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Cornell Horticultural Business Management and Marketing Program PowerPoint PPT Presentation

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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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


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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


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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


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Promotion

Products

Target

Market

Place

The Marketing 4 Ps

Price

Cornell Horticultural Business Management and Marketing Program


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Characteristics of Marketing

a Service-Oriented Business

Cornell Horticultural Business Management and Marketing Program


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  • 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


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  • 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


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Promotion

Products

Target

Market

Place

Strategic Marketing Planning for Service Marketing

Price

Cornell Horticultural Business Management and Marketing Program


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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?


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  • 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


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Who is Buying Lawn Care/Landscape Services


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


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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%)


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Average Household Spending

on Lawn and Garden Activities


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Households Hired Landscape, Lawn, and Tree Care Professional Services


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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


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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


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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.


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Costs and Revenue

Price (Revenue)

Contribution

Variable Costs

Break-even

Fixed Costs

Profit


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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


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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


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Promotion Strategies

  • 5 Components of a Promotion Program:

    • Personal selling

    • Advertising

    • Sales promotion

    • Public relations

    • Direct marketing

  • Promotional Strategies:

    • Visualization

    • Association

    • Physical representation

    • Documentation


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  • Strategies to Create Tangible Images

    • Display Garden

    • Open House - bring a friend

    • Newsletter

    • Employees

    • Professional and Comfortable Office Setting


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  • What do Customers Want?

    • Tangibles

    • Reliability

    • Responsiveness

    • Assurance

    • Empathy


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Customer for Life

Know what the customer wants and needs

Exceed their expectations

Delight your customers!

Thank You


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