Can strategies and tactics be integrated to serve both Commercial and Residential segments? Or must they be isolated?
Often, we're introduced to products that are positioned to serve either commercial or residential construction, but not both. This is despite the fact that the product would provide equal value to both segments. As we dig deeper to discover why an entire segment is being ignored, we rarely find a good reason for this missed opportunity. In fact, usually an entire segment is missed simply because a product was initially developed for the other segment.
The architectural and design communities are in the midst of significant evolutional changes that affect both the residential and commercial segments. As new design processes and approaches are adopted, there are opportunities to enter the segment you are not currently addressing. Frankly, there has never been a better time in recent history to review your product's applicability to both segments.
In the residential segment, home ownership is trending downwards, as millennials do not view ownership as essential to their lifestyles and investment portfolios. In addition, many Gen Xers and Baby Boomers are moving back to urban areas, living in or near cities in buildings that may or may not have been originally designed as a residence. These buildings require products and systems that are most often specified within the commercial segment.
In a recent article published by Architizer, trends like solar shading, facade panels, and ceiling screens – products common in commercial design – are increasingly being utilized in residential applications.
Conversely, there are a myriad of products sold exclusively through residential channels that have applicability in commercial building types like mixed-use development, multi-family housing developments, and hospitality. In these building types, there is a blend of product needs and an opportunity to introduce residential products.
As commercial and residential products continue to cross-pollinate segments, you may have an opportunity to benefit from this trend. Through effective analysis and planning, there are real opportunities to leverage marketing, sales, distribution, and product efforts to serve both segments. Complexity no doubt exists and prioritization can be a challenge. However, with a sound strategic plan and expert tactical execution, you can promptly and positively impact business.
LarsonO'Brien provides strategic and integrated marketing and consultative services for companies desiring to increase revenue and grow market share in the building design and construction industry. LarsonO'Brien's ten-member executive team combines more than 250 years of real-world leadership in the construction industry; in business development, sales, marketing, and R&D. For more than a decade, LarsonO'Brien's proven strategic planning methodologies, industry insights, creativity and expert execution have consistently produced transformational and revenue-generating results for our clients.