Why are most manufacturers bad at marketing themselves?

Marketing in manufacturing is in very confusing state.

And I've been around it a long time.

It isn't talked about. It seems you, as a manufacturing business leader, are already supposed to have sector leading products, industry leading services and lots of hungry customers. That's a given.

It must be true because the business debate, led by the manufacturing media and major membership bodies, centres on working smarter, technology, digital and smart factories, 4.0, IoT.

Little mention of customers. Winning them. Keeping them. Or the strategies how.

Which manufacturer are you?

I see a number of different companies in the manufacturing space and arguably all would benefit from a little help.

There are companies that do nothing, or certainly the bear minimum, believing every potential customer knows who they are. They survive on a legacy of an owner or brand name that continues to drive some interest. This is dangerous. They operate basic websites. Produce little content. Have next to no media profile. They are hard to find if you don't know who they are. And they are reliant on field sales and cold calling.

There are companies that try, but it just doesn't really catch fire. I think this is the most common type, often categorised by having a real lack of marketing understanding within their business. They've probably been burned by expensive supply relationships or failed attempts to do their own marketing. Or they work in a niche few really understand.

Consequently, there is a fear to try. So, they too rest on out-of-date websites, limited outreach, trade shows that no longer generate the return. They're stuck wanting to do more, but are nervous to start.

There are those that embrace marketing, understanding the importance of creating noise and buzz around the business. They have more developed websites, they may send out an infrequent email newsletter and have a limited media and online profile. They will probably work with an outsourced provider to deliver essentials rather than have a dedicated, qualified marketing person.

Then there are manufacturers that take it to the next level, actively producing helpful, advisory content that supports customers and prospects whilst simultaneously positioning themselves as expert. Websites delivering lead generation and integrated marketing campaigns involving putting interesting and provocative material in front of the right people. Their people are also, crucially, encouraged to embrace it and use it to build personal profiles and create relationships.

Which bracket do you see your business in?

Before you answer, take a long hard look at where your orders come from.

Can you tell which marketing (and sales) activities deliver which leads resulting in orders? What are the increasing or declining trends you can identify from the orders placed in the last 3-6 months?

In my mind, only the later group are "Marketing With Intent", positioning their expertise for those in need of it.

But why, then, are most manufacturers bad at marketing themselves? 

I think it has a lot to do with company set up, leadership, mindset and understanding of marketing.

Thinking about all the experiences I've had working with manufacturers over a 24-year career, I've mixed with a variety of decision makers. Their influence determines whether marketing their business is successful or not.

Some businesses, because of the five points that follow, unintentionally impact the successful deployment of marketing activities.

1. Corporate (influencer) mindset 

Can "corporate mindset" determine if you can successfully market a business? I think so.

You only have to look at the prevailing model of a business and the most influential person to understand this. The context and involvement of a founder, a family descendant, a board or equity investor can not be overstated.

Sales led organisations, by their very nature, will always be led by, and focused around, sales. They will be focused around maximizing the return from a specific set of products and services that are priced specifically to deliver a return. Working creatively in this environment, where price is often a deciding factor, will be extremely limiting.

In a sales led organisation, it might be argued the customer is not always the first priority. The priority is getting the sale. From experience, I think sales-led organisations can be short-term in thinking, with marketing activity focused more around lead generation and conversion. I'm not sure if overtly sales led organisations set out to or attract long term customers unless that is the nature of contracting. 

I think product led organisations, based around problem solving and benefit selling are predisposed to be a little more successful. They are focused on identifying and resolving a problem, positioning relevant benefits to the different people involved in using or specifying the product in question. So, they can get more creative with the narrative, the presentation, "a brand".

Customer and market focused organisations, by contrast, design products and services that meet particular problems "now" but also innovate for the future, creating products and services that most people don't know they need but that become "must have". Often, customers have a say in the products and services being created too.

Which type of company is more likely to be the most creative and innovative when it comes to marketing, the best at attuning to customer needs, and potentially the most commercially successful?

2. Attitude to risk 

Because of the nature of influence, and the perceived riskiness of marketing as a discipline, a company's attitude to risk is another element that might affect their attitude towards marketing.

If marketing is seen generally as a cost rather than an investment, then naturally any manufacturing company is unlikely to want to spend money in that area as they will fail to see a tangible return.

This thinking compounds if creative recommendations go "too far" outside a recognised comfort zone. Let's be honest, giving away tips and ideas is one thing, but when advised to create video, use social media, send email (post GDPR), or give media interviews, most manufacturing professionals with little to no experience are scared off using.

So, manufacturers actively avoid using these platforms, or make a bit of a hash of it when they use them - coming across awkward and spammy because it is uncomfortable.

3. An understanding of what marketing is 

Depending on exposure, experience or education, company directors in manufacturing businesses will understand that marketing may involve

• Setting market strategy (and targeted plans for market development, product development, service innovation, customer experience and satisfaction)
• Market research
• Brand development
• Creating campaigns
• Sales support
• Advertising
• Social media posting
• And everything in between.

If there is a low level of understanding and awareness of the value of marketing within a business, this might lead to it being allocated to people at an appropriate level of expertise and experience. This means that rather than having a marketing professional on staff, or outsourced support on hand, it could sit with a PA or Assistant in a very tactical, and reactive, capacity. 

There can be no surprise then, if manufacturing websites don't necessarily look or work to their fullest, why brochures fails to hit the mark and why social media is a confusing mass of product promotion and charity coffee mornings, with little real value ultimately being provided.

The knock on impact of allocating marketing activities in this way means that it could be a long time before marketing is taken seriously in a business. Often because of one person's perspective.

4. Knowing what success actually looks like

Beyond the order book and operational measures, I doubt that many SME manufacturers actually track the effectiveness of any of their activities and their time spend. So it makes it harder to justify the spend on anything.

In "investment averse" businesses, there is no surprise when marketing, HR and training are invariably the first things culled when times get tough, and then the last things reinstated when favourable trading conditions return.

But putting some advanced metrics in place, even if they are sales focused initially, will help to build a marketing credibility in any business.

Given marketing is all about creating demand and meeting customer needs profitably, tracking the right things and linking them to commercial return is much easier than you think. It starts by understanding your average order value, the number of orders you need over a given time period and your conversion rate from quotation/proposal.

Then it becomes 1/ a numbers game as you focus on what needs to be achieved and 2/ a case of taking targeted, intentional action to achieve it.

When you do generate enquiries and then orders, ensure you can attribute the win to an aspect of your operations by asking at the point of order when it's fresh in the customer's mind.

5. Outsourcing vs. building your own

You may, as a result of this post, be encouraged that it doesn't take much in any avenue of manufacturing to stand out from the pack. After 24 years, I think this is true.

You may want to give your marketing activity a shot in the arm. Great. I'm not going to tell you that you should outsource first, to someone like me in order to tap into significant experience at a fraction of the cost of hiring full time, because you know that could make sense already.

Building your own is always a preferred approach in manufacturing. It starts at a work experience and apprentice level. But in an area like marketing, you'll need to recruit relevant to your need.

Hire too young/junior, and without the necessary supervisory experience and the exercise will fail. Similarly, hire too senior and then fail to empower or provide the creative opportunities promised and you'll lose them pretty quickly too.

Businesses that fundamentally fail to grasp the importance of marketing as a discipline will see a lot of contractors, agencies and staff simply come and go. And it will in their marketing.

Summary

It's a challenging time for manufacturers. Actually, it's always challenging for manufacturers.

Yes, you need to embrace technology, modern methods of working. Yes you need to innovate.

But don't assume the people buying now will be buying next month, next year.

And don't assume your target demographic will continue to be 50 year old white males because they are being replaced by technology savvy new entrants to your market, each with their own ideas and their own preferences.

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Read more?

Why and how most manufacturers would benefit from a 12 week marketing plan

Setting realistic business objectives for your manufacturing business

Getting your brand positioning right as a manufacturer

How to really understand your customers - marketing advice for manufacturers

The five critical elements of a manufacturing marketing plan

Five ways to win the marketing game at engineering expos

#manufacturing #marketing #b2b #engineering #contentmarketing #leadgeneration

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Want help? Let's talk. Visit visionb2b.co.uk to start today.

And remember, all good marketing starts with Vision.

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