Source of information: http://www.miningmarketing.com/
This report is the result of over 2 decades of experience - in the mining industry and in the marketing industry.
1. The ''Secrets" of Marketing to the Mining Industry
Through this document, I am going to reveal to you the "secrets'* of marketing to the mining industry, and why most companies are so unsuccessful in their attempts to penetrate this market.
2. Insider's View of the Mining Industry and Mining Personnel
AS you will see as we get further along in tins document, it is important that we understand the
industry that we are dealing with and the people in this industry. Before we get into specifics. I want to start by giving you a look at the size of the mining industry from a statistical point of view. Then I will give you my first-hand look inside the mining industry.
2.1 The Australian Mining Industry is Growing, Growing, Growing
The Australian Bureau of Statistics (ABS) have just released their annual ''Mining
Operations''publication. This publication gives an incredible insight into the mining industry. Unless stated otherwise, all the figures I quote are for 2004-05 for the metal-ore and coal mining sectors only.
I will focus on the financial statistics. Before I do, I thought I would share that the total employment in the mining industry as at the end of June 2005 was just less than 50.000 people. If you include the whole industry (is other types of mining, oil & gas extraction and services to the industry), the total employment was over 93.000.
Now. to the financial statistics...
Sales from the metal-ore and coal mining sectors reached $43 billion. Looking at some of the input costs shows:
• Purchases of Goods and Materials of S6.8 billion
• Contract Mining Expenses of S4.0 billion
• Repair and Maintenance Expenses of $1.7 billion
Capital Expenditure has increased 14% since the previous year to $8.4 billion. Which of these mining costs does your business supply?
Yes. There is a lot of money being spent by the industry while they are trying to meet the incredible surge in demand for mining products. Some people are asking how long the mining boom is going to last.
The Minerals Council of Australia has recently released a publication that projects significant growth in the industry over the next 10 years, particularly between now and 2010. They predict that an additional 70000 people will be needed in the mining industry by 2015.
Regardless of how you look at it. the mining industry is going to be growing for many years to come. Make sure your business reaps the benefits of this mining industry boom!
3. The "Secrets" of Better Marketing to the Mining Industry
All over the internet, you see people advertising how to get rich quick. We all really know that these offers sound too good to be true. Why? It is because offers that sound too good to be true are just that - too good to be true.
The 'secrets of better marketing to the mining industry are not some magical buttons that you press and then suddenly the money stairs flooding in. However, armed with the information That I have just shared with you and what I am about To tell you. you will be able to completely change the way you do your marketing to the mining industry. These changes, when implemented, will skyrocket the results of your business.
So, let's get started...
3.1 Gain ńlarity
Firstly, to make a step change in the results from your marketing effort, you have to gain clarity. Every day that you spend without clarity is another wasted day.
What clarity do you need, and how do you gain that clarity?
You need to understand your customers and their needs. You need to know the strengths of your company and its products and services, Once you understand these, you are in a great position to market those strengths that meet the needs of your customers.
I will expand on these issues.
3.2 Understand Your Customers Better
You need to have clarity about your customer. Who are they? What positions do they hold? What are their current needs and requirements? What do they talk about all day? What is causing them heartache when they are at work? What is it that causes them to lean forward in the chair and talk to you as though the rest of the world didn't exist?
Remember also that we discussed earlier the implications of hazardous areas, government regulations, environmental conditions, physical constraints and remoteness of mine-sites from major cities. You need to understand the problems faced by these people.
Many sales people find this information out with visits to mine sites and phone calls. These are good ways to understand your customers. Often, the problem is that this information does not make it back into the overall marketing strategy.
To test whether or not you really understand your customers, site down and try to write one page about your customers, focussing on their needs and requirements. Can you do it?
Now. before you think that understanding each one of your customers is a huge task, you need to realise that there is a lot in common among employees in similar job roles. There will be common threads with Longwall Superintendents as there will be with Drilling Supervisors or Commercial Manageers and most other roles.
In many cases, you or your sales people have heard the needs and requirements of your potential customers, but you need to get it clear. Have a brainstorming session and write them all down.
You will soon get a pretty clear picture about the main issues.
The better you understand your customers, the better you will be able to direct your marketing to these customers.
3.3 Know Your Strengths
Your company and its products and services have certain strengths that no other company has. If this is not true, it will be only a matter of time before your company is out of business.
What are these strengths? You need to know them so well that if I asked you what they were, you would have no trouble telling me without a slight hesitation.
What is different about your company, products and services that is not true of any other company?
3.4 Play on Your Own Turf
The best way to succeed in your marketing is to "play on your own turf '. by marketing your strengths. Do not try to be the best where you know your competitor is currently the best.
When you market your strengths to the customers real pressing needs, you are playing on your turf.
Gain the Home Ground Advantage every match. Don't ever play "Away" games again!
3.5 Market Your Strengths That Meet Your Customers Needs
Once you understand your customers' requirements, the problems faced by the customers and the strengths of your company, products and services, you are in a great position to market these strengths to your customers needs.
If you understand what drives your customers and you know your company's strengths, you do not waste time telling them about the things that do not interest them.
Where your strengths and the customers’ needs overlap is where you focus your marketing effort.
Once you have found the overlap, express your strengths in terms of the customers' needs. For example, "my results in less downtime than any other on the market". Another example is "our results in the lowest installation time of any on the market.
Now, how did we come up with these statements? Firstly, in the above cases, we knew that downtime or equipment installation times are issues that drive our customers. Next, we stated the strengths of the company's products that specifically met these pressing customer needs.
Usually, it is better to express your strengths as specifically as possible. This includes expressing things as percentages, actual numbers, etc. An example would be, "Our consistently achieves an availability of > 99%.
Lastly, make sure the statements can be backed up with facts.
3.6 Adopt and Promote a USP
Your USP which stands for ''Unique Selling Propositions” is a concise, one-paragraph statement that sets your company apart from your competitors. Every business should have a USP, but
hardly any do.
So, test yourself...
Without stopping to think, what is your USP - what sets your company apart from your
competitor's? State it in one or two sentences.
Well, if you could not do it. don't worry - you are not alone. However,, having a USP is a very important part of being heard within the marketplace. Without a USP, you are just asking people to buy from you without a justifiable reason to do so.
So, how do you decide on a USP?
Your USP has to set your company apart from your competitors in at least one of the major aspects of marketing-price, exclusivity, quality or service. Are you the cheapest? Are your products exclusive in a significant feature? If you are not the cheapest, is your product quality superior to your competitors? Do you offer the best service in your field.
Be very careful about choosing your USP - you have to be able to fulfill the "promise" made in your USP!
Once you have decided upon a USP, you need to articulate and promote it in every area of your marketing.
Before I move on, I will give you a couple of examples so you will understand this concept better. The USP for Big-W is "We Sell For Less". It is obvious that they are focused on price. BHP Billiton focuses on the exclusivity aspect with their current USP. "BHP Billiton is the
world's largest diversified resources company”. They follow this up with:
"We are distinguished from other resources companies by:
• our deep inventory of growth projects
• our customer-focused marketing
• our diversification across countries, commodities and markets
• and our Petroleum business”
3.7 Utilise More Effective Methods of Promotion
Once you have your marketing strategy in place, you are ready to promote it to the mining industry.
Unfortunately, many people do not know the many ways that they can promote their company, products and services.
Many companies are still using the same methods of promotion that were being used 10 or 20 years ago. They print brochures, then send a salesman on visits to mine-sites. Sometimes, they set a website, although they do not always understand its purpose.
There are a great number of methods of promotion that many companies do not know about, or use effectively. For this reason,I have devoted the next whole section to this topic.
4.In Conclusion
Successful marketing to the mining industry relies on knowledge of the mining industry. knowledge of current marketing techniques (not the stuff learned in university), and the successful blending of this combined knowledge.
I want to briefly go back over what we have discussed.
Firstly, we need to understand what is wrong with current marketing so that we do not follow the wrong way ever again. Don't focus on your product or service features, but on the benefits to the customer. Do not do what your competitor's do just a little better; do BETTER things. Don't follow the wrong ways of doing sales copy and marketing material.
Next, you need to gain clarity by understanding your customers and your strengths. Then. market those strengths that meet your customers needs. Play on your own turf instead of your competitor's turf Make use of an great USP to distinguish you from your competitors. Then, use more effective methods to promote your product or service.