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Marketing Questions & Answers

published: September 18th 2009
by: Kindra Gordon

Give your beef business a marketing makeover by
avoiding these common mistakes.

With costs up and profits tending to be down, it may be an important time to review some key steps to maximize your beef business potential.
    Jay Conrad Levinson, author of the popular Guerrilla Marketing series of books, says in his book introduction, “…failure to upgrade your marketing effort is a symptom of corporate demise.”
    He continues, “A key to prospering with guerilla marketing is the art of paying attention. You’ve got to be constantly attuned to the media, the competition, the customers, the current events, the whole scene.
    That said, take a minute to review this Q and A of marketing do’s and don’ts and it just might add profitability – and efficiency – to your business’ bottomline.
    1. Do you have a year-round marketing plan in place?
    Plain and simple the most common mistake made in marketing is a lack of a continual presence. For example, many seedstock operators advertise heavily in the weeks leading up to their annual bull or female sale, but once the event is over, their presence in their industry and with their customers subsides until their sale comes around again the following year.
    Levinson emphasizes that marketing is a process, not an event. He says marketing should be a “series of events, with a beginning and a middle, but not an ending – because it should always be ongoing.”
    Once you understand this, you’ll recognize that there is a difference between advertising – which simply tells buyers what you have to sell – and marketing – which communicates what your cattle program is focused on, why you are different, and the benefits of doing business with you.
    Levinson defines marketing as “every bit of contact your company has with anyone in the outside world.” That said, you’ll see that marketing is a 365 day a year task.
    2. Are you ignoring your customers?
    In the 1990’s a new concept emerged – “The customer is king.” But, in today’s business environment Levinson says striving for customer satisfaction isn’t enough. Now, he says businesses should aim to provide “customer de-light” – which he says is achieved by doing anything the customer wants you to do.
    How do you surpass customer expectations? Start with customer follow-up after the sale. Levinson notes that research has shown 68% of all business is lost due to ignoring customers after they’ve made a purchase.
    Continually be thinking about what you can do to help your customers succeed. Simple thank-you postcards, follow-up phone calls, visiting their herds, or hosting an annual appreciation supper are all ideas that help show your interest and appreciation for their business.
    Providing information to customers is also becoming a powerful tool to show them that you are working to help keep their ranch business successful. Ideas include providing them a quarterly newsletter offering information about the industry and specifically about your operation – what sires you are breeding to and why; how calves out of sire groups are looking; carcass and ultrasound data from calves, etc. Information is power and the more you can provide to your customers, the more they’ll appreciate you.
    Another marketing tip from Levinson: He advises directing the bulk of your marketing efforts primarily to customers, instead of prospects. Here’s why: Studies indicate it costs one-sixth as much to sell something to a customer than to a prospect. Thus, work to keep the customers you have by surpassing their service and quality expectations, and their word-of-mouth compliments will bring you new customers with ease.
    3. Do you think that a small operation can’t compete with “the big guys”?
So, you’ve got a small seedstock operation and a limited budget. Does that mean customers are going to ignore you and go straight to the big operators? Not necessarily.
    In fact, in business Levinson says being a small business has its advantages – such as the ability to offer personalized service and convenience. Therefore, make being small and local work to your advantage for customer service. You know folks on a first-name basis; you can visit their herds and talk with them more than once or twice a year; support their kids in 4-H or FFA events, the list goes on.
    Remember the core principal of business: People like to do business with people they like. This means people must buy you before they will buy what you are selling. So, size doesn’t really matter. It’s the people and the service that make the difference.
    Also recognize that convenience is a huge value to customers. If they can drive a short distance to your ranch and/or sale and find a top quality bull that you’ll deliver and stand behind if there are any problems, you’ll have some folks who will be a customer for life because of that convenience. As a small operation use that to your advantage and cultivate those local ties.

Do’s and Don’ts For The Small Registered Cattle Breeder
    Editors Note: At the Simbrah Long Range Planning Meeting It was discussed to provide articles that provide assistance to Simbrah breeders through the Simbrah News. Following is one of those suggested topics and was compiled from interviewing registered breeders across a number of breeds.
    1. Do your homework. Research your area and figure out the marketing potential of your chosen breed. Ask yourself: Who will you market too? Will they be primarily other registered breeders or someone interested in show prospects or will you market to commercial cattlemen wanting registered bulls? Are the cattle people in your area small or large operators? And the questions could go on. The county extension office, local sale barn operators, vet clinics, feed stores and even the local coffee shop can be great resources when you begin to develop your program.
    2. Do make a list of goals for your operation and develop a realistic business plan. Once the research is done, then it’s time to develop a plan which should include what seedstock will be used to build from, the type of market you will try to reach and how you will accomplish these goals. Also get in touch with the breed association that you will be joining, both at the state and national levels and ask about membership, registration requirements, breeder directories and even historic information about the breed. Read up on your chosen subject and access more information on the internet.
    3. Do a thorough investigation of your chosen source for purchasing your initial seedstock. Reputation, longevity, common interests and perhaps most important, their ability to mentor you through this process, should be considerations for your initial purchase. Many of today’s operators have come to  recognized that customer support is vital to their continued existence and therefore many programs offer great assistance, such as buy back programs, customer marketing programs, breeding and management assistance and more.
    4. Do this for all the right reasons…your family, a hobby, a new challenge. The registered seedstock business is not just about cattle it’s also a people business. For many people their initial entry into the seedstock business began with a show heifer the kids wanted and developed from there. Families look back fondly on the hours that were spent going to and from shows and can honestly say the cattle business brought them closer together. Texas is also blessed with a wealth of available opportunities for youth scholarships and financial assistance all tied to shows across the state. But the purebred world is also a social structure. If you enjoy attending shows, sales, workshops and field days and like to visit with people who share your similar interest then this is a good business for you.
    5. Do surround yourself with positive people and ask for help. The registered cattle business is full of interesting, experienced cattle people and most are willing to share that knowledge. Learn from your fellow cattlemen and listen to their advice. Many started out just like you and their experiences can save you valuable time, money and help eliminate the mistakes many new breeders encounter.
    1. Don’t believe everything you hear and see…especially if you are told that this is a guaranteed way to make money fast!! Success in the cattle business usually is a long-term process. And overnight success is practically unheard of. Small registered breeders rarely achieve financial success in the first few years of operation, however associating with a breeder or breeders who can help you with management and marketing plans will help ensure a more satisfying experience.
    2. Don’t get caught up in auction fever. When attending a sale mark your selections before you attend and develop a realist budget for new purchases and stick to it…don’t let the excitement of the sale push you into spending more than you feel is prudent. Buyer remorse often happens, so don’t let it happen to you.
    3. Don’t try and starve a living out of your cattle. Nutrition is the key to success at most every level. Be a good steward of the land. Manage your pastures, don’t over graze. Develop your heifers so they will make good productive cows. A successful A.I. program, good commercial bulls that are fertile and will breed cows for your customers can not be achieved if a proper nutrition program is not followed.
    4. Don’t let fads and fancy advertising take over. A breeding program that focuses on providing seedstock that fit your market with emphasis on multiple traits will stand the long haul much better than one that is based purely on a single trait or type. Using the bull of the month will rarely help you accomplish your long term goals.
    5. Don’t do this if you don’t like challenges, and are not willing to learn new things, or want instant success. Enjoying the cattle for the people and what they have to offer, spending time with your kids going to shows, a desire to return to agriculture, are all great reasons to be in the purebred business. If you can’t handle missing your favorite team play on Saturday afternoon because you had to take care of a cattle related chore, then don’t get into the cattle business.