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Cornell Horticultural Business Management and Marketing Program

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  1. 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

  2. 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

  3. 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

  4. Promotion Products Target Market Place The Marketing 4 Ps Price Cornell Horticultural Business Management and Marketing Program

  5. Characteristics of Marketing a Service-Oriented Business Cornell Horticultural Business Management and Marketing Program

  6. 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

  7. 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

  8. Promotion Products Target Market Place Strategic Marketing Planning for Service Marketing Price Cornell Horticultural Business Management and Marketing Program

  9. 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?

  10. 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

  11. Who is Buying Lawn Care/Landscape Services

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

  13. 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%)

  14. Average Household Spending on Lawn and Garden Activities

  15. Households Hired Landscape, Lawn, and Tree Care Professional Services

  16. 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

  17. 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

  18. 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.

  19. Costs and Revenue Price (Revenue) Contribution Variable Costs Break-even Fixed Costs Profit

  20. 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

  21. 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

  22. Promotion Strategies • 5 Components of a Promotion Program: • Personal selling • Advertising • Sales promotion • Public relations • Direct marketing • Promotional Strategies: • Visualization • Association • Physical representation • Documentation

  23. Strategies to Create Tangible Images • Display Garden • Open House - bring a friend • Newsletter • Employees • Professional and Comfortable Office Setting

  24. What do Customers Want? • Tangibles • Reliability • Responsiveness • Assurance • Empathy

  25. Customer for Life Know what the customer wants and needs Exceed their expectations Delight your customers! Thank You