7/21/2019 archi. proffesional

http://slidepdf.com/reader/full/archi-proffesional 1/6

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.

7/21/2019 archi. proffesional

http://slidepdf.com/reader/full/archi-proffesional 2/6

 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

i74 Mar k e tin 9 and 0 u t rea c h

7/21/2019 archi. proffesional

http://slidepdf.com/reader/full/archi-proffesional 3/6

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

7/21/2019 archi. proffesional

http://slidepdf.com/reader/full/archi-proffesional 4/6

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

7/21/2019 archi. proffesional

http://slidepdf.com/reader/full/archi-proffesional 5/6

• 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  

N

7/21/2019 archi. proffesional

http://slidepdf.com/reader/full/archi-proffesional 6/6

N

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.

78 Mar k e tin 9 and 0 u t rea c h

Marketing goals help define which targets make sense. They answer questions