SOUTHERN CROSS UNIVERSITY ASSIGNMENT COVER SHEET For use with online submission of assignments Please complete all of the following details and then make this sheet the first page of each file of your assignment – do not send it as a separate document. Your assignments must be submitted as either Word documents, text documents with .rtf extension or as .pdf documents. If you wish to submit in any other file format please discuss this with your lecturer well before the assignment submission date. Student Name: Ronilo Magcamit Student ID No.: 22528610 Unit Name: Industry Research Project: Part B Unit Code: MNG93218 Tutor’s name: David Herold / Suman Sen Assignment No.: 3 Assignment Title: Final Report Due date: 14 December 2016 Date submitted: 14 December 2016 Declaration: I have read and understand the Rules Relating to Awards (Rule 3 Section 18 – Academic Misconduct Including Plagiarism ) as contained in the SCU Policy Library. I understand the penalties that apply for plagiarism and agree to be bound by these rules. The work I am submitting electronically is entirely my own work. Signed: (please type your name) Ronie Magcamit Date: 14/12/2016
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SOUTHERN CROSS UNIVERSITY
ASSIGNMENT COVER SHEET
For use with online submission of assignments
Please complete all of the following details and then make this sheet the first
page of each file of your assignment – do not send it as a separate document. Your assignments must be submitted as either Word documents, text documents with .rtf extension or as .pdf documents. If you wish to submit in any other file format please discuss this with your lecturer well before the assignment submission date.
Student Name: Ronilo Magcamit
Student ID No.: 22528610
Unit Name: Industry Research Project: Part B
Unit Code: MNG93218
Tutor’s name: David Herold / Suman Sen
Assignment No.: 3
Assignment Title: Final Report
Due date: 14 December 2016
Date submitted: 14 December 2016
Declaration:
I have read and understand the Rules Relating to Awards (Rule 3 Section 18 – Academic Misconduct Including Plagiarism) as contained in the SCU Policy Library. I understand the penalties
that apply for plagiarism and agree to be bound by these rules. The work I am submitting electronically is entirely my own work.
Effective Marketing Strategies for Prism Environmental
An email was first sent out to all 150 potential “samples” to gain permission for an interview. Of the
150 potential samples, only 73 contractors responded via email and eventually were contacted via
phone. Of the 73 contractors, only 12 managers were available for interview between the 14-
working day period from 8th to 25th of November 2016.
The respondents from 12 civil contractor companies were then scheduled for quick face -to-face
interviews over the 14-day period. Only seven face-to-face interviews were possible and the other
five interviews have to be done via phone as the interviewees have to cancel meetings due to
unforeseen workloads.
A set of semi-structured interview questionnaires was used for both face-to-face and over-the-
phone interviews. Notes and records were taken during the interview. A copy of the Interview notes
was sent to the Respondent via email.
The 13 questions (see Questionnaire at Appendix A) were asked in the same sequence and each
respondent was provided with at least 2 minutes to elaborate their answers to each question. The
Interview questionnaire was prepared aiming to get insights on the three small firm innovative
marketing measures referred to in this research.
A method of thematic examination was applied to the collected data. The marketi ng activities
mentioned in the literature were compared with the emerging themes from the collected data. The
initial themes were then reviewed and refined in order to arrive at a final set of themes, which are
then presented as the main findings of this study.
Research questions were limited to non-sensitive commercial information and all participants’
responses were treated as confidential. Notes and copies of interview were provided to the
Respondents. Respect was given to participants who declined to answer particular questions. The
three major code of ethics that were used as a guide in the entire research includes: NHMRC
Australian Code for the Conduct of Research, Engineers Australia Code of Ethics and Certified
Environmental Practitioner Code of Ethics and Professional Conduct.
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Effective Marketing Strategies for Prism Environmental
4 FINDINGS
An effective marketing strategy is directly related to performance indicators such as revenue,
business growth and meeting the allowed budget (Kumar, Simon and Kimberly, 2000) , which is
basically in line with the main objective of Prism and the purpose of this research. The empirical
findings discussed in this section include comparison of the three elements of the Conceptual model
derived from Innovative Marketing in SMEs by O’Dwyer, Gilmore and Carson ( 2009) with the
reviewed literature and Interview responses. Figure 1 below illustrates these basic innovative
marketing concepts.
Figure 1 – Conceptual Model of Innovative Marketing for Small Firms
Marketing and Modification Variables
O’Dwyer, Gilmore and Carson (2009) mentioned that the elements of marketing and modification
variables include product or service enhancement, alteration of the marketing mix, alteration of the
distribution channel, proaction and change. In other words, small firms should undergo
transformation in order to be competitive. Service enhancements involved identification, planning
and implementation of service improvements to make it more attractive to clients. A small firm
should be proactive and change with the market. In order to be flexible, Parrott, Roomi and
Holliman (2010) said that small firms need to be systematic and scientific in maintaining quality
records, databases and constant review and update of marketing methods.
Starry and McGaughey (1993) mentioned that no firm is immune to marketplace competition but
business growth requires a commitment to change with the use of technology and identification of
industry trends. As one respondent pointed out:
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Effective Marketing Strategies for Prism Environmental
“We use internet search like Google to search for our providers. We don’t use
environmental consultants on a regular basis, so we just do searches if we need one.”
Respondent # 3
“When we need consultants or providers, we just google it.” Respondent # 7
With high competition in the Google search engine, Prism will have a minimal chance of being
noticed. This means that a different approach to attract clients should be implemented.
O’Donnell (2011) emphasised that small firms rely heavily on word-of-mouth recommendations as
its main source of client base, which is quite the reality for small environmental firms like Prism. The
interview responses confirm the importance of word-of-mouth referrals.
“Most of our environmental projects are done by consultants referred to us by
subcontractors. We usually trust word-of-mouth referrals. ” Respondent # 1
Marco, Di Maria and Finotto (2011) mentioned that resource scarcity, lack of specialised structures
and competencies are the main factors affecting small firms. As a newcomer in the industry, Prism is
limited with financial and human resource, which bigger competitors have. Due to relatively lack of
resources, Bettiol, Di Maria and Finotto (2011) added that the normal marketing forms for small
businesses include direct marketing and relationships, events, word-of-mouth and a strong
involvement of the business owner.
“We have always used our environmental consultants through word-of-mouth referrals. We
are not open to any other consultants at the moment. I have a good relationship with the
current consultant.” Respondent # 5
O’Donnell (2011) mentioned that a small firm usually responds to different clients with different
service. Prism Environmental has only one channel in its service delivery but some priority clients
will receive more attention than others i.e. submission within deadline in the expense of non-priority
clients.
Prism Environmental understands that it cannot offer a one-stop shop for clients, as compared to
other large firms with a range of diversified professional services, however it offers a more
specialised service to its client and even as a subcontractor to other main consulting firms. As one
Prism client pointed out:
“We use consultants with capabilities on Contaminated Land issues. Prism has worked with
us in the past and has provided reports that satisfied with our requirements so I will stick
with them. I am also getting special rates so I have no reason to leave.” Respondent # 5
All interview responses indicate that a Contaminated Land investigation is the most sought after
service from an Environmental Consultant. But it has to be noted that the sampling population is
limited to civil contractors around Victoria with focus on excavations and soil management. This
finding may not be applicable to other types of clients.
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Effective Marketing Strategies for Prism Environmental
Integrated Marketing
Integrated marketing simply means that marketing activities are included or integrated in all aspe cts
of the business as explained by O’Dwyer, Gilmore and Carson (2009). For smaller firms, this
approach can be applied in each aspect of service. For example, all communication to clients should
have marketing components. Even reports submitted on time can win client confidence and thus
serve as a marketing effort. As one client said:
“I prefer a consultant that submits reports on time or within the agreed deadline. This is
important to my business, so I don’t incur additional costs due to delays.” Respondent # 9
Broekemier, Chau and Seshadri (2015) stated that social media among small businesses is a low cost
and effective alternative to keep client relationships while Jones, Borgman and Ulusoy (2015) added
that web and social media creates better brand awareness, better client relationships and increase
sales.
“A consultant with a good website has the advantage of being chosen during the quoting
period. It shows us that it is more established and professional, and allow us to review their
past projects” Respondent # 8
Professional networking, such as LinkedIn, is another way to introduce a small firm’s capability to
other consultants. One respondent said that:
“I know Prism now, because Ronie (the Director) is in my LinkedIn network. I think LinkedIn
is one of the best networking social media available to us now. Almost everyone I know has
it!” Respondent # 5
Imber (2005) added that sole traders and businesses that constantly review and adjust its approach
to the right business model could often increase profits. For the meantime, Prism is home-based and
meets clients in their own offices or in cafes or other public meeting places. An accessible office may
be preferred by most clients but surprisingly, 91% of the respondents agree that a formal office is
not actually required.
“Office is not important. We only communicate via phone calls or emails. Hard copies of
reports are not required anymore, as compared 10 or 15 years ago.” Respondent # 1
A home-based consulting is part of the integrated approach adopted by Prism. It helps in saving
resources by cutting overhead costs and freeing up capital to spend on equipment or training
required to be a step ahead of other competitors. Like other small firms, it started from working at
home, use of information technology (e-mail, laptops, mobile phone), possess technical ability to
process reports and personal administration. These have all contributed to project costs
competitiveness and eventual profitability but a shop front or office may be an essential factor in
winning more business, while administrative support can also optimise chargeable time (Imber,
2005).
Small environmental consulting firms need to understand that there will always be avenues of
growth in the environmental industry and should be innovative in its marketing efforts to inform and
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Effective Marketing Strategies for Prism Environmental
educate clients. Even if there is no clear evidence that successful and growing companies adopt
more environmental initiatives (Hitchens et al, 2003), most companies are bound to comply wi th
environmental regulations, thus the need for environmental consultants. Prism must issue technical
reports that are custom-designed for client needs. All deliverables should then be drafted in a way to
inform clients of other services that Prism can offer.
Customer and Market Focus
Predicting and forecasting client needs by focusing on individual clients and the market is a key
innovative marketing variable (O’Dwyer, Gilmore and Carson, 2009). By being a member of the
Environment Institute of Australia and New Zealand (EIANZ), the Director of Prism gained good
market intelligence reports and is updated with latest technologies in the field. Prism, however, is
currently not a member of the Australian Contaminated Land Consultants Association (ACLCA), an
Australian professional organization with member firms offering services exactly the same as Prism.
It is however acknowledged in the field that some clients only engage environmental firms with
membership in professional organizations such as the ACLCA, as one response pointed out:
“For bigger or complex jobs, we prefer a consultant to be a member of ACLCA. This will give
us a bit of assurance about the professionalism and technical expertise of the consultants
who will work in our projects.” Respondent # 10
Being a member of the ACLCA is important to only 33% of Respondents. Most responses agree that
an ACLCA or any other professional membership is not a vital requirement prior to engagement of a
consultant firm, as what another response highlighted:
“I don’t even know the professional membership of our current and previous consultants.
For us, as long as we get the report that satisfies EPA, we’re ok with it.” Respondent # 12
Broekemier, Chau and Seshadri (2015) and Jones, Borgman and Ulusoy (2015) added that web and
social media creates better brand awareness, better client relationships and increase sales. 58% of
the respondents prefer that consulting firms should have a good professional website. As one client
pointed out:
“A good website helps us evaluate the past performances and projects of consultants. I
would prefer that the environmental firm has a good and updated website.” Respondent #
11
Managers of service firms should use the marketing principles of understanding and responding to
customer needs, reliability, image, competence and accessibility (Gordon, Calantone and di
Benedetto, 1993). Branding is important but most respondents agree that all of them seek better
rates or lower costs in the environmental projects.
“Most of our projects are quoted lumpsum, with no or very limited budget for
environmental issues. We always submit a very competitive bid to win the project.
Therefore, we expect that when we hire an environmental consultant, they will be able to
work within our limited budget.” Respondent # 6
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Effective Marketing Strategies for Prism Environmental
Aggressive business development techniques, differentiation of services, superior market
intelligence, local knowledge, proximity to clients and properties, detailed market research and
knowledge are some factors mentioned by Imber (2005) that will support business growth in small
firms and should be considered by Prism in its planning.
Basic marketing principles apply to all firms however small firm marketing involves little or no
marketing planning with very limited resources (O’Donnell, 2011). Prism began by serving the needs
of a few clients and then expanding its client base gradually. No formal planning has been done by
Prism so far, as it is more reactive rather than proactive.
Parrott, Roomi and Holliman (2010) said that small firms need to be systematic and scientific in
maintaining quality records, databases and constant review and update of marketing methods.
Prism keeps itself updated on the ACLCA and EIANZ website to monitor competition movements.
Competitive information is also sourced from existing clients. Prism was able to collect market
information through client relationships. As mentioned, the word-of-mouth marketing is the main
form of marketing drive for small firms such as Prism. Smaller niche players like Prism compete
through specialisation (Zofnass, 1996). Prism must keep its technical updates on Contaminated Land
issues so it can provide new services to clients.
For large companies, it is mostly through securing large government or major client contracts, while
small firms can compete by offering specialised services or operating in regional areas (Hoovers
2016). Prism should take advantage of the fact that 83% of the Respondents do not have a specific
preference on the size of the firm, while all Respondents agree that reputation and pricing are the
two major factors they watch out for prior to engagement.
“Size of the firm does not matter. Output is and the image of the company. We had one
consulting firm who had trouble with the EPA so we needed to find a new one.” Respondent
# 9
Prism Environmental normally offers a lump sum pricing to keep it competitive offering flexible
prices to various clients. O’Donnell (2011) mentions that most firms employ a cost plus pricing.
“We hire consultants on project basis. Its all about the cost for us.” Respondent # 2
Broekemier, Chau and Seshadri (2015) stated that social media among small businesses is a low cost
and effective alternative to keep client relationships. Jones, Borgman and Ulusoy (2015) added that
web and social media creates better brand awareness, better client relationships and increase sales.
In order to keep client focus, web and social media should be maintained by small firms, as already
mentioned in the Integrated Marketing section.
Summary of Findings
Marketing is one of the most important strategic capabilities of a small start-up firm. But usually
small firms obtain sales without any structured marketing activities therefore Prism Environmental
should adopt a unique marketing form that continuously evolves and proactive (O’Dwyer, Gilmore
and Carson, 2009) and less spontaneous, reactive and haphazard. The three components of the
Conceptual model (Marketing and modification Variables, integrated Marketing and Customer-
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Effective Marketing Strategies for Prism Environmental
Market Focus) were tested with empirical data from the interview responses and supported with the
reviewed references. It seems that all three innovative variables are applicable to a small firm
marketing strategy.
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Effective Marketing Strategies for Prism Environmental
5 CONCLUSIONS AND RECOMMENDATIONS
The empirical data from this research is derived from samples derived from civil contractors
operating in Victoria. It is considered that a qualitative approach was the better option in this study
as the sampling pool is small and research period is limited. Twelve Respondents from various civil
contractor companies responded to the Semi-Structured interview. Eleven of the 12 respondents
mentioned that they require an environmental consulting firm or consultant at least more than once
a year. Cost-wise, a local civil contractor may spend between $3,000 per job to as high as $40,000
annually on environmental consultants, which is manageable for a small firm such as Prism. Only 2 of
the 12 Respondents or 16% interviewed have used Prism Environmental’s expertise in the past.
Based on the abovementioned findings, it is obvious that more work is to be done for Prism
Environmental to be known by new clients, thus the need for a research such as this one.
The three major elements of the Innovative Marketing for small firms were used as the main themes
that were analysed in this study. These themes include: 1) Marketing and Modification Variable 2)
Integrated Marketing and 3) Customer and Market Focus.
The initial theme of Marketing and Modification Variables is seen as the ability of small firm to
transform itself to be more competitive. Prism Environmental must continue to transform and evolve
in order to satisfy client requirements. Service enhancements involved identification, planning and
implementation of service improvements to make it more attractive to clients. A small firm should be
proactive and change with the market. In order to be flexible, Parrott, Roomi and Holliman (2010)
said that small firms need to be systematic and scientific in maintaining quality records, databases
and constant review and update of marketing methods. Respondents agree that they resort to
Google search or other internet search engine if they are looking for certain environme ntal firms with
certain expertise. This study recommends that small firms tap this web marketing tool as it provides a
large exposure to target clients.
Data also showed that civil contractors trust word-of-mouth recommendations for sub-consultants,
which also works well for small environmental firms. Other marketing forms for small businesses
include direct marketing and relationships, events and a strong involvement of the business owner.
Small firms should offer a more specialised service to its client to be more competitive. For Prism
Environmental, it is important that it builds on its strength, which is about Contaminated Land
Investigations. All interview responses indicate that the Contaminated Land sector is the most
sought after service from an Environmental Consultant. But it has to be noted that the sampling
population is limited to civil contractors around Victoria with focus on excavations and soil
management.
The secondary theme investigated in this research is the element of Integrated Marketing which
means that all facets of the small firm must be marketing oriented. All external communication to
clients should be an effort to win more clients or projects. Even reports submitted on time can win
client confidence and thus serve as a marketing effort. Again, website and social media plays a vital
role in integrated marketing as it creates better brand awareness leading to better client
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Effective Marketing Strategies for Prism Environmental
relationships. Professional networking, such as LinkedIn, is another online tool that needs to be
exploited by small firms to introduce its capability to other companies.
Prism is currently home-based and meets clients in their own offices, cafes or other public meeting
places if there is a need for face-to-face meetings. In the Civil contracting industry, majority or 91%
of the respondents agree that a formal office is not actually required, which will work to Prism’s
advantage. A home-based consulting is part of the integrated approach adopted by Prism. It helps in
saving resources by cutting overhead costs and freeing up capital to spend on equipment or training
required to be a step ahead of other competitors. Like other small firms, Prism started from working
at home, use of information technology (e-mail, laptops, mobile phone), possess technical ability to
process reports and personal administration.
Small environmental consulting firms need to understand that there will always be avenues of
growth in the environmental industry and should be innovative in its marketing efforts to inform and
educate clients. Prism must issue technical reports that are custom-designed for client needs. All
deliverables should then be drafted in a way to inform clients of other services that Prism can offer.
The third and last theme analysed is about Customer and Market Focus approach. As a small firm,
Prism should invest effort and time in predicting and forecasting client needs by focusing on
individual clients and the current market. Membership with Environment Institute of Australia and
New Zealand (EIANZ) should be continued to gain good market intelligence reports and to get
updates with latest technologies in the field. Prism, however, is currently not a member of the
Australian Contaminated Land Consultants Association (ACLCA). About 33% of Respondents or one
out of three Civil Contractors may likely engage a consultant with ACLCA membership. Most
responses agree that an ACLCA or any other professional membership is not a vital requirement
prior to engagement of a consultant firm however it is recommended in this research that Prism
consider ACLCA membership in the near future.
If properly used, web and social media leads to better client relationships. 58% of the respondents
prefer that consulting firms should have a good professional website. Branding is important but
most respondents consider competitive pricing as more of a concern in environmental projects.
Prism began by serving the needs of a few clients and then expanding its client base gradually and
should continue its momentum in building client base thru referrals and Online marketing. A
systematic method in maintaining quality records, databases and constant review and update of
marketing methods should be done. Aside from professional organization such as ACLCA or EIANZ,
Prism should collect market information through client relationships. Prism must keep its technical
updates on Contaminated Land issues so it can provide new services to clients.
Small firms can compete by offering specialised services or operating in regional areas. Prism should
take advantage of the fact that 83% of the Respondents do not have a specific preference on the size
of the firm, while all Respondents agree that reputation and pricing are the two major factors they
watch out for prior to engagement.
One common finding from the three themes is about the use of Online Marketing approach
consisting of website, online communication and social media platform. It is undeniable that all
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Effective Marketing Strategies for Prism Environmental
Respondents agree that online marketing has significant effects to their decision in engaging an
environmental consultant. For instance, a formal office is not a strict requirement with most
environmental clients, based on 91% of the Respondents. All Respondents agree that
communications between clients and the environmental consultant is preferred to be done through
phone and other electronic means such as emails. In addition, 58% of the Respondents prefer
consultants with a good website so they can see their project experiences and expertise. This helps
potential clients decide who are the most qualified and experienced consultant that is a fit to their
project needs.
Finally, traditional marketing drives such as leaflets, flyers, face-to-face presentations or business
development meetings seem to be not applicable to most civil contractors anymore. 66% of
Respondents do not prefer upfront or traditional marketing drives such as office presentations of
new services but they do respond more to positive client-consultant relationships. Prism
Environmental is encouraged to prepare a Marketing Plan that will include the findings of this
research as a baseline. This plan will include the main findings of this study which are presented in
bullet points below.
The prevailing marketing strategies that “environmental” clients prefer or positively respond to
include:
Environmental consultants that is responsive to client needs. This means solution oriented consultants provides value for money. They put high value to reputation and pricing.
Clients seem not to mind the size of the firm. This is good news to small environmental consulting firms.
Communications between clients and the small firm is preferred to be done through phone and other electronic means such as emails. Face to face meetings are only required to discuss urgent issues and establish relationships.
Clients do not prefer upfront marketing drives such as presentations of new services, flyers and other traditional promotional materials.
Clients prefer consultants with a good website so they can see their project experiences and expertise. Social media such as LinkedIn is a good tool to have as well but most Respondents did not specifically highlight the need for other social media platform.
Membership to professional organisations such as ACLCA and EIANZ is a positive move to create a good network between clients and small firms.
The most appropriate marketing strategies or tools that Prism Environmental can use to increase its
market presence include:
Continue to build the word-of-mouth referrals from existing clients. Maintain a good reputation among existing clients. Focus on civil contractor clients as they are a good target pool of potential clients.
Maintain a good website and even professional social media presence to inform clients of current projects and expertise.
For existing clients, always maintain a good line of communication via phone calls and emails. Face-to-face meetings may only be needed if complex project issues are encountered. A solution-oriented approach should always be the main focus.
Maintain competitive rates as all clients always expect good value for money.
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Effective Marketing Strategies for Prism Environmental
Being a member of the ACLCA and EIANZ is good but not essential at the present time. Prism owner-manager is already a Certified Environmental Practitioner and a member of EIANZ, which is already seen as an advantage. As Prism increases its market presence and take in larger portfolios, then an ACLCA membership may take more priority.
Create a Marketing strategy detailing the most innovative marketing variables discussed.
This research is limited to only one set of industry, thus responses are bounde d by industry norms. It is recommended that future research expand on more client types and environmental services other than Contaminated Land investigations. This research acknowledges that differences among the civil contractor responses are due to varying requirements set by the Council, Environmental Protection Authority (EPA) or Planning department. Another obvious limitation is the short period in data collection, which should be improved in other future related research. It is hoped that future research can use and expand on the innovative marketing framework presented in this study and explore other factors that may benefit small firms in the future.
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Effective Marketing Strategies for Prism Environmental
6 REFERENCES
Austen. I, 2005, “The Joy of Going It Alone”, The Estates Agent, p, 134-135.
Bettiol, M, Di Maria, E and Finotto V, 2011, “Marketing in SMEs: the role of entrepreneurial
sensemaking”, International Entrepreneurship and Management Journal, pp.223-248.
Covin, J and Slevin D 1989, “Strategic management of small firms in hostile and benign