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MARKETING OF BUILDING SUPPLIES AND CONSTRUCTION MATERIALS

FEATURES OF THE INDUSTRY

To understand the scope and importance of the building supplies market, it is enough to recall your last visit to a building supplies supermarket. The size of even an average supermarket and the range of products it offers are truly impressive - hundreds of thousands of different products for any need in construction, renovation, repair, etc. To effectively promote products in such a complex market, marketers need a great deal of knowledge and understanding of the market. There are many characteristics of the building supplies market that affect manufacturers' marketing strategies, but the following market features are crucial for developing an effective marketing mix and achieving commercial success:

• Market size. Unfortunately, the total volume of the building supplies and construction materials market is almost impossible to accurately assess due to a number of factors. First, some researchers try to derive the size of the market based on the volume of construction (residential, non-residential buildings and engineering structures, including roads). Unfortunately, this approach does not reflect the segment of private renovation and construction, which hides a significant part of the market. If we add sales through organized retail in the form of building supplies super- and hypermarkets using the retail audit methodology, the picture would be more complete, but it is almost impossible to collect such data and bring it together due to a huge number of categories and product groups. Nevertheless, experienced marketers know how to track the volume and dynamics of the market for specific categories or products, which is more relevant for marketing a particular brand of building supplies.

• Market structure. Although it may seem to many people that the market is almost monopolized by super- and hypermarket chains, this is not the case. Structurally, the market of building supplies is divided into the following segments: (1) direct sales from manufacturers and importers to large developers and construction companies, (2) distribution companies that focus on smaller construction firms and the private renovation segment, (3) organized retail in the form of specialized super- and hypermarkets, (4) small retail in the form of building supply stores and other retail outlets. Of course, this is a somewhat simplified structure, but it provides a basic understanding of the sales channels that need to be taken into account in the marketing of building supplies.

• High competition. At first glance, the market for building supplies and construction materials is so huge, with so many different needs and requirements, that it seems that any product can easily find a customer. This is partly true, but within specific categories and groups of products, there is a strong competition for every client. National producers are forced to constantly sustain the quality and reliability of their products compared to powerful foreign brands. Proving the benefits of products usually falls on the shoulders of marketing teams, which must not only create broad market awareness of their products, but also demonstrate and assure the market of high quality products, aiming for consumer trust and loyalty.

• Private labels. Private labels in the building supplies market are becoming an increasingly important element of competition, as they provide large chains and importers with the opportunity to create powerful local brands with a wide range of products that are physically produced at different facilities. In this way, market players without production facilities can create a unique brand using only marketing tools. This allows them to reduce dependence on external suppliers and have a very dynamic product range that can be changed relatively quickly by replacing manufacturers. The market, in turn, is becoming more competitive, requiring marketers to take into account not only the actions of well-known brands, but also the marketing of private labels of large chains and importers.

• Standards and regulation. Standards and regulations in the construction industry set the standards of quality, safety and environmental friendliness of products, which are key factors in ensuring the reliability and durability of building structures, as well as the protection of human health and the environment. In particular, government regulations set out legal requirements for the composition of materials, their technical characteristics, production processes, labeling and certification, which helps to create a competitive and responsible environment in the building supplies market. Experienced marketers integrate compliance with legal requirements into their marketing mix and use it as an element of market positioning to gain consumer trust.

• Technological progress. Technological progress in the construction materials and tools is reflected in the development of new products that are more efficient, sustainable, reliable and environmentally friendly, which in turn opens up new opportunities for marketing such products and establishing competitive advantages for innovative brands. Technological advances include the use of new materials, the development of energy-efficient technologies, and the introduction of digital solutions to facilitate product selection and ordering. The link to marketing is the promotion of new technological solutions through advertising, demonstrations at exhibitions, participation in professional industry events, and other marketing approaches to popularize products among consumers and spread the use of new technologies and products in the construction and renovation sectors.

Of course, the list of specific features of the building supplies industry can be extended if we consider individual market segments, but these market characteristics are crucial for the development of an effective marketing strategy and marketing plan. So, how to compete in such conditions and how to build an effective marketing mix in the building supplies business? How to avoid annoying marketing mistakes that even large companies with full-time marketers make? How to prevent the company's development and success in the market from being hampered by wrong marketing decisions and choices?


SOME GENERAL STRATEGIES AND APPROACHESS

In general, it should be understood that the marketing of cement and building mixtures will differ from the marketing of finishing materials, the marketing of power tools will differ from the marketing of building blocks and bricks, the marketing of construction chemicals will differ from the marketing of roofing, etc. One article is clearly not enough to demonstrate all the nuances of marketing individual product groups and categories, but we will try to highlight common features and provide a general structure of the building materials marketing mix. Here are the main marketing strategies, approaches, and tools most commonly used in the industry:

• Marketing strategy. For an industry with such a wide variety of categories and products, it is a must to have a clear brand and marketing strategy. Marketers with little experience often get lost in the wide range of marketing alternatives and face difficulty prioritizing. As a result, the company may face a situation where the marketing budget is used extremely inefficiently, and marketing efforts are scattered among different target audiences and do not produce the expected cumulative result. Therefore, a thorough market research, defining of the optimal strategy, and constant monitoring of the effectiveness of marketing activities are crucial for success in the building supplies industry. Companies that are able to carefully define market conditions, their own market position and marketing strategy have a better chance of remaining competitive and achieving commercial success.

• Branding and positioning. The specifics of the industry are that consumers expect a level of quality and reliability from most products that ensures the duration of use for years or decades in the form of a finished construction or renovation. In such circumstances, the importance of branding and market positioning cannot be overstated. Creating a powerful brand that is associated with quality, reliability and innovation allows companies to build long-term relationships with customers, ensure loyalty and stability of sales volumes for a long time. Correctly defined market positioning makes it possible to distinguish products from competitors, protecting them from changes in economic conditions and in a dynamic competitive environment. As a result, branding and positioning are important tools that ensure stability and long-term success.

• Differentiated pricing. The strategy of differentiated pricing is most often used in the building supplies market and consists of setting different price levels for different segments, taking into account the expectations and value for consumers. The main idea is to form a product line that satisfies different price segments of demand within the same product group, using different price ranges as the main product differentiator. That is, higher prices are expected to be set for products with special features or additional benefits, such as improved quality or innovative technologies, while lower price levels can be applied to products of lower quality. This strategy allows companies to maximize profits by using flexible pricing to meet the different needs and preferences of different price segments of the market.

• Digital marketing ecosystem. The digital marketing ecosystem in the building supplies market is a central element of the marketing mix and plays a significant role in raising product awareness and building relationships with customers and partners. It includes a wide range of tools, such as the company's website, landing pages, online stores, social media pages, email newsletters, a mobile application if necessary, a CRM system and data analytics, etc. Thanks to the digital ecosystem, companies can effectively communicate with audiences, position their brand, demonstrate product benefits, attract new customers, and increase the loyalty of existing ones. In addition, digital analytics provides an opportunity to measure the effectiveness of marketing campaigns, which allows companies to adjust marketing activities based on real data and increase their effectiveness in the long run.

• Online advertising. Online advertising in the construction materials and tools market is becoming an increasingly important component of the marketing strategy of companies in the industry. Digital channels, such as Google search, social media, and specialized construction and renovation websites, provide an opportunity to precisely target the audience and attract potential customers. They allow companies to effectively promote their products, demonstrating their advantages over competitors. With the help of online advertising, companies attract potential customers to their digital marketing ecosystem, maintain a high level of brand and product awareness, expand their customer base, and increase sales. Given the growing popularity of online communication channels, the use of online advertising is an integral part of a successful marketing strategy in the building supplies industry.

• Search engine optimization (SEO). SEO in the building materials market through internal website optimization, creation of interesting and unique content, as well as building up a solid backlinks profile, plays a key role in improving the company's position in search engines. Internal optimization, which includes a website structure that is understandable for search robots, mobile-friendly browsing, and many other optimization parameters, helps a company's website to take better positions in organic search. Creating interesting and unique content helps to attract users' attention and improve the behavioral indicators of the site, which also affects the site's position in organic search results. Increasing the number of external links to the website helps to increase its credibility and reputation in the eyes of search engines, which is again reflected in its ranking in search results, thereby increasing the chances of attracting new customers and increasing conversions.

• Content marketing. It should be noted that content marketing is of great importance for the building supplies market, i.e. the creation of useful and engaging content that can keep the attention of product users and emphasize its benefits. The quantity and quality of content on construction and renovation topics is truly impressive - the Internet is full of videos, photos and text content that provides recommendations and tips, offers detailed reviews of construction materials and tools in comparison with competing products, etc. Successful companies allocate substantial budgets to create this kind of content that can attract potential customers, provide valuable information and skills aimed at improving their experience in construction and renovation, and create a powerful emotional connection between the brand and the consumer.

• Colaboration with opinion leaders. Collaboration with opinion leaders is an integral part of a successful marketing strategy in the fields of construction, architecture, design, and especially renovation. Bloggers and experts on relevant topics have a great influence on the audience. Collaboration with them allows companies not only to gain access to their audience and increase brand awareness, but also to ensure additional consumer confidence in the products. Opinion leaders can recommend products to their own audiences, share their experience of using them, and provide professional advice, which is a very effective mechanism of marketing promotion in the construction materials and tools industry.

• Recommendations and reviews. Recommendations and feedbacks from customers who use different materials and tools every day, perfectly understanding their properties, advantages and disadvantages, are an extremely important marketing mechanism in the building suppplies industry. Positive reviews build trust in products and help companies attract new customers. At the same time, negative reviews can significantly damage a brand's reputation and affect its sales. Effective monitoring and response to reviews, as well as the creation of own platforms for sharing experiences and recommendations among consumers, are key strategies for maintaining a positive image and successful business development in the industry.

• Industry associations and events. Industry associations and events in the marketing of building supplies are important tools for establishing a company's image. Participation in industry events allows to establish the company's expertise and reputation in the industry, to maintain the status of one of the leaders, to demonstrate the company's innovations and other advantages. At the same time, active participation in industry associations increases brand awareness, creates additional opportunities for cooperation with other industry participants, which contributes to the formation of a positive image and effective horizontal relationships.

• Loyalty programs. Loyalty programs in the marketing of building materials, tools and equipment are an effective tool for attracting and retaining customers in such a competitive environment. Loyalty programs involve the creation of the most attractive offers, including discounts, bonuses, gifts and other benefits that encourage repeat purchases and increase brand loyalty. Such programs also allow collecting customer data and analyzing their preferences, which can be used to further improve marketing strategies and personalize offers, which increases the effectiveness of interaction with the audience and contributes to sales growth.

Once again, we have to point out that, for example, the marketing of paints and varnishes will differ significantly from the marketing of electrical goods, the marketing of wallpaper from the marketing of drywall, the marketing of ceramic tiles from the marketing of lumber, the marketing of rolled metal products from the marketing of finishing materials, the marketing of doors from the marketing of ventilation systems, and so on. Each market category has its own peculiarities and nuances of marketing promotion.

It should also be noted that within one article, we cannot show all the pitfalls or demonstrate all the marketing methods and tools specific to the building supplies industry. In other words, these are just a few examples of quite general marketing approaches that can be applied to building supplies business. From a practical point of view, everything is much more complicated - the choice of a specific marketing strategy and tools depends on the target audience, competitive environment, and unique advantages of the company, etc. At the same time, it is desirable to understand that building supplies marketing may encounter a number of specific problems that are unique to each individual case and require an individual approach to their solution.

Achieving the commercial objectives of a company through effective marketing requires a deep understanding of the market situation, consumer needs, the ability to analyze and explore alternatives, and a creative approach to problem-solving. Our company has extensive experience in defining optimal marketing strategies for our clients' businesses, creating a strong brand and market positioning, as well as developing a marketing mix and implementing the chosen strategy. You can familiarize yourself with the services and solutions our company offers on the "Services" and "Solutions" pages, respectively.