Posted by Todd Hockenberry ● Jul 06, 2020
How to Market a Manufacturing Company
Manufacturing marketing is about them and not you. That is the number one thing to understand before you even start thinking about updating or improving your marketing plan. Sounds easy right, pretty obvious even. But this is the number one area I see manufacturers miss.
Manufacturing executives and business owners tend to come from the product or engineering side of the business and think in terms of products and features and not in terms of outcomes and results. This is not a new idea, I am sure you have heard it before, but I am going to keep saying it until I see evidence that more than just a few manufacturers actually practice it.
What's your why?
If you ever read Simon Sinek's book Start With Why you understand this idea. You need to figure out your "why".
Why are you here? Why is your business one a customer should choose? Why should your people care, much less your customers?
What you do for them is about your why, it is not what you make. In many ways it is tied to what your product or service delivers.
A few examples from our clients:
A packaging equipment company's "why" is to help companies reduce damage and waste in the supply chain helping their customers save money while contributing to making consumer packaged goods more sustainable. They happen to build packaging machines to do it.
A laser system manufacturer enables product personalization and unique item level identification, facilitating sales as well as internal and external process controls. They enable the transfer of data from a PC to an item's surface made of virtually anything.
Another client builds tube and pipe fabrication equipment that enables product designs, for form and functionality, to be converted into reality. They build machines that turn designs into things that can be manufactured.
One more develops fuel additives that protect and improve fuel so vehicles and engines keep running when they are needed. Their products deliver insurance that engines will keep running and have a minimum of maintenance due to fuel issues.
When you know your "why" it makes it much easier to communicate what you do to who you want to hear those messages as well as pointing to the tactics of how you go to market.
OK, so you figured out your "why", the next thing to consider is the "who".
Who are your trying to reach?
Ask Yourself These Questions:
Do you know your target market or is it anyone that might want your product? Ask, who really needs the "why" or our business?
Is there an ideal market segment or customer type that is the most profitable? The best customer to work with is who?
What is the persona of the ideal customer? Is it the CEO, the engineer, purchasing? More than one? Who do you have to deal with to make a sale?
Do you know the buyer journey they take? What steps they go through to make a buying decision? Is it complex sale? A component sale? A consumable sale? Do you know the buying journey differences?
Do you know what the persona really wants? What motivates them to start the process? What they search for online? When they reach out to sales?
Have you ever talked to your existing customers and asked these questions? Do you ask prospects why they didn't buy from you? Do you talk to others in your ecosystem like channel partners, suppliers, and competitors to learn what the market is telling them?
A strategy without a defined target ideal customer and a developed buyer persona is bound to be less effective than one that does. You can't be everything to everyone, you have to choose who you best serve and then focus on them.
What is your strategy?
I don't mean your pricing strategy or distribution strategy or even your technology/engineering/product strategy. I mean the real innovative strategy you need to engage and build relationships with people.
The reason you should focus on this helping strategy first is this simple stat and the reason behind it.
74% of sales go to the first company that was helpful (there are various sources for this stat and others like it, here is one).
The reason this is so was described by Dr. Robert Cialdini in his book, Influence: The Psychology of Persuasion, where he talks about the 6 principles of persuasion, the first of which is reciprocation.
“The implication is you have to go first. Give something: give information, give free samples, give a positive experience to people and they will want to give you something in return”.
This powerful principle is backed up by the data showing that 70% or more people buy from the first company that is helpful.
Mind you helping is more than educating. Help is an active participation in the process of improving their situation and moving them to an improved state.
Helping people is bound up in your why definition. It should be a part of who you and your company are.
So what is your helping strategy? How helpful are you really?
That is what your customers want. That is what they will reward. The company that gives it to them is the company that has a defensible competitive advantage. I am not talking about marketing tactics. Helping is about how you fundamentally improve your customer’s world, help them solve problems, and deliver them the change they need.
Can you help them in such a way that you create an experience that the customer just has to come back and have again? That is what you are shooting for.
Helping comes first, relationships come after helping, and they are built on trust.
So what is your strategy to be the first company to help?
A few options for manufacturing marketing strategies include Inbound marketing, content marketing, thought leadership, account-based marketing, outbound marketing and doing nothing. That last one is more popular than you might think. Just let the sales team connect with prospects and generate leads. Marketing is just creating brochures and prepping for the trade show in these types of companies. And it is a strategy by choice, not a good one mind you, but it is a choice.
Other key aspects of strategy development are the resources available and the timing of your goals.
Successfully marketing a manufacturing company requires a commitment of resources and time to build an engine that consistently drives leads and customers.
One thing is for sure, your marketing budget should not just be what is leftover after all of your other expenses are accounted for.
Remember your Peter Drucker who said, "The business enterprise has two - and only two - basic functions: marketing and innovation; all the rest are costs.
Do not confuse the cost functions with the revenue driving ones like marketing. Typical marketing budgets for industrial and manufacturing companies typically run from 4-7% of revenue. Many are far lower in my experience.
The key is to match your business goals with an appropriate amount of marketing spend and then hold the marketing team to those goals using analytics for everything they do and measuring ROI. Vanity metrics like impressions and views are far outweighed by measuring and tracking actual lead generation from the source of that lead all the way through revenue. You need to know you cost of customer acquisition and where your sales come from. Gone are the days of not knowing what your marketing dollars are returning. If your marketing team our outside partners are not held to the same revenue generation standards that sales is then you have a problem.
Where are your prospects?
Where do your target prospects go for information? What do they read? Who do they listen to?
You have the opportunity to influence prospects at three key points in the buyer journey:
Awareness - before they know you of that they even know they have a problem you can solve
Consideration - when they understand the issues and are deciding on the solution they are focused on
Decision - as the lead is weighing options and bringing stakeholders together to make the choice to move in a particular direction
In general you have three types of places to influence your target audience:
Owned - website, social media, email marketing, collateral, sales teams including all branding and out appearances of you business
Paid - print ads, Pay-Per-Click, trade shows, etc
Earned - editors, publishers, reps, distributors, partners, suppliers, or any other influencers who you build relationships with and collaborate with them to create content or promote your business
Manufacturing businesses must dominate their owned marketing assets first. Many manufacturers skip over the owned assets and head right for the paid. Buy a list, pay for an ad, go to a show. But their website looks like a circa 1997 version of a catalog. Or their printed materials are shoddy. Or they send a garbage e-newsletter every other month sometimes. Or they don't tell their unique story or understand how they really help their customers.
Manufacturers must dominate they owned marketing first. Say you run a paid Google Adwords campaign and send the clicks to your home page. Mostly a waste of money and time. You need to have a specific page worth reading that matches the search that generated the click. You must then have a site management tools and CRM that allows you to understand that click and convert them to a lead at some point.
Or have a shabby looking lobby that your prospective customers come through. Or have a sloppy looking shop floor. Or have a poorly kept exterior of your buildings. These things all matter to your customers and they are all within your control. And they, and many more owned opportunities, make a huge difference in today's hyper-competitive world of the digitally driven customer.
Get your owned stuff right first. Then invest in paid and earned marketing.
How to implement the strategy?
Did you notice how you had to answer the why, who, what, and where questions before you got to the how question.
Bottom line, everyone in the company has a role in marketing the company. Everyone.
Disagree? Please comment at the bottom of this post and tell me the person in the company that does not have a role in marketing and I will take a shot at telling you how they do.
Janitor? Ever have a client visit? What tells a visitor more than an unclean office or plant that you do not sweet the details. Or care about your employees. Or take pride in your place of work. Why would you take pride in the product you supply if you can't keep a neat and clean work place?
Accounting? Ever send an invoice that was wrong? Or at the wrong time? Ever forget to send one? Ever have an accountant or finance person tell you to cut your marketing budget because it costs too much? Ever have your finance person talk to you about how to make marketing an investment with a measurable return?
Receptionist? That's a tricky one. You fired them in a cost-cutting move and have one of those annoying as hell 'click one for service' answering systems. Your customers and prospects noticed. They see by this action that you don't eve care enough to have a human being answer the phone.
Loading dock worker? What if you did everything right in the factory and the last guy to seal up the box forgets to put in the paperwork or manuals? Or does a bad job packing the parts? Or counts them wrong?
I could go on but you get the point.
How you implement your marketing strategy is to get everyone to buy into the why of your business and what role they have in delivering it.
The rest of the how question for manufacturing marketing relates to the tactics you employ to reach your target persona.
Remember, you determine your strategy, your customers determine your tactics. You have to fish where the fish are, adopt marketing tactics that reach you intended audience. Don't chase the shiny thing when it comes to tactics, only empty marketing tactics that are proven to reach your desired audience. If you are not sure about something then run small controlled test, measure the results, adjust, and decide if the tactic is worth pursuing or move on to another.
A few other key how to market for manufacturing areas include:
Sales and marketing enablement - do they have the tools and training to succeed?
Sales alignment with Marketing - are the groups working together to achieve revenue generation goals?
Are you marketing across the entire buyer journey at all touch points? Don't forget the after sale aspect of marketing.
Is your service team proactive or reactive? Do they work with marketing to continue the conversation with your customers?
Is It working?
Measure everything. Insist on data so your decisions about your marketing strategy and tactics are measurable. You know the line about what you can measure you can improve. Your marketing efforts should be held to same data and measurement standards you keep on the shop floor.
You always know how you did by your revenue but you can only get better at your manufacturing marketing if you can measure it.
If you aren't sure how to measure your marketing efforts, contact us and we will show you how!