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SOUTHERN CROSS UNIVERSITY
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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
Growing a Small Firm: A Qualitative Research on the
Effective Marketing Strategy for Prism Environmental
Industry Research Project: Part B Southern Cross University
By Ronie Magcamit
14th December 2016
ii
EXECUTIVE SUMMARY
There are multiple researches pertaining to small firms marketing yet there are no (if not limited)
information regarding environmental consulting firms particularly in the state of Victoria. A
research on effective marketing strategy may assist small environmental consulting firms to widen
its client base and accelerate business growth. As a new player in the industry, Prism Environmental
has active clients from various civil contractors and engineering-related companies across Victoria
but still lacks a consolidated set of marketing tools and strategy, whether formal or informal, that it
can exploit to increase its client base and market share.
This research intend to determine and understand the effective marketing strategies that a small
consulting firm, such as Prism Environmental, can adopt to increase its client base and grow its
business in Victoria within a highly competitive environmental engineering industry. This research
aims to address questions such as: What are the prevailing marketing strategies that
“environmental” clients prefer or positively respond to? What are the most appropriate marketing
strategies or tools that Prism Environmental can use to increase its market presence?
A total of 150 civil contractor companies were contacted in this research but only 12 companies
responded, with an 8% response rate. The 150 potential Respondents were randomly chosen from
the Civil Contractors Federation (CCF) Victoria website, the Yellow Pages Listing and the Prism
Environmental’s marketing database. The respondents from 12 civil contractor companies were
interviewed. The empirical data from this research is derived from a small portion of the targeted
sampling population of civil contractors operating in Victoria. More work is to be done for Prism
Environmental to be known by more clients, thus the need for a research such as this one.
A list of literature was reviewed as part of this research. One particular reference from O’Dwyer,
Gilmore and Carson (2009) provided innovative marketing variables in small fi rms, which fits well
with the prevailing research aim. The three major elements of the Innovative Marketing for small
firms were used as the Conceptual Framework 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 an important element for
small firm marketing. 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. The secondary
theme investigated in this research is the element of Integrated Marketing. All aspects of the small
firm particularly its external communication to clients should have marketing components. Even
submission of deliverables involves a certain degree of marketing. Prism must continue to build the
word-of-mouth referrals from existing clients. A good reputation among existing clients should be
maintained by sending quality deliverables on time. The third and last theme analysed is about
Customer and Market Focus. As a small firm, Prism should invest effort and time to predicting and
forecast client needs by focusing on individual clients and the market. A solution-oriented approach
should always be the main focus. Prism must always submit competitive rates as all clients always
expect good value for money. Most responses agree that professional membership i.e. ACLCA,
iii
EIANZ etc is not a vital requirement prior to engagement of a consultant firm however it is
recommended in this research that Prism consider active membership in the near future.
The common denominator among all themes presented is the use of online marketing. If properly
used, web and social media may lead to better client relationships. Also, findings point out that
most clients prefers email or phone communication rather than office or a face-to-face meeting,
thus a requirement for a physical office is not vital for small firms anymore. Face-to-face meetings
may only be needed if complex project issues are encountered.
Prism Environmental is encouraged to prepare a Marketing Plan that will include the findings of this
research as a baseline. A strong focus on civil contractor clients should be continued as they are
good potential clients.
This research is limited to only one set of industry, thus responses are bounded by industry norms.
It is recommended that future research expand on more client types and environmental services
other than the one presented in this study.
i v
TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................. ii
TABLE OF CONTENTS ............................................................................................................... iv
1 INTRODUCTION AND PROBLEM STATEMENT .............................................................. 1
2 LITERATURE REVIEW .................................................................................................. 3
3 METHODOLOGY......................................................................................................... 5
4 FINDINGS................................................................................................................... 7
5 CONCLUSIONS AND RECOMMENDATIONS ................................................................ 13
6 REFERENCES ............................................................................................................ 17
7 APPENDICES ............................................................................................................ 19
APPENDICES
Appendix A: Interview Questionnaire
Appendix B: Summary of Responses
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Effective Marketing Strategies for Prism Environmental
1 INTRODUCTION AND PROBLEM STATEMENT
Environmental engineering and consulting firms are established to assist companies and government
agencies comply with environmental law and regulations. Based on the recent Hoovers (2016)
industry report, demand is driven by the needs of private business and government entities to
comply with recent and future environmental regulations. The global figures gathered by Hoovers
(2016) indicate that “contaminated land services account for 33%; water and waste management
services, 23%; environmental impact assessment and sustainable development, 17%; environmental
management, compliance, and due diligence, 15%; and climate change and energy, about 8%,
according to an assessment of the aggregated revenues of the world's top firms by Environment
Analyst.” Environmental consulting companies in this industry provide advice and assistance to
businesses and other organizations on environmental issues (Hoovers 2016). 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 with environmental regulations, thus the need for
environmental consultants. In 2013 alone, it is estimated that the top 22 global environmental firms
such Tetra Tech, CH2MHill and AECOM raked around $27.4 Billion USD or 44% of the total global
market (Hardcastle, 2014). Majority of these international firms have presence in Australia who
competes with smaller locally based firms. In a recent 2016 IBISWorld market research report, the
Environmental Science Service market in Australia alone had total revenue of $5 billion AUD with a
low annual growth of 0.8% from 2011 to 2016. The industry employs around 35,400 people with
around 6,150 environmental companies sharing the pie (IBISWorld, 2016). Major consulting firms
with most of the market share have well established marketing departments with well-structured
marketing strategies. However, there is very little (or nil) information on the marketing approaches
of small to medium environmental consulting firms.
Compared to most engineering fields, the environmental industry is vulnerable to economi c
performance. In 2009, the Global financial crisis (GFC) affected the industry and saw a -2% dip in
employment growth from 7% in 2005 (First Research, 2015). The GFC was caused by the collapse of
leading financial institutions and investment banks in Europe and the USA in 2007 and 2008
(McDonnell and Burgess 2013). From 2010 to 2015, the industry is still in recovery mode with 1 to
3% growth in employment. It has been recorded by the Australian Bureau of Statistics in 2010 that
the GFC caused a 10% decline in the household wealth in Australia alone (McDonnell and Burgess
2013). It is ironic however that relative to other developed countries; Australia fared better at the
aftermath of the GFC partly due to its economic resilience and stronger financial sector (Galbreath,
2012). Lapowsky (2012) mentioned that since 2007, the global environmental consulting industry
has seen revenue growth of about 39% from 2007 to 2012 but only 7.7% from 2012 to 2017, as
supported by data from IBISWorld. There are some signs of recovery as the environmental
consulting revenues are forecasted to have an annual compounded growth rate of 5% from 2015-
2019 (First Research, 2105). It seems that employment has seen a sluggish growth but revenue in
the environmental industry remained stable somehow. Despite all of these, there will always be a
growing demand for environmental consulting and services. Hoffman (2002) believes that
environmental concerns are tightly intertwined with business strategies of companies as
environmental protection provides operational efficiencies, risk management, capital acquisition,
market demand, strategic direction and even human resources management. Dangelico and
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Effective Marketing Strategies for Prism Environmental
Pontrandolfo (2013) added that that companies who implement environmental actions showed a
positive effect on the organisation’s image and reputation. On the other hand, smaller businesses
should be further engaged in environmental management practices via education and
communication (Redmond and Walker, 2011). 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.
Established in 2015, a small Victorian-based consulting called Prism Environmental or referred to as
Prism in this research study, specialising in contaminated land services is partly a consequence of a
“hostile” business environment attributed to a slower growth in the environmental consulting
industry. Covin and Slevin (1989) stated that hostile environments are characterised by unstable
industry settings, strong competition, cruel business climate and just lack of opportunities. Due to
the employment redundancies during and after the GFC across Australia, the director/founder of
Prism decided to establish a firm that will provide self-employment and sufficiency as well as cater
to small and medium sized civil contracting companies initially in Victoria and perhaps the east coast
of Australia. Nevertheless, it was vital for Prism to understand its strength and weaknesses in order
to develop its business and drive growth in an uncertain and slow performing economy. Prism needs
to grow a stable client base by implementing an effective marketing strategy to reach out to its
target clients. Prendergast (1993) mentioned in a pre-GFC era article that environmental
consultant’s competitive edge lies on technical skills (59%), satisfying client needs (15%), knowledge
of local regulations (9%), assistance to permitting and licenses (6%), costs (6%) and other factors
(5%). With competition tightening further particularly after the GFC, aggressive marketing is seen as
one of the industry norm. International mega-firms that are diversified, with market dominance and
international access are up against each other and also smaller niche players who competes through
specialisation (Zofnass, 1996). Nevertheless, the environmental industry requires both small and
large firms to be well informed about environmental regulations and familiar with new technologies
that help limit environmental impact (Lapowsky, 2012).
There are multiple researches pertaining to small firms marketing yet there is no (if not limited)
information regarding environmental consulting firms particularly in the state of Victoria. A research
on effective marketing strategy may assist small environmental firms such as Prism to widen its client
base and accelerate business growth. As a new player in the industry, Prism has active clients from
various civil contractors and engineering-related companies across Victoria but still lacks a
consolidated set of marketing tools and strategy that it can exploit to increase its client base and
market share. The director of Prism firmly believes that the growth and success of environmental
firms that dominate the market depends on its ability to be ahead of the competition.
This research intend to determine and understand the effective marketing strategie s that a small
consulting firm, such as Prism, can adopt to increase its client base and grow its business in Victoria
within a highly competitive industry. This research aims to address the questions: What are the
prevailing marketing strategies that “environmental” clients prefer or positively respond to? What
are the most appropriate marketing strategies or tools that Prism Environmental can use to increase
its market presence?
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Effective Marketing Strategies for Prism Environmental
2 LITERATURE REVIEW
Latest market research on the Environmental business in Australia has shown a sluggish growth in
the past six years (IBISWorld, 2016). Although signs of economic recovery are recently seen in
Australia and particularly in Victoria, the environmental consulting sector still has an uphill battle to
regain its pre-GFC market performance. A slow environmental service demand means very tight
competition and recent news in the industry have shown smaller consulting firms either closed or
merged with larger competitor firms. For large companies, it is mostly through securing large
government or major client contracts, while small firms compete by offering specialised services or
operating in regional areas (Hoovers 2016).
Ideally, a non-hostile business setting provides a safe situation for business operations due to its
marketing opportunities (Covin and Slevin, 1989). However, 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. Imber
(2005) added that sole traders and businesses that constantly review and adjust its approach to the
right business model could often increase profits.
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. Business success, particularly for small firms are sometimes automatically measured on
financial performance however, small firms such as Prism should realise other success parameters.
Kumar, Simon and Kimberly (2000) mentioned that aside from profitability, the other top
performance indicators include client satisfaction and repeat business in the consulting business.
Marketing and advertising 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. Eventually, it was
proven that small firms actually adopt a unique marketing form that continuously evolves and is
spontaneous, reactive and haphazard (O’Dwyer, Gilmore and Carson, 2009). Traditionally, marketing
in small firms has been affected by budget and lack of marketing expertise however specific forms of
marketing has been adopted by SMEs that deviate from conventional and structured marketing
strategies practiced by large firms (Bettiol, Di Maria and Finotto, 2011). 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.
An effective marketing strategy is directly related to performance indicators such as revenue and
business growth (Kumar, Simon and Kimberly, 2000). O’Dwyer, Gilmore and Carson (2009) also
added that the continual development of the experiential knowledge of small business owners or
entrepreneurs and networking through trade activities are key factors to effective marketing. As
small firms cannot directly compete with large firms, innovative processes and services should be
provided and communicated to the clients through effective marketing strategies. In the
environmental industry, a small consulting firm should market i tself as a reliable firm that is updated
with council, state and federal environmental laws and regulations. Small firms can achieve a
sustainable and competitive advantage over its larger counterparts by encouraging strong market
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Effective Marketing Strategies for Prism Environmental
orientation through innovative practice as a key to business development and growth (O’Dwyer,
Gilmore and Carson, 2009).
Marco, Di Maria and Finotto (2011) mentioned that resource scarcity, lack of specialised structures
and competencies are the main factors affecting small firms while O’Donnell (2011) emphasised that
small firms relies heavily on word-of-mouth recommendations as its main source of client base,
which is quite the reality for small environmental firms like Prism.
Small firms can achieve a sustainable and competitive advantage over its larger counterparts by
encouraging strong market orientation through innovative practice as a key to business
development and growth (O’Dwyer, Gilmore and Carson, 2009). Aside from innovation, 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.
O’Donnell (2011) listed nine small firm marketing activities which include Marketing Planning,
Managing Limited Resources, Keeping Existing Customers, Acquiring new Customers, Gathering
information about customers, Gathering Information about Competitors, Managing the product
offering, Managing Pricing and Managing Delivery. These are general approaches, and are not
considered as a “marketing strategy” that this research is hoping to find.
On the other hand, O’Dwyer, Gilmore and Carson (2009) provided innovative marketing variables in
small firms, which include: 1) Marketing and modification variables, 2) Customer and Market Focus
and 3) Integrated Marketing. These themes were seen as an excellent theoretical framework for this
study, thus, is adopted to further explore marketing approaches for small firms such as Prism.
The literature reviewed in this research hopes to provide Prism with practical marketing tools to
expand its business. As there seems to be limited information from sole traders and small firms with
regards to revenue and profitability and other performance indicators, this research needed to refer
to other business reports that can be correlated to the environmental industry.
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Effective Marketing Strategies for Prism Environmental
3 METHODOLOGY
This research aims to validate the Conceptual Framework consisting of three major innovative small
firm marketing themes adopted from related literature. These major themes were eventually
filtered down to elements or sub-themes which underwent further refinements. Results of the data
analysis and literature review were filtered down as marketing strategies that will be recommended
to Prism Environmental.
A mixed Quantitative and Qualitative methodology was initially drafted to gain considerable data but
was eventually discarded due to a tight schedule. In order to arrive at a more reliable result, a
Qualitative Research methodology was designed to collect data from “environmental” clients across
Victoria. It was eventually decided to focus on Prism’s top client sector which is composed of civil
contractors. The qualitative approach was seen as highly effective in correlating theories to actual
insights from the field.
A Semi-structured Interview was the main qualitative research tool adopted to collect data from
primary samples. Curran and Blackburn (1994) mentioned that face-to-face interview using the semi-
structured approach was considered as one of the most effective data collection technique for small
firm managers. However, the downside of this approach was the unavailability of the targeted
Respondents during the limited interview schedule. Thus, some of the Respondents have to be
interviewed via phone. Video telecon using “Skype” was not available as most of the interviewees
were either on field or on travelling mode.
A total of 150 civil contractor companies were contacted in this research but only 12 companies
responded, with an 8% response rate. This research identifies all respondents as Respondent #1,
Respondent #2, and so on until Respondent #12. Most of the Interviewees or respondents preferred
to be anonymous, thus no specific company names were mentioned in this report. It is
acknowledged that the last quarter of the year (October – December) are usually the busiest time
for most environmental clients.
The 150 potential Respondents were randomly chosen from:
Civil Contractors Federation (CCF) Victoria website (https://www.ccfvic.com.au),
Yellow Pages Listing (https://www.yellowpages.com.au/find/excavation-earthmoving-
contractors/vic) and
Prism Environmental’s marketing database.
Overall, a sampling population of around 1,500 civil contractor companies across Victoria were
considered as potential environmental clients. The sampling population was based on two key
criteria:
a) Civil contractor company mainly involved in excavations, and
b) Operations of the company must be within Victoria.
The size of the firm and its revenue were not considered as factors in selecting samples as Prism
would prefer to have a wider range of client base from small to large companies.
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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
environments”, Strategic Management Journal, Vol.10, pp75-87, viewed in ProQuest Central, 20 Sep
2016.
Curran, J. and Blackburn, R.A. (1994), Small Firms and Local Economic Networks: The Death of
the Local Economy, Paul Chapman Publishing, London.
Dangelico R and Pontrandolfo P, 2013, “Being ‘Green and Competitive’: The Impact of Environmental
Actions and Collaborations on Firm Perfomance”, Business Strategy and the Environment, pp.413-
435.
First Research, 2015, Industry Profile, Environmental Consulting Services.
Galbreath, j 2012, “ESG IN FOCUS: The Australian evidence”, Business Ethics Journal, pp. 529-541.
Hitchens, D, Clausen J, Trainor M, Keil M, & Thankappan S 2003, “Competitiveness, Environmental
Performance and Management of SMEs”, Greener Management International, pp 45-57.
Hofman, A 2002, “Environmental Strategy: Emerging market for consulting services”, Consulting to
Management, Vol.13 No.4, pp.15-24.
Hoovers 2016, Environmental Consulting Services Overview (<http://www.hoovers.com/industry-
facts.environmental-consulting-services.1862.html >.
IBISWorld, May 2016, Environmental Science Services Market Research Report
(http://www.ibisworld.com.au/industry/default.aspx?indid=553)
Jocumsen, G 2004, "How do small business managers make strategic marketing decisions? A model
of process" European Journal of Marketing, pp.659-674.
Kumar V, Simon A. Nell, K 2000, “Strategic capabilities which lead to management consulting success
in Australia”, Management Decision, Vol.38, ½, pp.24-35.
Lapowsky, I, 2012, “Business Opportunities in Environmental Consulting”, Inc.,
(<http://www.inc.com/best-industries-2012/issie-lapowsky/environmental-consulting.html>.
McDonnell, A and Burgess J, P 2013, “The impact of the global financial crisis on managing employees”, International Journal of Manpower, pp.184-197.
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Effective Marketing Strategies for Prism Environmental
O’Dwyer M, Gilmore A and Carson D 2009, “Innovative marketing in SMEs”, European Journal of
Marketing, pp.46-61.
Prendergast J, 1993, “Environmental Consulting Grows Up”, Civil Engineering.
Prism Environmental, 2016, (<http://www.prismenvironmental.com.au/ >.
Redmond, J., & Walker, B. (2011), “Environmental education and small business Environmental
activity”, Australian Journal of Environmental Education, 27.2, pp. 238–248.
Starry, C. and McGaughey N 1993, "Growth Industries: Past, Present and Future", The Journal of
Business &Industrial Marketing, Vol.8, No.1, pp.25-35.
Zofnass, P, 1996, “Big Business”, Civil Engineering.
Robbins, S. P. (1996). Organization Behavior: Concepts, Controversies and Applications, Englewood
Cliffs, NJ: Prentice-Hall.
Wernerfelt, Birger 1984. Consumers with Differing Reaction Speeds, Scale Advantages and Industry
Structure . European Economic Review 24.2: 257.
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Effective Marketing Strategies for Prism Environmental
7 APPENDICES
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Effective Marketing Strategies for Prism Environmental
Appendix A
Interview Questionnaire
No. Semi-Structured Interview Questionnaire
1 How often do you engage external environmental consultants? In the past
year (as a reference).
2 In terms of projects, how much is your estimated budget for an
Environmental Consultant per year?
3 What kind of environmental issues do you need to solve using an
Environmental consultant?
4 How do you select and engage your Environmental Consultant?
5 What requirements should an Environmental Consultant satisfy before you
engage them?
6 Do you value a word-of-mouth referral before engaging consultants?
7 Do you prefer your Consultant to have a professional website? Why or why
not?
8 Does the size of the firm important in your selection? Why or why not?
9 Do you prefer an environmental consultant with an accessible office? Why or
why not?
10 Do you respond to online, email or phone marketing to let you know of new
services or pricing? Why or why not?
11 Do you mind being visited by an Environmental Consultant to conduct
business development meetings? Why or why not?
12 What professional network/s are you, or your company, a member of?
13 Do you know Prism Environmental and its capabilities? If yes, how did you
know its existence?
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Effective Marketing Strategies for Prism Environmental
Appendix B
Summary of Responses
Interview Question Negative Responses Positive Responses Notes
1. Frequency of
Engagement of Environmental Consultant
“Only once so far” “Between January and
June 2016, around 3
times only”; “Almost
every month”; “In the
last year, we engage our
consultant around 5
times”
11 of 12
Respondents
mention that they
require
environmental
firms more than
once in a year
2. Estimated Budget per year
- “around $3k per job, so
far we had 5 jobs
already, so it’s now at
$15k” “around $20k”;
“$25 to $40k” “overall, it
should be $30k”
Responses from all
12 Respondents
indicate that civil
contractors will
require an
Environmental
support
3. Environmental Issues
Hydrogeological
assessment;
Environmental
Auditing;
Preliminary site
investigations or PSIs ;
Soil Waste
Classifications;
Contaminated land
related;
All 12 Respondents
may require Prism’s
expertise.
4. Selection of Environmental Consultants
“We will stay with our
current consultants”;
“Good relationship
with current provider”
members of ACLCA; be
members of
professional
organizations
“Word of mouth”;
Google search; review of
websites; proven track
record in complex
projects; low cost
provide innovative
reports, submit reports
ahead of deadline,
All clients agree
that they require
environmental
consultants to be
responsive to client
needs; solution
oriented and
provides value for
money.
5. Requirements for Consultants prior to Selection
Member of ACLCA;
proven track record in
complex projects
Consultants should have
ABN; from a reliable
referral
all Respondents
agree that
reputation and
pricing plays major
factors in the
selection of
consultants
6. Value of Word-of-mouth referrals
We Only rely on word Highly valued; good to
have; We will rely on
All clients agree
that a “word-of-
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Effective Marketing Strategies for Prism Environmental
of mouth referrals good referrals mouth” referral is
still highly valued
7. Websites Not important “Allows us to review
consultants experience;
shows professionalism;
LinkedIn page adds value
but not necessary;
inform clients of
previous project
experiences”; “shows
professionalism”; “keeps
us (clients) up-to-date”
7 of 12
Respondents (58%)
prefer consultants
with a good
website
8. Size of Firm
Large firms for large
complex projects
Size of firm does not
matter
10 of the 12
Respondents (83%)
seem not to mind
the size of the firm.
This is good news
to small
environmental
consulting firms
such as Prism. The
other 2
respondents agree
(16%) that a
medium to large
consulting
company will be
preferred for large
complex projects.
9. Accessible Office Office is needed for
formal meetings
Not important; We only
communicate via phone
calls or emails; doesn’t
affect us if consultant
has accessible office or
not
11 of 12
Respondents (91%)
clients interviewed
agree that an
environmental
consultant does not
necessarily need an
office
10. Preferred Communications
Face-to-face
communications for
urgent issues;
Email and phone calls
are sufficient; Use of
Smart phones to check
emails and calls are the
way nowadays
All Respondents
agree that business
communications
are preferably thru
emails/phone
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Effective Marketing Strategies for Prism Environmental
11. Business
Development visits
I don’t mind discussing
new service over a
face-to-face meeting
(this will be treated a a
negative since Prism
still doesn’t have a
formal office)
Not required;
unnecessary in the age
of social media; obsolete
in the age of social
media and IT
8 of the 12
Respondents (66%)
do not prefer
upfront or
traditional
marketing drives
12. Professional
membership
Firms must be a
member of the
Australian
Contaminated Land
Consultants
Association (ACLCA) in
some specific projects
(note: Prism not a
member yet)
Not too important; good
to have but not
necessary ; Yes
important to have
professional recognition
from Environment
Institute of Australia and
New Zealand (EIANZ)
Four of the 12
Respondents (33%)
prefer an ACLCA
membership;
Consultants
individual
membership to
EIANZ is seen as
good-to-have only
but not yet seen as
essential. Prism
director is a
member of EIANZ
and a certified
environmental
practitioner
13. Awareness of Prism
Environmental’s service
No idea; none; never
heard of Prism before
Worked with Prism in
this year only
Only 2 of the 12
Respondents (16%)
have used Prism
Environmental’s
service in the past.