Delving into the 4 Pillars of Marketing
As a home service business owner, you're likely well-acquainted with the juggling act of running your daily operations while trying to wrap your head around effective marketing. The marketing landscape can indeed seem overwhelming, especially with the multitude of choices, strategies, and platforms available today. This feeling is shared by many business owners, even those who have outsourced their marketing efforts.
But it doesn’t have to be overwhelming. Today, we will start from the beginning. The task becomes more manageable when we break marketing down into its foundational elements. Commonly referred to as the Four Ps or the “Marketing Mix,” these pillars are the cornerstones that will guide your every marketing decision.
The Four Pillars of Marketing
Before you ask, yes, most marketing companies say there are three pillars of marketing - Product, Price, and Promotion. But we subscribe to the idea of four - Product, Price, Promotion, and Place. Before you shake your head and keep scrolling, give us a few minutes to explain.
Product (In Your Case It May Be Service)
The product or service offered is at the heart of every marketing strategy. The product pillar encompasses all aspects related to your offering, from its tangible features to the intangible value it provides. Consider its design, quality, branding, and how it addresses customer needs. Remember, a product isn't just a tangible item – it represents a promise of value to your customers, solving a specific problem or fulfilling a particular need. Establishing a solid product foundation ensures you're addressing market demands effectively.
Marketers often make this seem more straightforward than it is. The truth is most business owners struggle to understand the problems they solve for their customers. For example, a plumber may think the problem they solve for their customer is clearing the drain in the sink. But the problem is so much bigger than that. Sure, the problem the homeowner has starts with the clogged sink. But consider the rest of the story.
The sink in the kids' bathroom is clogged, which means the three teenagers who use that bathroom in the morning will be taking turns in Mom and Dad’s bathroom. Now Mom has to get up earlier to get ready before the rest of the family starts taking turns. And if you have children, you know that this is going to lead to arguments among the kids, which will, of course, make all of them late for school or work. In other words, the clogged sink has caused complete chaos in the home. So, now, knowing all of this, what is the problem you are solving for the homeowner? You are giving the mom some peace and quiet and returning her home to the calm she desires.
Do you see how, by understanding the problem you are solving for your customer, you can begin to create a more effective marketing campaign? It’s not difficult, but it does take some experience to start considering your marketing in this light.
Price
This pillar isn't just about setting a monetary value for your product or service; it’s about understanding its perceived value and strategically positioning it in the market. Pricing decisions should account for production costs, competitor rates, and customer willingness to pay. Whether you aim for premium or value pricing, the price should reflect the brand's narrative and resonate with the target audience's expectations.
Many successful home service companies have a good feel for pricing. They adopt the "Good, Better, Best" (GBB) pricing model. There are several strategic and customer-centric reasons for this model:
Simplified Decision Making
Homeowners often feel overwhelmed by technical details and service options. The GBB model distills choices into three clear tiers, making it easier for customers to understand and decide based on their needs and budget.
Increased Sales
By offering a range of options, companies increase the chance of upselling. A customer might come in intending to spend on the "Good" option but could be convinced to upgrade to "Better" or "Best" when they see the added value.
Flexibility and Inclusivity
Not every homeowner has the same budget or needs. A company can cater to a broader range of customers by providing three distinct price points, from budget-conscious individuals to those seeking premium services.
Value Perception
The GBB model allows customers to see and compare the value of different offerings side by side. They can assess what additional services or guarantees come with the higher tiers, reinforcing the perception of value in the "Better" and "Best" options.
Enhanced Profit Margins
While the "Good" option might have tighter margins, the "Best" option often incorporates a premium pricing strategy. Even if fewer customers opt for the "Best," those sales can significantly boost overall profitability.
Reduced Price Sensitivity
By giving customers a choice, they are less likely to shop around based solely on price. They'll be more focused on the value and benefits each tier offers.
Trust Building
Transparency in pricing and services fosters trust. When customers understand what they're getting at each price point, they feel more in control and less like they're being subjected to a hard sell.
Streamlined Internal Operations
For the service provider, having predefined service packages can make operations smoother. Teams know exactly what's expected at each tier, which can improve efficiency and reduce the chances of misunderstandings or oversights.
Competitive Advantage
Offering a tiered approach can set a company apart in a crowded market, especially if competitors only offer a one-size-fits-all solution. I was recently at a conference for home service companies. The statistics on the Good, Better, Best pricing model was staging. Eighty percent of home service companies are not using this model. This gives you a huge competitive advantage.
We liked it so much, we adopted it ourselves. See our pricing model here.
Promotion
Promotion is the art and science of creating visibility and engagement for your product or service, and it plays a pivotal role in your overall marketing strategy. This pillar involves a multifaceted approach that demands careful consideration of various elements.
Advertising
Using platforms like Google Ads, Facebook Ads, or Instagram Ads allows you to target specific demographics and interests, maximizing your reach and return on investment. For instance, a local plumber might use targeted Facebook ads to reach homeowners in their service area.
Public Relations (PR)
Effective PR can help you manage your brand's reputation and build credibility. Consider how a positive news story about your HVAC company's community involvement can enhance trust among potential customers.
Social Media Marketing
Platforms like Facebook, Instagram, Twitter, and LinkedIn offer unique opportunities for engagement and brand building. For instance, a garage door repair company can showcase before-and-after photos of their projects on Instagram, demonstrating their expertise. An HVAC company can ask questions such as, “What do you think is the perfect temperature for sleeping,” in order to encourage engagement. Every home service company should be using social media marketing to educate their customers on their core values, what they stand for, and why they are unique in their community.
Influencer Partnerships
Collaborating with influencers who align with your brand can significantly impact your promotional efforts. Imagine an electrician partnering with a local DIY influencer to create informative videos on home electrical safety. Mommy bloggers are another wonderful example of influencer partnerships. Because moms are often a big part of your target marketing, working with mommy bloggers can help you build credibility and trust.
Content Marketing
Creating valuable content through blog posts, videos, or infographics can position your business as an industry authority. A chimney repair company might publish articles on their website about the dangers of neglected chimney maintenance or an electrician may create an article about the local change to smoke detector codes, or the owner of an HVAC company may create videos about weathering the next winter storm.
Email Marketing
Nobody likes it when I say this, but you are forgettable. The good news is that email marketing is often just the reminder a homeowner needs. Maintaining a subscriber list and sending targeted emails can nurture existing leads and encourage repeat business. For example, a plumbing service can send regular tips on preventing common household plumbing issues to their subscribers, an HVAC company can send reminders that it’s time to flush their outside spigots, or an electrician can remind homeowners it’s time to test their smoke detectors.
Community Engagement
Actively participating in your local community through events, sponsorships, or partnerships can boost your brand's local presence. An HVAC company might sponsor a neighborhood's annual summer festival, the high school football team, or the music boosters to showcase their commitment to the community.
A well-crafted promotional strategy doesn't stop at increasing product awareness; it also aims to nurture brand trust, cultivate interest, and ultimately drive consumer action. Consider these various promotional avenues and their alignment with your business goals to create a robust and effective promotion plan that resonates with your target audience.
Place
The "Place" pillar, is underestimated or even completely overlooked, but it is pivotal in the realm of home service company marketing. Place revolves around the strategic selection of platforms and channels on which your services are accessible to your target clientele. This pillar demands careful consideration of several key factors.
For example, if you run a plumbing service, you should evaluate the geographical areas you serve, optimizing your service radius and ensuring prompt response times to customer inquiries. In the digital arena, your website's usability, mobile-friendliness, and ease of scheduling appointments whether by phone or through an online scheduling tool are paramount.
Ultimately, the objective is to make your home service readily available in the right areas, at the right times, enhancing customer accessibility and substantially increasing your chances of securing bookings and loyal clients.
Beyond these core pillars, there are supplementary factors like People, Process, and Physical Evidence, particularly vital for service industries. Each of these factors plays a pivotal role in sculpting a holistic marketing strategy that resonates with customers and leads to tangible results.
At ASMM Digital, we understand the challenges home service business owners face. Our expertise in leveraging the Four Pillars of Marketing ensures that our clients consistently reach their target audiences effectively.