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 Modified by Georgia Agriculture
Education Curriculum Office June, 2002
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 - dont be everything
  for everybody
• Attribute sacrifice
• Target market sacrifice

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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 cant be Separated from the Creator or
  Seller
• Production and marketing performed simultaneously
• Customers 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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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 its 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