John Kerr

So many studies link brand equity to company value, but what’s puzzling is so many companies here fail to support brand building in a consistent and meaningful way.

Brands that spend above average share of voice (i.e., more than the average of the total marketing communications spent by all brands in a category) will grow, while those spending less will shrink. The more marketing you do relative to the average of other brands, the more you will gain. And the less you spend relative to other brands, the more market share you are likely to lose. This relationship holds true in good times and bad.

Sadly in Canada, too many brands have gone dark.

Having the perspective I have been given, I see the industry so often in a different light than many who will read this article.In the times we live in today, with so many metrics, benchmarks and quarterly performance reviews,many think marketing adds just an incremental lift and is a luxury that deserves budget increases only when times are good.

When I speak of marketing, I must default to the broader term that encompasses everything from research to advertising, from market development funding to brand maintenance. Said another way, integrated marketing.

Simply stated, marketing is not a department or stand-alone activity. Marketing must engage across all disciplines: from the top leadership through to sales, from channel management to finance, the team needs to begin a dialogue together.

Canadian marketers have a huge challenge and even tougher choices to make. Many are burdened with quarterly pressures brought on by the demand of their corporate headquarters, while others default to relying on existing in-house programsthat are in so many cases not ever going to work here in Canada. So many get bogged down with sales strategies that drive the marketing and promotions and produce a short-term fix, but without the understanding of a longer term return.

I apologize for the following analogy. It’s based on my background but I think it’s a good one. Marketing is still so misunderstood and its funny when times are good advertising grows, brands are important and awareness strategies beyond who you know are everywhere, but sadly what must be known is it’s an investment that gives you the right tools to gain share, lower cost of sales and build brand. And it’s an investment that can provide the flexibility to move change and create positioning, deliver value and most important profits.

So here is the analogy: integrated and brand marketing wins the race, and like so many sailboat races I have been in, when the wind is up it’s easy for all. But when the wind is down, that’s when you make your gains and wins.

So what do I mean by Integrated marketing challenges?

Where I see so often here in Canada and in the electrical industry as a whole, there is disconnect from the top management of many companies on the marketing strategies they employ. The reinforcement of brand and the investment it really takes is just not there. The reality is history clearly favours brands that deliver returns in share, sales and profitability.

Here in Canada, I suggest we need to challenge all members of the senior team to take ownership of developing, maintaining and enhancing the brands being sold here. Imagine a discussion where you take the time to look at how to your brand is really considered opposite the goals and objectives this year.Investments are cut here often and sadly more often than they should.

I so often here and watch strategies that are either too segmented, rely on the premise “everyone knows who we are,” or are implemented with the hope of instant gratification. If social media platforms are your only measure, you are in deep trouble. If you are spending too much money on events and events alone, you will be way off as well.

8 take-aways for the year ahead

There are some great successes for sure. But here are several thoughts for you to consider as you enter 2015.

1. Do your clients really know you? Do they have an idea of the integrated solution or product offering you have? Are you sure your end users are in synch and truly know you? Have you defaulted to everyone who knows who you are?If your brand is strong then the ability to gain incremental lifts from other programs such as promotions will get you a higher return.

2. It takes a ton of time.It’s a long haul and there’s no way to get around it. If you have fallen victim to cutting awareness in the past, do you really think a quick three month promotion will lift your results and send the profits in constantly? Sure you have some keen and loyal customers, but what about a real share win? Current sales are no measure of a future win.

3. You have a great bunch of products but…have you really analyzed how your end users, the ones you know and the ones you do not, are going to hear about it? Products don’t speak for themselves. Are you spending more than the competition or better said at least being in the right places to be seen by your target more than your competitors?

4. Is your client outreach consistent and do you have the support of financial, sales and corporate leadership to deliver your messaging consistently to the right targets? Is your advertising about you or about addressing the needs of the end user? Is it making you feel good while the specifiers gloss over it, blinded by a great graphic and direct deliverable benefit? Are you really giving time to let your messaging sink in?Have you defined your market too narrowly?

5. Is marketing understood by all those who rely on it, need it, and can affect the investment and how the return is measured? Is everyone involved in delivering the messaging and reinforcing the argument in your favour on the same page, repeating the same missive all the time at all levels in the buying channel?

6. Spend the time to differentiate what you offer.Larger customers want to see differentiation and benefits. Price is the wrong default. Always.

7. Does marketing =branding= advertising?They are not the same. They must not get merged into one another, and marketing communications must not become a catch-all for any outreach.

8. Is there a commitment to bring the team together across many disciplines on a regular basis to make sure the market strategy is right, the commitments you need to make are consistent, and the needs of the customers are being addressed?

John Kerr is Publisher of Canadian Electrical Wholesaler. John’s long-standing rapport and knowledge of the electrical market and his commitment to best practices in online publishing drive the electrical industry.ca initiative. His annual Pathfinder report has been the cornerstone of market data for many of the Canadian electrical industries leading companies; johnkerr@kerrwil.com.