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H P T R
6
Marketing and Outreach
.1 Marketing Planning and Strategies
R o g er P ic ka r
A thriving architecture practice requtres a steady flow of challenging pro
jects Marketing is a series of steps firms take to attract clients and gain the
projects they need to maintain their practice
firms market. They build relationships with their clients and seek a steady
w of projects in fulfillment of their practice goals. All firms engage in every-
marketing-paying attention to their clients' needs and finding ways to
et new prospects. Some also undertake carefully considered and highly
lusedmarketing campaigns to acquire new clients and projects or to estab-
newservices.
At the most general le'£~ n.lark€ti, :~-ild.ti.es can..b.~.t:O ed.iJ;tto
rr
interrel te
realms:
Before develop ing marketi ng p lans
and strategies, a firm should first make
an assessmen t o f i ts values and exper ti se
and identi fy markets in whi ch those
values and expertise can be appl ied.
See Fi rm Iden ti ty and Exper ti se (5.1)
°
Marketirzg the total process of business development and developing clients,
including planning, implementing, and evaluating salessupport tools such as
market research, public relations, and advertising
oJ?ublic relations: getting the firm known in support of its marketing goals
°
Sale?lthe steps the firm takes to present itself and its services, to negotiate with
potential clients, and to close contracts
°
Project performance: attracting new projects from old clients by serving them
well and following up on completed projects
It may be helpful to think of marketing as planting
and the steps in acqu ir ing pro jec ts as harves ting. This
topic addresses planting, and Seeking the Projec t (6.2)
looks at harvesting.
Some architecture firms see these realms as distinct
I develop specific plans, strategies, and everyday actions to
lei relationships, get the/firm known, generate and follow up
3s,and close projects. These firms may also see their project
hitects a?part of their marketing effort, expecting them to build the working relation-
s and confidence intended to maintain the clients they work with. The tzo
suc-
s lies
injocus
of the firm's efforts and
coordination
of the four realms.
Other firms-including most small firms-see all four realms-as blending into
They often work less formally, without careful research and written plans. They may
n saythey don't market at all, instead relying on one of the four realms-project per-
mance-to bring them additional work. Despite this informality, the twin ideas of
usand coordination are just as important for these firms. Yet today more small firms
J lR P I K R is
president of 1
Inteili Sys
Info Inc. A nationally recognized lecturer and
bor he concentrates on strategic market planning for design contracting and other
essional seruicefirms
6
Marketing Planning and Strategies
N
Cl.
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It wasn't raining when
Noah built the ark.
Howard Ruff
understand that each of these activities is important on its own. They recognize that few
firms, especially smaller ones, can afford to scatter their limited time and resources in
ways that don't help the firm move forward.
For the past decade there has been increasing innovation in the area of market-
ing tactics. Architecture firms are dramatically increasing the sophistication of their mar-
keting efforts by learning from other industries. Some architects are aggressively con-
ducting direct mail programs and media advertising, as well as creating an Internet pres-
ence and participating in trade shows and conventions.
PRINCIPLES
Some underlying principles work for most architecture firms in their search for
focus and coordination.
Think big picture. What kind of firm are you, and what do
you want to become? What is the added value that you offer to
clients? What are your strengths, and how do you want to build on
them? What kinds of clients and projects could you attract, and how
can you gain access to them?
Build relationships.
When surveyed, clients for design services talk about the
need for trust. They recognize that the relationship is a professional one and that a great
deal is at stake. Trustworthiness is not a product to buy and sell but rather a perception
that grows over time. Firms that
build long-term, mutually sup-
portive, and beneficial relation-
ships with their clients-both
current and inactive-are in the
best position to do projects for
these clients. They realize that
communicating with clients
about what they need from the
client, and what they believe the
client needs from them, will go a
long way toward building rela-
tionships.
Be there
first
Most archi-
tecture projects have an extended
birthing process; they may be a
gleam in the owner's eye long
before they are announced pro-
jects. An architect involved early in
the project formulation and defini-
tion process can be of real help to
the client by offering key informa-
tion and guidance. Building long-
term relationships, of course, is the key to being there first. However, while being first is impor-
tant, being qualified and experienced can often be just as important,
Deliver more than you promise.
For most firms, this is added value. For some, it is
outstanding design, and for others, it is exceptionally productive delivery of ser-
vices. Whatever the firm offers, remember that service is now a commodity-
providing it well and with fullawareness of what the client is seeking is a key to
getting repeat work.
Architecture firms implement these principles in a variety of ways.
Some firms find they need not invest a great deal of obvious effort in mar-
keting. They have an established base of repeat clients who are well satisfied
with the firm and the added value of its services; they have competitors, but their mar-
kets are stable or growing. These firms
have
built relationships and
are
there first; clearly
they have the trust of their clients. They enjoy the luxury of being able to react to pro-
Over 40 percent of architecture firms use the
Internet for marketing purposes. See Using the
Internet in Practice (12.2) for more information on
this versatile marketing tool.
Some architecture firms see these realms asdistinct, developing plans, strategies, and
tactics for each. Other firms, especially smaller ones, see them asblending into one.
Project
Performance
Project
Performance
The largest single source of work for
architectural firms comes from existing
clients. In 1999 work acquired through
noncompetitive selection accounted for
46 percent of all work done by firms.
AlA Firm Survey 2000
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ject opportunities and possibilities as they arise. Yet it is a mistake for them to be
lulled into complacency. All firms need to invest in new business development on a
regular basis. Someone in the firm should be continually marketing, looking for pro-
jects three to four years in the future.
Most owners are not building all the time, and firms require a flow of new
clients and projects. Most markets are highly competitive, and few are stable for long
periods of time. Thus most architecture firms find themselves in a position of com-
peting for clients and projects.
Competition is a complex phenomenon-one that architects approach in dif-
ferent ways. Some firms internalize it, competing with their own past experience to
provide excellent design, service, or delivery of professional services. Others select a
target-perhaps the best firm in the region-as their standard. Most, to some degree,
orient themselves to the marketplace, recognizing that their competitors are other
firms offering similar services to the same clients they wish to attract. These competi-
tors can be engineers, interior designers, or consulting firms.
Proactive Marketing
Whatever approach they may take, most fil~msJi.ndthey need, to be
PyogI;tive
in theirs.o, l1petitjve~Sl.uest.That is, they must invest time and effort to reach the
cU'(;ts that can help take them where they want to go. In highly competitive markets
this means reaching clients early in their decision-making process-at the think
phase -and gaining their trust before formalJarchitect selection occurs..~ design firm
marketipgIn.tbis.way seeks to provide data and insights about design issues of partie-
ular concern to its prospective clients. Accompanying this with information about the
firm can provide a foot in the door. Following up the initial contact by continuing to
make such information available develops the potential client's trust and increases
the likelihood of bringing a project to contract.
Even proactive marketers find themselves reacting to unplanned project pos-
sibilities that arrive on the doorstep. They may decide to respond to a published
request for qualifications from an unknown client. They may find that, despite their
best efforts, they need to make cold calls to prospects they don't know in order to
find projects. The point, however, is t:b' ,tQrQ,tlctivefirms don't rely
only
on reactive
m~eting and its many uncertainties.
Firms that do rely on reactive marketing (responses to client-generated pro-
ject announcements) may find themselves in difficulties on two fronts:
• J'bey .roaY..,..opel-ate~from a
sa £eS £lJ. 1 QQ k
t o
a ma}Cketing~
They
become involved late in the prospective client's decision-making process, when the compe-
tition is greater. They depend on reacting to (often untargeted) leads, screening them,
bringing in the team, and eventually bringing some prospects to contract. Their success
depends almost totally on the ability of their principals-cor marketing specialist-to identify,
screen, and sell to large numbers of prospects.
• They may place themselves and their technical expertise at the center of their
sales efforts. Because they spend so much time reacting to possibilities and selling their
qualifications, these qualifications become central. In this situation, firms can lose touch
withtheir markets-who the clients are, how
they
are expressing
their
needs, and what
theywant to hear from design firms.
Marketing in a negotiated environment takes time and interaction. The earlier
an architecture firm can identify a prospect, the more time there is to demonstrate the
elements of trustworthiness: dependability, honesty, integrity, consistency, and expertise.
The stages involved in proactive marketing are
• Understanding and agreeing on the firm's goals and strengths
• Focusing on the markets and clients most likely to help the firm build its practice
• Researching these markets, identifying trends, generating leads, and networking
to identify and screen prospects and their needs and attitudes
Today the primary factor design
buyers use in choosing a company
is tr us tworthin es s Design firm
clients contacted by MRS/Pickar,
Inc., of Longwood, Florida,
revealed that trust is the most
important criterion in their selec-
tion process. Other significant cri-
teria are the ability to get the job
done on time and the ability to
get the job done within budget.
The clients rated choosing a firm
that has the technical experience
to get the job done efficiently and
competently as more or less
important according to the com-
plexity of the project.
Clients dealing with building
types such as hospitals and high-
tech facilities rated technical expe-
rience very high. Design buyers in
the public sector were also partic-
ularly concerned with this factor.
Facilities managers, elected offi-
cials, and engineers hoped to
avoid constructing a building that
would sprout deficiencies in two
to five years. Thus, even among
clients who stress technical com-
petence, trust is paramount.
7
Marketing Planning and Strategies
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AlA Firm Survey 2000
•••••••••••••••••• 94 Repeat work
•••••••••••••••••• 92
Referralwork
••••••••••••••••• 88% Personal/professional contacts
••••••••••••••• 79% Firm reputation (unique experience)
••••••• 1140
Request for qualifications
••• 17
Feebasis
•• 11 Responseto marketing firm outreach
• 6% Competitive design-build selection
• 4% Design competition
3% Developer/architect competition
2% Project initiation (firm asdeveloper)
Repeat work isthe most
popular method of getting
new work. However, there
are significant differences
acrossfirm sizesfor the
other means of acquiring new
work. Three-quarters or more
of firms with 20 or more employees
get work by respondinq to RFPs,while
lessthan a third of firms with under five
employees get work this way.
• Determining what these prospects are seeking, developing promotional materi-
als, and tailoring presentations accordingly
• Closing contracts through the development of trust and the establishment of a
relationship as a competent provider of industry information
r o ss el l in g
Cross-selling design expertise from one division of a firm to existing clients of another
division can be effective, but there are hidden pitfalls. The design discipline is the real issue:
It can be a problem when the landscape group markets architecture services to one of its
clients. The reverse is true as well. The inherent danger is the client's expectation of the level
of service it has received (and will continue to receive) from the firm. If a new project is more
complex, it can require much more design time than anticipated by either client or architect,
and it could ultimately cost too much for the client and not be profitable for the firm, Yet in
today's market cross selling is becoming more common, particularly in mid- to large-size
firms, which see an opportunity to build on the goodwill and good relationships the firm
already has with its customers. But there is a learning curve for all new types of work-gain-
ing new expertise demands time and dedication before you seek new project types.
PLANNING
-.-.-.-.-.-.
Some firms take the narrow view that marketing involves only calls on new
prospects and old clients; contacts with unfocused networks of people who provide
leads; and preparation and distribution of brochures, letters, and qualification state-
ments. Although these are all part of the process, a marketing program is usually more
grecti~,f it includes a.El~£<2E]£reh~lli~
a fU ~S S
tis4,seLoLactions that are
focused by the first step of the process-marketing planning.
Simply put, marketing planning is a series of steps that allows the firm to target
particular markets and decision makers. It attempts to provide a means of ,{ddressing
- these markets better than the competition. A marketing plan answers these questions'
• Who are we?
• What and where do we want to be in the future?
• What rate of growth or profitability should we aim for?
• Which markets and potential clients should we target?
• Who are our competitors for those clients and how do we compare with them?
• What are the major strategies we could use to address these opportunities?
• How can we best implement our selected strategies?
• How can we sell to and close the targeted prospects?
Marketing and Outreach
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• How can we best serve our clients?
• How are we doing, and can we do even better?
Financial Planning (7.2)
i ll us tr ates how p roject ions from
the marketing plan factor into
the f irm s f inancial p lanning .
• Motivation and involvement.
Because the staff involved in market-
ing will help move the firm into the
future, it is important to have them
identify with and participate in the
planning process. This personal
involvement creates a commitment
to the plan.
• Capabilities. Those responsible for
developing and carrying out the plan
must be capable of actually doing so.
• Resource knowledge.
The planners
should know which resources-the
time, money, and other commit-
ments needed to implement a mar-
keting plan---can and cannot be
made available.
Marketing planning can offer signifi-
cantbenefits to a design firm. To be success-
ful, though, it must overcome some obstacles:
Marketing planning is a step-by-step process that charts the marketing course
for the firm based on present and future,
internal and external conditions. It begins
with general firm planning and positioning;
defines marketing goals, strategies, and tac-
tics; and produces a flexible plan that specifi-
cally sets out what needs to be done over an
interval ranging from several months to sev-
eral years.
A key to success is participation by
the firm s leaders and the staff who will imple-
ment the marketing plan. Because the firm s
leadership develops the vision and sets the
tone, one of the partners or the president
should be involved in the planning process. In
a larger firm, a marketing-oriented principal (in
somecasesan associate) may chair the overall
effort, but the firm s leadership must buy in.
The next step is to select other partici-
pants.Where there are choices, the firm s leader-
shipwill want to consider factors such as these:
• It takes time to develop and imple-
ment a plan.
• It takes discipline to move forward
constantly, especially in areas of lim-
ited familiarity
• It requires ongoing evaluation,
which takes considerable objectivity
• It sometimes appears restrictive,
causing a firm to lose what might appear to be opportunities.
• It breaks the comfortable olel pattern of reacting intuitively to
new situations.
roacti ve and React ive arketi ng
Proactive Marketing
Advantages
• Allows the firm to take a longer-term view of opportunities in the market
• Helps the firm penetrate its market by identifying potential clients earlier
• Allows the firm to establish Ltsuniqueness
• Helps sell projects because the firm has a sense of the prospective
client s potential problems
• Establishes a framework that allows a greater cross section of the firm
to participate in marketing
• Helps focus the selection on quality and diminish the importance of price
Disadvantages
• Takestime and money to develop and implement; this may be substantial
• Takes discipline, commitment, and support from the firm s leaders
• Requires a considerable amount of research to understand e~ch market
• Extends the time between initial contact and close of sale
• Requires extra effort on the first projects in a new market because of
the firm s lack of experience in that market
• Does not guarantee success; despite considerable invested time, some
projects will still not come to fruition
Reactive Marketing
Advantages
• Requires lit tle change or investment
• Keeps overhead expenses down, allowing maximum chargeable time
to projects
• May enhance profitability-as long as there is a lot of work in the
marketplace
• Works fast
• Feels simple and comfortable; no habits have to be broken
• Reduces the risk of investing time and money in a project that doesn t go
Disadvantages
• Requires the firm to react to the marketplace; the firm is not in touch
with the long-term needs or problems of the market
• Places the firm at the mercy of the short- and intermediate-term ups
and downs in the market
• Focuses time on clients and projects that may be too small (or too
large), too competitive, or outside the firm s real capabilities
• May increase the number of estimates, presentations, and salescalls
involved
• Sometimes makes it necessary to take any project that is available
6.7 Marketing Planning and Strategies
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Steps in arket ing lanning
With the firm's mission in hand-that is, what the owners
see as the reason their firm is in business-the next step is to analyze
its situation and set marketing goals that will enable it to increase
business in the markets that best match its interests and abilities.
A critical internal analysis of a firm's position in the market,
strengths and weaknesses, and mission creates the foundation for the
remainder of the marketing plan. It tells the firm what it has to work
with and what it should beware of. Situation analysis includes both
internal analysis and external analysis, which seeks to understand the
competition, the market trends the company is facing, and where the
emerging, declining, and steady needs are in the marketplace.
It is valuable to get an objective view of the firm from both its
staff and its clients. Internal analysis may be approached in three
stages: a client survey; a parallel evaluation by the firm and its staff,and
a careful evaluation of the firm's projects, sales approaches, marketing,
and profitability; including comparison of these to mission and goals.
External analysis step includes looking at trends in the mar-
ketplace-needs, sudden downturns, growth potential-and what
the competition is doing or might do. Considering these two factors
in combination with the firm's strengths and weaknesses should
provide a solid base from which to make sound decisions about
strategy and direction.
The following steps are commonly involved in external analysis:
You may already have accomplished the first four
or five steps in this process through an overall
strategic planning effort.
1. Determine the firm s mission. The mission or
purpose statement reflects why your firm is in busi-
ness, gives basic guidelines for further planning,
and establishes broad parameters for the future.
2.
Set company goals. Goals define the overall
results your firmwants to achieve. Theyguide the mar-
keting plan and the strategies needed to implement it.
3. Perform external analysis. An external analysis
examines trends in the marketplace: hot vs. cold
markets, the local economic outlook, market types,
available financing, and market needs.
4 Perform internal analysis. An internal analysis
looks
at
your firm's strengths and weaknesses-
what needs changing and what needs marketing
emphasis. It is a good idea to include a client view
of your firm's performance.
5. Establish marketing goals. Marketing goals
should reflect what your firm thinks it can accom-
plish through marketing in the coming years-for
example, the amount of new business vs. old, job
and client profiles, and promotional and sales goals.
6. Generate strategies to accomplish these goals.
Strategies are specific activities that can achieve
stated marketing goals over the next two to three
years. They range from pursuing a new type of
client to expanding an existing market geographi-
cally or even adding or changing a specialty.
7. Researchand refine strategies. It is important to
focus as much as possible, selecting only those strate-
gies that will make it possible to reach your goals
8. Create and refine promotional and sales tac-
tics. Tactics are short-term, immediate, planned
actions undertaken to implement strategies. Tactics
are specific reactions to research. Limittactics to
those necessary to accomplish marketing goals.
9. Implement the plan. Once the plan is put into
action, good coordination and record keeping are
critical to its success.
10. Evaluate the plan in action. Finally,the entire
marketing planning process must be continuously
evaluated and updated. Conduct regular evaluations
of your efforts to achieve your marketing goals,
studying both successes and problems.
• Determine the objectives of the analysis, especially the mar-
kets the firm is interested in addressing.
• Learn about these markets, including their extent, areas of
growth, and how long the growth will last. Look beyond the
immediate future: Where is a market heading? What do
those who know something about the market believe its
next evolutionary step or stage will be?
• Develop a network of people who understand the market
and could provide more in-depth information when
needed.
• If you find a trend or direction described by the experts,
confirm it with other sources.
• Compile a list of who decides which design firm to hire,
and identify the specific needs and concerns of those deci-
sion makers.
A sound marketing plan includes an assessment of your
competitors in the same way you assess your own firm: What are
their goals, strengths, and weaknesses? Where have they been most
successful? A determination of the effects of old and new competi-
tion and of what these firms do well will affect your decision to push
into a particular marketplace. Here are some ideas to consider:
• Include major current competitors as well as those who are
likely to become competitors in the future.
• Explore competitors' internal weaknesses and determine
whether particular markets and strategies make sense for
you in light of these weaknesses.
• Ascertain what you must do to strengthen your firm so it
will be an effective competitor.
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Marketing goals help define which targets make sense. They answer questions