Part 2 of a 2 part series on LAGCO (Louisiana Gulf Coast Oilfield Expo) and building your marketing strategy for oil & gas. Learn what the 5 part framework is that we use, plus see some real world examples.
Transcript of Session –
Hey, folks. Let’s learn some more about the oil and gas industry.
Okay. Today’s show is the second part of the intersection of LAGCOE and your oil and gas marketing strategy. In the first part of the show you saw how my marketing efforts actually brought in a prospective client. Now, we decided not to do any business with Jeff because quite frankly he didn’t need us, but what you need to note is the cost of that sale if we would have sold something would have been zilch. So it just goes to show you how your marketing efforts drive leads that turn into sales.
So, on this part of the show, we’re going to do something a little bit different and we’re going to actually take the five strategy points that we use we build oil and gas marketing strategy for our clients and we’re going to actually show you some real world examples of that in the LAGCOE show.
So, okay, when we engage with our clients and we want to help them formulate an oil and gas marketing strategy, the process is the same and we have a framework that has five points. Let’s kind of go through that real quick so you can understand how we approach this.
So, the first thing you need to understand is who are your targets who are the people that benefit from using your product or service, but more importantly who are the people that really benefit. Typically it’s an 80-20 mix where 20% of your clientele the heavy users of your product and generate 80% of the revenue. So, the reason you want to understand who these targets are so you can go out and find other people just like that.
The next thing you need to understand is benefits. What are the benefits of a client using your product or service? There’s an old saying in the marketing that nobody buys a drill, what people are really buying is the ability to drill lots of little holes. It’s the same way with your benefits and this is actually one of the places where we see a lot of people make a mistake because they assume they know what the benefits are of their product or service and come to find out they’re usually wrong and especially in the oil and gas industry where there are so many different segments and so many different business drivers that are unique in the industry. This is the place where research and due diligence really pays off on the bottom line.
And then, we look at competition. So competition means not just your competitor who sell a similar product or service, but competition could be something like we don’t want to change our process. I see that a lot in oil and gas. You bring a new process or new product to the market, well, somehow the oil and gas industry is meeting those needs already, right? Even if it’s old fashioned or inefficient. The competition may be the resistance to change and you need to understand that and be able to qualify that.
And then, positioning. Once you understand your targets, the benefits you bring to these targets and what competition looks like, then you can actually figure out how to position yourself in the market. And I will give you a point here that’s unique in oil and gas industry. Positioning is never about being cheaper. This industry is enormous, the dollars that are spent are gigantic, so coming to the industry and saying I can do something cheaper is not the best way to position yourself. In this industry, things like health safety environmental operational efficiency, competitive differentiators from a geophysical point of view, all that sort of stuff helps you with your positioning. Once again, you need to do a deep dive into the client base of those identified targets with those identified benefits and figure how you position yourself in a competitive landscape.
And then, finally you take those top four things and helps you develop your campaign. How are you going to reach out to the prospective clients? You’ve identified who they are, you’ve identified what problems they have that you solved, you’ve identified how you do it differently and with a bigger business impact than your competition and you’re able to put that together in a campaign. A campaign can mean a lot of different things, at a high level this is how we handle the framework when we do the open marketing strategy. So let’s go look at some real world examples at LAGCOE.
All right. So here is classic example of just excellent targeting. This is a shout out to Payton, Debbie, and John with Hole Opener Corporation. They know who their clients are after thirty years of being in business. They know their clients, the people that have a need for hole opening underreaming and casing cutting. So, great job folks, you hit the nail on the head. Wish you another thirty years of big success.
So, here is a unique take on positioning. This is Kimray Valves and Controls and they happen to know from their market research that in an oil and gas trade show, the same people that would be their potential clients also have high probability of having an interest in hot rods. So, once again, Kimray, what a great job on positioning.
And hats off to NOV for just running a perfect campaign. This is a joint effort between their sales and marketing. It’s a multipronged approach, they attracted a lot of existing clients and also a lot of new clients, so great job folks.
All right, folks. Hope you got some benefits from that. I will see you next time.