Marketing Home Products

Our diverse population makes the ‘average American’ increasingly harder to define.  Witnessing this shift, marketers have turned away from mass marketing in favor of niche marketing, which consists of a tailored approach to smaller, more targeted markets and attitudinal groups. For those who market home products, we must understand the desires of our audiences and determine how media segmentation can be used to address different groups.

“Non-Traditional” Households are Taking a Leading Position
The growth of “non-traditional” households requires an appreciation for attitudinal market segmentation that addresses each group’s unique preferences and buying patterns.

Single-sex households and Gayborhoods

• Single-sex relationships, gay communities or gayborhoods, and families with single-sex parents comprise a group with great influence in urban renewal.
• This group’s buying power is expected to hit $2 trillion by the year 2012.
• When reaching out to gay consumers, focus on their enhanced affluence and interest in style, brands, luxury and travel.
• Speak to their individual identity, which is oftentimes ignored by mainstream media and marketing.

Mounting Hispanic Population

• The Hispanic population includes 46 million people with more than $700 billion in spending power.
• Industry insiders say U.S. builders are addressing this niche with home designs that recognize Hispanics’ inclination to house multi-generational families living under one roof.  Recent trends in Hispanic home building include greater numbers of smaller bedrooms, convertible garages, generous parking space and easy indoor-outdoor access.
• Savvy home industry marketers can capitalize on this trend by having a clear understanding of the audience and ensuring messages are culturally relevant.

  (See the link below for our white paper on marketing home products to Hispanic Americans.)

Ruppies . . . Shattering Post-Retirement Stereotypes

• Ruppies, or “retired urban professionals” are 40 million strong, with an estimated $2 trillion in annual spending power.
• Ruppies seek high-density, bustling communities in large cities that make them feel young.
• There is emphasis on accessibility and a continued importance on increased informal space in the home including open space layouts and flexible floor plans.
• Consider media segmentation beyond traditional media outlets. Recent studies reveal that Ruppies are attracted to social media and networking sites.

Young Professionals

• Generation X and Generation Y represent the fastest growing homebuyer segment in the country.
• Renovations are popular among younger generations who see an opportunity to personalize their homes and make a statement.
• When marketing to young professionals, know that they are price-conscious, skeptical and sophisticated in their purchasing decisions.
• Use the Internet and online marketing tactics to target young professionals.

What’s Next for the Housing Market?
Successful marketers are making the shift from broad, generic messaging to pointed, targeted communications.

The pressure of a down economy causes a crucial need to connect with each consumer emotionally. Offer them solutions, avoid stereotyping and look to a personalized marketing approach that serves the needs and desires of each cohort.

In the home and building channel, it is critical to remember that the home represents who we are and how we define ourselves.

K&A’s Marketing Home Products to Hispanic Americans White Paper can be seen here.

Strategies to Appeal to Current and Prospective Customers

A solid customer base is the backbone of any thriving business. It’s essential that companies effectively tap into their pool of dedicated customers and identify prospective customers’ motivations and purchasing habits to successfully achieve market share growth.

Below are strategies to market home products by reaching your niche audiences, while increasing sales and market share.

Leverage Current Customers to Propel Sales
You’ve already established a strong customer base. They’ve bought from you in the past or are current customers sustaining your sales. Now, what are you going to do to maintain them as current and future customers?

• Instead of sending information out to customers, create a distribution channel where your customers can access your company information when and how they want.
• Offer customer referral promotions and incentives. You can develop a club for high-value customers where they can access discounts on your products or services or retrieve monetary rewards for new customer referrals.
• Provide ways for customers to comment about your company’s products and/or services. Research from MarketingSherpa found that 58 percent of consumers prefer Web sites with peer-written product reviews.
• Create a Facebook business page or Facebook group where customers can interact online.

Giving your customers a voice allows them the opportunity to become influential brand evangelists.

Be at the Forefront of Emerging Demographics
Aside from your existing customer base, it’s important to be knowledgeable about emerging, lucrative demographic groups as they have the potential to alter your business.

Take for example the newest generation to influence the home and commercial building products industry—the tech-savvy Millennials or Generation Y. This group is quickly becoming of first-time homebuyer age, and for those of us in the home and building industry, this is the group to watch closely.

The immigrant population is another vast and influential demographic group that needs to be watched closely by our industry. According to an analysis of census figures released in 2008, racial and ethnic minorities account for 43 percent of Americans under the age of 20, a strong indicator of America’s changing makeup.

Think Strategically, Target Accordingly
Whether you’re marketing to your existing customer base or potential customers, you need to know your target audiences. Ask yourself:

• What is this group like? What defines them?
• What are their likes/dislikes?
• What are their motivating factors to buy?
• How do they buy?
• How do they want to be reached?
• How can my brand target and attract them to increase sales and market share?

The key to marketing home products successfully—whether operating in an economic downturn or not—is reaching out to your customers the way they want to be targeted and in the places they are comfortable.