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                                       Segment
                                           1
     U N DERSTANDING YOUR C ONSUmER A ND YOUR mA R kETpL ACE


                                       Segment
                                           2
                       WhAT IS YOUR b R A ND I D ENTI TY ?


                                       Segment
                                           3
                      bEST pRACTI C ES F ROm R ETA I L ER S


                                       Segment
                                           4
                                mAR kETI NG I D EA S


                                       Segment
                                           5
                       WORkING W I Th ShA W A D SOURC E


                                       Segment
                                           6
                      WhY CREAT E A mA R kETI NG pL A N?




DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008         1
[ WELCOmE ]

Shaw Learning Academy is pleased to offer Differentiating Yourself in the Marketplace: Tips and
Techniques for Advertising and Marketing. This course includes a series of short segments with
practice activities to help you become more effective at differentiating your store in your market area.

The learning sessions will work like this. First, you’ll view a short segment about techniques that store
owners and managers can use in marketing. Then, you’ll use your participant workbook for customized
activities that target your store culture and your needs. Some segments will have scenarios or questions
for you to evaluate and answer.

Following each activity, you’ll be able to check your answers. So, by going through the various segments
and filling in answers that are specific to you, including the use of the examples on the resource CD, you
will be able to create some documents and processes that are unique and useful to your business.


Our Agenda for Complete Course
SEGmENT 1: Understanding Your Consumer and Your Marketplace
SEGmENT 2: What is Your Brand Identity?
SEGmENT 3: Best Practices from Retailers
SEGmENT 4: Marketing Ideas
SEGmENT 5: Working with Shaw AdSource
SEGmENT 6: Why Create a Marketing Plan?



Objectives for the Full Series are to help you:
■Identify key demographic information you would like to learn about your customers.


■   Define the elements of branding and select the most appropriate steps that you are willing to take
    to market your brand.


■   Identify promotions and best practices that will work in your area.


■   Rank the possible marketing initiatives according to your market needs and select a new marketing
    idea you would be willing to institute.


■   Identify what is available on Shaw AdSource and view a demo of how to access the materials.




DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                       2
DIFFERENTIATING YOURSELF IN ThE mARkETpLACE:
TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING
UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE
WhAT IS YOUR bRAND IDENTITY?
bEST pRACTICES FROm RETAILERS
mARkETING IDEAS
WORkING WITh ShAW ADSOURCE
WhY CREATE A mARkETING pLAN?




SEGmENT 1 | Understanding Your Consumer and
                               Your Marketplace
Objectives for Segment 1:
■   Be able to identify key demographic information you would like to learn about your customers.
■   Rank the consumer information that you feel would be most important to you.
■   List the characteristics of your target residential consumers and your business customers.

Who shops at your store? What is the profile of your typical consumer? Is she 35 – 40 years old, does
he live in a 3-bedroom house, are there children in the household?

Demographics are statistical data on the human race which includes all types of information useful in
helping businesses identify target markets for their products. Because many businesses have little room
for error in spending their marketing and advertising dollars, using demographic information can help you
learn who your customer is, where she lives, family income, education, lifestyle, and many other statistics.

While it might seem overwhelming to gather this type of information, Shaw Industries has provided a source
to help you in your market analysis.

Shaw AdSource works with Marketing Alliance to help you target your ideal customer. The list information is
collected by some of the nation’s leading compilers: Acxiom, Equifax, HomeData and D & B. Whether you
are marketing Business to Business, or Business to Consumer, they can be your one-source list provider.

Shaw Industries undertook a three-year research project to determine how consumers research and
shop for flooring.

Here’s what they found:
■ 40% list proximity to their homes as the primary factor that determines at which flooring store they
   will shop.
■ 52% did internet research before visiting a flooring store, and 44% continued to research on the
   internet during their floor-buying process.
■ Average shopping time was 4.5 weeks with visits to an average of three stores.


Let’s talk about the demographics. Using these services provided through Shaw AdSource, you can
narrow down your targeted audience with over 300 specific demographics or psychographics
(lifestyle indicators) such as:

■   Consumer/Demographics such as age, type of home, education, income, occupation and children.



DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                         3
■    Psychographics such as magazine subscribers, lifestyle values, social interests, members of groups,
     hobbies, etc.
■    Business/Demographics such as position in business, annual sales, years in business, number
     of employees.

Data hygiene for Shaw AdSource Customers
In addition to the wide variety of sorting opportunities, this demographic information undergoes constant
data hygiene to insure its accuracy, and with the use of presort software, you can reduce postage rates,
improve delivery times and obtain all the necessary documentation for the U.S. Postal Service. While the
typical industry average deliverability quote is 90%, Marketing Alliance Group guarantees an above
average deliverability rate of 94% on their lists.

Demographic Categories
As you review the types of demographic information that can be provided, please rank the top four most
important items you would like to know about your target customers in each of the columns. The first
chart is for consumers and the next chart is for business customers. These charts list some of the
basic information that is provided. If you would want other information, please add that to the chart
and include it in your ranking.

Activity
Rank your top 4 in each category, with 1 being your highest priority. Add other information you’d like
to know and rank in the rows at the bottom.



    Consumer/Demographics psychographics                      business/Demographics

    Item                   Rank     Item                      Rank     Item                          Rank

    Age                             Pet Owners                         Business Owner

    Dwelling Type                   Religious Groups                   Business Type Code

    Education                       Sports Fans                        Employee Size

    Estimated Income                Travelers                          Estimated Annual Sales
    Ethnicity                       Hobbyist                           Gender of Owner

    Home Owner/ Renter              Magazine Subscribers               Location Code

    Home Market Value               Lifestyle Values                   Ownership Code

    Length of Residence             Social Interest                    SIC Codes

    Occupation                      Role of Money                      Year Business Started

    Presence of Children            Risk Takers                        Years in Business




DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                      4
Your Target Consumers?
 In the lines below, describe what you feel are the characteristics of your target consumer, that is who you
 WANT to shop in your store. Using the same charts, fill in the information on what you perceive i.e., the
 customer you want to target.


 Consumer/Demographics

 Item                            Fill in Your Answers
 Age Range
 Dwelling Type
 Education
 Estimated Income
 Ethnicity
 Home Owner/ Renter
 Home Market Value
 Length of Residence
 Occupation
 Presence of Children




 psychographics

 Item                            Fill in Your Answers
 Pet Owners
 Religious Groups
 Sports Fans
 Travelers
 Hobbyist
 Magazine Subscribers
 Lifestyle Values
 Social Interest
 Role of Money
 Risk Takers




DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                         5
Your Target business Customers?
In the lines below, describe what you feel are the characteristics of your target business, i.e., whose
business you WANT to get. Using the same charts, fill in the information on what you perceive are
the characteristics of the business customer you want to target.



 business/Demographics
 Item                             Fill in Your Answers
 Business Owner
 Business Type Code
 Employee Size
 Estimated Annual Sales
 Gender of Owner
 Location Code

 Ownership Code
 SIC Codes
 Year Business Started
 Years in Business

Remember, using demographic information can help you learn who your customer is,
where she lives, family income, education, lifestyle, and many other statistics that
can be useful as you decide how to spend your marketing and advertising dollars.



DIFFERENTIATING YOURSELF IN ThE mARkETpLACE:
TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING
UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE
WhAT IS YOUR bRAND IDENTITY?
bEST pRACTICES FROm RETAILERS
mARkETING IDEAS
WORkING WITh ShAW ADSOURCE
WhY CREATE A mARkETING pLAN?



SEGmENT 2 | What is Your Brand Identity?
Brand identity communicates visually and verbally the standards of an organization. It implies a potential
promise to customers and helps differentiate the organization’s products and services from those of its
competitors. Every business wants to be a customer's first choice, so that you come immediately to a
customer’s mind whenever she thinks about purchasing the type products you offer. Concentrating on
building and managing your brand can play a significant part in making that happen.

The concept of a brand extends far beyond just your company logo and signage to the core values of your
business, to the appearance of your showroom, and to each and every interaction you have with customers
and suppliers. In effect, your brand creates and maintains your reputation and also reflects your customers'
perception of your company.


DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                         6
An emotional attachment to your brand can create strong loyalties in both your customers and your
employees. A strong brand can help your business stand out from the crowd, particularly in competitive
markets. If you want to build and manage a brand, you'll need to focus on what your customers want and
how you can guarantee to deliver it. You'll need to be consistent in your service and in all your materials
and all your interactions with customers.

It’s important that you create the impression that your brand has certain qualities or characteristics that
make it unique, so that just hearing a company name or seeing its name creates a positive feeling. It is
one of the most valuable elements in your advertising campaigns and your goal should be that people
in your market area instantly think of your brand name when they think of flooring.

Activity: What is Your brand?
In the chart below, fill out information about your brand.

 1. What do your customers perceive
    as the value of doing business with you?

 2. What is your mission statement?

 3. What are the key message(s) and/or
    brand values you want to convey to
    customers?

 4. How is your brand identity consistent and
    evident in all your marketing materials and
    in your company processes and procedures?

 5. How do you keep your brand promise in the
    minds of both your employees and your
    customers?

Tips on branding
To build a successful brand identity it’s important to:
■ Identify what your company really stands for. Focus on how you provide solutions for your customers.
■ Keep your brand simple by focusing on a small number of key brand values.
■ Take ownership and pride in your brand. Believe wholeheartedly in your brand and always refer to it
   in a positive manner. If you don't, no one else will.
■ Be consistent. Every aspect of your business should make customers feel the same way about you.
■ Be thorough. Look at all your systems and processes to make sure they help to support your brand.
   For example, if you say customer satisfaction is your number one priority, but it’s difficult for a
   customer to find out how long it will be until a product is installed, then you aren’t supporting
   your brand.
■ Try to view your business as if looking through the eyes of your customer. Look at the kind of image
   that is portrayed to the customer in every encounter: one the phone, in person, through the mail, in
   your newspaper ads, and when installers go into their home. View all this with a critical, exacting eye,
   just like your customers do. Then, change what does not support your brand values.
■ Involve all your employees. Make sure they understand your brand and believe in it. Tell them you
   expect them to live up to the brand values and watch that they do.




DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                        7
■   Communicate your brand constantly. Make sure every advertisement, brochure and letter helps
     reinforce the same message. If you have a logo, use it everywhere, but make sure the quality
     is consistent.
 ■   Meet and exceed what your brand promises. Always think of ways you can exceed your customers’
     expectations, that is, how can you provide service and products that delight the customer?
 ■   Manage your brand. Continually look for opportunities to make improvements. And don't be afraid
     to make changes to reflect shifts in the way you do business or new trends in your market.

 Remember, a strong brand can help your business stand out from the crowd,
 particularly in competitive markets.



DIFFERENTIATING YOURSELF IN ThE mARkETpLACE:
TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING
UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE
WhAT IS YOUR bRAND IDENTITY?
bEST pRACTICES FROm RETAILERS
mARkETING IDEAS
WORkING WITh ShAW ADSOURCE
WhY CREATE A mARkETING pLAN?




SEGmENT 3 | Best Practices from Retailers
Objectives for Segment 3:
■ Review practices from other Shaw retailers.
■ Evaluate practices by selecting those that you already do and those that you would be willing to try.
■ Be able to state the benefits of private label credit cards.


best practices of Shaw Retailers
At a recent convention, retailers were asked to share their best practices concerning advertising,
promotions and special events. In the columns to the right, place a check in the “Already Use” column by
those that you already feel you do well. Then place a check in the “Willing to Try” column by those which
you would like to try.

 best practice                                                                 Already Use   Willing to Try

 1. brand yourself using your picture. In the newspaper, on
    TV or on your website, include your picture. People like to look at
    pictures and the instant recognition you can achieve will be invaluable.
    You may also want to include pictures of your management team
    and your salespeople to get people familiar with some key names
    and faces, i.e. how real estate agents get their names noticed.

 2. One-day sales create urgency. However, you must send out
    private invitations two weeks in advance, make sure your staff and
    customers recognize that the product is a real value, and accept
    deposits, even if customers need some time to consider the
    purchase.




DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                        8
best practice                                                             Already Use   Willing to Try

 3. Internet advertising is very important. You must have a
    presence on the internet, whether it’s your own website or you are
    in a web mall or advertising group. Visit www.myshawflooringcenter
    .com or www.myshawdesigncenter.com, contact Web Express at
    1.888.377.7249 or contact a local web developer.

 4. Consider a 6-week event. Because people do need time to
    make a flooring purchase, consider having a seasonal sale that lasts
    about six weeks and support it with direct mail and advertising.

 5. Track your advertising. For a certain time period, ask customers
    how they heard about the sale or learned about your store. Chart
    or document whether it was from a referral, a newspaper ad, a
    radio ad, from your website, etc. This will help you decide where
    to spend your advertising dollars.

 6. Consider coupons. Suggestion was for $100 off / $1000
    purchase. Put an SKU number on coupons so you can tell how
    many were used.

 7. Yellow pages. Yes, and use your major phone book most of the
    time with an ad at least the size of a dollar bill. You can even use
    a different phone number for the ad that still rings into your main
    number, and receive monthly reports on how many calls came
    in from the ad.

 8. home shows are effective. Retailers have had success
    participating in home expos, showcase houses for garden clubs and
    fundraising events, tours of homes, etc. Be sure to have an adequate
    supply of brochures or business cards available when your products
    are featured.

 9. money for advertising. Retailers suggested 3-5% of your budget
    in competitive markets and 1% in non-competitive markets.

 10.plan your marketing campaign and budget. Instead of just
    reacting to advertising opportunities and salespeople, plan your
    advertising for at least six months ahead knowing which sales or
    seasonal events you want to advertise and what other materials
    need to accompany your ads, such as direct mail, private sale
    invitation, coupons, point-of-purchase signs.

 11.Tie into community events. Think of ways that your company
    can be a part of a charitable or community event and advertise
    to coordinate with the event. For example, a community might have
    an annual festival for a food grown in the area, for a season or for
    a famous person. Tie your advertising and marketing into that event.



DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                    9
best practice                                                               Already Use   Willing to Try

 12.make television ads work for you. Pick the programs and not
    the stations. You want programs that your target audience watches.

 13. Advertise on one radio station at a time. Use that station
     for a period of time; track your traffic and then try another station
     and do the same.

 14. Focus on times when customers want to impress others
     or make changes. The holidays or the spring season are good
     times because people have company coming or they want to start
     remodeling in the springtime. Look at your past sales and select
     your biggest months to focus your ads on change or on the holidays.

 15. Use billboards for directions. They’re good if your location
     isn’t easily visible or accessible. Make them bold and easy to read
     with your logo and a reason to do business with you.

Shaw will continue to solicit best practices from retailers and will share those with you through several
types of media in the future. And, as a special benefit for aligned dealers, the Shaw Learning Academy’s
future website will feature a password-protected forum for dealers to share ideas and best practices.

private Label Credit Cards: how to Double Your Average Sale
Imagine doubling your average ticket – taking it from $500 for a VISA/MasterCard sale, or $750 for
a cash sale – to $1,400 or more! It’s not magic… that is the average for a Shaw/CitiFinancial
Consumer Credit transaction.

These days, you need powerful selling tools to close the sale for every customer who comes into your
store. Shaw/CitiFinancial Consumer Credit can help you fulfill the needs of your customers by providing the
money they need to purchase what they really want. History has shown that when consumers are aware of
available Shaw/CitiFinancial Consumer Credit, more often than not they will upgrade their
purchase. And, they buy even more when longer credit terms are offered.

High approval rates and generous credit lines allow your customers to make the flooring purchase they
need today, with easy monthly payments that fit their lifestyle.

With Shaw/CitiFinancial Consumer Credit your consumers get a branded credit card with your company
name on it to encourage repeat business. You have the option to print personal messages from you about
your store using the statement messaging program from Citi. A great way to inform customers about new
products, sale events, or just to say “Thank You!” Building a stronger relationship with your customers
has never been easier.

Check out these key Shaw/CitiFinancial Consumer Credit benefits to you:
■ No dealer fees (No terminal or monthly service charges)
■ Superior customer service – for you and your customer
■ Everyday low rates
■ 24-hour access to account information
■ Higher average sales


DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                        10
■   Consumer open-to-buy lists provided to you by CitiFinancial – target your customers who have
    available credit with special product offers.
■   Sales credit deposited into your bank account within 48 hours.
■   Exclusive buy downs on Shaw products for SFA/SDC dealers
■   Shaw/CitiFinancial Consumer Credit can save you time and money, while encouraging your
    customers to buy now. The CitiFinancial program reduces your paperwork and overhead.
    You have a competitive edge.

To learn more about Shaw/CitiFinancial Consumer Credit please call 1-888-622-4345.



DIFFERENTIATING YOURSELF IN ThE mARkETpLACE:
TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING
UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE
WhAT IS YOUR bRAND IDENTITY?
bEST pRACTICES FROm RETAILERS
mARkETING IDEAS
WORkING WITh ShAW ADSOURCE
WhY CREATE A mARkETING pLAN?




SEGmENT 4 | Marketing Ideas
Marketing provides so many opportunities yet so many decisions to make. In an effort to help you with
these marketing decisions, we’ll be discussing the advantages and limitations of various methods of
marketing in general and then outline the specific marketing advantages you receive as a Shaw retailer.

marketing Advantages as a Shaw Retailer

ShawFloors.com Generates business for You
Shawfloors.com has over 55,000 unique visitors a week; that's over 3 million visitors in a year. A unique
visitor is one new person each time, not the same person visiting the website 5 or 6 times. And, on
average a visitor clicks on 20 – 25 pages.

National Advertising Generates business for You
Each year Shaw’s advertising campaign delivers hundreds of millions of impressions through a media mix
of national print, web and TV. We’ve taken a creative approach with this ad campaign by designing a
concept that stands out from other flooring home furnishings advertising. Specifically, the ads use
imagery and messages that inspire homeowners to use their imagination and look at flooring in
a new context.

The advertising media used for the national campaign varies due to market conditions and media
opportunities. For the past few years, Shaw has employed a combination of national magazines
and television.

Your customers will see ads in major national media such as:
■   Southern Living
■   Country Home
■   Country Living
■   Traditional Home


DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                      11
■   House Beautiful
■   Good Housekeeping
■   Sunset
■   This Old House
■   O, At Home
■   Better Homes & Gardens special interest publications:
    ■  Kitchen and Bath
    ■  Renovation Style
■   HGTV
■   DIY

E-mail marketing – Economical and Trackable
E-mail provides a way to contact consumers on a one-to-one level. Not only can e-mail be used to
communicate with existing customers, but also can be used – with limitations – for customer acquisition
and lead generation. E-mail addresses of prospective customers are very difficult to acquire, and change
often. Acquiring e-mail addresses requires creative techniques, such as requiring an e-mail address on
registrations for prize drawings during home shows. E-mail marketing content can be one-size-fits-all or
highly customized based on customers’ interests and purchasing habits. And, through Shaw AdSource
you can receive special assistance on e-mail marketing.

E-mail marketing enables real-time tracking by offering the following benefits:
■   Ability to track click-throughs and purchases related to a specific campaign.
■   Ability to generate measurements/reports on such items as:
    ■   Who opened your message
    ■   Who clicked a link
    ■   What links generated the most clicks
    ■   Percentage of opens that converted to a sell
    ■   Which list pulls the most click/conversions
    ■   Which campaign is most effective

One of the biggest advantages of e-mail is its ability to boost the effectiveness of direct mail, particularly
in following up on or leading to a direct mail campaign. It is a low-cost way to increase frequency of
communication with customers. For example: A national charity that implemented an e-mail program
with an existing postal mail program increased their return on investment by 30%.

here are some statistics about customers’ perceptions of e-mail.
■ Customers expect certain communications via e-mail, such as transactional messages
  (order confirmations, receipts, shipping information, etc.)
■ 97% of consumers and 94% of marketers use e-mail (Forrester, 2007)
■ 77% open marketing e-mails from trusted sources
■ 76% want to receive relevant marketing e-mails
■ 67% more likely to visit your website after opening a marketing e-mail


Information from Forrester, 2007, MarketingSherpa 8/2007 and E-mail Marketing Benchmark Survey




DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                           12
place Your marketing on Auto-pilot
 Place your direct marketing on Auto-Pilot with Shaw AdSource and www.thedmspot.com. Whether
 using your existing customer base, or trying to reach new customers, this resource can develop a
 program through direct mail and e-mail marketing to stay in-touch with your customers all year long.
 Imagine mailing your customers a birthday card or “missed you” card and not having to lift a finger,
 it’s automatically done!

 Need to expand your customer base? Shaw AdSource and Marketing Alliance can place reaching
 out to the community on auto-pilot for you. From a general marketing plan of sending 15,000 mailers
 out four times a year, to a more sophisticated marketing plan, call 800.322.2944.

 For more information on Direct Marketing, call Shaw AdSource at 800.322.2944 or visit
 www.thedmspot.com or www.shawadsource.com.

 personal Website programs
 Personal Website Programs (pURL Programs) use information about a customer (name, age, sex,
 etc.) to create a truly personal mail piece. These mailers direct the recipient to a website that is also
 personalized with his or her information on each page. This customer interaction allows you to collect
 data, track responses, and generate lead lists for immediate follow-up. The technology is cutting edge
 and is unlike anything your customers have ever seen, sparking their curiosity and capturing
 their attention.

 For more information on Personal Website Programs, contact Shaw AdSource at 1.800.322.2944.

 WebXpress for Shaw Retailers
 Interested in the power of the internet but not sure how to get started or where to find all the information
 you might need to make your site a good resource to your customers? WebXpress can help.

 Using all of the product information that Shaw Industries has created, WebXpress can create and
 maintain a customized website for your store for a very reasonable fee. Available only to Shaw aligned
 dealers, this web service allows you to select from a variety of prepared templates that feature flooring,
 window treatments, wallpaper, and decorative surfaces.

 Here are some benefits of working with WebXpress:
 ■ Speed of launch: After answering a series of questions about your products and your store, pages
   can be populated in just a few days for your review.
 ■ Easy to use: It was designed for people who are not computer experts with tech support and
   update buttons to allow you to make changes 24/7.
 ■ Customized: Your store logo, photos, projects and employees can be featured on your site.
   And, it even includes an online employment system and has password protection for builder accounts.
 ■ Affordable: Cost is only $649 per year with no contracts and no set-up fees. Gold dealers can get
   a 25% discount and Platinum dealers can get a 50% discount.
 ■ Unlimited pages: You can have as many pages as you need to feature your products, services,
   locations, contacts, projects, photos and FAQ (frequently asked questions.)

 Want to see what your website might look like? An example is at www.myshawflooringcenter.com or
 www.myshawdesigncenter.com. For more information, call Dan Whelan at 1.888.377.7249.




DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                          13
Overview of media Types
The chart below lists a variety of media types that you might consider for your store, their advantages and
limitations and a general cost level.

 media Type             Advantages                           Limitations                      Cost
 E-mail                 Content can be personalized          Might seem too impersonal        Very low
                        or all-inclusive                     to some customers

                        Flexible timing makes it             Only reaches people with
                        easily accessible, easily changed    provided e-mail addresses

                        Coupons can be printed and used      E-mail addresses can be
                        at no cost to your business          blocked or changed

                        Can easily monitor responses         Many consumers are leery of
                        to gauge effectiveness               SPAM and afraid to read it

                        Is very effective when used to
                        follow-up on direct mail contacts

 Web Site               Huge viewing audience                Available only to those who      Very low
                                                             use the web address or search
                                                             and find the web site

                        Creativity is endless: visual,       Should not be only form of
                        audio, motion, links, etc.           advertising

                        Option to either pay someone         Best if used in conjunction
                        to design site from scratch,         with other media advertising
                        design it yourself, or use a         to get web address out there
                        company that provides templates
                        for your use

 Newspaper              Flexibility in timing                Neighboring print                Inexpensive
                                                             can overshadow yours             compared to
                                                                                              other forms of
                                                                                              advertising

                        More content possibility allows      Limited by demographics
                        for deeper message

                        Coupons are an option                Newspapers get thrown
                                                             away daily

                        Fast, immediate advertising          No sound or motion

                        Can select specific newspaper,       Position of ad in newspaper
                        day, and section according to        not usually guaranteed
                        audience needing to reach

                                                             Poorly designed ads don’t
                                                             get seen or remembered


DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                         14
media Type          Advantages                         Limitations                        Cost

 Yellow pages       Ad lasts for a full year            Bigger, brighter, more        Costly
                                                        expensive ads more noticeable

                    Customers find you when they        Repeat advertisers get
                    need your services                  better positions

                    Can offer discount for anyone
                    mentioning the ad

 Direct mail        Target audience demographically     Can be costly for well-designed,   Can be
                    and geographically                  eye-catching color ads             costly or
                                                        and postage                        inexpensive,
                                                                                           depending
                    Many design opportunities           Use of mass quantities of          on who
                    available                           paper is not environmentally       develops
                                                        friendly                           your direct
                                                                                           mail pieces
                    Can personalize mail                                                   and how
                                                                                           they are
                    Provides web address for                                               delivered.
                    customers to further research and
                    contact you on their own terms

                    Can offer coupons or discounts
                    for customers who bring in the ad
                    (provides a call to action)

                    Chance to promote seasonal /
                    special pricing offers

                    Greater efficiency in reaching a
                    targeted audience than any other
                    local media

 magazines          Specific customers can be           Can be costly                      More
                    targeted effectively                                                   expensive
                                                                                           than
                    Long shelf-life: costs more, but    Scheduling must be planned         newspaper-
                    readers keep magazines to refer     ahead of time                      less than
                    back to for months or years                                            audio
                                                                                           media
                    Visually cleaner and more           Not a fast solution
                    appealing than newspaper

                    Lends more credibility to your      Smaller advertisers usually
                    business / brand                    bunched together in back
                                                        of magazine



DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                    15
media Type          Advantages                          Limitations                     Cost

 Outdoor            Reaches many people many             Lengthy lead time               High
                    times each day                                                       production
                                                                                         costs

                    24-hour advertising                  Difficult to make changes

                    Can select specific                  Can be destroyed or altered
                    geographic areas                     by weather or vandalism

                    Can personalize message
                    for local community                  Message must be simple

 Radio              Connected to a community on a        Busy commercial breaks can      Inexpensive
                    personal level: consumers identify   drown out your message          compared to
                    with their radio stations                                            other forms of
                                                                                         advertising
                    Can use humor and have fun with      No visuals: doesn’t allow
                    listeners in this format             details of product to be seen

                    Radio is everywhere: home, car,      Only a section of community     Cost goes up
                    office, headphones                   reached in large markets        for spots
                                                                                         during peak
                    Short lead time makes it easy        Listeners may tune out          drive /
                    to target specific days for          during commercial breaks        commuting
                    specific offers / specials                                           times

                    Repeated play leaves a lasting       Ad cannot be clipped and
                    impression on listeners              saved for future reference

                    Requires frequent, ongoing
                    commercials for effectiveness –
                    messages not remembered for
                    long after you are off the air

 Television         Sound, visuals and motion lend       Not much flexibility in time    High out-of
                    credibility to your business / ad                                    -pocket costs

                    Reaches more people than other       Long lead time                  Higher
                    media types                                                          production
                                                                                         costs

                    Target audiences according to        Changes are difficult
                    programs / time slots                and costly

                    Viewers are usually attentive to
                    the television as opposed to
                    other media types



DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                    16
media Type               Advantages                            Limitations                   Cost

 Television              Creativity is endless

                         Personal connections can be
                         made or strengthened for
                         repeat customers

                         Requires frequent, ongoing
                         commercials for effectiveness –
                         messages not remembered for
                         long after you are off the air.


 Activity:
 Listed below are additional marketing ideas. In the table, check off in the appropriate column if you have
 employed this technique before or if you would consider using this technique/idea.

¡ marketing Idea                                                     have Already Used Would Consider

 1. Have a private sale for your preferred customers and
    send out an invitation. Perhaps offer a special discount
    when they bring the card.

 2. Issue bonus bucks or your store brand play money with
    each purchase. At a certain time of the year, have
    an auction with their bucks where they can bid on
    merchandise or generate dollars for a favorite charity.

 3. Offer incentives. For example, give a bonus to employees
    who reach a sales goal or who service a certain number
    of new customers per month.

 4. VIP Customer Appreciation Night for your best customers.
     Consider the importance of keeping the customers you
     already have and helping them feel special. Remember,
 	 	 it	costs	a	lot	more	to	find	a	new	customer	than	to	keep	the	
     good customers you already have; however, building that
     brand loyalty to your store takes a special effort.

 5. Offer a special incentive for your existing customers who
    provide referrals to you.

 6. Coordinate with a local charity to hold a fundraising event at
    your store. The more you are involved in the community, the
    more your credibility increases in your customers’ minds.

 7. Create events or sales that go along with events in your
    community. For example, if every December, your
    community sponsors a “Night on the Town,” then tie into
    that event with something at your store.


DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                        17
marketing Idea                                                have Already Used Would Consider

 8. Your customers must see your message many times
    before they take action. So consider all the different
    ways you could deliver your store message to keep
    your name constantly in front of them. For example,
    sending out direct mail one month, e-mails the following
    month, coupons, etc.


 DIFFERENTIATING YOURSELF IN ThE mARkETpLACE:
 TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING
 UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE
 WhAT IS YOUR bRAND IDENTITY?
 bEST pRACTICES FROm RETAILERS
 mARkETING IDEAS
 WORkING WITh ShAW ADSOURCE
 WhY CREATE A mARkETING pLAN?



SEGmENT 5 | Working with Shaw AdSource
Objectives for Segment 5:
Participants will be able to
■ Identify how to access Shaw AdSource website.
■ Review a list of materials available from Shaw AdSource and designate which you have used and which
   you might like to use.

What’s Available on Shaw AdSource
As we feature some of the materials in the video, check off the ones you have used in the past, and
put a star by the ones you might consider using in the future. We’ll be viewing some web pages at
www.shawadsource.com. AdSource is continually updated, so be sure to visit often for access
to new items.


marketing materials                                    Ad kit
Special Financing                                      Accessories
National Campaign                                      Direct mail materials
Anniversary promotion                                  Television Radio
kathy Ireland Fall Flooring Days                       price Tags
kathy Ireland Standard promotion                       Image Library
Tuftex                                                 Anso® Nylon
Stationery
poster kit                                             Shaw AdSource is your one-stop marketing site.
Direct mail                                            If you need assistance learning to use the site or
brochures                                              have questions about any of the materials on the
Shaw Green Edge                                        site, please call 1.800.322.2944.




DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                      18
DIFFERENTIATING YOURSELF IN ThE mARkETpLACE:
TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING
UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE
WhAT IS YOUR bRAND IDENTITY?
bEST pRACTICES FROm RETAILERS
mARkETING IDEAS
WORkING WITh ShAW ADSOURCE
WhY CREATE A mARkETING pLAN?


SEGmENT 6 | Why Create a Marketing Plan?
Because marketing is so important to the success of your business, it’s important to spend the effort to
create a customized marketing strategy for your store.

What is a strategy? Actually, it’s a well-defined path that you want to follow with a specific end result
you want to achieve. Although it may sound like a relatively simple process, getting started is probably the
hardest part. What will be most beneficial is to bring a good team of people together who can help
you develop this shared marketing strategy and who will help you implement it.

key elements of a strong marketing plan include the following:
■ Fully understanding who your target customers are.
■ Creating goals for what you want to accomplish.
■ Defining the strengths and benefits of your company.
■ Highlighting what the customers need and want, and how you can provide solutions to their issues.
■ Analyzing your competition and determining where you can differentiate yourself from your
  major competition.
■ Determining the key message(s) that you want to deliver to your customer base.
■ Setting sales goals and new customer goals.
■ Determining a budget.
■ Creating a workable plan, assigning responsibility and implementing your plan over a set
  period of time 9 months, 12 months, etc.
■ Analyzing whether your plan achieved your desired goals.


In a future Performance and Profitability Resource, we will address the specifics of creating a Marketing
Strategy. In addition, Shaw Learning Academy offers business and training consultants who can assist you
with all phases of your business development. For more information on business consulting,
contact Shaw Learning Academy at 1.800.811.2404.

Thank you for viewing Differentiating Yourself in the marketplace: Tips and Techniques
for Advertising and marketing.

In this series we have discussed understanding your consumer, your marketplace and the value of your
brand, in addition to providing best practices from successful retailers and information on working with
Shaw AdSource. We appreciate your participation and hope you have gained some useful insight into
skills to enhance your ability to differentiate yourself in the marketplace.

Shaw Learning Academy offers a wide variety of programs for retail stores. Please visit our website
at shawlearningacademy.com or call 1.800.811.2404 for more information about development opportunities
and training services.



DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008                                                         19

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6 Differentiating Marketplace11 24 08

  • 1.
  • 2. TAbLE OF CONTENTS Segment 1 U N DERSTANDING YOUR C ONSUmER A ND YOUR mA R kETpL ACE Segment 2 WhAT IS YOUR b R A ND I D ENTI TY ? Segment 3 bEST pRACTI C ES F ROm R ETA I L ER S Segment 4 mAR kETI NG I D EA S Segment 5 WORkING W I Th ShA W A D SOURC E Segment 6 WhY CREAT E A mA R kETI NG pL A N? DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 1
  • 3. [ WELCOmE ] Shaw Learning Academy is pleased to offer Differentiating Yourself in the Marketplace: Tips and Techniques for Advertising and Marketing. This course includes a series of short segments with practice activities to help you become more effective at differentiating your store in your market area. The learning sessions will work like this. First, you’ll view a short segment about techniques that store owners and managers can use in marketing. Then, you’ll use your participant workbook for customized activities that target your store culture and your needs. Some segments will have scenarios or questions for you to evaluate and answer. Following each activity, you’ll be able to check your answers. So, by going through the various segments and filling in answers that are specific to you, including the use of the examples on the resource CD, you will be able to create some documents and processes that are unique and useful to your business. Our Agenda for Complete Course SEGmENT 1: Understanding Your Consumer and Your Marketplace SEGmENT 2: What is Your Brand Identity? SEGmENT 3: Best Practices from Retailers SEGmENT 4: Marketing Ideas SEGmENT 5: Working with Shaw AdSource SEGmENT 6: Why Create a Marketing Plan? Objectives for the Full Series are to help you: ■Identify key demographic information you would like to learn about your customers. ■ Define the elements of branding and select the most appropriate steps that you are willing to take to market your brand. ■ Identify promotions and best practices that will work in your area. ■ Rank the possible marketing initiatives according to your market needs and select a new marketing idea you would be willing to institute. ■ Identify what is available on Shaw AdSource and view a demo of how to access the materials. DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 2
  • 4. DIFFERENTIATING YOURSELF IN ThE mARkETpLACE: TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE WhAT IS YOUR bRAND IDENTITY? bEST pRACTICES FROm RETAILERS mARkETING IDEAS WORkING WITh ShAW ADSOURCE WhY CREATE A mARkETING pLAN? SEGmENT 1 | Understanding Your Consumer and Your Marketplace Objectives for Segment 1: ■ Be able to identify key demographic information you would like to learn about your customers. ■ Rank the consumer information that you feel would be most important to you. ■ List the characteristics of your target residential consumers and your business customers. Who shops at your store? What is the profile of your typical consumer? Is she 35 – 40 years old, does he live in a 3-bedroom house, are there children in the household? Demographics are statistical data on the human race which includes all types of information useful in helping businesses identify target markets for their products. Because many businesses have little room for error in spending their marketing and advertising dollars, using demographic information can help you learn who your customer is, where she lives, family income, education, lifestyle, and many other statistics. While it might seem overwhelming to gather this type of information, Shaw Industries has provided a source to help you in your market analysis. Shaw AdSource works with Marketing Alliance to help you target your ideal customer. The list information is collected by some of the nation’s leading compilers: Acxiom, Equifax, HomeData and D & B. Whether you are marketing Business to Business, or Business to Consumer, they can be your one-source list provider. Shaw Industries undertook a three-year research project to determine how consumers research and shop for flooring. Here’s what they found: ■ 40% list proximity to their homes as the primary factor that determines at which flooring store they will shop. ■ 52% did internet research before visiting a flooring store, and 44% continued to research on the internet during their floor-buying process. ■ Average shopping time was 4.5 weeks with visits to an average of three stores. Let’s talk about the demographics. Using these services provided through Shaw AdSource, you can narrow down your targeted audience with over 300 specific demographics or psychographics (lifestyle indicators) such as: ■ Consumer/Demographics such as age, type of home, education, income, occupation and children. DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 3
  • 5. Psychographics such as magazine subscribers, lifestyle values, social interests, members of groups, hobbies, etc. ■ Business/Demographics such as position in business, annual sales, years in business, number of employees. Data hygiene for Shaw AdSource Customers In addition to the wide variety of sorting opportunities, this demographic information undergoes constant data hygiene to insure its accuracy, and with the use of presort software, you can reduce postage rates, improve delivery times and obtain all the necessary documentation for the U.S. Postal Service. While the typical industry average deliverability quote is 90%, Marketing Alliance Group guarantees an above average deliverability rate of 94% on their lists. Demographic Categories As you review the types of demographic information that can be provided, please rank the top four most important items you would like to know about your target customers in each of the columns. The first chart is for consumers and the next chart is for business customers. These charts list some of the basic information that is provided. If you would want other information, please add that to the chart and include it in your ranking. Activity Rank your top 4 in each category, with 1 being your highest priority. Add other information you’d like to know and rank in the rows at the bottom. Consumer/Demographics psychographics business/Demographics Item Rank Item Rank Item Rank Age Pet Owners Business Owner Dwelling Type Religious Groups Business Type Code Education Sports Fans Employee Size Estimated Income Travelers Estimated Annual Sales Ethnicity Hobbyist Gender of Owner Home Owner/ Renter Magazine Subscribers Location Code Home Market Value Lifestyle Values Ownership Code Length of Residence Social Interest SIC Codes Occupation Role of Money Year Business Started Presence of Children Risk Takers Years in Business DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 4
  • 6. Your Target Consumers? In the lines below, describe what you feel are the characteristics of your target consumer, that is who you WANT to shop in your store. Using the same charts, fill in the information on what you perceive i.e., the customer you want to target. Consumer/Demographics Item Fill in Your Answers Age Range Dwelling Type Education Estimated Income Ethnicity Home Owner/ Renter Home Market Value Length of Residence Occupation Presence of Children psychographics Item Fill in Your Answers Pet Owners Religious Groups Sports Fans Travelers Hobbyist Magazine Subscribers Lifestyle Values Social Interest Role of Money Risk Takers DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 5
  • 7. Your Target business Customers? In the lines below, describe what you feel are the characteristics of your target business, i.e., whose business you WANT to get. Using the same charts, fill in the information on what you perceive are the characteristics of the business customer you want to target. business/Demographics Item Fill in Your Answers Business Owner Business Type Code Employee Size Estimated Annual Sales Gender of Owner Location Code Ownership Code SIC Codes Year Business Started Years in Business Remember, using demographic information can help you learn who your customer is, where she lives, family income, education, lifestyle, and many other statistics that can be useful as you decide how to spend your marketing and advertising dollars. DIFFERENTIATING YOURSELF IN ThE mARkETpLACE: TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE WhAT IS YOUR bRAND IDENTITY? bEST pRACTICES FROm RETAILERS mARkETING IDEAS WORkING WITh ShAW ADSOURCE WhY CREATE A mARkETING pLAN? SEGmENT 2 | What is Your Brand Identity? Brand identity communicates visually and verbally the standards of an organization. It implies a potential promise to customers and helps differentiate the organization’s products and services from those of its competitors. Every business wants to be a customer's first choice, so that you come immediately to a customer’s mind whenever she thinks about purchasing the type products you offer. Concentrating on building and managing your brand can play a significant part in making that happen. The concept of a brand extends far beyond just your company logo and signage to the core values of your business, to the appearance of your showroom, and to each and every interaction you have with customers and suppliers. In effect, your brand creates and maintains your reputation and also reflects your customers' perception of your company. DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 6
  • 8. An emotional attachment to your brand can create strong loyalties in both your customers and your employees. A strong brand can help your business stand out from the crowd, particularly in competitive markets. If you want to build and manage a brand, you'll need to focus on what your customers want and how you can guarantee to deliver it. You'll need to be consistent in your service and in all your materials and all your interactions with customers. It’s important that you create the impression that your brand has certain qualities or characteristics that make it unique, so that just hearing a company name or seeing its name creates a positive feeling. It is one of the most valuable elements in your advertising campaigns and your goal should be that people in your market area instantly think of your brand name when they think of flooring. Activity: What is Your brand? In the chart below, fill out information about your brand. 1. What do your customers perceive as the value of doing business with you? 2. What is your mission statement? 3. What are the key message(s) and/or brand values you want to convey to customers? 4. How is your brand identity consistent and evident in all your marketing materials and in your company processes and procedures? 5. How do you keep your brand promise in the minds of both your employees and your customers? Tips on branding To build a successful brand identity it’s important to: ■ Identify what your company really stands for. Focus on how you provide solutions for your customers. ■ Keep your brand simple by focusing on a small number of key brand values. ■ Take ownership and pride in your brand. Believe wholeheartedly in your brand and always refer to it in a positive manner. If you don't, no one else will. ■ Be consistent. Every aspect of your business should make customers feel the same way about you. ■ Be thorough. Look at all your systems and processes to make sure they help to support your brand. For example, if you say customer satisfaction is your number one priority, but it’s difficult for a customer to find out how long it will be until a product is installed, then you aren’t supporting your brand. ■ Try to view your business as if looking through the eyes of your customer. Look at the kind of image that is portrayed to the customer in every encounter: one the phone, in person, through the mail, in your newspaper ads, and when installers go into their home. View all this with a critical, exacting eye, just like your customers do. Then, change what does not support your brand values. ■ Involve all your employees. Make sure they understand your brand and believe in it. Tell them you expect them to live up to the brand values and watch that they do. DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 7
  • 9. Communicate your brand constantly. Make sure every advertisement, brochure and letter helps reinforce the same message. If you have a logo, use it everywhere, but make sure the quality is consistent. ■ Meet and exceed what your brand promises. Always think of ways you can exceed your customers’ expectations, that is, how can you provide service and products that delight the customer? ■ Manage your brand. Continually look for opportunities to make improvements. And don't be afraid to make changes to reflect shifts in the way you do business or new trends in your market. Remember, a strong brand can help your business stand out from the crowd, particularly in competitive markets. DIFFERENTIATING YOURSELF IN ThE mARkETpLACE: TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE WhAT IS YOUR bRAND IDENTITY? bEST pRACTICES FROm RETAILERS mARkETING IDEAS WORkING WITh ShAW ADSOURCE WhY CREATE A mARkETING pLAN? SEGmENT 3 | Best Practices from Retailers Objectives for Segment 3: ■ Review practices from other Shaw retailers. ■ Evaluate practices by selecting those that you already do and those that you would be willing to try. ■ Be able to state the benefits of private label credit cards. best practices of Shaw Retailers At a recent convention, retailers were asked to share their best practices concerning advertising, promotions and special events. In the columns to the right, place a check in the “Already Use” column by those that you already feel you do well. Then place a check in the “Willing to Try” column by those which you would like to try. best practice Already Use Willing to Try 1. brand yourself using your picture. In the newspaper, on TV or on your website, include your picture. People like to look at pictures and the instant recognition you can achieve will be invaluable. You may also want to include pictures of your management team and your salespeople to get people familiar with some key names and faces, i.e. how real estate agents get their names noticed. 2. One-day sales create urgency. However, you must send out private invitations two weeks in advance, make sure your staff and customers recognize that the product is a real value, and accept deposits, even if customers need some time to consider the purchase. DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 8
  • 10. best practice Already Use Willing to Try 3. Internet advertising is very important. You must have a presence on the internet, whether it’s your own website or you are in a web mall or advertising group. Visit www.myshawflooringcenter .com or www.myshawdesigncenter.com, contact Web Express at 1.888.377.7249 or contact a local web developer. 4. Consider a 6-week event. Because people do need time to make a flooring purchase, consider having a seasonal sale that lasts about six weeks and support it with direct mail and advertising. 5. Track your advertising. For a certain time period, ask customers how they heard about the sale or learned about your store. Chart or document whether it was from a referral, a newspaper ad, a radio ad, from your website, etc. This will help you decide where to spend your advertising dollars. 6. Consider coupons. Suggestion was for $100 off / $1000 purchase. Put an SKU number on coupons so you can tell how many were used. 7. Yellow pages. Yes, and use your major phone book most of the time with an ad at least the size of a dollar bill. You can even use a different phone number for the ad that still rings into your main number, and receive monthly reports on how many calls came in from the ad. 8. home shows are effective. Retailers have had success participating in home expos, showcase houses for garden clubs and fundraising events, tours of homes, etc. Be sure to have an adequate supply of brochures or business cards available when your products are featured. 9. money for advertising. Retailers suggested 3-5% of your budget in competitive markets and 1% in non-competitive markets. 10.plan your marketing campaign and budget. Instead of just reacting to advertising opportunities and salespeople, plan your advertising for at least six months ahead knowing which sales or seasonal events you want to advertise and what other materials need to accompany your ads, such as direct mail, private sale invitation, coupons, point-of-purchase signs. 11.Tie into community events. Think of ways that your company can be a part of a charitable or community event and advertise to coordinate with the event. For example, a community might have an annual festival for a food grown in the area, for a season or for a famous person. Tie your advertising and marketing into that event. DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 9
  • 11. best practice Already Use Willing to Try 12.make television ads work for you. Pick the programs and not the stations. You want programs that your target audience watches. 13. Advertise on one radio station at a time. Use that station for a period of time; track your traffic and then try another station and do the same. 14. Focus on times when customers want to impress others or make changes. The holidays or the spring season are good times because people have company coming or they want to start remodeling in the springtime. Look at your past sales and select your biggest months to focus your ads on change or on the holidays. 15. Use billboards for directions. They’re good if your location isn’t easily visible or accessible. Make them bold and easy to read with your logo and a reason to do business with you. Shaw will continue to solicit best practices from retailers and will share those with you through several types of media in the future. And, as a special benefit for aligned dealers, the Shaw Learning Academy’s future website will feature a password-protected forum for dealers to share ideas and best practices. private Label Credit Cards: how to Double Your Average Sale Imagine doubling your average ticket – taking it from $500 for a VISA/MasterCard sale, or $750 for a cash sale – to $1,400 or more! It’s not magic… that is the average for a Shaw/CitiFinancial Consumer Credit transaction. These days, you need powerful selling tools to close the sale for every customer who comes into your store. Shaw/CitiFinancial Consumer Credit can help you fulfill the needs of your customers by providing the money they need to purchase what they really want. History has shown that when consumers are aware of available Shaw/CitiFinancial Consumer Credit, more often than not they will upgrade their purchase. And, they buy even more when longer credit terms are offered. High approval rates and generous credit lines allow your customers to make the flooring purchase they need today, with easy monthly payments that fit their lifestyle. With Shaw/CitiFinancial Consumer Credit your consumers get a branded credit card with your company name on it to encourage repeat business. You have the option to print personal messages from you about your store using the statement messaging program from Citi. A great way to inform customers about new products, sale events, or just to say “Thank You!” Building a stronger relationship with your customers has never been easier. Check out these key Shaw/CitiFinancial Consumer Credit benefits to you: ■ No dealer fees (No terminal or monthly service charges) ■ Superior customer service – for you and your customer ■ Everyday low rates ■ 24-hour access to account information ■ Higher average sales DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 10
  • 12. Consumer open-to-buy lists provided to you by CitiFinancial – target your customers who have available credit with special product offers. ■ Sales credit deposited into your bank account within 48 hours. ■ Exclusive buy downs on Shaw products for SFA/SDC dealers ■ Shaw/CitiFinancial Consumer Credit can save you time and money, while encouraging your customers to buy now. The CitiFinancial program reduces your paperwork and overhead. You have a competitive edge. To learn more about Shaw/CitiFinancial Consumer Credit please call 1-888-622-4345. DIFFERENTIATING YOURSELF IN ThE mARkETpLACE: TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE WhAT IS YOUR bRAND IDENTITY? bEST pRACTICES FROm RETAILERS mARkETING IDEAS WORkING WITh ShAW ADSOURCE WhY CREATE A mARkETING pLAN? SEGmENT 4 | Marketing Ideas Marketing provides so many opportunities yet so many decisions to make. In an effort to help you with these marketing decisions, we’ll be discussing the advantages and limitations of various methods of marketing in general and then outline the specific marketing advantages you receive as a Shaw retailer. marketing Advantages as a Shaw Retailer ShawFloors.com Generates business for You Shawfloors.com has over 55,000 unique visitors a week; that's over 3 million visitors in a year. A unique visitor is one new person each time, not the same person visiting the website 5 or 6 times. And, on average a visitor clicks on 20 – 25 pages. National Advertising Generates business for You Each year Shaw’s advertising campaign delivers hundreds of millions of impressions through a media mix of national print, web and TV. We’ve taken a creative approach with this ad campaign by designing a concept that stands out from other flooring home furnishings advertising. Specifically, the ads use imagery and messages that inspire homeowners to use their imagination and look at flooring in a new context. The advertising media used for the national campaign varies due to market conditions and media opportunities. For the past few years, Shaw has employed a combination of national magazines and television. Your customers will see ads in major national media such as: ■ Southern Living ■ Country Home ■ Country Living ■ Traditional Home DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 11
  • 13. House Beautiful ■ Good Housekeeping ■ Sunset ■ This Old House ■ O, At Home ■ Better Homes & Gardens special interest publications: ■ Kitchen and Bath ■ Renovation Style ■ HGTV ■ DIY E-mail marketing – Economical and Trackable E-mail provides a way to contact consumers on a one-to-one level. Not only can e-mail be used to communicate with existing customers, but also can be used – with limitations – for customer acquisition and lead generation. E-mail addresses of prospective customers are very difficult to acquire, and change often. Acquiring e-mail addresses requires creative techniques, such as requiring an e-mail address on registrations for prize drawings during home shows. E-mail marketing content can be one-size-fits-all or highly customized based on customers’ interests and purchasing habits. And, through Shaw AdSource you can receive special assistance on e-mail marketing. E-mail marketing enables real-time tracking by offering the following benefits: ■ Ability to track click-throughs and purchases related to a specific campaign. ■ Ability to generate measurements/reports on such items as: ■ Who opened your message ■ Who clicked a link ■ What links generated the most clicks ■ Percentage of opens that converted to a sell ■ Which list pulls the most click/conversions ■ Which campaign is most effective One of the biggest advantages of e-mail is its ability to boost the effectiveness of direct mail, particularly in following up on or leading to a direct mail campaign. It is a low-cost way to increase frequency of communication with customers. For example: A national charity that implemented an e-mail program with an existing postal mail program increased their return on investment by 30%. here are some statistics about customers’ perceptions of e-mail. ■ Customers expect certain communications via e-mail, such as transactional messages (order confirmations, receipts, shipping information, etc.) ■ 97% of consumers and 94% of marketers use e-mail (Forrester, 2007) ■ 77% open marketing e-mails from trusted sources ■ 76% want to receive relevant marketing e-mails ■ 67% more likely to visit your website after opening a marketing e-mail Information from Forrester, 2007, MarketingSherpa 8/2007 and E-mail Marketing Benchmark Survey DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 12
  • 14. place Your marketing on Auto-pilot Place your direct marketing on Auto-Pilot with Shaw AdSource and www.thedmspot.com. Whether using your existing customer base, or trying to reach new customers, this resource can develop a program through direct mail and e-mail marketing to stay in-touch with your customers all year long. Imagine mailing your customers a birthday card or “missed you” card and not having to lift a finger, it’s automatically done! Need to expand your customer base? Shaw AdSource and Marketing Alliance can place reaching out to the community on auto-pilot for you. From a general marketing plan of sending 15,000 mailers out four times a year, to a more sophisticated marketing plan, call 800.322.2944. For more information on Direct Marketing, call Shaw AdSource at 800.322.2944 or visit www.thedmspot.com or www.shawadsource.com. personal Website programs Personal Website Programs (pURL Programs) use information about a customer (name, age, sex, etc.) to create a truly personal mail piece. These mailers direct the recipient to a website that is also personalized with his or her information on each page. This customer interaction allows you to collect data, track responses, and generate lead lists for immediate follow-up. The technology is cutting edge and is unlike anything your customers have ever seen, sparking their curiosity and capturing their attention. For more information on Personal Website Programs, contact Shaw AdSource at 1.800.322.2944. WebXpress for Shaw Retailers Interested in the power of the internet but not sure how to get started or where to find all the information you might need to make your site a good resource to your customers? WebXpress can help. Using all of the product information that Shaw Industries has created, WebXpress can create and maintain a customized website for your store for a very reasonable fee. Available only to Shaw aligned dealers, this web service allows you to select from a variety of prepared templates that feature flooring, window treatments, wallpaper, and decorative surfaces. Here are some benefits of working with WebXpress: ■ Speed of launch: After answering a series of questions about your products and your store, pages can be populated in just a few days for your review. ■ Easy to use: It was designed for people who are not computer experts with tech support and update buttons to allow you to make changes 24/7. ■ Customized: Your store logo, photos, projects and employees can be featured on your site. And, it even includes an online employment system and has password protection for builder accounts. ■ Affordable: Cost is only $649 per year with no contracts and no set-up fees. Gold dealers can get a 25% discount and Platinum dealers can get a 50% discount. ■ Unlimited pages: You can have as many pages as you need to feature your products, services, locations, contacts, projects, photos and FAQ (frequently asked questions.) Want to see what your website might look like? An example is at www.myshawflooringcenter.com or www.myshawdesigncenter.com. For more information, call Dan Whelan at 1.888.377.7249. DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 13
  • 15. Overview of media Types The chart below lists a variety of media types that you might consider for your store, their advantages and limitations and a general cost level. media Type Advantages Limitations Cost E-mail Content can be personalized Might seem too impersonal Very low or all-inclusive to some customers Flexible timing makes it Only reaches people with easily accessible, easily changed provided e-mail addresses Coupons can be printed and used E-mail addresses can be at no cost to your business blocked or changed Can easily monitor responses Many consumers are leery of to gauge effectiveness SPAM and afraid to read it Is very effective when used to follow-up on direct mail contacts Web Site Huge viewing audience Available only to those who Very low use the web address or search and find the web site Creativity is endless: visual, Should not be only form of audio, motion, links, etc. advertising Option to either pay someone Best if used in conjunction to design site from scratch, with other media advertising design it yourself, or use a to get web address out there company that provides templates for your use Newspaper Flexibility in timing Neighboring print Inexpensive can overshadow yours compared to other forms of advertising More content possibility allows Limited by demographics for deeper message Coupons are an option Newspapers get thrown away daily Fast, immediate advertising No sound or motion Can select specific newspaper, Position of ad in newspaper day, and section according to not usually guaranteed audience needing to reach Poorly designed ads don’t get seen or remembered DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 14
  • 16. media Type Advantages Limitations Cost Yellow pages Ad lasts for a full year Bigger, brighter, more Costly expensive ads more noticeable Customers find you when they Repeat advertisers get need your services better positions Can offer discount for anyone mentioning the ad Direct mail Target audience demographically Can be costly for well-designed, Can be and geographically eye-catching color ads costly or and postage inexpensive, depending Many design opportunities Use of mass quantities of on who available paper is not environmentally develops friendly your direct mail pieces Can personalize mail and how they are Provides web address for delivered. customers to further research and contact you on their own terms Can offer coupons or discounts for customers who bring in the ad (provides a call to action) Chance to promote seasonal / special pricing offers Greater efficiency in reaching a targeted audience than any other local media magazines Specific customers can be Can be costly More targeted effectively expensive than Long shelf-life: costs more, but Scheduling must be planned newspaper- readers keep magazines to refer ahead of time less than back to for months or years audio media Visually cleaner and more Not a fast solution appealing than newspaper Lends more credibility to your Smaller advertisers usually business / brand bunched together in back of magazine DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 15
  • 17. media Type Advantages Limitations Cost Outdoor Reaches many people many Lengthy lead time High times each day production costs 24-hour advertising Difficult to make changes Can select specific Can be destroyed or altered geographic areas by weather or vandalism Can personalize message for local community Message must be simple Radio Connected to a community on a Busy commercial breaks can Inexpensive personal level: consumers identify drown out your message compared to with their radio stations other forms of advertising Can use humor and have fun with No visuals: doesn’t allow listeners in this format details of product to be seen Radio is everywhere: home, car, Only a section of community Cost goes up office, headphones reached in large markets for spots during peak Short lead time makes it easy Listeners may tune out drive / to target specific days for during commercial breaks commuting specific offers / specials times Repeated play leaves a lasting Ad cannot be clipped and impression on listeners saved for future reference Requires frequent, ongoing commercials for effectiveness – messages not remembered for long after you are off the air Television Sound, visuals and motion lend Not much flexibility in time High out-of credibility to your business / ad -pocket costs Reaches more people than other Long lead time Higher media types production costs Target audiences according to Changes are difficult programs / time slots and costly Viewers are usually attentive to the television as opposed to other media types DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 16
  • 18. media Type Advantages Limitations Cost Television Creativity is endless Personal connections can be made or strengthened for repeat customers Requires frequent, ongoing commercials for effectiveness – messages not remembered for long after you are off the air. Activity: Listed below are additional marketing ideas. In the table, check off in the appropriate column if you have employed this technique before or if you would consider using this technique/idea. ¡ marketing Idea have Already Used Would Consider 1. Have a private sale for your preferred customers and send out an invitation. Perhaps offer a special discount when they bring the card. 2. Issue bonus bucks or your store brand play money with each purchase. At a certain time of the year, have an auction with their bucks where they can bid on merchandise or generate dollars for a favorite charity. 3. Offer incentives. For example, give a bonus to employees who reach a sales goal or who service a certain number of new customers per month. 4. VIP Customer Appreciation Night for your best customers. Consider the importance of keeping the customers you already have and helping them feel special. Remember, it costs a lot more to find a new customer than to keep the good customers you already have; however, building that brand loyalty to your store takes a special effort. 5. Offer a special incentive for your existing customers who provide referrals to you. 6. Coordinate with a local charity to hold a fundraising event at your store. The more you are involved in the community, the more your credibility increases in your customers’ minds. 7. Create events or sales that go along with events in your community. For example, if every December, your community sponsors a “Night on the Town,” then tie into that event with something at your store. DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 17
  • 19. marketing Idea have Already Used Would Consider 8. Your customers must see your message many times before they take action. So consider all the different ways you could deliver your store message to keep your name constantly in front of them. For example, sending out direct mail one month, e-mails the following month, coupons, etc. DIFFERENTIATING YOURSELF IN ThE mARkETpLACE: TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE WhAT IS YOUR bRAND IDENTITY? bEST pRACTICES FROm RETAILERS mARkETING IDEAS WORkING WITh ShAW ADSOURCE WhY CREATE A mARkETING pLAN? SEGmENT 5 | Working with Shaw AdSource Objectives for Segment 5: Participants will be able to ■ Identify how to access Shaw AdSource website. ■ Review a list of materials available from Shaw AdSource and designate which you have used and which you might like to use. What’s Available on Shaw AdSource As we feature some of the materials in the video, check off the ones you have used in the past, and put a star by the ones you might consider using in the future. We’ll be viewing some web pages at www.shawadsource.com. AdSource is continually updated, so be sure to visit often for access to new items. marketing materials Ad kit Special Financing Accessories National Campaign Direct mail materials Anniversary promotion Television Radio kathy Ireland Fall Flooring Days price Tags kathy Ireland Standard promotion Image Library Tuftex Anso® Nylon Stationery poster kit Shaw AdSource is your one-stop marketing site. Direct mail If you need assistance learning to use the site or brochures have questions about any of the materials on the Shaw Green Edge site, please call 1.800.322.2944. DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 18
  • 20. DIFFERENTIATING YOURSELF IN ThE mARkETpLACE: TIpS AND TEChNIqUES FOR ADvERTISING AND mARkETING UNDERSTANDING YOUR CONSUmER AND YOUR mARkETpLACE WhAT IS YOUR bRAND IDENTITY? bEST pRACTICES FROm RETAILERS mARkETING IDEAS WORkING WITh ShAW ADSOURCE WhY CREATE A mARkETING pLAN? SEGmENT 6 | Why Create a Marketing Plan? Because marketing is so important to the success of your business, it’s important to spend the effort to create a customized marketing strategy for your store. What is a strategy? Actually, it’s a well-defined path that you want to follow with a specific end result you want to achieve. Although it may sound like a relatively simple process, getting started is probably the hardest part. What will be most beneficial is to bring a good team of people together who can help you develop this shared marketing strategy and who will help you implement it. key elements of a strong marketing plan include the following: ■ Fully understanding who your target customers are. ■ Creating goals for what you want to accomplish. ■ Defining the strengths and benefits of your company. ■ Highlighting what the customers need and want, and how you can provide solutions to their issues. ■ Analyzing your competition and determining where you can differentiate yourself from your major competition. ■ Determining the key message(s) that you want to deliver to your customer base. ■ Setting sales goals and new customer goals. ■ Determining a budget. ■ Creating a workable plan, assigning responsibility and implementing your plan over a set period of time 9 months, 12 months, etc. ■ Analyzing whether your plan achieved your desired goals. In a future Performance and Profitability Resource, we will address the specifics of creating a Marketing Strategy. In addition, Shaw Learning Academy offers business and training consultants who can assist you with all phases of your business development. For more information on business consulting, contact Shaw Learning Academy at 1.800.811.2404. Thank you for viewing Differentiating Yourself in the marketplace: Tips and Techniques for Advertising and marketing. In this series we have discussed understanding your consumer, your marketplace and the value of your brand, in addition to providing best practices from successful retailers and information on working with Shaw AdSource. We appreciate your participation and hope you have gained some useful insight into skills to enhance your ability to differentiate yourself in the marketplace. Shaw Learning Academy offers a wide variety of programs for retail stores. Please visit our website at shawlearningacademy.com or call 1.800.811.2404 for more information about development opportunities and training services. DIFFERENTIATING YOURSELF PARTICIPANT WORKBOOK 7.4.2008 19