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Appendix A: Review of Literature 

Introduction 

Our team has chosen to research a few different topics to recommend Grounded Plant and Floral Co in light of their moving to a new location and expanding their business to include coffee sales. We have researched how being a green-certified business would be beneficial to the business, as well as various marketing strategies for the company as a whole. Some of these strategies include a customer rewards program, extending social media outreach, and how to market a green certified business. This section of the report includes syntheses of our research over these topics.
 

Using Search Engine Optimization Techniques to Increase Local Visibility

Specialists in the field of search engine optimization stress the need to adequately manage a business’s digital footprint. An article from PRNewswire brings new light to SEO trend in small businesses. According to Cory Hedgepeth, a senior digital marketing manager for Direct Online Marketing, a digital marketing company in Pittsburgh. "63% of small businesses prioritize social media marketing over key SEO activities such as local search and on-site optimization. Social media, though, does not have a direct impact on search rankings.  Overall, 36% of small businesses had an SEO strategy at the start of 2019, and 23% plan to create and implement an SEO strategy this year" (2019). Strategies to maximize SEO will set up small businesses for long-term success, but it takes time, investment, and technical expertise to build and optimize website content to rank in search engines.  Sherry Bonelli, owner of Early Bird Digital Marketing, has 19 years’ digital marketing experience.  Bonelli agrees with Hedgepeth in that “Many local businesses just claim their GMB listing and forget about it. What most businesses don’t realize is that there are a variety of other features Google gives you that you can use to optimize your Google My Business listing  and several reasons why you should frequently check your business listing to ensure that its accuracy stays intact”(2018).  For businesses that rely on local customers and clients it is essential to optimize your search parameters from general to a more local focus.  In today's business world it is more and more important to maintain one’s presence on the internet to maximize visibility.
 

Diversifying a Business to Attract More Clientele

Professionals in the business arena give words of advice on expanding and updating a business model to become more profitable.  Mark Fisher, a staff writer for the Dayton Daily News reports on coffee shops diversifying into alcohol sales. “Starbucks points out on its web site that 70 percent of Starbucks customers drink wine, compared to 30 percent of the general U.S. population, Starbucks customers also are twice as likely to drink craft beer than the national average” (2015).  These statistics indicate a correlation between those who drink gourmet coffee and wine/craft beer consumption. It is reasonable to assume those same individuals would visit the establishment for those refreshments.   Truic (a professional advising firm) affirms Starbucks data indicating that diversifying from coffee sales to include alcohol has significant benefits. These benefits can include:  “Extends your business hours to help fully utilize your space, Attracts customers at a different time of day to make a second purchase — potentially doubling the profit of one customer relationship, Increases your profits by enhancing your menu, and Helps to grow your customer base” (2020).  Capitalizing on a gourmet coffee drinkers’ pension for fine wine and craft beer can create new opportunities for the business.  In a competitive market it is important to stand out and be creative to generate new customers.
 

Half the Battle of Small Business: Customer Satisfaction

Customer satisfaction is debatably the important second half of any business. In a small business, it is crucial. From a discussion about the benefits of having a Green certified business, Meghna Chakrabarti (2007), an american journalist and radio producer, spoke with Tami Clark, the vice president of marketing at The Coffee Bean & Tea Leaf who said, “People want to feel good about a purchase. As a customer, I want to think that it has some value overall, globally…” Globally will reach different audiences and connections. However, a key part of a business, especially a small business, is connecting with the consumer to assure them that there is a personal, one-on-one, direct relationship that exists that they have with the business. In a research article on marketing online through media outlets such as Facebook along with consumer satisfaction, Linchi Kwok (2013), an associate professor, continues the same saying, “Consumers who use social media would prefer to have ongoing conversations and a stable relationship with a company.” It gives the consumer input, and a voice in their purchase and their own satisfaction.

Online Communities Help Form Connections for Customers and in Return Make Them Loyal

With more businesses turning to online platforms, they need to have a relationship with their clients. In writing about the benefits that come with online engagement, Ahmed Suhail Ajina (2019) , author and marketing professor says, “Moreover, the companies engaged in the service sector business may gain substantial customer loyalty by investing in customer engagement strategies through the social media platforms.” Ajina claims that once companies start to engage with their customers on social media those customers are very likely to become loyal to the company. Researchers Tingting Zhang, Bilgihan A., Kandampully J., and Lu C. (2018) , agree that building an online community for clients is important for retaining loyal customers. They said, “Online communities may, therefore, be seen as a promising way to establish valuable relationships with existing or potential customers and increase brand relationships.” They claim that to build more loyalty with your customers having a platform that is open and allows them to talk to the company is crucial. It is coherent that all these authors support having a social media platform that can allow the customer to open up with like-minded people and have a sense of a community. Which in return develops them, loyal customers.
 

Customer Loyalty Affects Business in a Major Way

The International Journal of Research in Business and Social Science is a big research publication that has looked into many different aspects of business since their start in 2012. According to Khairawati, S. (2020), a source who used The International Journal of Research in Business and Social Science’s 2020 publication, “Member cards significantly affect customer satisfaction; Member card ownership gives significant effect on the customer satisfaction, trust, and commitment.” This means loyalty programs positively affect customers. PR Newswire, a distributor of press, would agree; In one of their articles, they explain that Loyalty options encourage customers to return to shop.(PR Newswire 2014) This research proves that when provided with customer loyalty opportunities, businesses can be influenced in a positive way.
 

Reward Programs bBetter Connect Businesses with Customers and Generate More Profit

Merchant Warehouse is a section of Cayan, one of the largest merchant acquirers in the United States. In an infographic produced by the company they state “69% of customers say that their choice of retailer is influenced by where they can earn customer loyalty/ rewards program points; 70% feel that these programs are part of their relationship with the company.”(Visualy). So in other words, businesses can connect with clients through rewards programs. PR Newswire, a New York publishing company, also states in an article of theirs that ,“returning customers spend an average 67% more than first time customers.”(PR Newswire 2014). In conjunction, these sources help support that a source of customer program can not only better engage client-seller relationships; But also bring in more profit for your business. 
 

Specific Marketing Improves Customer Activity and Increases Profits   

In the age of the internet, it is very vital for businesses especially small ones, to use digital marketing to their advantage. To reach new customers a business has to have their name out there in advertising. The new way of reaching new customers is online and on social media. In a journal written by Mohammad Saif Ahmad (2020), who is a Trainer & Assessor at Bridge Business College. He says, “The most ideal way to drive the good marketing strategy is to conduct the useful marketing research and keep customers aware about products or services.” Keeping customers up to date about new products and new events is key in keeping them interested and knowing the business. Keeping customers aware can come from many different sources and knowing which one relates to the client’s demographic is key. Ante Roncevic, Tine Lukcic, and Paula Spolijaric (2019) all agree with Ahmad. While surveying men and women ages 18-51, they saw that digital marketing was more popular overall. This study had many surveys, and it showed a mixture of preferences and uses of the internet and social media. “In order for the right product to find the right customer, it is necessary to properly utilize the full benefits of both traditional and digital marketing.” Knowing the client’s demographic can help keep customers up to date with marketing that fits them. It is clear these authors support an understanding of what means of marketing will work for the company’s demographic and keep the customers aware.  

Using Social Media to Market Your Business

Social media has become an extremely popular way to market your business. Gianluca Ferrugia, a digital agency expert, founded DesignRush in 2017. DesignRush is a website that is used to connect brands with different agencies depending on what your business needs. In 2019, DesignRush announced the top digital marketing strategies. The top strategy is artificial intelligence. “Research shows that artificial intelligence will increase profitability by 38 percent by 2035.” (PR Newswire, 2019) Things like websites, apps, and digital advertisements all serve as A.I. that can help boost your business. Karan Smith, an author for Lyfe Marketing, makes the point that many small businesses have limited budgets for marketing. She agrees that social media is a useful tool for business, especially a small business with limited resources. She writes, “Marketing through social media is one of the most versatile and cost-effective strategies that small businesses can use to reach their target audience and boost sales over time.” (Smith, 2019) The scope that social media reaches is much larger than traditional media, and it also creates communication between businesses and their customers.

Emails May Be Appropriate for Certain Events

Emails are more reliable for events such as Workshops. Lucy Fuggle is a young writer and business consultant who also runs her own website. In her article about powerful ways to promote and sell your workshop, Fuggle states “So many people dislike phone calls, especially tech-savvy millennials who know that in a world of online booking and social media you can avoid it” (Trekksoft 2016). She makes it a point to start off on this note. As a business consultant, I imagine she’s had experiences of her own related to this. Jeff Hoffman is the founder of his very own sales Training program. In the article about when to use email versus phone calls, he states “Email is preferable only when you’re dealing with non-milestone closes; For request such as confirming a meeting, email is best because the answers you will get will be better, more concise, easier to get, and won’t waste your prospect’s time with a phone call” (salesforce) Through this Hoffman explains how email is the more ideal means of communication for things such as planning events and meetings, like workshops. These statements are interrelated because they posit that people tend to dislike unnecessary phone calls and email is a more effective, concise way to communicate. Based on the similarities between both sources, email appears to be the more promising means of communication.
 

“Going Green” Offers Many Benefits to Businesses

When a business “goes green” it not only benefits the environment but it can also benefit the business. Nicky LaMarco, an author for the Houston Chronicle, wrote an article on just what benefits a business can get from going green and she writes, “The benefits for going green in business include reduced expenses, gaining customers, and boosting employee morale.” (LaMarco, 2019) Many businesses, especially small businesses have limited budgets and resources, so finding ways to save money is important. While transitioning your business to doing things like increasing energy efficiency may cost some money, going green will save a lot more money over time. In 2015, Nielsen conducted a global online study of over 30,000 online consumers about whether or not sustainability is a priority to them while shopping. This study confirms LaMarcos’ claim that going green will help gain customers. The study concluded that “66% of global respondents say they’re willing to pay more for products and services that come from companies that are committed to positive social and environmental impact, up 55% in 2014, and 50% in 2013.” (Nielsen, 2015) It’s important to note that as time progresses, it becomes more and more important to consumers to purchase from businesses that acknowledge their social responsibility. 
 

Going Green is Beneficial to the Reputation of Businesses

Businesses going “green” not only have the benefit of saving the environment, but studies have shown that going “green” will engage more customers. Pam Hunter, former Senior Editor of Engineering News-Record, was quoted saying  “...much in the same way commercial-building owners have begun to retrofit buildings to maximize energy efficiency, reducing energy costs and greenhouse emissions, building owners also can derive both economic and societal benefits by retrofitting buildings using green infrastructure” (Hunter 2014). Going “green” makes customers feel good about giving them their business. It improves the overall social status of a business. A statement made by Matt Hogan, editor of Stockton Graham & Co, agrees with the aforementioned quote from Hunter. He is quoted saying that ”Going green not only helps make your community a better place, but it shows your customers you are being responsible” (Hogan 2011). Using more sustainable methods and resources is an extra step that will be beneficial in the marketability of the business. 

Closing

For this report, we researched ways to advertise and market the business effectively, the importance of online presence, the impact of loyalty/rewards programs, how to properly use social media for a business, and why becoming green certified will benefit the business. This research has helped us form our recommendations to Grounded Plant and Floral Co. Co have a very successful opening of their new location.

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