10 Tips to More Effective Marketing

Many contractors confuse a solid marketing plan with a random and expensive splurge of ad spending. To get the most bang for your buck, create a long-term strategic marketing plan that plays to your company's strengths.

That was the case for Bill Camp, president of Triangle Design Kitchens in Raleigh , N.C. : "I was spending money on listings in the Yellow Pages, and the results were hit or miss," he says. "The ads were not that effective."

These 10 tips will help ensure your strategic marketing plan hits the appropriate market in a cost-effective manner:

1. Hire a professional. "Having professional help makes a big difference," says Philip Zaleon, Chapel Hill., N.C.-based president of Z Promotion & Design, who helped produce Triangle's plan. An agency can help with strategizing and target marketing, as well as handling calls from media salespeople, freeing contractors from dealing with those calls.

"Remodeling is a design-oriented industry, but contractors typically don't have ad-designing skills," says Beverly A. Koehn, president of Beverly Koehn & Associates in San Antonio, Texas. "An expert can help you target buyers and create a greater impact for your campaign."

2. Analyze your market. "You have to make a decision about what your company is and who it best serves," Zaleon says. "Determine what niches are open and what special skills you offer that aren't available already."

3. Assess your strengths and weaknesses. Knowing your weaknesses as well as your strengths can help you improve or adapt your approach. Ask former customers about good and bad points, and determine your reputation in the community.

4. Analyze your competitors. Review other contractors' Web sites to learn who does similar work. Talk with competitors' employees at home shows and review their booths. You also can talk with their suppliers, including distributors, subcontractors and vendor reps. Keep up with their market advertising, too, and watch for any changes in their direction.

5. Set a strategy. "You need to shoot for a goal," Zaleon says. For instance, target jobs no smaller than $80,000 within a 20-minute radius of your office or within specific neighborhoods. "Don't try to be everything to everybody. Set a goal and then decide what tactics would be needed to reach that goal."

Koehn offers one caveat: "Planning must be done on a yearly basis and completed early for the next year," she says. "If you plan late, you end up taking whatever's left in terms of magazine position or broadcast times."

6. Set a budget. Zaleon recommends spending approximately 5 percent of gross sales, with more spent early as long-term investments (Web sites, stationery, brochures) are made. He notes kitchen and bath industry guidelines indicate 2 to 3 percent is sufficient. "But I think you're fooling yourself at that level unless you're a huge company," Zaleon says. Camp says he spends about 6 to 8 percent of sales on marketing.

7. Determine the best media. When Camp bought his business, he inherited a Yellow Pages campaign and a newspaper contract. "We tracked our leads, and those were the worst performers for the customers we wanted to serve, with the lowest average sales for the most expense," he says. That's typical, Koehn says. "Too many contractors use a shotgun approach."

Working with his agency, Camp created a program that drives interested consumers to his Web site, which was greatly enhanced. "It shows off our capabilities and alerts everyone—including architects and designers—that we have what they need," he says.

8. Create a targeted message. "Focus on your services and benefits in your ads," Koehn says. "Use endorsements and before-and-after photos—that's what sells." She also stresses that every ad should have some call to action: call us, visit us and/or visit our Web site. "The ad must get the consumer involved."

9. Be consistent. Use the same imagery, benefits and display styles in all materials, including Web site, brochures, print ads, flyers and business cards. "We went through a branding process that gave everything the same high-end look," Camp says. Consistency builds an image that consumers ultimately remember.

10. Keep at it. "Too many contractors advertise only when business is bad, to jump start sales," Koehn says. "But advertising takes a while to create an impact. It must be done on an ongoing basis." Zaleon agrees: "Marketing a contracting business isn't for the faint of heart," he says. "It requires investment, time and patience."