The Kitchen Sales Coach Issue #4 - Create a Flexible, Cost-Effective Marketing Plan
By Robert Foltz, CKD
Like most kitchen and bath dealers, when I opened my dealership, I had a rough business plan and an idea of how I was going to market the business. It was generalized and not very detailed. Sound familiar? I think the biggest mistake I made was not conducting a market study of the level of kitchen and bath remodels that companies in my area were performing. How can you get specific if you don't understand the details of your market, including its top prospects?
A comprehensive marketing analysis should first look at the industry as a whole, then define the market geographically, demographically, and sociographically. In English, that means, what area of the map, who lives there, and what's their income and home value? I cannot stress this enough. Know who, what, and where are your marketing targets so that you don't waste money advertising outside those parameters.
Which is your business going to focus on? Is it consumers, home builders, or allied professionals? Of course, you'll do projects for all of them, but your pricing and marketing strategy has to focus on one or two of them. Don't be a "Jack of all trades, master of none". You should come out of your marketing analysis phase with a clear understanding of who you are, who your primary client base is, and how you're going to compare with the competition in your market area.
Your marketing strategy should define your goal. What do you expect to accomplish and what's your budget? Remember, it doesn't matter how big or small of a firm you are; you should always have a clear, defined budget and stick to it.
The percentages I spoke about in the last newsletter regarding marketing budgets are very accurate, and every kitchen and bath business should try to stick to them. When you develop your plan in advance and stick to it, a side benefit is that you can truthfully tell the advertising salespeople who constantly call on your business, "My budget and plan has already been developed for this year, thank you."
Timing is important. The third quarter is when you start to do the spending comparisons from the previous year, so that by the middle of the fourth quarter, your budget for the following year should be set. The next step is to test your marketing strategy by finding target markets and implementing specific strategies.
The best marketing is one on one, through direct contact with the prospect. Don't just sit in the showroom and wait for prospects to come in. Go out and get them. As a rep, I love salespeople who complain, "Business is slow this quarter," and yet they haven't moved off their desk chair. If you know who your target prospect is from your analysis, there's no excuse for not going after them.
A newsletter keeps you in touch with your existing client base, while a four-color brochure introducing your firm and its services, complete with testimonials, will help turn new prospects into clients. These provide both flexible and cost-effective marketing tools. I find that direct mail advertising only attracts the price shopper, looking for a deal, and I'm not convinced, with a two percent response rate, that it's cost effective. The big four-color magazines are great for branding, but you need to do it correctly by committing to ad placement every other month for two years. This is costly and most effective for branding your business with affluent prospects. Don't make the mistake of spending all of your marketing dollars on these magazines. I find that putting ads in the local theatre and opera programs will result in the same branding with the same affluent prospect at a far lower cost.
I've also run some TV commercials on several cable channels, such as HGTV. I found that to be as effective as magazines with some side benefits. It reaches the mighty middle prospect, as well as the affluent prospect, depending on which show it airs. A pleasant side effect is that if you run a tasteful ad that's on point with your marketing message, then your existing client base will be reminded of you and will mention to others (more of a reason to earn those 'A' referrals).
I believe TV commercials are more cost effective than magazines does more in the short run. I think TV, as well as radio, commercials done right really works, but it's a big budget item. When I say "done right," I'm not talking about one of those cheesy cable commercials.
Each firm is different. That's why you need to analyze, strategize, and plan specifically for your business. Stick to a budget and timetable, but be flexible. Follow the yellow brick road to your business' pot of gold.
About Robert Foltz, CKD
Robert Foltz, CKD is experienced in all areas of the retail kitchen and bath business. As a manufacturers' representative, his experience and expertise can help improve your business. He also works as a sales trainer, consultant, and personal coach.
With 23 years of experience in every area of the kitchen business, he has personally experienced the most common mistakes all business owners and sales people make. He has used that experience to develop a formula that will help you avoid those common mistakes and to dramatically accelerate your success.
Robert can be reached at and his work can be seen on www.KitchenSalesCoach.com.