MarkineticsNewsletter of the Society for Marketing Professional Services

September 2000

Participants in the recent trade mission to Peru included (left toright): Marvin Marcell, Executive Director of HII; Dr. ElizabethGatewood, Regional Director/UH Small Business DevelopmentCenter; Scott Shadle, President, Jones Business Systems; Dr.John Ivancevich, Dean, UH College of Business Administration;and Jim Kollaer, President, Greater Houston Partnership.

Case in Point...Tricks to InternationalMarketing�Focus on PeruBy Vesta Rea-Gaubert; Vesta Rea &Associates

The DC-10 landed at Lima�s airport and a round of applause broke out among the Peruvian passen-gers. My traveling companion looked around at the excitement and dryly commented, �Isn�tAeroPeru supposed to make a successful landing at its destinations?�

Anytime you leave the United States and head south of the border there is always a risk. In Peru, therisk is greater, but the rewards can be equally as great for those who like to step outside theircomfort zone.

A Bird�s Nest on the GroundPeru is a virgin business opportunity. It has so much natural wealth in minerals, agriculture, fishing,mining, manufacturing, construction and public sector work that it is a �bird�s nest on the ground.� Itis the front door to the Pacific Rim and the back door to the Caribbean.

Peru is ready for an economic explosion through a massive privatization effort. Under the adminis-tration of President Alberto Kenyo Fujimori, dozens of state-owned companies have been purchasedby private enterprises. The new owners have agreed to pour billions back into the country throughinvestment commitments.

This industrial growth is requiring major improvements to the infrastructure�billion of dollarsworth of roads, bridges,airports, ports, and water andwastewater systems are in theplanning stages. The PeruvianAirports and Civil AviationCorporation plan terminalexpansions and other improve-ments to the airports inArequipa, Cuzco, Iquitos,Chiclayo, Piura, Tacna andTrujillo. In l997, the LimaAirport is scheduled for aminimum of $70 million worthof improvements, includingupgrade of the securitysystem, runway overlay,customs expansion, newluggage system and six newjetways.

To the PointViews on theSubjectLee Slade, of Walter P.Moore and Associates, Inc.,has this to say about workingin the international designcommunity. �We have foundthat success is built on ourwillingness to adapt ourmethods to the local culture,not just in the project deliveryprocess, but in every form ofbusiness relations and commu-nications. We must appreciatetheir culture, language andmethods.�

Steven Peters, of Brown &Root, Inc., agrees. �When weleave home, it is easy to lookat the world as if it were amirror, reflecting the values,behavior and practices weknow so well. One of therewards of marketing abroad islearning that there are manyways to get the job done, mostof which differ significantlyfrom ours. From start to finish,we risk offending, disappoint-ing or even failing clientswhen we don�t take the time tolearn their culture, laws andbusiness practices.�

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In This IssueTo the Point 1Case in Point...Peru 1President�s Message 2Braggin� Rights 3Upcoming Events 3Member Profile 4NewMembers 4

So now the question is how do you go about positioning your firmto be on the cutting edge of this re-development. How do youidentify projects, find a local teammate you can trust and, mostimportantly, get paid?

Where does the Marketer Begin?1. Identify the country on which your firm wishes tofocus. Find out which overseas projects are being funded bytheWorld Bank, the Inter-American Development Bank,the U.S. Chamber of Commerce and the InternationalMonetary Fund. These groups have offices inWashington,D.C. and are willing to share information. Check into theInternational TechnicalAssistance Programs within theU.S. government agencies. These technical assistancegroups have knowledge of upcoming projects in variouscountries and provide aid with cooperative agreements, in-country technical assistance, seminars and training.

2. Do your homework before you commit resources toany international venture. Contact companies like PriceWaterhouse,ArthurAndersen and Merrill Lynch. Theseinternational financial institutions produce publications on�How to Do Business� in numerous countries, coveringtopics like the business environment, foreign investments,trade opportunities, investment incentives, banking andlocal regulations.

3. Contact the Houston International Initiatives, spon-sored by Councilmember Eleanor Tinsley and directed byMargarita Bernal (713-247-2915). See if HII is planning atrade mission to the country of choice. They do an excellentjob of getting their trade mission participants into thecountry�s net-work of top political leaders and localbusinessmen.

4. Obtain a clear understanding of the local regulations,taxation system and government restrictions on doingbusiness. The experts in Peru included theAmericanEmbassy, theAmerican Chamber of Commerce of Peru andthe U.S. Trade and Development Council.

5. Find a reputable local agent to represent your firm. Donot attempt to do business without one, even if you arefluent in the language and were born in the country.

As the year draws to a close, it is a time for change and

resolutions. Of course, one of the biggest changes in my life has

been my recent appointment as your new Houston Chapter

President. This change is the result of Rob Robideau�s decision

to pursue new goals. Anyone who knows Rob will appreciate not

only his dedication to the Chapter, but also his gentle spirit and

bright smile. I know you will join me in wishing him the best in

his new ventures and in hoping that he can remain an active

member of the Houston Chapter.

One good thing about stepping up as President in mid-year is

that much of the hard work has been done. For example, the

2000 Programs Calendar has already been nailed down and

should be in your hands in January.

The most exciting news about programming, however, is a

new program team concept developed to ensure speakers are

properly briefed to provide only relevant information pertaining

to the marketing effort. The resulting calendar includes hot topics

you won�t find elsewhere, such as a revisit to the popular HUBS

program and For the Keenly Competitive: Advanced Marketing

Survival Skills.

Kicking off the year will be two especially exciting programs,

starting with Jim Moncrief, Director of Client Services for The

Perryman Group. From interest and inflation rates to the eco-

nomic impacts of NAFTA, a new governor, and a GOP-domi-

nated state legislature and Congress, Moncrief will give us a

candid view of what (and who) will be hot in the next 12 months.

In April, Jeff Tobe, a five-time winner of the Golden Pyramid

award for specialty advertising, will be joining us from the East

Coast for a special creativity workshop designed for Houston�s

A/E/C industry.

President�s MessageAMessage FromMary Beth PerringNew Year Kicks Off New Concept inProgramming

Sincerely,

ÿþýü úùø÷ öùýýõôóMary Beth Perring,President

Case...

Braggin� RightsW.S. Bellows Construction Corporation

� Brenda Burns was recently awarded the Marketing Professionalcertification by SMPS National.

Douglas/Gallagher� Awarded two 1996American Graphic DesignAwards for the

Texas Rangers Ballpark inArlington, Texas and 25thAnniver-sary of the Special Olympics, Smithsonian Institution TravelingExhibition Services (SITES).

� Recent contracts include the Spring Home Training Facility forthe NewYork Yankees in Tampa, Florida and the GraphicsProgram for the U.S. Olympic Training Facility and VisitorsCenter inAtlanta.

Gilbane Building Company� Matt Daniel was named Newcomer of the Year by theAssoci-

ated Builders and Contractors and has also been elected to theBoard of Directors.

� Awarded the 1996ApexAward for Moody Gardens in the Over$15 Million, Institutional/Non-Profit Category by theAGCHouston Chapter.

� Recent contracts include the Greater Houston Traffic Manage-ment Center for TxDOT ($6 million) and ConstructionManagement for New Facilities Construction at the Universityof Houston/Downtown.

AJR Engineering &Associates, Inc.� Recent contracts include theWorld Bank Environmental Audit

($200,000), a 40 MWPlant Design in LatinAmerica ($60million) and a 10 MWDesalination Plant in the Caribbean ($1.5billion).

Fullman Company� Recent contracts include theAT&T High Purity Piping and Tool

Set in Orlando, Florida ($1.5 million), theAtmel Corp. HighPurity Piping System in Colorado Springs, Colorado ($5.0million) and theAmerican Red Cross D/B Mechanical Systemsin Portland, Oregon ($800,000).

Morganti Texas, Inc.� Recent contracts include 500-Bed SubstanceAbuse Treatment

Facilities for the TDCJ in Liberty County ($8.5 million), JasperCounty ($8.1 million) andWood County ($8.1 million).

Vesta Rea &Associates� Vesta Rea &Associates was featured in the 1996 Houston 100

Report/Honorable Mentions List as one of the fastest growingsmall businesses in Houston. Selection was made by the UHSmall Business Development Council.

� Recent contracts include theAir Service Marketing Plan for theAlbuquerque International Airport and Governmental Affairsand Special Project Support for the City of PearlandAirportMaster Plan.

T.A.S. Construction, Inc.� Awarded the 1996ApexAward for Best Concrete Application

from theAGC Houston Chapter.� Recent contracts include the Henderson Jail (232,000 SF, $2

million) and the Meyerland Mall Renovation (200,000 SF, $1.7million).

Daniel R. Brents, Inc.� Recent contracts include the Master Plan for Hometown,

USA ($500 million) and the Victorian Square Developmentin Nevada ($200 million).

Walter P. Moore and Associates, Inc.� Walter P. Moore, Jr., PE, Ph.D., has been named a Fellow of

theAmerican Concrete Institute.� Lawrence G. Griffis, PE, was named a T.R. Higgins Lecturer

by theAmerican Institute of Steel Construction, the highesthonor given by the steel industry in the U.S.

� Javier Horvilleur, PE, received the Maurice Van BurenStructural EngineeringAward for his paper on TheNationsBank Tower.

Comsul Ltd.� Recent contracts include the Mary Kay Cosmetics Headquar-

ters Relocation and the HISD/Rice K-8 Elementary School.Morris Architects, Inc.

� Recent contracts include the Ben Taub Hospital Tower andCentral Plant Renovation, the Hirsch, Robinson, Sheiness,Glover, P.C. Corporate Interiors and the Chicago Music andDance Theater ($14 million).

Way Engineering/The Poole & Kent Co.A Joint Venture

� Currently under contract with George Hyman ConstructionCompany, Dallas on the M.D.Anderson Cancer Center,Phase II Interior Finishing ($118 million).

Upcoming EventsMarch Lunch ProgramMarch 12, 2000

1998 Trends: Changes and Challenges in the MarketingCrucible

April After HoursApril 1, 2000

Coloring Outside the Lines: A Creativity Workshop for the A/E/C Industry

May Lunch MeetingMay 23, 2000

Renaissance of a Dowager: The Revitalization of Houston�sCBD

PlacePostageHere

TheSocietyforMarketingProfessionalServicesP.O.Box540072Houston,Texas77254-0072

The Society for MarketingProfessional ServicesP.O. Box 540072Houston, Texas 77254-0072

Newsletter Credits

Publisher:Vesta Rea-GaubertVesta Rea &AssociatesEditor:Kim JohnsonK�K�Johnson andAssociatesDesigner:Steve OrtizSPO ServicesContributors:Mary Beth PerringKenneth Balk &Associates,Inc.Vesta Rea-GaubertVesta Rea &Associates

Member ProfileCHP & Associates

Gary Poole, President of CHP, began his engineering career byworking with his father, JoeA. Poole. And now, a few decadeslater, Gary�s daughter, Felicia, continues the family tradition byserving as Marketing Coordinator for CHP.

Gary and Felicia both joined the SMPS Houston Chapter in June1994. Felicia says, �Unlike Groucho Marx, Dad and I are bothproud to be part of an organization that would have us as mem-bers.�

NewMembers

Felicia Poole,Marketing Coordinator

CHP & Associates,founded in 1949 asCook&Holle, providesspecialty engineeringservices in mechanical,electrical, plumbing andfire protection systems.

Gary Poole,President

Karen L. CooperMarketing CoordinatorLockwoodAndrews &Newnam Inc.

Dottie TullosMarketing CoordinatorFMC/Parsons Brinckerhoff

TeresaWilliamsMarketing CoordinatorHooverArchitectsA 3D/International Company

Mary L.WrightPublic Relations/MarketingLockwoodAndrews &Newnam Inc.

Diana MitchellMarketingAssistantKlotz Associates, Inc.Consulting Engineers

LynnWexlerMarketing CoordinatorKirksey-MeyersArchitects