The new face of marketing

To stop talking about the crisis is to hide a real situation that has obviously affected all industries in one way or another, and the paints and coatings segment is not spared from this economic phenomenon. However, it is well known that this is an opportunity to continue the pursuit of business growth and set aside the view that it is only a threat.
 

The question remains how to generate profits if the budget is reduced? The answer is in your hands the marketing area of your company, the one in charge of selling, attracting consumers and keeping the image of the company in force in the eyes of the client and the competition.
 

With the economic situation, this department has been one of the most affected, as its budget was reduced, which forced professionals in the area to look for new ways to reach consumers in the same way, with less money but with equal effectiveness.
 

That's the challenge. This is confirmed by the digital portal América Economía: "There is no doubt that now is when marketing managers must face their greatest test. The current crisis forces them to adjust their budgets and at the same time have the responsibility to empower brands and increase revenues."
 

Results, is what a company will continue to ask the marketing department, regardless of whether or not there is enough money, because the most important thing now is to justify every penny invested, that is, that every expense generates the same result in sale.

This article will delve into the architectural segment, a market that has perhaps been less hit than other lines of this industry, but that in the same way is not alien to the present that afflicts the economy.
 

This is assured by the Argentine Claudio Fazzone, director of the advisory company Venmark. "The current moment of the architectural market does not escape the reality we are going through: a situation of caution due to the prevailing financial crisis, and all the actions that are being taken today affect by having this as a variable. Regardless of whether some economies are better off than others, we are somehow suffering from the crisis and companies are working within this new scenario."

Quality and profitability

In the aforementioned scenario it should also be noted that consumption habits have varied: today, the buyer is renewing, looking for quality and, at the same time, reasonable prices on the products he wants to acquire.
 

"Consumer habits are changing and marketing managers have had to include that concept within their brands, choosing the most profitable channels to communicate and also to distribute their products. The consumer is no longer the same and, therefore, it is the duty of this area of the company to be closer and closer to him to know what he wants and how to deliver it to him," said América Economía.
 

The marketing manager of Pinturas Cóndor de Ecuador, Luis Fernando Martínez, agreed with the analysis made by the Chilean publication and, in addition, assured that in his country the competition is increasing.
 

"We have seen that the competition has been winning certain spaces. Brands from the lower segment are appearing, which reduces participation to all companies. That has required us to review our prices to make them more competitive, because now the consumer is looking for economy and obviously quality, and with those two ingredients you have the ideal formula, "said the executive.
 

Fazzone agrees with the approach, adding that companies are also looking for other attractive methods to continue attracting their customers. "On the one hand, it seeks to generate traffic through promotions, agreements to help customers have tools such as credit cards or installment sales. On the other hand, it is usual that in these times they look for products with low prices, that the paint is affordable for a higher level of consumers. "
 

The strategies to be implemented

Taking into account the above, the strategy to be established at this time must be adapted to the changes in consumption habit that the consumer suffers today.
 

Therefore, reinforcing the quality-price issue may be the best bet to satisfy the customer and, in the same way, maintain competitiveness in the face of a market such as architecture, in which small companies gain ground.
 

According to the director of Venmark, in Latin America, in previous crises the consumer sought above all low prices, sometimes regardless of the quality of the product, now the trend is different: "Today the consumer is much more educated and takes into account the concept of value, so companies have to make strategies thinking about that focus, not only do you have to sell at an average market value, you also have to offer a very good quality product, that is the great goal. People are very cautious about spending."
 

This strategy is applied by Pinturas Cóndor, having as a starting point the fulfillment of its own sales goals and, at the same time, help with those of its customers. "It is important to take into account the quality issue, the price is also, but we always ensure that the quality is optimal. We are constantly activating promotions and loyalty plans aimed at our natural channel, which is mostly the open market."
 

Depending on the place, in Latin America you can talk about variety in the sales channels for the architectural line, hence the need to know which of these is the most suitable to offer your products and win more customers. For example, the system of own stores, according to Claudio Fazzone, is a method to which it is important to analyze the market and its viability, depending on the Latin American region.
 

"Own stores also depend a lot on the market, we have seen markets where companies put these types of systems and end up competing with their traditional customers or distributors, which has caused serious problems. There are other channels in which there are not many customers, or large stores are sold or they are not sold. In these channels the presence of an own store is the only alternative to have balance in the market. There is no one answer for every country."
 

Strategic alliances

The economic situation implies that many companies think of strategic alliances as a good option to avoid losing market share. However, the profitability of this system is mainly based on knowing how to analyze your partner very well.
 

"The fundamental thing when establishing an alliance is to define my strategic partner. One can find markets such as Argentina, Peru or Ecuador, where you can think that my strategic partner is customers who have hardware stores or paint shops, and with them I must execute associated actions, not compete. But I can also find markets like Chile, where the high concentration of large stores makes my strategic partner my final consumer," said Fazzone.
 

In conclusion

This analysis is useful perhaps to know the current moment that the marketing area is experiencing throughout the industry and, especially, in the architectural line.
 

The consumer has changed and therefore the marketing manager has had to modify his systems and strategies, in order to generate profits for the company, even if it starts from a smaller budget. The key is to optimize those resources and concentrate them on those product ranges that can be sold the most. This is an opportunity to make a difference and gain market share.
 

One of the recommendations made by our advisory source of the company Venmark, is that, despite the crisis, companies should not give up their investments no matter how small they are. "When there is a crisis there is always a recovery and those that have better percentages within that recovery are the companies that have not stopped investing. Take care of your numbers and results but do not stop investing, because every crisis passes and there are recoveries."
 

Finally, the marketing manager of Pinturas Cóndor assured that his company will continue working on reinforcing its already established activities and will leave aside, for the moment, brand promotions: "During these months we will accumulate our activities focused on branding. We are going to potentiate the issue of generating sales, transforming every dollar that is invested into an effective sale and, obviously, we return to the whole issue of loyalty plans and promotion of points of sale and training."