great example of a company that’s beefing up its
customer service while hoping to rectify its industry
reputation is Wells Fargo. The bank has established a
twitter account to answer customer questions about
checking and savings accounts, and online banking,
from 9 a.m. – 5 p.m. EST. With nearly 2,000 followers,
it’s safe to say that this cost-effective customer service and marketing strategy is boding well for the
bank.
Tip #14: Maintain a positive attitude
The housing, economic and financial crises have the entire
nation worried. I know how you feel. I myself am a
business owner. Yet what’s most important is to remember
that if you sit back and retreat into a state of worry and
apprehension, your business will only be the worse for it.
Get out there. Take action. Be the architect and builder of
your own business success. Consider it a challenge, another
obstacle to overcome, and channel that into power and
innovation for the future.
Implement some of these basic marketing principles and consider collaborating with a marketing
and communications firm that will sustain and increase your brand position, and enhance your
customer base.
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11. SOUTHERN BUILDING SHOW 2009
Marketing in a “Low” Time
Smarter marketing is the key to growing your business during difficult times
Tip #5: Seek out co-branding opportunities
Seek out and leverage your relationships with colleagues in your industry. Cross-promotional
opportunities where you can promote your brand simultaneously with a complementary product or
service is a cost-effective way to market your brand. For example, if you built or remodeled a home,
why not contact the manufacturers whose product you’ve included in your home and cross promote
both your work and their product? Or why not embark on a joint public relations or advertising
campaign where you can target the same audience and get more bang for your buck?
Summary
To recap today’s presentation, below are the 15 marketing tips to growing your business in a weak
economy:
1. Adapt your marketing messages
2. Maximize your marketing dollars
3. Focus your marketing
4. Invest in digital marketing
5. Cultivate consumer relationships
6. Pay attention to current customers
7. Emphasize quality and value
8. Market and sell what you’re offering as an investment
9. Offer customer incentives
10. Be prepared for an upturn
11. Have a marketing plan
12. Keep your employees happy
13. Improve customer service
14. Maintain a positive attitude
15. Seek out co-branding opportunities
Remember, don’t jump on the idea of cutting back on marketing spending when the economy slows
and budgets are tight. Now is the time when you should be concentrating more on your marketing
efforts and outlining smarter, more cost-effective marketing opportunities that will grow your sales
and market share and position you for long-term success.
Thank You/Contact me:
Phone: 770-518-1000 x203
Email: sk@kleberandassociates.com
Web: www.kleberandassociates.com
Twitter: @stevekleber
LinkedIn: http://www.linkedin.com/in/ownerkleberandassociates
Blog: www.kleber-marketing.com
Facebook: http://www.facebook.com/home.php?#/pages/Atlanta-GA/Kleber-
Associates/63701448764?ref=ts
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