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| | The Minding Your Own Business Network is not currently active and cannot accept new posts | | Marketing but based on service, not retail | Views: 1064 | | Dec 03, 2006 8:30 am | | Marketing but based on service, not retail | # | 
Sue Elvins | | I've been researching ideas of future campaigns and what levels of marketing and advertising would work best for my business service. There has been one particular area in which I'm wanting to know more about - target traffic. I'm reading a information more focused on product than on service. I'm not sure if it follows the same line or not.
Wouldn't the concept of selling to a target market in service be the same as it is in selling a product? How about finding that target market that you want to sell the service? Is it the same or how would that work?
I'd like to find research information and how I can advance in this area. Thanks for anyone who can offer assistance.
Regards,
Sue Elvins
apageor2.com
Web Design and Development
Private Reply to Sue Elvins | | Dec 03, 2006 8:43 pm | | re: Marketing but based on service, not retail | # | 
Kurt Schweitzer | | Sue,
First, consider that the textbooks used in Marketing courses always refer to a "product", whether it's a tangible product (like shoes) or an intangible product (i.e. a service). Part of this is because it's frequently difficult to separate the two. For instance, fast food and sit down restaurants often sell basically the same thing, except for the level of service included.
The biggest difference between products and services is the cost structure. Hard products are paid for up front, in R&D costs and the like. These costs can typically be spread among many identical units, meaning the more you sell, the higher your profit margin.
Services, however, incur most of their costs at the time of delivery - mainly labor costs. It's very hard to reduce these costs by selling more units.
When it comes to marketing your product (whether or not it's tangible), the focus has to be on the customer. You have to figure out who your product appeals to, how your product is different in the minds of your customers from competing products, what problems your customers have that your product solves, etc.
Whether it's a product or a service, the marketing techniques are basically the same.
Good luck!
Kurt SchweitzerPrivate Reply to Kurt Schweitzer | | Dec 04, 2006 10:32 am | | re: Marketing but based on service, not retail | # |
Sue Elvins | | Hey Kurt,
It makes a little more sense now that you put it in that frame of thinking. One of the biggest issues that I've been weaving in and out of is where to pin point the main traffic.
I'm aware that the focus has to be on the customer; couldn't agree with you more - 110%. After reading your statement of the price reduction being impossible, I think I have a broader market range for ROI.
I think where my main concern has been is spreading myself too thin and/or stepping into a market that isn't cost effective for me - does that make sense?
Sue Private Reply to Sue Elvins | | Dec 04, 2006 6:47 pm | | re: re: Marketing but based on service, not retail | # |
Kurt Schweitzer | | "I think where my main concern has been is spreading myself too thin and/or stepping into a market that isn't cost effective for me - does that make sense?"
The first thing I will suggest is RAISE your price!
Most professional service businesses are not very cost sensitive. If raising your price results in fewer sales (and the remaining sales don't make up the difference) then you've positioned yourself poorly. Whatever happens, you don't want your services to be viewed as commodities!
When you raise your price, you will either wind up with more available time (because of fewer sales), or more available money. Take that new-found surplus of time or money and invest it in your marketing.
Have you developed an ROI for your marketing investment? Hopefully it is a factor greater than one, so that investing $1 in marketing results in more than $1 in new business. This is your money machine - the more money you put into it, the more business you get out. Start cranking!
Kurt Schweitzer
P.S. If you find you don't have enough time, start hiring things out. That's the way large businesses are built from small ones!Private Reply to Kurt Schweitzer | | Dec 05, 2006 10:19 am | | re: Marketing but based on service, not retail | # |
Sue Elvins | | Ok... things that I've been thinking about for a few days now is raising the prices. I raised them about oh, two months ago and was planning on doing it again after the first of the year but wasn't sure. I can agree with you about the cost sensative. I was actually thinking about that the other day when I'd been looking through a project management planning schedule. There is a serious problem with the cost management in that area if your not careful about it. I can totally relate to what you're saying now. Thanks for clearing me up with that thought.
To answer your question, I have been working on the ROI. This is a new topic for me so if you have any suggestions, I'm open for opinions.
SuePrivate Reply to Sue Elvins | | Dec 05, 2006 4:12 pm | | re: re: Marketing but based on service, not retail | # | 
Laura Wheeler | | There is a major difference between services and products, that marketing books frequently overlook (virtually EVERY internet marketing instructional source ignores it). That is, that services typically require a higher trust level than do products.
It is mentally simpler to trust that a product will be delivered when all of them are the same, and when orders can be handled automatically than it is to hire someone to do something very personal. You have to develop a relationship of some kind with them first, before they'll want to trust you that far - the more personal or sensitive the service, the more this applies. It is harder to show them a sample of your work, because even when you show them things you have done, you cannot show them what THEY will get personally, so you have to find ways to demonstrate your credentials - and I do not just mean a listing of things you have done, that is only the start - I mean you have to show them why YOU, personally, are the best qualified person to handle THEIR project.
The down side is that it is usually slower to build a client base. Most service providers are disappointed to learn that they have to "court" every single client for a long time. The up side is that once you start to build a solid client base, word of mouth, and references are more powerful.
Because of the higher required trust level, finding your target market is more than just saying, "Oh, I want to market to work at home moms.", or "Gee, busy executives are just right for this." You have to narrow it down even more. In my business, I market a service to first time website owners, startups, and small business people who need greater flexibility and one on one instruction than most. My clients are smart people, totally confident within their business, but pretty lost with website issues as a whole. They want someone to explain their choices in words they can understand, so they can still feel that they are in control of the financial and business decisions about their site. That is who I love to work with, who I am good at working with, and who I target in all of my promotional materials.
Consider not just career segments in your target market, but emotional and intellectual status. Then make sure that your marketing methods, materials, and messages are all ones that those people will feel comfortable with, and that will attract their interest.
Your website should make them feel comfortable. It should feel personal, but professional. Everything about it should be tuned to your particular target market, from the colors and layout, to the navigation and images. It should provide answers to the questions they are most likely to have, as well as present information you know they need to know, but which they don't know they need to know. It should also provide information that helps them get to know you a little, through informational articles and through carefully chosen personal background information. You should be able to welcome them and help them feel they can find what they want, without ever having to SAY "welcome".
Certain advertising types work well for some target markets, but turn off others. You'll have to figure out which types are most likely to work for your potential clients, then test to make sure you are correct in your assumptions.
Also, look at marketing methods that help you begin the relationship building process before you meet people - article marketing, forum participation (NOT ads!), eduational marketing, press releases (if you are in an area that can benefit from them), local and online events where people can meet you, trade associations (Only if you market business to business, or if the trade association offers benefits that reach OUTSIDE its own group), etc.
Once you have isolated your target market, and determined which types of marketing will work, you need to figure out where those people hang out. Then put your message where they already are. For example, if you decide to use local events as a means of promoting yourself, then an interior decorator would get a booth at a home improvement show, a virtual assistant would get a booth at a business fair, a crafting instructor would get a booth at a craft fair, etc. Since you are business to business, local Chamber of Commerce membership might benefit you, if you learn to use it well. For online ads, get them onto sites that attract the people you are aiming for. If you do radio advertising, choose a station that reflects a larger percentage of the people you are wanting to market to. Article marketing, and press releases will do this automatically if you are smart about where you submit, and if you choose forums wisely to participate in, they will also naturally do this.
Do the math on any marketing that you pay for. And remember that there are effective, and ineffective free methods. The good ones will take some time to do, but most of them will go on paying you back month after month. The better low cost methods do this too.
If you get your marketing in line, pricing issues are much simpler to work out - because you can only make money if you get clients! :)
Laura
Mom to Eight
Owner, Effective Free Marketing
http://www.effectivefreemarketing.com/
and Best Business Freebies
http://www.bestbusinessfreebies.com/Private Reply to Laura Wheeler | | Dec 05, 2006 11:22 pm | | re: Marketing but based on service, not retail | # |
Sue Elvins | | Hmm free marketing eh, good concept but not logical. I learned a long time ago, free gets you nowhere fast and a person will only receive back the investment in which they place into their business. It might be good at one point in time but eventually it can bring on a lot of headaches and very little notice.
I see the point of target markets which is the reasoning behind asking the question; my question was how to reach specific niches and not focus on just business or just consumer. What I'm learning now is ROI and the fact being the planning is crucial. Without it your business is a sinking ship before it's left port.
After the discussion of how price has affect on purchase, I can totally agree on that matter. I actually did some reading the other night and to no surprise I discovered the same factor. It can be a great product or service but if the price is way below value, the chances of consumers taking their business elsewhere are quite high.
Appreciate the thoughts, will take them into advisement!
Sue Elvins
apageor2.com Private Reply to Sue Elvins | | Dec 06, 2006 4:47 pm | | Sue: Marketing but based on service, not retail | # | 
Biana Babinsky | | Sue,
The concept of target market is the same for any business. Your target market are people who want, need and can afford your services. Finding a good target market is the first thing I recommend that my clients do, because until you know exactly who your target market is, you can't start promoting your service effectively.
Also, a service business does not have to stay a service business forever. Many service business owners create passive income streams by creating various products (software products, group programs, reports, e-books, audio products, etc) that they can sell on their web site, in addition to selling services. Creating products helps service business owners earn more money without having to constantly sell their one-on-one services.
Biana Babinsky
FREE Report, "Top 5 Ways To Increase Online Sales"
http://www.avocadoconsulting.com/free_report.html
Private Reply to Biana Babinsky | | |
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