Marketing's the Magic for Success

Going back to the basics of marketing, Sigler coaches her clients to look at the "4 Ps": Product, Pricing, Placement and Promotion. "These Ps will be different for every company, and when companies understand what is unique about their particular product, pricing, placement and promotion, they will know who their prime customers are and how to reach them"

Here is Sigler's advice to companies contemplating a new strategy for 2002:

PRODUCT. Define what your product or service is. How does your product compare to your competition's? Reevaluate what you are selling. What is unique about your product or service? Why do your customers choose to do business with you over your competition?

Answering these questions constitutes “market research,” and the key to any company’s own market research is as close as its nearest customer. Companies often forget to ask their customers questions and, consequently, do without the very information that would improve their business. Recognize that every customer is a research opportunity. Train your staff to interact with every customer or potential customer.

Good market research means asking current customers that golden questions, “How are we doing?” The answers reveal valuable information about how to adjust your offerings, where you can improve and why customers have chosen you. Asking questions like, “What other products or services would you like from us?” give instant answers about how to expand your business.

PRICE. Price is always geared to what the market will bear and the products or services customers are willing to spend their money on. Trend forecasters tell us that in times of less expendable income, consumers tend to nest in their homes and spend accordingly. We saw this trends at the close of 2001, when holiday travel expenditures fell, and spending on home furnishings was up. This trend could benefit the landscape industry in the coming season.

Astute business people will take into account that most customers are especially price-conscious in this climate. That is why when you lose a bid or a good customer, you should ask, “Why?” It may be the price was too high or that you are trying to reach the wrong customer. Getting these answers is critical because business decisions made on false assumptions can have painful consequences.

Also, know the importance of rewarding good customers with expanded products or services that add value to the price. We’ve all experienced these benefits as consumers with free deliveries or discounts on products that go with new equipment purchases. Find ways to help customers with benefits that do not cost the company excessive time or money. Going that extra mile adds value to the price and can also help to make and keep a satisfied customer.

PLACE. Determining “place” in the marketing strategy involves finding out who among all those potential customers is the right fit for you and then getting to know as much as possible about those target customers. Knowing the customer base can also help with decisions about whether or how to expand. In a tough economy, companies may have to consider driving further, targeting customers in other areas of town or relocating operations or opening other facilities.

Companies with a niche business, such as firms that build water features, are often in a good position because they offer a unique product and serve a very specific customer base. Small companies often get in trouble when they try to be all things to all people. In the process, they end up with more competition rather than less. Generally, businesses are better off concentrating on what makes them unique in the marketplace. This focus serves to narrow the competition, especially against larger companies.

PROMOTION. In terms of business promotion, most people think of advertising first. In reality, advertising is the most expensive and possibly the most difficult type of promotion to monitor for effectiveness. Most companies – especially niche companies – are better off networking to find business through other sources.

That water feature contractor, for example, can work either for the end customer or fo another contractor who needs a water feature on his job. A related strategy involves seeking referrals via similar, but noncompeting businesses. An arborist and a lawn service contractor have a natural tie-in because they provide complimentary services to the same customers.

Networking through professional organizations like ALCC can help compatible businesses find one another.

PROFESSIONALISM. Finally, the competitive edge in promotion is simply the unofficial fifth “P” of marketing. Professional image involves every aspect of how a company represents itself to potential – and existing – customers. It communicates itself through your brochures and other printed materials, including the contract.

Professional promotion requires offering adequate information about the company, its services and the key people in the firm. It also includes a neat, clean appearance and appropriate manner when meeting with customers, having the salespeople stay in touch with customers throughout the job and getting customer feedback when the job is done. Returning phone calls even if you are too busy or not well-suited for the work is especially important. The customer may not be the right fit this time, but down the road may need your services or have a referral.

Companies with a professional attitude and good customer service have satisfied customers, which forms the basis for ongoing business and generates referrals for more business. Unhappy customers tend to tell 10 other people about their poor experience, and that bad PR quickly undermines even the best brochure or sales presentation.

Because it is easier and less expensive to keep a customer than market a new one, satisfied customers are the key to success in any economy. We are in business because of our customers and we won’t stay in business without them. Serve them well. – Becky Garber

The author is the director of communication and certification for ALCC, and can be reached at bgarber@alcc.com. Lisa Sigler serves as a marketing counselor to ALCC. This article is reprinted with permission from Colorado Green, which is published by the Associated Landscape Contractors of Colorado.