Making a Difference: IncorporatingEnvironmentalEnvironmentalInformation into Your OrganizationOrganization

Jeff HoweDovetail Partners, Inc.jeff@dovetailinc.org

“The Wood Products Council” is a Registered Provider with TheThe Wood Products Council is a Registered Provider with TheAmerican Institute of Architects Continuing Education Systems (AIA/CES). Credit(s) earned on completion of this program will be reported to AIA/CES for AIA members. Certificates of Completion for both AIA members and non-AIA members are available upon request.

Thi i i d i h AIA/CES f i i f i lThis program is registered with AIA/CES for continuing professionaleducation. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling usingmaterial of construction or any method or manner of handling, using,distributing, or dealing in any material or product.

Q ti l t d t ifi t i l th d d i illQuestions related to specific materials, methods, and services willbe addressed at the conclusion of this presentation.

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This presentation is protected by US and International Copyright laws ReproductionInternational Copyright laws. Reproduction,

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© The Wood Products Council 2013© The Wood Products Council 2013

Learning ObjectivesLearning Objectives

At the end of this program, participants will be able to:

1 Discuss market segmentation and targeting within the green marketplace to1. Discuss market segmentation and targeting within the green marketplace to

better align themselves with green targets to optimize profitability.

2. Evaluate the tools available to assess a clients specific interests in regards to

green issues (E.g. importance-performance analysis).

3. Better understand the sequence of messages required to motivate clients to

act.

4. Learn about environmental marketing strategies with their relevance to

architects and engineers.

AgendaAgenda

1. Review: Marketing Segmentation & Targeting

2 Key Tool: Importance2. Key Tool: Importance-performance Analysis

3. Messaging & Examples4 Core Strategies4. Core Strategies5. Summary & Questions

Who Cares About Environmental Info?Who Cares About Environmental Info?

• Your clients!Your clients!

• Your staff!

• Your partners on a project!Your partners on a project!

• Others? – generally Everyone!!

1 Green Segmentation1. Green Segmentation& Marketing

Fundamentally, Green Marketing is about Marketing, not about Green!not about Green!

Wh d S ti & T ti FitWhere do Segmenting & Targeting Fit

in the Marketing Process?

REMEMBER MARKETING IS A PROCESSREMEMBER…MARKETING IS A PROCESS,

I.e. a Sequence of Activities Designed to Link Your Customer’s Wants and NeedsLink Your Customer s Wants and NeedsWith Your Products and Services

Green Marketing is:Green Marketing is:

Those Business Activities Directed at Satisfying the Needs and Wants of A GreenNeeds and Wants of A GreenSegment of the Market Through Voluntary Exchange Processes

Quick Review: The Alphabet Soup of MarketingQuick Review: The Alphabet Soup of Marketing

3 Ms3 Ms4 Ps5 Steps

We’re going to focus on 3 Ms and 5 Steps

Quick Review: The 3 M’s

1) Markets

Quick Review: The 3 M s

)2) Marketing Mix

3) Message

A MARKETSA. MARKETS

a) Segments: groups with homogeneous characteristics

b) Targets: segments that best match your abilities

) P iti ic) Positioning: Creating your image in their eyes

B MARKETING MIX:B. MARKETING MIX:4-Ps

a) Place/Channel: the intermediaries chosen to link to the end consumer

b) Product: the set of benefits your customer pays for

c) Pricing: the amount of moneyc) Pricing: the amount of moneycustomers will pay for each benefit

d) Promotion: the set of materials and d t i t ith thprocesses used to communicate with the

customer

C MESSAGEC. MESSAGE:Product Adoption Process

a) Awareness: people view your product as a viable option

b) Interest: they are interested in buying a product

c) Evaluation: they begin comparing products

d) Trial: they complete a purchase

e) Adoption: the purchase is evaluated and reinforced

Green Markets: Segmenting &Green Markets: Segmenting &Targeting

Finding, Or Simply Understanding, Groups of People that are Targets

Let’s look at Three Major Considerations(W ’ll i hi ):(We’ll ignore geographic):

A. Demographic (generational factors)A. Demographic (generational factors)

B. Psychographic (green behavior)

C Individual (drivers of personal behavior)C. Individual (drivers of personal behavior)

A: Three Key Generations of Consumers!y

Generation XBorn: 1965-1976

MillennialsBorn: 1977-1996

BabyBoomersBoomersBorn: 1945-1964

Major Events:WatergateOil Crisis

Major Events:Clinton Impeached9/11

Major Events:Vietnam WarCivil Rights Movement

Children of the Silent GenerationBirths decreased to 3.4

Oil CrisisCable television

9/11The Internet

Children of the Baby Boomer Generation Births increase to

Children of the G.I. GenerationBirths increased from

Civil Rights MovementTelevision

1945 1965 1977 1996

M per year 3.8 M per yearBirths increased from2.6 M to 3.9 M per year

Source: NY Times - July 24, 2009

IF It Has Seemed Like Customers WereIF It Has Seemed Like Customers WereNot Interested..

Baby Boomers Dominated Market

75% of them had low awareness

Of the balance %, 80% had other priorities

Result - small target

B: If You Combine Surveys and NewB: If You Combine Surveys and NewProduct Adopters:

A F P l (5 10%) EXTREMESA Few People (5-10%) are EXTREMES

Slightly more (10-20%) are SEARCHERS

Even more (25-30%) are simply AWARE andinterested

EVEN MORE (25 50%) AVOIDERSEVEN MORE (25-50%) are AVOIDERS

A Few people (5-10%) Just NOT INVOLVED

What Does This Mean?What Does This Mean?

So a few, “Extremes” will forego purchasesSo a few, Extremes will forego purchases

Slightly more, “Searchers” will Shop around actively

Even more “Awares” will choose green if offered butEven more, Awares will choose green if offered, but..

Largest segment, “Avoids” will avoid negative impact

And a very few are “Not Involved” and do not payAnd a very few are Not Involved and do not payattention

Businesses Have the SameBusinesses Have the SameBehaviors!

C: Simple Personality Matrix10/11/2013 Dovetail Partners, Inc.

www.dovetailinc.org

C: Simple Personality Matrix

Closed

Open

Source: Merrill, D. and R. Reid, 1981

Personalities tend to10/11/2013 Dovetail Partners, Inc.

www.dovetailinc.org

Personalities tend to…

Analyticals like numbersAnalyticals like numbersDrivers are action oriented, and like order or processAmiables are people orientedExpressives are motivated by self-interest and are often outcome oriented

Summary of Green Segmenting &Summary of Green Segmenting &Targeting Basics

So FIRST youSo, FIRST you

Pick your Segment(s) e.g. regiony g ( ) g gPick your Target(s) e.g. specific customer typesDetermine your Positioning Strategy to best align ith T t i ( E t ?with your Target, e.g. your image (are you Extreme?

Searcher? Aware? Or Avoid?)

How Do You Figure All ThisHow Do You Figure All ThisOut??

2 I t P f2. Importance-PerformanceAnalysis

What Do Your Clients Really Care About?

Basically You Ask a Lot of Questions!Basically…You Ask a Lot of Questions!

You ask people about certain things (e.g. companyYou ask people about certain things (e.g. companyactivities, design characteristics, etc.) then you ask them how important are these things to them?

This can be unofficial or official and ranked (and charted) – but it should be quite detailed!!

How Do I figure out what people (clients, staff, partners) care about? Importance-about?. Importance-

Performance Analysis

From The Information Gathered In YourFrom The Information Gathered In YourCommunication You:

• Emphasize and place maximum focus on thingsEmphasize and place maximum focus on thingsyou do well and they think are important

• Your also place significant focus and effort p gimproving on things that you don’t do as well but are really important to them

• You De-emphasize and reduce effort on things that you do really well but they don’t care about

• You eliminate things you don’t do well and they don’t care about

Example: Preliminary Design DrawingsExample: Preliminary Design Drawings

Go through key components of design and ask ifGo through key components of design and ask ifthey like (and to what degree) AND how important is it to them (document responses!!!!!!!)

This may seem tedious but it is VERY IMPORTANT

THIS IS TRUE FOR GREEN AND NONGREEN FACTORS!

What You End Up With is:What You End Up With is:

A list of project attributes (e.g. timber framing, rain garden, hardwood floors, FSC-wood, white oak triple-glazed windows), how well they fit in the project…..and how much they care about them individually.

3 Messaging3. Messaging

How Do I Get Green Customers To Hear My Message?

Product Adoption ProcessProduct Adoption Process

A. AwareA. Aware

B. Interest

C EvaluationC. Evaluation

D. Trial

E AdoptionE. Adoption

BasicallyBasically,

With the Right Message to the Right People at the

Right Time In the Right Manner!

How?

A To Get Someone Truly Aware:A. To Get Someone Truly Aware:

Selective:Selective:Exposure (get message to customer)Attention (cue - senses)Attention (cue senses)Comprehension (interpretation of cue)Retention (emotion important to memory)

To Someone Truly “Aware” of a Green ProductTo Someone Truly Aware of a Green ProductOption:

Right CueRight Cue

Get Past Filters

Key to Filters is INFLUENCERS!Key to Filters is INFLUENCERS!

FamilyFamily

Friends

“Experts” E g licenses (Doctor Lawyer)Experts E.g. licenses (Doctor, Lawyer)

Government

INFLUENCE is aboutINFLUENCE is aboutTRUST!

Trust is Earned Based on a Demonstrated Ability &Commitment!Commitment!

Ability is About Training & ExperienceAbility is About Training & Experience

C it t i b t YOUR A ti !Commitment is about YOUR Actions!

Key to Awareness Stage!Key to Awareness Stage!

• Images (evoke creative side and emotions)Images (evoke creative side and emotions)

• Simple message aimed at key known interests/concerns

• Demonstrate Expertise in that area

• Demonstrate Commitment (if necessary)( y)

AWAREAWARE

Key to Interest Stage!Key to Interest Stage!

• More Images (Provide additional details)More Images (Provide additional details)

• A few simple messages aimed at key known interests/concerns

• Demonstrate Expertise/Ability in those areas

• Demonstrate Commitment (if necessary)( y)

INTERESTINTEREST

Key to Evaluation Stage!Key to Evaluation Stage!

• More Detail(Now is the time for numbers)More Detail(Now is the time for numbers)

• Make comparisons

• Structure info to be sure evaluation is appropriateStructure info to be sure evaluation is appropriatefor four different personality motivations (numbers, lists, people, self-interest)

• Demonstrate Expertise/Ability in those areas

• Demonstrate Commitment (if necessary)

EVALUATION

Source:http://cloud.homedesignersoftware.com/1/images/products/upgrade wiz/simplecomparison matrix.jpg

D Getting Someone to Try Your Product:D. Getting Someone to Try Your Product:

Make it Through Steps 1-3Make it Through Steps 1 3

Clarify Benefits

Address Both Spoken and Unspoken Needs of BuyerAddress Both Spoken and Unspoken Needs of Buyer

Close - ask for the order

TRIAL Purchase

PLUS, You can visit the retail store to TRY it!!to TRY it!!

Getting Someone to “try” your productGetting Someone to try your product

Basically you are giving them a “test drive!”Basically you are giving them a test drive!

So take them to examples (option)So take them to examples (option)

Now it’s about the experience – they need to touch, feel, smell, taste(?), but especially visualize, , ( ), p y

They also need to see modifications (design examples with ability to tweak) and understand impact of design on cost and on other factors

E Adoption Occurs:E. Adoption Occurs:

Reinforce the purchaseReinforce the purchase

Develop a relationship

Get another orderGet another order

ADOPTIONADOPTION

EMAILEMAIL

WEBSITE HOMEPAGE

“APPLECARE”APPLECARE

CLOUD

ITUNES & OTHER SUPPORTITUNES & OTHER SUPPORT

INTEGRATED PRODUCTS

MOSER ADOPTIONMOSER ADOPTION

SIGN UP FOR NEWSLETTERSIGN UP FOR NEWSLETTER

REQUEST A CATALOG

CUSTOMER IN RESIDENCECUSTOMER IN RESIDENCE

CUSTOMER SERVICE

BLOG FACEBOOK TWITTERBLOG, FACEBOOK, TWITTER

GENERAL ADOPTION OPTIONSGENERAL ADOPTION OPTIONS

• 1-yr site visit (and thereafter….for a fee?)1 yr site visit (and thereafter….for a fee?)

• Newsletter

• Care maintenance repair info/helpCare, maintenance, repair info/help

• Upgrade/remodel options

• Celebrations (awards recognitions)• Celebrations (awards, recognitions)

4 Strategies4. Strategies

What are the Key Strategies For Success?

Key Strategies:Key Strategies:

1 F ll th li i l1. Follow the process religiously2. Align yourself with like-minded individuals and

organizationsorganizations3. Promote Benefits based on your knowledge of

the Target4. Tell Stories to build

understanding/relationships5 Utilize Brand Association5. Utilize Brand Association6. Utilize Conflict Resolution processes to

address concerns

F A thi ?For Awareness……this?

O thi ?Or……this?

B fit f W d?Benefits of Wood?

W dWoodRenewableRenewableProduce with solar energyStronger than Steel by wtA carbon storehouseA carbon storehouseRecyclableyReusable

Those are Features or Att ib t !Attributes!

Possible Benefits..

WoodWood,

Analytical: 50% Carbon and stores it 100Analytical: 50% Carbon and stores it 100years…clean air

Driver Easily used with existing process & equipmenty g p q p

Amiable Lightweight & nontoxic, safe

Expressive Warm, beautifulp ,

The Challenge With Portraying Wood Benefits?The Challenge With Portraying Wood Benefits?

Peoples concerns are often emotional, e.g. “No morePeoples concerns are often emotional, e.g. No moreBig Old Trees”……and to a varying degrees their concerns may be justified!

Rule #1 – you can’t debate or negate emotion! Don’t try.

The key is empathizing: “I understand your concern and (perhaps) even (use to) agree with you”

Then explain why or how you concluded this issue is resolved or being resolved. If YOU don’t know…..?

The Role of Storytelling

Story Telling HelpsStory Telling Helps…

• You give examples that show your commitmentYou give examples that show your commitment

• Provide information that illustrates your ability

…..Again, these two build relationship and trust!

Generally, people don’t distrust a message….it’s the messenger!!!!!!!messenger!!!!!!!

In the story telling process you tell them y g p y

about YOU, and how you’ve resolved this

conflict for yourself!

This is a messaging process – so don’t use or share data until they ask, e.g. “what convinced you, if you were so concerned as I am?”

Brand Association

SummarySummarySummarySummary

Remember, Overall…

You Get the Best Results When:You Get the Best Results When:

You Make the Time and Effort to Clearly Understand the Interests/Needs of Your Audience/Customer…

AND their interests align with your interests and abilities!

KNOW THY CUSTOMER!!KNOW THY CUSTOMER!!

KNOW THYSELF!!KNOW THYSELF!!

Questions?Questions?

This concludes The American Institute of Architects Continuing Education Systems Course

Dr. Jeff HoweD t il P t IDovetail Partners, Inc.jeff@dovetailinc.org