Marketing in a $48 per Barrel World

Marketing? What is that anyway? There are so many interpretations of the concept of marketing that it’s hard to know the real story. As I have mentioned in previous blogs it seems that in the oil and gas services sector the idea of marketing is a bit of a misnomer. The dictionary tells us that marketing is; the total of activities in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling. Energy services companies have been fixated on the concept that relationships build clients. The mantra is ‘get out and impress guys that need our stuff’. Wine and dine them and lavish them with gifts. Get tight with that customer so that it is difficult for them to fall prey to all the other guys trying to do the same thing. Is that marketing? By definition…Yes!

But, the definition states that marketing is the total of activities in the transfer of goods from seller to buyer. So if you are relying on face to face selling and relationship strength to carry the can, what happens when oil is at $48? Is that enough?

Build a Bigger Audience

Recently I met with a company owner that is looking to join the Oilfield HUB online business community. He is a 30 plus year industry veteran that has survived previous slumps and has prepared well for the one we are all enjoying now. He didn’t buy that new vac truck this year because he didn’t want to incur the expense with anticipated revenue reductions on the horizon.

So why would he want to join Oilfield HUB you ask? Because he believes that you can only do so much with rifle shot marketing, that is, the old tried and true one on one relationship building with your current sales people. His theory is that in a $48 bbl market things are going to get tight. The relationships we created with good customers are unceremoniously tossed to the gutter in favor of cutting expenses. He has just experienced it in the past couple of weeks. All those lunches, drinks after work, the fishing trips where we laughed our guts out at our hijinks and could regale some weeks later at yet another lunch while in the same breath asking how his daughter’s birthday party turned out, were all for not. The time and energy we put into that one customer thinking we are solid…”he wouldn’t do that to me!” Didn’t matter. The mandate came down from on high to find a cheaper vendor and they did.

Integrated Marketing

This gentleman also understands that when things are slow you have to do more now to get your name out to a bigger audience to take advantage of the inevitable upswing. That’s how you grow your company in chunks, not dribbles.

The preferred vendors in Oilfield HUB believe that you have to cast a wider net. That marketing is the sum of all activities generated in the act of buying and selling. Oilfield HUB is a better way to connect buyers and sellers because it is efficient and works on multiple platforms. We take an integrated approach to marketing so that you have a better opportunity to attract new customers and help keep the ones you already have in your stable. It’s not good enough to just stick to what you have always done. Things are changing. We are not advocating you stop your relationship building. Not for a minute! Just use a shotgun instead of a rifle when you can.

Call me to find out how you can do that for your company.

January 20, 2015

Dave O’Connor Vice President – Sales Leadstone Group Inc.

Get in touch with Dave:                                              dave.oconnor@leadstonegroup.com       (403) 910-4172