When talking to manufacturers, Beth always asks what they do for marketing. The most common response that she’s heard hundreds of times is: “I don’t need marketing.”
While astounding to Beth and Zach as marketing evangelists, Beth says she can understand that viewpoint to a degree. “What I hear when they say that is like, ‘Hey, we're a successful company, and we don't currently invest in marketing. It's hard to feel like I should take money from my bottom line and put that towards something that I don't necessarily know if I need. I don't know if I believe in.’”
After all, the building materials industry hasn’t marketed much as a whole. In fact, marketing can be considered deprioritized in our industry. Beth, however, says this is a logical fallacy. Marketing doesn’t mean printing more brochures or doing more billboards.
Beth usually tells manufacturers who say they don’t need marketing, “You're right. You probably will not feel the effects of not having marketing maybe for the next five years.”
However, avoiding marketing can be detrimental in the long run. “To think that your company doesn't have to answer the questions that consumers have about your products in the places that they spend the most time doesn't make a lot of sense in the long term. There's a good number of ‘too big to fail’ companies that absolutely did fail because of that exact issue.”
Zach brings up another point — you’re marketing even if you’re not trying to. Warren Buffet’s website hasn’t changed since 1994, but you probably aren’t going to his website. You’re watching him in interviews, drinking Coke or eating McDonald’s — marketing two companies he owns significant shares in.
“You are marketing whether or not you know it. It's just your viewpoint on how you're leveraging it, and you're probably confusing marketing with advertising,” explains Zach. You’re marketing by the way your product is positioned, its price and how you sell it. What many manufacturers really mean is that they don’t want or need content, social or ads to drive demand.
This may be true for now, but that’s quickly changing. “The ability for other companies to disrupt proven set-in-place markets is also increasing with the amount of technology at play,” says Zach. You may have a good distributor and dealer network and 90 percent of market share, but not marketing means you can’t push your network out further — increase your moat — and give new products a better, stronger launching pad.
Peter Drucker said, “There's only two things that create value in a business. One is technology and one is marketing.” Getting in front of your audience with marketing allows you to:
- Get in front of your audience
- Create a new narrative
- Reinforce why they buy from you
- Keep your competitors at bay
If you look at how you are making the sales you are now, you’ll find it’s because it’s what the market wanted at that time. Today’s market is doing all the same things you’re used to doing — having sales conversations, developing product roadmaps and training customer service teams — but doing them online.
It’s about meeting your customers where they are now.
When the manufacturers with 90 percent market share ask why they should invest in marketing, Beth tells them it’s because they are wide open for disruption and threat. “If I was doing a SWOT analysis of that manufacturer's company, not marketing and having zero digital footprint would be in the threat box because all it takes is for somebody to have $10,000 a month to spend on advertising for 12 months straight, and I can wipe out a significant percentage of your footprint because people are highly influenced by what they see repeatedly.”
Manufacturers have two options: building a moat or creating an opportunity for disruption. As one of our guests said once, if you’re not growing, you’re dying. It’s time to ask yourself:
- How do I reduce my threat?
- How do I create my moat to be even bigger?
- How do I ensure that I'm not disrupted?