pcsi final report

8/3/2019 PCSI Final Report

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Transmittal Letter

To PCSI Design

he topic of this document is PCSI Design’s marketing plan that will allow the company to grow, by implementing a new websiteand the change process PCSI went through this quarter whileimplementing the website. Lastly, we’ve provided a 12-month

implementation plan of marketing tools that PCSI should use to increasebusiness.

Authorization This report was authorized through the University of Washington’sBusiness and Economic Development Center (BEDC) in cooperation withProfessional CAD Services Incorporated (PCSI) Design. Leon Rowland,

with the assistance of teaching assistant, AJ Ghambari, has monitored theprogress of this report.

Quality standards are guided by Leon Rowland’s grading criteria for theUW course, Marketing 490. A team-created contract as well as a consulting contract developed by the consulting team and PCSI Design also sets theexpectations of this report and the overall project.

Project Description The work that the consulting team was responsible for was the

development of an improved website for PCSI as well as a 12-month actionplan for PCSI.

Findings, Conclusions & Recommendations After meetings with PCSI, our recommendations are to choose a marketing position for PCSI Design and then implement marketing tools based onPCSI’s positioning. As a result, the company will be able to present itscapabilities and benefits to clients. The ultimate goal of ourrecommendations is to allow PCSI Design to gain a larger market share andto be able to win larger contracts. This should, in turn, generate more

revenue for the company and signify to employees and clients that PCSI haspermanence. Another effect of forming and implementing a marketing plan is that turnover would decrease because employees will see PCSI as acompany they would like to work with for the long-term instead of a merestepping stone for jobs at bigger companies. In addition, the industry willgain respect for PCSI. All these effects will accumulate into PCSI’s growthand longevity.

T



Thank You, PCSIOn behalf of the BEDC consulting team, we would like to thank PCSIDesign for their cooperation in allowing us to work with them for these 10

weeks.

Sincerely,

Akira Barrett ____________________

Mike Christa ____________________

Savitrii Rizki ____________________

Rusty Thayer ____________________



Executive Summary

What Managers and Decision-Makers Need to Know

This quarter, spring quarter of 2007, the BEDC consulting team for PCSIDesign worked to implement a new website as well as develop a 12-monthimplementation plan with the emphasis on a cohesive marketing strategy toidentify how PCSI Design should position itself and manage its growthstrategically through the implementation of various marketing tools.

PCSI Design is a small but powerful company with the potential to grow. The key is to use its resources, characteristics, knowledgeable and diverseteam, and past projects properly to communicate a valuable message tofuture clients, as well as re-communicating the message to past and presentclients.

In terms of industry analysis, PCSI Design is operating in the SpecializedDesign industry that is recognized as a service sector. According to

www.census.gov, the current growth rate of the industry is estimated to beequal to 27.7%. Given the rapid growth rate and rapidly changing futuretrends, PCSI Design needs not only to change today, but to constantanalyze trends for possible future threats as well as opportunities. Thisshould be an on-going activity conducted by Marketing VP, Angela Pettit.

PCSI Design has experienced significant growth in the recent past. Toensure the company’s future success, we began the implementation process

with a website re-design based on winter quarter of 2007’srecommendations. After establishing PCSI’s needs for the website, our

consulting team came up with a suggested layout and content for the new website. Then we selected several web design and ad agencies to interview and present at PCSI in order to find the right designer.

Our second objective was to develop a 12-month plan based on winterquarter’s findings and recent findings that should direct PCSI’s marketing activities so that the company can grow beyond heavy reliance on a few major clients, and also obtain larger-sized contracts. The plan includes (1)hiring summer interns, (2) defining the positioning of the company, (3)finishing the website, (4) creating professionally-developed presentationmaterials that are customizable for different prospective clients in differentindustries, (5) hosting CRM events/tradeshows/and milestone celebrations,(6) a direct mail campaign, (7) competing in design competitions to winawards and gain credibility, (8) generating PR through articles in print andonline trade publications, and (9) an ad campaigns in print and online tradepublications.

http://www.census.gov/

http://www.census.gov/



Table of Contents

List of Tables & Figures ........................................................ 3

Background & Introduction .................................................. 4

Data Analysis ........................................................................... 6

Strategic Analysis..................................................................... 9

Competitive Analysis ............................................................ 11

Change Process & Accomplishments ................................ 12

Recommendations ................................................................ 17

Conclusion ............................................................................. 28

Sources of Information ........................................................ 29



List of Tables & Figures

Figure A - Average Proportion Spent on Marketing ....... 7

Figure B - Average Breakdown of Marketing Spending ... 7

Figure C - Average Growth of Marketing Spending ......... 8

Figure D - The Chasm ......................................................... 12

Figure E - Roger’s Adoption Curve................................... 13

Figure F - Flash Intro Part 1 ............................................... 15

Figure G - Flash Intro Part 2 .............................................. 15

Figure H - Quick Quotes ..................................................... 15

Figure I - Home Page ........................................................... 15

Figure J - About Us .............................................................. 15

Figure K - Services ................................................................ 15

Figure L - Vision ................................................................... 15

Figure M - Clients ................................................................. 16

Figure N - Direct Mail Piece ............................................... 25

Table 1 - Company Strengths & Weaknesses ................... 10

Table 2 - Cost of Copywriting ............................................ 20

Table 3 - Cost of Presentation Materials ........................... 23

Table 4 - Cost of Events ...................................................... 24

Table 5 - Cost of Direct Mail Postage ............................... 25

Table 6 - Total Implementation Cost ................................ 28



Background & Introduction

CSI is an eight-year-old computer-aided design company foundedby Carlos Veliz in Everett, Washington. It is a full-serviceengineering design firm that provides 3D solid modeling solutions.It can design the physical form of a product concept and provide

CAD data sets, models, and drawings, and they can also reverse-engineer anexisting product form to develop 3D CAD data sets.

The company started in a residential home with only two other engineersand has since grown into a small firm of 17 employees. This January, PCSImoved its central operations office to Bothell, Washington as it plans oncontinuing expansion its new facility.

Purpose: Mission & GoalsOur mission was to start the implementation of the most crucial promotiontool, which we deemed was the website because it serves multiple purposes(advertising, news feed, service inquiries, and client and employeemanagement). It also serves as a reference point for companies that hearabout PCSI through other forms of promotion.

Our second mission was to create a 12-month plan so that PCSI will beindependent of the UW consulting team after the quarter is over.

Last but most importantly, we strove to persuade PCSI to realize that they are indeed in need of marketing plan and to persuade PCSI to take the timeto define its positioning.

What Happened Last Quarter With basic market research based on preliminary sources (informalemployee and client interviews) as well as basic market research fromsecondary sources, the winter UW BEDC consulting team analyzed PCSIfor weaknesses that impacted revenues the most.

Their biggest weakness was that PCSI is lacking a solid marketing plan. Amazingly, without a well-defined and written marketing plan, PCSI isfunctioning well in three of the four Ps of marketing (product/service,placement, and pricing). Promotion was the area that was most neglected.Its only promotion strategy is to gain clients from Carlos’ personal network,

which generates some word-of-mouth, and then presenting at thosecompanies.

The marketing team came up with the foundations of a marketing plan by coming up with potential promotion methods.

P



This Quarter We came in hoping to implement the recommendations from last quarter,but there were 2 limitations:

1. There was still no formal marketing plan so nothing was clearly defined. In order to implement from start to finish, we needed todefine at least the positioning part of the marketing plan, so thatPCSI communicates a consistent message through out allpromotion strategies.

2. We had to evaluate last quarter’s recommendations and choose which one to implement first because no prioritization was given.

Our achievements this quarter include:

1. Identifying marketing priorities for this quarter

2. Defining needs and parameters for the website and designer

3. Selecting designers to interview

4. Interviewed designers

5. Hosting designer presentations at PCSI

6. Creating a 12-month plan

Overview

After the background presentation, this report goes into strategic andcompetitive analysis taken from last quarter, then this report discusses whathappened this quarter and the change that PCSI went through, then it ends

with the 12-month plan.



Figure A

Figure B

According to Figure B, key marketing tools that companies devoted mostof its funds to are:

Direct marketing (mail, telemarketing, email)

Web and trade publications advertisements

Exhibitions, trade shows

Non-web advertising

Public relations



Changes that occurred within marketing tools used within the SpecializedDesign industry is illustrated in the chart below:

Figure C

According to the graph above, there is a highly visible trend of increasedusage of direct marketing, website/web advertising andexhibitions/conferences. Industry growth is determined by computertechnology developments as well as Internet developments. Internetenables potential clients to browse websites and search for the best designengineering company. Researchers found that most potential clients aresearching for design providers via a general search engine. Only 10% of potential clients are using industry portals.

In terms of future trends within an expanding Specialized Design market,the environment is also changing rapidly. First of all, there is a need forengineering design companies to go ‘online’. Internet is a growing source of information and competitive advantage for companies that are able to usethe Internet, website, and online magazines to its benefit. In the computer-aided design industry, websites are not a primary marketing tool, but moreas a reference tool that establishes a firm’s credibility.

What is more, there is a growing trend of online communities, wherespecialists, clients or people who are interested in the subject can exchangetheir experiences, contacts and information about the best designcompanies.

Secondly, in order to grow and stay competitive, companies ought tocollaborate and communicate openly its values and principles.

From the clients’ perspective, services provided by design companies mustbe customized therefore standards are not beneficial.

Last but not least, creativity of designers is extremely important. Customersare looking for more innovative projects that grab attention, yet high in



quality and durability. As a result, design companies need to cooperateclosely with its clients in order to provide designs that exceed customers’needs and expectations.

To conclude, market analysis is very optimistic for the Specialized Designsector in which PCSI Design is serving its customers in various industries.

As was stated before, the current industry growth rate equals 27.7%. Whatis more, PCSI Design is facing little competition. To ensure stable growthand sales, PCSI Design needs to take advantage of its positioning, potential,goals and, most importantly, market situation.

Strategic Analysis

Currently PCSI is a small company completely reliant on word of mouthmarketing and networking as its sole source of business. Its CEO andfounder, Carlos Veliz is extremely well networked in the local community;

both in the engineering industry and business culture. In order to betterunderstand PCSI Design, and its industry as a whole, our team decided toanalyze the strengths and weaknesses of PCSI.

Internal Strengths

Chief Executive Officer – The CEO of PCSI Design, Carlos Veliz, is literally the core of the company. He founded the company and operated it fromthe very beginning; therefore, he knows all about the company and has a

very good grasp of the industry. The company’s noteworthy reputation islargely due to his involvement in community activities. His active role inthe community has allowed Carlos to network with potential clients andspread the company’s name. The firm deals mainly with large corporations

and much of their revenues are due to maintaining relationships with theseclients. Carlos Veliz’s amiable ways have allowed him to be recognized as acredible man to do business with within the industry.

Flexibility – Since PCSI Design is a small-scale company, it is able to dobusiness in a flexible manner in comparison to large, rigid designing firms.

They can work in their office, or be on site if the clients need them to be. They can travel to wherever they are needed. It is because of this flexibility that employees experience high satisfaction, and gives the firm a personaltouch. These various advantages to working in a small firm make the

working environment more exciting for employees, which in turn leads tohigh employee satisfaction.

Diverse Experiences – PCSI Design has been working with companies in various industries such as aerospace, medical, fitness, transportation,electronics, consumer goods, and many more. By looking at our clientsurvey, we found that they have received favorable responses from alldifferent industries. This is proof that PCSI Design has the ability to takeon jobs in many different areas, which leads to a broader target market.Unlike any of the other local engineering design firms, PCSI is minority-owned and their team of professionals is comprised of employees from all



different backgrounds. This gives the diverse company a fresh, differentperspective and they plan to leverage this multiculturalism in their projects.

High Referral Rate – PCSI Design seems to maintain very good relationships with its past clients. All the clients who have participated in our survey replied that they were very satisfied with their work and that it is very likely

that they will recommend PCSI Design to someone in need of CADservices.

Strong Revenue Pipeline – PCSI Design’s revenue has increased steadily since2004. It has almost doubled in year 2006. Strong revenue back-upprovides them with opportunities to invest more to their company, such asup-to-date CAD software, hiring more employees, providing a better officespace, etc.

State and Federal Certifications – Currently, PCSI Design has three statecertifications and one federal certification. The state certifications are:

Minority Business Enterprise, Office of Minority Women Business Enterprises , and

Small Disadvantaged Enterprise Business . The federal certification is the Small Business Administration 8(a). These certifications give a sense of credibility toclients.

Support from the State of Washington – Washington State is very supportive of small-business owners. It tries hard to attract lots of investors from outsideand provides lots of incentives for small businesses. For example, the non-manufacturer aerospace B&O credit is for companies that develop, design,and engineer, but not manufacture, commercial airplanes or componentparts of commercial airplanes. This program provides a B&O tax credit forexpenditures for aerospace pre-production development.

Table 1

STRENGTHS WEAKNESSES

Carlos’s networking skills, reputationwithin the industry.

High employees’ satisfaction. Flexible design team. High referral rates. Technical expertise in multiple

verticals. State/Federal Certifications. Strong revenue pipeline.

Media coverage. Convenient location. Engineers from diverse backgrounds. Minority Owned Business.

Lack of marketing strategy. Company’s small size. High turnover rates. Weak company vision and mission

statement. Large number of contracted

engineers.

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Internal Weaknesses

Lack of a Marketing Strategy – So far, all of the projects that PCSI Design hasbeen contracted to work on are due to clients hearing about Carlos Veliz.

Although word of mouth is a major marketing tool within the industry, nothaving any other marketing strategy is risky, especially for a company that

wishes to grow significantly. PCSI Design needs strategies and directions tomanage its future growth.

Small Size – Through our client survey, we found that clients view PCSIDesign as a small design company, capable of managing only small projects.If this type of assumption of the company does not change, it will definitely hold back PCSI Design from reaching its full growth potential.Vision and Mission Statement – PCSI Design’s current vision and missionstatement is very vague and does not represent the company well. Acompany’s vision and mission statement should not only be the direction in

which the company wants to head, but should also be an important tool when it comes to establishing relationships with new clients. Potentialclients who have limited background knowledge of PCSI Design will likely

look at their vision and mission statement to get a general idea of thecompany. In addition to this, a strong vision and mission statement unitesemployees, giving them a sense of belonging and team cohesiveness.

High Turnover Rates – Out of 16 employees, about 75% have been with PCSIDesign for less than a year. For some reason, working for PCSI Design isperceived as a stepping stone rather than a life long job for a majority of itsemployees.

Upon Analysis of these factors, there is a definite discrepancy between where PCSI is currently and where they would like to be as a company. Thedifficulty in incorporating this change is that the business is currently

effective in making profit and acquiring contracts. However in order togrow in size and revenue the implementation of a marketing plan isunavoidable. Here in lies the difficulty of the change being that one of thecompany’s major strengths, Carlos, can no longer be the sole source of marketing. Although a personal touch is one of PCSI’s biggest assets anddistinguishing characteristics; it can still be leveraged through othermediums.

Competitive Analysis

Competitors

The two biggest competitors that PCSI has are Carbon Design and Frog Design. The office at Carbon Design is more modern and has asophisticated feeling. Products and other accomplishments were displayed

visibly on the walls. The atmosphere at PCSI is more comforting andfriendly. Carbon Design’s most prominent method of client acquisition is

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also word-of-mouth and referrals. Carbon employs a full-time salesrepresentative that deals with cold calls, follow-ups, and media distribution.

In a way, PCSI is the same in regards to its primary source of clientsthrough word-of-mouth. A key difference is that they did not have amarketing/sales specialist until recently. PCSI and Carbon share many

common trends of the tier-two industry, such as direct mail tri-folds and amajority of contracts from returning clients.

Carbon Design’s former website was similar to PCSI’s by using Flash.Using Flash is normal for the industry because it gives the perception of being high-tech and on the cutting edge. Carbon’s website was well-designed and stylish like PCSI, but also like PCSI, the content was lacking.Both of the websites were difficult to navigate through. Initial informationon both companies are hard to find as well.

This brings us to another major competitor: Frog Design. Their website isclear and concise. It feels current and up-to-date with blogs about the

company and news updates on the first page. Frog Design is the biggestcompetitor because they are a larger firm with offices in 9 different citiesaround the world and another office opening up soon in London.

Change Process & Accomplishments

Solution Formulation

Starting with step one of seven in the change process, our team mobilizedenergy and commitment at the second client meeting through jointidentification of the business problems and their solutionsii with Glen andCarlos using information gathered last quarter and at the previous clientmeeting. In the strategic analysis section of this paper, we gave a cleardefinition of the business problemsiii: (1) lack of a marketing strategy, (2)small company size, (3) no vision and mission statement, and (4) highturnover rates. Our team decided that (1) lack of a marketing strategy should be tackled first. We knew we had to enlist the support of key peopleand not just the CEOiv, namely Glen, Carlos, and later on Angela the new marketing VP. To persuade Glen and Carlos, we should have answered

why PCSI must do thisv. We did not, however, present any clear reasoning yet PCSI still agreed with us. Later we will discuss the difficulties we hadand what we learned from them. The following are the reasons we shouldhave presented to Glen and Carlos in order to persuade them to implement

a marketing strategy first:

1. Both Glen and Carlos agree that they cannot go on without aformal marketing plan. This signals that they have exhausted theearly market and must move on to the mainstream market, whichentails jumping the chasmvi.

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2. The early market, which consists of innovators and early adopters,has very different expectations than the mainstream market.vii Tocross this “chasm,” a company must define their marketing plan,viii articulate the benefits of their servicesix, and at least keep up withthe competitionx.

3. Innovators are the gate-keepers for any new product or servicecompany xi. Hence, they are the first key to any product or servicemarketing effort. They pose the fewest requirements than any other group in the adoption profile. So far PCSI has satisfied themby giving them access to Carlos, the most technically knowledgeable person to address their problems, which is whatinnovators wantxii. Their only other concern is getting everything cheap, so they have no use for “added- value” argumentsxiii. Thisexplains why it was easy in the beginning stages to do business

without a formal marketing plan.

4. Early adopters are a rare breed who have the insight to match an

emerging service to a strategic opportunity xiv

. That is yet anotherreason why it was feasible to do business without a formalmarketing plan in order to communicate PCSI’s benefits.

We were successful in persuading PCSI that a marketing planimplementation was needed. This was our first accomplishment.

After persuading Glen and Carlos that a marketing plan was needed, wegave many suggestions on what we thought needed to be done, somecoming from last quarter’s assessment. We suggested a scattered mix of (1)a website redesign, (2) a direct-mail campaign, (3) attending tradeshows, (4)hosting events for current and prospective clients, (5) generating PR

through blogs, news, and magazine articles, and (6) a company newsletter. We were ambitious and wanted to accomplish a lot this quarter, howeverGlen did not want us to fail and knew that we could only accomplish one ortwo tasks in the time span of a quarter, so he suggested focusing on amaximum of two activities. This signaled to us that PCSI is still reluctant totrust us and still reluctant to change and that PCSI is only comfortable withmaking small changes for now. If we wanted to proceed, we would have tostart with what they’re comfortable with even if it’s only a small change.Our team reluctantly took his advice, fearing that we would have nodeliverables at the end of the quarter, and because we were impatiently

waiting to take action. What we later learned from our course reading shedsome explanation for Glen’s advice. Both our consulting team and PCSIhad to understand that change can only happen if it’s continuous andincremental because small changes are easier to manage, enjoy a greaterprobability of success than big changes, disruptions that occur in the changeprocess are short-term and confined to small units at any given time, andthe organization and people will be kept in a constant state of competitiveness and change-readinessxv. At the end of the meeting, we

were assigned to choose two deliverables to focus on and give oursuggestions at the next meeting.

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In a team meeting to prepare for the third client meeting, we decided tosuggest a website re-design, a direct mail campaign, and a 12-month plan tobe our target deliverables for this quarter. Our reasoning is as follows:

1. Website Re-Design would serve as the foundation of theirmarketing strategy because:

a. After hearing about PCSI or the need for product designservices occurs to prospects, the Internet is their firstreference point. Therefore PCSI’s website serves as their

first impression wherexvi.b. The website is an efficient way for prospective clients to

send their inquiries and RFPs.c. The website could be used in sales presentations.d. An investment in a new website would force PCSI to

define badly needed mission, vision, and positioning statements that affect all marketing materials if they wantto achieve a compelling and consistent brand so that PCSIis adopted by the mainstream market.

e.

The website could be used for updating clients andemployees on recent company news.f. The website could be used as an Intranet to keep

employees connected so that employee satisfaction willincrease, thus lowering turnover rates.

g. PCSI must start change at the periphery then let it spreadto other units without pushing it from the topxvii. Wethink an effective website will be well-received by the

whole company.

2. Direct Mail Campaign:a. Direct traffic to the new website.b. Get new customers.c. Wanted to accomplish more than just one task.

3. 12-Month Plan:a. Provide direction for after this quarter is over and our

consulting team is dissolved.

At the third client meeting, we presented our suggestions. Again Gleninsisted we focused only on two objectives at the maximum, so we settled

with the website re-design and the 12-month plan because for the reasonspreviously mentioned, there are more advantages for the website to make ita greater priority. Therefore, direct mail will be included in the 12-monthplan. More reasons to chose the website and 12-month plan were revealed

at the third meeting with PCSI.

The was website chosen as priority because not only is the website afoundation for marketing, but our team and PCSI saw it as developing anenabling structure, or an ideal pilot program to give PCSI an opportunity tograpple with marketing implementation and its problems on a smaller, moremanageable scalexviii. What makes it an ideal pilot program is the website’stangible results and many uses with one implementation effort or risk-

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taking initiative. Each “risk” that succeeds will build confidence and will

prepare PCSI for morexix.

The 12-month plan is essential because an organization needs a nuts-and-bolts plan for what to do, and when and how to do itxx. Our suggested 12-month plan is included in the Recommendations section of this paper.

After the third client meeting, our team was assigned to define oursuggestions for an improved website (figure F-M), and write a clientcontract to specify the roles and responsibilities of everyone involved. Oursuggestions ended up being used little for the final design because welearned that a credible web designer will do the research to come up with

what needs to be on the website.

However, it did get us to examine PCSI’s current website more thoroughly and our team ended up with a greater understanding of the scope of theircurrent website’s problems.

At least the client contract proved to be important for effective changebecause our textbook asserts that every planned outcome should be at theacknowledged responsibility of one or more individualsxxi. They shouldpublicly state that they welcome and accept the responsibility xxii. Mostimportantly, the client contract identified the leadership of this marketing plan initiative. For a change initiative to happen, a visible leader andsponsor of change is needed to own and lead the change initiative, assemblethe resources needed for the project, and take responsibility for success orfailure.xxiii Control and responsibility must be situated in the unitsundergoing change, handled by unit leadersxxiv. Glen will be responsible forthe success or failure of this marketing plan. He is the perfect leaderbecause he has a persistent belief that revitalization is key to

competitiveness and a deep conviction that fundamental change will have amajor impact on the bottom line and he isn’t shy about itxxv. He also has

the people-skills and organizational know-how to implement his visionxxvi.

At the fourth client meeting, our team and PCSI collaborated to defineneeds for the new website and to define our expectations for the webdesigner. This collaboration was necessary for an effective change program.

According to the course text, consultants and clients must develop a shared vision of how to organize and manage for competitivenessxxvii. Below is asummary of PCSI’s needs and expectations:

We would provide the designer with parameters and communicate

PCSI’s needs, and the designer should come up with creativesolutions. PCSI does not want to be hassled with providing toomuch direction.

The website should have “wow” factor.

Communicate that PCSI can take on big projects.

Assure clients that PCSI is knowledgeable in their industries sincePCSI would like to serve every industry (breadth and depth.)

Communicate that PCSI serves versatile product design needs(from CAD drafting to product concept to product form design)

ureF-M

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Communicate that PCSI is a flexible company to work with (they are accommodating and customer-service oriented.)

Show off PCSI’s accomplishments and design capabilities.

Create and carry one look, one message, one brand in all marketing materials.

Communicate that PCSI is an innovative and cutting edgecompany.

Implementation

With the parameters from the fourth client meeting, we were given the task of finding three web designers to interview and to present at PCSI. Westarted by doing a web search and found three in the Seattle area thatseemed credible from their websites – Big Fin, Ad Ventures, and Mercury Cloud. We also considered three other web designers we heard of from

word of mouth – Vanguard, and a friend of Grace, a teammate from lastquarter.

We conducted meetings at three web design agencies. An initial meeting was intended to invite them to do a presentation at PCSI in front of thedecision makers as well as to get an initial impression and to talk about ourneeds. Professionalism of account executives and the office environmenttriggered our initial impressions. Big Fin had a very service orientedsalesperson. She asked questions about our needs and gave us suggestions.However, the office environment was plain and did not present a creativeimpression. Ad Ventures had a nice office, but the person was not serviceoriented and did not take us seriously. She would not offer suggestionsuntil we signed a contract with her. Mercury Cloud’s office impressed us.It was innovative as well as nice, and we were given great professionalservice being bombarded with three reps instead of one. They asked

questions and were willing to listen.

Presentations were given at PCSI and the company is currently awaiting proposals with cost figures. More on the presentations is described in thenext section.

Lessons Learned

During implementation, we could not speed up the process and risk carrying Carlos’ unfinished psychological “baggage” from one change phaseto the next. We had to resist our natural bias toward action and exercisepatience. We had to monitor and adjust strategies in response to problemsin the change processxxviii.

We had to understand that people need to feel a sense of accomplishment.So to keep Carlos motivated, we adjusted our objectives by making presentation materials a more immediate priority after the website. It hastangible and more immediate uses and results. We had to find Carlos’special talent, which is presenting to clients, and give him an opportunity touse it and to earn some recognitionxxix.

Although PCSI chose to take two of three of our suggestions, it was out of mutually understood and assumed benefits by PCSI and not by clearly

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articulated reasoning on our part. We need to learn to better communicateour vision in order to motivate our clients and to persuade them.

We also learned that change is complicated by the fact that organizationsare social systems whose participations have identities, relationships,communities, routines, emotions, and differentiated powers. Managers

must be alert to how change will conflict with existing social systems andindividual routinesxxx.

We also learned about the importance of change agents: such as Mercury Cloud. They see the need for change and can articulate it effectively toothers. They are critical catalysts for a change initiative and should beplaced in key positionsxxxi.

With respect to marketing, we learned a few things from the designerpresentations at PCSI. Presentations were conducted at PCSI to choosebetween the three. Mercury Cloud went first and set the bar high. They put on an amazing presentation presenting their work that relates to PCSI’s

needs. They also presented their initial impressions of the website and whatPCSI should do, maybe taking it a step back and going back to branding. They suggested doing customer research, renaming, logo redesign,messaging and content creation to help with their website, but what wouldbe feasible depends on the cost and PCSI’s budget. Their presentationmade it clear how a professional and compelling video and website andmarketing materials can sell a company by leaving an amazing impressionafter the meeting in comparison with competitors. Big Fin’s presentationmade it clear that they did not do any branding and did not specialize ingraphic design. They specialize in building websites and search engineoptimization. They could be the optimum solution if PCSI decides that itdoes not need to build a brand. However, that is what the last websitelacks.

Last but most importantly, we also learned to make small incrementalchanges.

Recommendations

Website Re-design Again, we chose to re-design the website because website re-design wouldserve as the foundation of their marketing strategy:

1. After hearing about PCSI or the need for product design servicesoccurs to prospects, the Internet is their first reference point.

Therefore PCSI’s website serves as their first impression wherexxxii.

2. The website is an efficient way for prospective clients to send theirinquiries and RFPs.

3. The website could be used in sales presentations.4. An investment in a new website would force PCSI to define badly

needed mission, vision, and positioning statements that affect all

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marketing materials if they want to achieve a compelling andconsistent brand so that PCSI is adopted by the mainstreammarket.

5. The website could be used for updating clients and employees onrecent company news.

6. The website could be used as an Intranet to keep employees

connected so that employee satisfaction will increase, thus lowering turnover rates.

7. PCSI must start change at the periphery then let it spread to otherunits without pushing it from the topxxxiii. We think an effective

website will be well-received by the whole company.

12-Month Plan

The aim of the 12-month plan is to position PCSI Design then implementcomplimentary marketing tools to boost sales and acquire larger contracts.

The company will achieve this by presenting its capabilities and benefits toclients through clear and consistent messaging to new and prospectiveclients through several media.

We chose 7 marketing activities starting with solutions that last for thelong-term, such as positioning the company and presentation materials.It ends with shorter-term solutions or solutions that are usable only in oneor a few instances, such as advertising or publishing articles in tradepublications.

We also placed higher priority on marketing activities that will definitely be viewed by your target market. For instance, it’s definite that prospectiveclients will see your presentation materials, so the redesign of presentationmaterials has a higher priority.

The benefit of this prioritization is that if PCSI is satisfied with its revenues,it doesn’t have to spend resources on less permanent marketing activities.

First Step: Recruit Summer Interns (6/07) These recommendations require much effort from the company and eventhe marketing VP. To help implement this marketing plan, PCSI shouldhire summer interns from the University of Washington Business School.

To post an internship listing, go to https://washington-csm.symplicity.com/employers.

Benefits

With the help of a marketing person and a few marketing interns, PCSI willbe able to successfully execute this marketing plan. Angela Pettit, the new head of marketing, can delegate smaller, more mechanical tasks to internsso she can focus on the crucial, more dynamic tasks.

Costs The process is quite simple to post an internship listing on Husky Jobs, theprimary internship site of UW students, and is absolutely free.

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https://washington-csm.symplicity.com/employers







Second Step: Positioning (6/07)CAD services are used in a variety of industries; from construction tosoftware and fashion. Does PCSI have the capabilities to work for all of these industries. Clarifying your positioning will guide all following marketing activities.

Your current positioning is that:

PCSI’s target market is any company in any industry.

PCSI’s sustainable competitiv e advantage is its:

o Versatility in its ability to serve any industry.

o Excellent and personal customer service.

o Innovation

What differentiates PCSI is its:

o Diverse ethnicities and nationalities of PCSI’s employees.

But you should evaluate if your current positioning is:

Practical. Is it practical to target all Industries? This would spreadyour marketing budget too thinly.

Valued by potential clients and how important is it too them? If it’s only marginally important, find more significant points of differentiation and sustainable competitive advantages.

Some changes we suggest are:

Either specifying your company as a mechanical (MCAD)engineering company, thereby targeting a more limited list of industries:xxxiv

o Automotive – vehicleso Aerospaceo Consumer Goodso Machinery o Ship Building

o Bio-Mechanical Systems

Or tone down the industrial, tech-feel of your branding so you canbetter attract clients in other industries such as Fashion and the

Architecture, Engineering, and Construction Industry or AECindustry.

Third, add differentiating points and sustainable advantages thatare clearly considered benefits to your clients, for example:

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o Fast turnaround of projects or lower cost

Fourth, explain how differentiating points and sustainablecompetitive advantages benefit clients, for example:

o Guiding clients and keeping clients informed throughout

the entire process is how PCSI demonstrates excellentpersonal customer service.

Fifth, add proofs to your points of differentiation and sustainablecompetitive advantages. For example:

o Innovative work should be proven by certifications,awards, college degrees, the technology PCSI uses, andbetter showcasing PCSI’s most innovative projects (the

website will help accomplish this.)

Last, professionally copywrite PCSI’s positioning and anything

written in marketing collateral.

Benefits The benefits are consistent, clear communication that tells prospects whatthey want to know, and an image of professionalism that persuadesprospects to use PCSI’s services.

Costs Monetary costs include the cost to copy write and hire a marketing firm todo the positioning and research for the positioning. However, there aresignificant cost savings if PCSI’s leaders can take the time to develop aneffective positioning. We recommend that Carlos, Glen, and Angela

conduct a brainstorm session with a copywriter. Costs for a copywriter areestimated to be:

Table 2 xxxv

Catalog Copy $50-$100/copy blockor $100-$250/page

Brochure $500-$1000

Direct Mail Package $1500-$5000

Free Standing Insert (FSI) $750-$1250

Full Page Print Advertisement $500-$1250

Four-Page Newsletter $1000-$2000

One-Page Letter $300-$500

Two-Page Letter $500-$1000

Self-Mailer $1000-$1500

Space Ad (7”x10”) $500-$750

Space Ad (full-page tabloid) $1000-$1250

Web Page $250-$500

Website $1000-$4000+

E-mail Marketing Message $300-$500

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Third Step: Finish New Website (6/07-9/07) Website implementation was our main implementation objective for Spring Quarter 2007. PCSI is yet to choose a designer between Mercury Cloudand Axis Creative.

Benefits The new website will serve as a reference point for their past, new andprospective clients. The website will be a base for the company’s marketing strategy because it is an innovative and fresh medium through which thecompany can grab attention and provide decision-making point for clients.

Costs A quote from Mercury Cloud estimated the cost to be $38,000.

Fourth Step: Presentation Materials (7/07-9/07) Although PCSI should diversify their marketing strategy, word of mouth as

well as presentations are still its main selling tools. As a result, PCSI Designneeds to invest in the preparation of customized and professionalpresentation materials that are tailored to the specific needs of customers in

various industries. This can result in rapid expansion to various industries.Proper planning and the creation of customized, professional presentationscan be even much more successful than other marketing tools becausepresentations are guaranteed to be seen by prospective clients, and is themain influencer of a prospect’s buying decision.

For a business-to-business service provider, a requisite for winning contracts are compelling sales presentations of the company, its services,and business proposal to prospective clients. Most likely, PCSI must do a

sales presentation to satisfy every request for proposal regardless of whether a prospect approaches PCSI or vice versa. This is due to the factthat PCSI has many direct competitors, so prospects have many companiesto choose from and prefer comparing CAD designers/engineers becauseprojects take a long time to complete and have more significant costs.

The purpose of the presentation is to provide knowledge to theprospect/client via the features, advantages, and benefits of your service,and business proposal. This allows the buyer to develop positive beliefstowards PCSI. These beliefs result in a desire (or need) for PCSI’s services.PCSI must convert that desire (or need) into the attitude that PCSI’s serviceis the best service to fulfill that desire (or need) and that PCSI is the bestsource to buy fromxxxvi.

PCSI’s current presentation materials fail to explain the service process andbenefits to clients, fails to project a professional image, and fails todifferentiate the company from competitors.

According to The ABCs of Relationship Selling Through Service , only new, top-quality, professionally developed visuals should be usedxxxvii. The best visualaid is the actual product, but with services you can only create a mental

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image of your service’s features, advantages and benefits.xxxviii So it’s crucialto create the best mental image as possible. For starters, a professionally developed tri-fold will make a good lasting impression even after PCSI isdone presenting has left prospects.

Another guideline for using visual aids is to customize them to the sales call

objective – the prospect’s customer profile and the customer benefit plan – and concentrating on the prospect’s important buying motives, using multiple appeals to sight, touch, hearing, smell, and taste.xxxix Therefore werecommend hiring designers to professionally design customizablePowerPoint presentations.

Technology provides excellent methods of presenting information to theprospect in a visually attractive and dramatic manner. Today, multimediacomputers present video clips, play sound bites, show beautifully illustratedgraphics and can be connected to projection equipment for greatpresentations. Videos are also increasingly being used in salespresentationsxl. Therefore we recommend outsourcing the creation of a

sales video to be shown in PowerPoint presentations, the website, and to beburnt onto DVDs to mail and giveaway to prospective clients.

Another way to leverage technology to provide better service is throughcomputer software that can quickly crunch data – providing instantsolutions to buyers’ questions. Salespeople can quickly show buyers costs

when considering different installment payment schedules at variousinterest ratesxli. These on-demand, customized cost estimates could then besent to prospects’ e-mails upon request during sales presentations or viewedright on the computer or projector screen. This application could bedeveloped by Angela on Microsoft Excel.

To recap, we’ve suggested:

1. Including features, advantages, and benefits of your service,and a business proposal for prospective clients in presentations.

2. Professional business collateral development: tri-fold, flysheets, and folder

3. Professional PowerPoint presentations4. Professional video which would be used in the PowerPoint,

website and handed out to clients/prospects in a DVD.5. Cost estimate application for presentations

Also, recently PCSI has contacted Mercury Cloud for quotes of different

services to develop presentation materials, including:

Logo re-design

Business package development

Business collateral development

We suggest that PCSI keeps its current logo, and does not pay $8000 if it isplanning to target MCAD businesses because it has a high-tech feel, but not

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if you are expanding to different industries to include more consumergoods industries. Even so, a cheaper alternative would be to hire studentgraphic designers for a logo design.

We suggest not doing the letterhead, envelope, mailing labels, note cardsand matching envelope design of a business package development becausethose are all things Angela, the new marketing VP, could do on Photoshop,

maybe even on Paint as long as PCSI has an appropriate logo.

And previously, we’ve already discussed that business collateraldevelopment is one of our suggestions.

Benefits In a sales presentation, the use of visuals increases retention of information,reinforces the message, and reduces misunderstanding xlii. Also, it isimportant to be considered both good and different according to Mercury Cloud’s presentation. Visuals in presentations show the buyer that PCSI isa professional company xliii, hence “good.” As well, the use of visuals insales presentations creates a unique and lasting impressionxliv , hence

“different.”

People retain approximately 10 percent of what they hear, but 50 percent of what they see. Consequently, you have five times the chance of making alasting impression with an illustrated sales presentation rather than with

words alone. Just as much as they’ll remember good visuals, they will alsoremember bad visuals. It’s often not what you say but how you say it thatmakes the salexlv .

To keep up with and stay ahead of the competition, PCSI should useprofessional presentation materials. Salespeople are finding high-tech salespresentations effective in providing customers with the necessary information to make informed decisionsxlvi. Overhead transparencies,slides, and black-and-white handouts are being replaced by dynamicsoftware packages, interactive multimedia programs, active-matrix colorscreens, and multimedia projectors that bring computer images to lifexlvii.

Costs If PCSI decides to use a full-service marketing agency instead of a webdesigner alone, PCSI could use the same company to develop all marketing materials. Or separate designers could be used for each item, such as using a graphic design firm, such as Vanguard Press , to create the tri-fold, andanother firm, such as ProPoint Graphics to create the PowerPointpresentation. Below are average prices for each item:

Table 3

Features, advantages, benefits This costs time to develop

Business collateral development $6,750

PowerPoint $250+xlviii Video Less than $30,000xlix Cost estimator This costs time to develop on

Excel

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Fifth Step: Events – CRM, Tradeshows, CelebratingMilestones (9/07-6/08)Maintaining long-term profitable relationships with past clients, as well as,finding opportunities to build new relationships can be achieved throughactive participation in customer relationship management events, tradeshows, and milestone celebrations.

The best opportunity to maintain relationships with clients is not only quality of service but personal interaction with clients during social events.

We recognize the importance of organizing trips and seminars for clientsthat can be named ‘Discover the Beauty of Washington State with PCSIDesign’ – clients can learn more about PCSI Design, interact withmanagement as well as with the design team and at the same time enjoy

what Washington State has to offer. Hosting CRM events is the mosteffective way to maintain existing clients while providing updatedinformation on the company’s growing and expanding capabilities. Banquet

events and luncheons are the most effective method of gathering clients by providing free dinner.

Last quarter’s team compiled a list of possible design engineering tradeshows, events and conferences that PCSI can attend. Many of theseare free and offer great networking opportunities. We recommend that thecompany attend these events frequently, especially the ones that are held inthe northwest. For tradeshows, PCSI should rent a booth and have Carlos,Glen and Angela be present. DVDs as well as tri-folds should be handedout.

Company parties to celebrate milestones such as the completion of the

website, the winning of awards and certifications, the winning of contractsand the completion of projects are also good events. Both clients andemployees can be invited. Clients could get to know designers personally,enhancing trust and creating favorable attitudes toward PCSI.

Benefits Carlos and PCSI will be able to make a favorable impression of thecompany’s values and personal touch. The goal of the CRM should not beto win the client or expect to immediately gain contracts, but keep thecompany name in the minds of clients as a reputable growing company.

Tradeshows provide networking opportunities that lead to future clients, whereas milestone celebrations can be both employee events that increasemotivation and decrease turnover rates, and can also serve as CRM events.

Costs A summary of costs is shown below:

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Table 4

CRM:

Luncheon (50 guests) $400 (Top Foods) Catered Dinner (100 guests) $4,570 (Cater Seattle)

Tradeshow:

Booth Banner $1,500 Milestone Celebrations:

Pizza Party (30 guests) $250 (Pagliacci Pizza)

Sixth Step: Direct Mail (10/07-6/08) After business collateral is developed, the new website is up, and PCSI hasmade more contacts through networking events, it is time to focus itsresources on a sending direct mail to past, current clients, and to addressesof prospective clients gathered from networking events, WOM, websiteinquiries and phone inquiries. The new presentation materials such as thetri-fold, business cards, and DVD should be mailed, along with a thank-you

note tailored to each type of client.

Benefits The benefit of direct mail to past and current clients is to maintaincustomer relationships and to remind them that PCSI is the best company to fulfill their design engineering needs.

Mailing Lists On Demand's lead generation services states that theirbenefits include:

Costs Costs of direct mail pieces are sunk costs because they were already

incurred for presentation materials, except for the cost of thank-you notes which could be bought in bulk quantities of 100 for $142 at www.cardsdirect.com. Customization and shipping comes at no extracharge at cardsdirect.com. The only other cost is for postage:

Table 5

Number of Letters (tri-fold/DVD/business card/thank-younotes)

Cost to Ship

100 $39.00

200 $78.00

300 $117.00

400 $156.00 500 $195.00

600 $234.00

800 $312.00

1000 $390.00

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http://www.cardsdirect.com/





Seventh Step: Awards and Competitions (11/07-6/08) PCSI should consider competing in these competitions: as mentioned in

winter quarter’s report:

1. Design and Business Catalyst Award2. 2007 International CES Innovations Design and Engineering

Awards3. International Design Excellence Awards '07

Benefits Awards provide another vehicle for capturing attention by placing PCSI’sdesigns into the spotlight. We felt this would be beneficial for PCSI asawards are third party endorsements, and therefore more trusted than self-endorsements.

PCSI Design lacks team-oriented activities outside of work and we seethese design engineering competitions as a perfect chance to buildcredibility for the company, and also allow employees to bond.

Costs The entry and registration fees to enter design competitions vary. Somecompetitions have a $0 entrance fee while others range from $200 - $650per entry.

Eighth Step: Public Relations – Articles (12/07-6/08) There is a need to create awareness and curiosity around the company andits services. It can be achieved for free through articles, case studies andrecommendations written by industry experts in trade publications and

websites.

PCSI should strive to publish articles in magazines such as the MechanicalEngineering Magazine, which does not charge to place articles. Its onlineand print version provides updated industry-related business news andfeature stories that interest a broad spectrum of engineers.

Also, real-time press releases written and maintained by Angela Pettit, thehead of marketing, should be posted on the company’s new website in the“Recent News” section.

Benefits This tool aims at creating interest and need recognition by potential clientsthat will direct them to PCSI’s website at a low cost.

Specifically, benefits of publishing articles in Mechanical Engineering Magazine allows PCSI to gain national and international exposure becauseMechanical Engineering Magazine and Web provides a global platformsshowcasing mechanical engineering’s leading role in technologicaladvancements.

Public relations in general is considered to be more interesting and morecredible than paid advertisements by viewers and readers.

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http://www.idsa.org/IDEA2007

http://www.idsa.org/IDEA2007



Costs For publishing an article, some magazines charge depending on how many

words within a price range of $500 to $1000 for 2000-3000 words. If PCSIhas to pay for articles to be published. Some magazines will publish articlesfor free, such as H2O City Magazine and National Mechanical Engineering Magazine, within a specific criteria and a selection processes.

Ninth Step: Paid Advertising – Print/Web Ads (1/08-6/08) We suggest focusing paid advertisements on local, state publications as wellas online magazines with a business/engineering orientation. Localmagazines we looked into include the Puget Sound Business Journal(http://www.bizjournals.com/seattle/), Pacific Northwest (Seattle Times)Magazine (http://seattletimes.nwsource.com/html/home/index.html),

The Seattle Daily Journal of Commerce (http://www.djc.com/), and H2OCity Magazines.

Benefits

Print advertisements generate requests for proposals if a potential client is

in need of CAD services and happens to see PCSI’s print advertisement.More importantly, it creates market awareness of PCSI, which leads tocredibility for PCSI and then possibly future business if the viewer of the adnotices it and has a positive reaction. Thus, it is important that ads areprofessionally designed and engaging.

Costs

PCSI Design should focus its placement of print advertisements mainly intrade publications within the design engineering industry. It includes, forexample, Mechanical Engineering Magazine. The ad rate of thesemagazines vary from various magazines and it depends on the dimensionsand time to be displayed with a range up to $5,000.

The average price of designing and developing a professional printadvertisement is $5,000.

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http://www.bizjournals.com/seattle/

http://seattletimes.nwsource.com/html/home/index.html

http://www.djc.com/

http://www.djc.com/

http://seattletimes.nwsource.com/html/home/index.html

http://www.bizjournals.com/seattle/



Sources of Information

Books:

Futrell, C. (2007). ABCs of Relationship Selling through Service. New York: McGraw-Hill/Irwin.

Harvard Business School Press. (2003). Managing Change and Transition.Boston, MA: Harvard Business School Publishing Corporation.

Moore, G. (1999). Crossing the Chasm. New York: HarperCollins

Publishers.

Online:

Computer-Aided Design.(2007, May). Wikipedia. Retrieved June 1, 2007, from the World Wide

Web: http://en.wikipedia.org/wiki/CAD#Fields_of_use

Copywriting Fee Schedule.(2007). The Write Direction. Retrieved June 1, 2007, from the World

Wide Web: http://www.writedirection.com/fees.htm

Corporate Presentation FAQ.(2006). ProPoint Graphics. Retrieved June 1, 2007, from the World Wide

Web: http://www.propointgraphics.com/process-FAQ.html

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i

www.census.gov

ii Managing Change and Transition p. 33iii Managing Change and Transition p. 33iv Managing Change and Transition p. 53v Managing Change and Transition p. 33vi http://en.wikipedia.org/wiki/Crossing_the_Chasmvii http://en.wikipedia.org/wiki/Crossing_the_Chasmviii http://en.wikipedia.org/wiki/Crossing_the_Chasmix Crossing the Chasm p. 40x Crossing the Chasm p. 49xi Crossing the Chasm p. 32xiiCrossing the Chasm p. 32xiii Crossing the Chasm p. 32xiv Crossing the Chasm p. 34xv Managing Change and Transition p. 104xvi

The ABCs of Selling xvii Managing Change and Transition p. 43xviii Managing Change and Transition p. 58xix Managing Change and Transition p. 87xx Managing Change and Transitionxxi Managing Change and Transition p. 56xxii Managing Change and Transition p. 56xxiii Managing Change and Transition p. 39xxiv Managing Change and Transition p. 39xxv Managing Change and Transition p. 38xxvi Managing Change and Transition p. 38xxvii Managing Change and Transition p. 36xxviii Managing Change and Transition p. 45xxix Managing Change and Transition p. 96xxx Managing Change and Transition p. 81xxxi Managing Change and Transition p. 81xxxii

The ABCs of Selling xxxiii Managing Change and Transition p. 43xxxiv Wikipedia http://en.wikipedia.org/wiki/CAD#Fields_of_usexxxv http://www.writedirection.com/fees.htmxxxvi ABCs p. 312xxxvii ABCs p. 325xxxviii ABCs p. 324xxxix ABCs p. 328xl ABCs p. 269xli ABCs p. 329xlii ABCs p. 323xliii ABCs p. 323xliv ABCs p. 323xlv ABCs p. 329xlvi ABCs p. 269xlvii ABCs p. 329xlviii

(http://www.propointgraphics.com/process-FAQ.html)xlix Mercury Cloud e-mail from William N. Prater, Principal

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pcsi final report

Documents