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    readude
    Phase I Marketing Strategies
    Topic posted July 10, 2008 by readudeSuper Contributor, last edited January 19, 2012
    2850 Views, 12 Comments
    Title:
    Phase I Marketing Strategies
    Content:

    Just wondering how the smaller environmental firms go about marketing/promoting their Phase I services.� Direct mailings, internet, personal contact, gorilla marketing, etc.� What appears to work and what doesn't.�

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      jhaberlen
      posted July 17, 2008 by jhaberlenMember
      Depending on who you plan on marketing your services to, (banks, developers, real estate companies, etc) I would suggest personal contact over other forms of marketing. If you were to pitch your services to a bank, for example, a mailer, brochure or email probably won't get you a new project any time soon. Unfortunately, despite how value-added you think your service/report is a lender likely already has a list of consultants they feel comfortable with and will use on a regular basis. I would be alarmed if you received a phone call requesting a Phase I as a result of something that might have come in the mail. If you strictly leave your marketing/sales up to marketing i suspect you'll find it a difficult process to drive new business. I would suggest you strive for a face to face meeting to help build rapport, emphasize your company's unique differences and provide them with a compelling reason(s) why they should choose YOU on their next project. In terms of indentifying new prospects the internet, local associations, chamber of commerce and other sources are available to help you fill your pipeline. Stay persistent and good luck!
      • mkulka
        posted October 14, 2008 by mkulkaElite Contributor
        Well put.  Often times a new client that is securing financing from a bank new to your firm is a great way to get an invitation to meet face to face with a new potential client.
        • Rob
          posted October 14, 2008 by RobContributor
          Good points, all.  I sort of have a philosophical "problem" with the concept of "marketing" a service because the word "marketing" implies (at least to me) that some type of hands-off activity will produce the desired amount of new business.  My opinion is that you have to "sell" your service and only use marketing to support your sales activities.  I can't think of many occasions when marketing generated a new client but I can think of tons of occasions when a sales call produced a new customer.  To me, nothing beats shoe-leather pounding the streets, conversations between real people and personal relationship building.
          • Jay Gaines
            posted October 14, 2008 by Jay GainesSuper Contributor
            As the head of marketing at EDR I'd like to start by saying . . . ouch.     ;-)

            I think the sweet spot  is where sales and marketing align and work together. It is true that in the B-to-B world it is always sales people that sell the product or service. The biggest political mistake a marketing person can make is to claim sales as their own. That said, it is also true that there is no leverage in one-to-one contact and it's a big world full of potential clients. Marketing's job is to help make sales more efficient and effective by creating broad awareness, conducting market research, tracking industry trends, identifying opportunities and threats, softening beaches, qualifying leads, refining messages, providing sales tools (like web sites, brochures, advertising, presentations, online communities, etc.), adding polish, delivering client value beyond the product/service, positioning companies (not only an individual) as a trusted partner, helping create loyalty beyond the one-to-one relationship, etc.

            Jay
            • Rob
              posted October 15, 2008 by RobContributor
              I think we're saying the same thing.  You stated Marketing's job is to help make sales more efficient and effective and that's my point.  Marketing is a hugely important department in any company and contributes a lot of value.  But, the context of this post originally was "Phase 1 Marketing Strategies" so that's all I was talking about.  For companies who sell Phase 1 services (e.g. not EDR), I believe they have to have a robust, face-to-face sales effort in order to grow this business.  Marketing their Phase 1 firm to create "broad awareness" and to "soften beaches" will not lead to significant growth by itself.  But calling on qualified prospects, in person, conducting thorough needs analysises, and matching services to business needs will.     
              • GEA
                posted January 12, 2009 by GEAMember

                O.K. then, how do we EPs SELL more Phase I/II's?

                Since marketing is only a tool to ultimately increase sales, how should EPs approach SELLING a service that is often seen as a unfortunate requirement of a real estate transaction?

                ...after all, rarely a cuctomer calls me to perform a Phase I that wasn't required for one reason or another.    

                • Mark S.
                  posted January 13, 2009 by Mark S.Member

                  Right.  Nobody "wants" a Phase 1.  They want a new building, a loan, a re-financing, an acquisition, etc.  I try to stay focused on the deal - the client's desired outcome and any associated risk, and the impact or cost of that risk to the deal.  If I spent all my time talking to most client representatives about the ins-and-outs of the AAI process, they would glaze over and quit listening.

                  But, when I spend my time talking about their business, their deal, their industry or whatever, and translate the techno-jargon we all use to information relevant to them, then they start to think of you as a consultant helping them, not just another leech the bank has attached to their wallet.  You've got to make yourself useful, not just a report generation unit.

                  • JenKuiper
                    posted January 14, 2009 by JenKuiperMember

                    Hi Everyone  - Jennifer here in Portland, Oregon. 

                    I apologize beforehand if I am being redundant from what already has been stated.  Truly, as in any business, marketing is about building relationships.  Replace the old thinking of "marketing and sales" with the new thinking of "building relationships".  One very easy way to do this is to give the customer a value added service.  For instance, when the odd call comes in - ask questions, provide sound answers, stay interested, and follow up with a timely message: a news clip, a nice link (such as this one!), etc.  Here, I assume that most of your calls will be from repeat clients OR from new clients that have been referred to you by your existing clients that have come to know and value what you offer from your relationship building.

                    I also might add that educating  your clients will be the single most important factor in keeping the "checklist" mentality out of the equation.  This is my opinion only, if you have would be customers who still refer to any of the following in conversation, you should a) educate that client and b) take a hard look at whether or not you want to do business with that potential client:

                    - refers to Phase Is as "level Is" (huh? that went out years ago....)

                    - refers to Phase Is as a checklist (commodities-based thinking, do you really want to play that market? some folks can and do and that's okay as long as you understand the commodities-based thinking)

                    - client was you to "certifiy the property as clean or get it an NFA

                    I could write more, but you get the picture...my two cents only.... billable work is calling! 

                    • SWHITTING
                      posted January 18, 2009 by SWHITTINGMember

                      "- client wants you to "certify the property as clean or get it an NFA."

                      I've heard that one before.  In Louisiana, the LDEQ calls that an "NFA-ATT"  (No Further Action - AT THIS TIME).  LDEQ doesn't issue these on the basis of a Phase I ESA.  An NFA is typically the end process to confirmatory sampling (when a Phase II ESA reports concentrations above applicable LDEQ Risk Evaluation/Corrective Action Program (RECAP) Screening Standards), a RECAP Evaluation, remedial action, closure, etc.  Since a Phase I doesn't involve sampling/analyses that would trigger a SPOC notification requirement, the LDEQ doesn't even get involved.

                      A few clients have requested a Phase II ESA even when the Phase I didn't identify any RECs - just so they'd have "some results to pass onto the LDEQ to get an NFA".  Uh, huh . . .

                      • JenKuiper
                        posted January 19, 2009 by JenKuiperMember
                        Hi There - Yes, I know! LOL - here in Oregon the DEQ won't recognize the ASTM standard for Phase I ESAs as an innocent purchaser defense (unlike CA, and other western states, they must be different!) - Instead they push the PPA which is the prospective purchaser's agreement for buying contaminated sites.... better assurance that a contaminated site would get cleaned up .
                      • AmyH
                        posted February 2, 2009 by AmyHSuper Contributor
                        From my standpoint (I've been in the industry since '91), client education is the key to selling your firm's  value. Once a client is sold on your expertise/value, you don't have to complete based on price.  One way to establish your credibility is through public relations. Advertising is good, but when a third party say something about your firm, people tend to believe it. Send out press releases, regularly post news on your web site, contribute articles to publications your clients--and your peers--read. Post them on your website and mail them to clients and prospects.  Remember, companies that survive economic downturns are the ones that continued to market themselves. When things turn around, those companies that stayed in front of clients and potential clients are poised to come out ahead. Now's the time, when you might not be as busy as you usually are, to beef up your presence in industry publications and post news/tips/case studies/white papers on your website. Feel free to contact me for more information or for help updating your website, writing a press release or white paper, or getting an article published.
    • seand
      posted May 22, 2009 by seandSuper Contributor
      you're right. Marketing and Business Development are different things. From purely a Marketing standpoint, EDRs scorekeeper and ESA Newsletter tell us there are 15K Phase I's done in an average month. The trick is, based on the firm you are with, is to determine where these are (EDR has this data) and perhaps more difficult, how many are done for lenders and how many for the potential buyers. Over the last 24 mos, I'd suspect this answer would vary wildly, and most recent activity may be low fee refinance work, as opposed to more interesting (from a client perspective) equity/acquisition scope Phase I ESA work (e.g. development in urban infill sites is essentially dead now). Our collective challenge is that overall volume is significanlty down, resulting in pricing pressures, therefore building that face to face relationship is essential for maintaining your existing clients due to pricing pressures out ther now, but new Phase I ESA opportunities, unearthed through gathering primary marketing data (cold leads, warm leads, new lenders, new buyers) are available but  existing clients are your best source for new clients.