Skip to main content

Marketing 101: Change is good

3/6/2018
Independent retailers are getting the message loud and clear: It’s time to adjust your message.

At two recent co-op markets, executives stressed the importance of upgrading, personalizing and localizing their marketing efforts.

In Chicago, True Value Company’s CEO John Hartmann described a shift in marketing strategy as the clear headline of the co-op’s proceedings. And in Indianapolis, Do it Best Corp. dealers heard that if they haven’t changed their marketing strategy lately, they’re probably doing something wrong.

True Value’s SVP of marketing David Elliott shared some background behind the co-op’s new marketing approach. There are tens of millions of people in the United States that have never had a relationship with a cable company. Plus, there are another 22 million people this year who cut the cord for cable or pay TV. At the same time, people are spending an average of three hours a day on their mobile devices. And consumers of all generations have their purchase decisions influenced by at least one digital touch point.

It’s no wonder, then, that Elliott, a New Zealander who worked with True Value CEO John Hartmann at Kiwi hardware co-op Mitre 10, believes that television is becoming increasingly less effective as a marketing medium. And it’s no wonder he’s a big believer in the power of digital tools.

“We’re shifting our marketing spend to a more localized and a more digital approach,” he told True Value dealers during the co-op’s General Session. “It will now be possible to customize promotions to greatly relevant products and components.”

Another big change, and one that generated spontaneous applause at the True Value General Session, was the announcement that the co-op plans to eliminate its national ad fees, which amounted to about 1.4% of each retailer’s warehouse purchases.

In Indianapolis, Do it Best VP of marketing Rich Lynch pointed to a national retail landscape facing upheaval and disruption like never before. Lynch identified a lesson that independent hardware stores would be wise to recognize.

“The thrivers and survivors have adapted to change and have adjusted their marketing strategies,” Lynch said during the Kick-Off presentation. “The others haven’t done that.”

Lynch also encouraged dealers to lean on the marketing data generated by rewards programs: “Intelligence is going to be the key to marketing going forward. The thrivers are going to gather it, embrace it, and use it to make wise decisions.”
X
This ad will auto-close in 10 seconds