Marketing Your Horticulture Service Business
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Marketing Your Horticulture Service Business January, 2001 Wen-fei Uva Senior Extension Associate Department of Applied Economics and Management Cornell University Cornell Horticultural Business Management and Marketing Program WHAT IS MARKETING? Max Brunk (1983)

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Cornell Horticultural Business Management and Marketing Program

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Marketing Your Horticulture Service BusinessJanuary, 2001

Wen-fei Uva

Senior Extension Associate

Department of Applied Economics and Management

Cornell University

Cornell Horticultural Business Management and Marketing Program


WHAT IS MARKETING?

  • Max Brunk (1983)

  • Marketing is Not Just Selling!

    • To Market is to Create Value;

    • To Offer a Product or Service Which Someone is Willing to Pay.

Cornell Horticultural Business Management and Marketing Program

Cornell Horticultural Business Management and Marketing Program


Differentiation

Give your customer a REASON to buy your products

What are you known for?

  • 3 kinds of sacrifices must be made to win a differentiation

  • Product/service sacrifices - don’t be everything for everybody

  • Attribute sacrifice

  • Target market sacrifice


Promotion

Products

Target

Market

Place

The Marketing 4 Ps

Price

Cornell Horticultural Business Management and Marketing Program


Characteristics of Marketing

a Service-Oriented Business

Cornell Horticultural Business Management and Marketing Program


  • Services are Intangible

    • Customers like to sample, taste, feel, see, hear, smell before they buy.

    • Promotion program should portray the benefits rather than the service itself

  • Services can’t be Separated from the Creator or Seller

    • Production and marketing performed simultaneously

    • Customer’s opinions are formed through contact with the production personnel

    • Often direct sale is the only channel of distribution


  • Services are Difficult if not Impossible to “Standardize”

    • Each “unit” of the service is somewhat different

    • Product planning for consistency is important

  • Services are Highly Perishable with Fluctuating Demand

    • Develop new uses for idle capacity during off-season

    • Use advertising and creative pricing to stimulate demand during slack periods


Promotion

Products

Target

Market

Place

Strategic Marketing Planning for Service Marketing

Price

Cornell Horticultural Business Management and Marketing Program


Target Market Analysis

  • Demographic

    • Components of population, income

  • Market Segmentation

  • The psychological determinants

    • Attitudes, perceptions, and personality

  • Sociological Factors

  • Determine why customers buy your service for each market segment

    • Who are your most profitable customers?

    • When, where, how and what do they buy?

    • Who does the buying?


  • Top 5 Household Spending on Lawn and Garden Activities in 1998:

    • Landscaping - $337

    • Water Gardening - $219

    • Lawn Care - $190

    • Tree Care - $145

    • Flower Gardening - $102


Who is Buying Lawn Care/Landscape Services


Most Important Reasons When Deciding on Who to Hire for Landscape, Lawn and Tree Care Services


Target Market Analysis

  • Market trends

    • Economic outlook, disposable income, less time, more emphasis on convenience, internet use.

    • Ex: Minority buying power nearly double in the 1990s (Asian consumers - 124.8%, Hispanics consumers - 118% and U.S. consumers overall - 70%)


Average Household Spending

on Lawn and Garden Activities


Households Hired Landscape, Lawn, and Tree Care Professional Services


Product (Service) Planning

  • Define your products

    • What service will be offered?

    • What will be the breadth and depth of the product mix?

    • How will the services be positioned?

    • What attributes will the service have?

  • Expanding product mix by trading up or down


Product (Service) Planning

  • Quality is critical

    • Defined by the consumer not the provider

    • Consistency - Standardization training.

  • Branding:

    • Include a tangible good as part of the brand image

  • Tie in a slogan with the brand - Allstate

  • Use a distinctive color scheme


Price Your Service

  • Require more creativity and skills

  • Most services are highly differentiated

  • Customers may perform some services themselves - need know elasticity of demand

  • Know Your Costs!!

    • Fixed costs: cost items that do not vary with production volume. Examples are building rent, property taxes, and family living expenses.

    • Variable costs: cost items that vary proportionately with production volume. Examples are plant materials and hourly wages.


Costs and Revenue

Price (Revenue)

Contribution

Variable Costs

Break-even

Fixed Costs

Profit


Place - Distribution Channel

Traditionally sold directly from producer to consumer or business user - No middlemen

  • Employees are the most important asset

  • Broaden distribution

    • Convenient “Location”

    • Use of intermediaries


Train Your Employees

Some of Successful Customer Service Techniques

  • Double check

  • Pretend it’s you

  • Get involved

  • Stay focused/Listen

  • Do something extra

  • Smile - show your teeth

  • Ask questions/Listen

  • Use a complete sentences

  • Care

  • Laughter


Promotion Strategies

  • 5 Components of a Promotion Program:

    • Personal selling

    • Advertising

    • Sales promotion

    • Public relations

    • Direct marketing

  • Promotional Strategies:

    • Visualization

    • Association

    • Physical representation

    • Documentation


  • Strategies to Create Tangible Images

    • Display Garden

    • Open House - bring a friend

    • Newsletter

    • Employees

    • Professional and Comfortable Office Setting


  • What do Customers Want?

    • Tangibles

    • Reliability

    • Responsiveness

    • Assurance

    • Empathy


Customer for Life

Know what the customer wants and needs

Exceed their expectations

Delight your customers!

Thank You


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