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Navigating the Internet for Navigating the Internet for Procurement OpportunitiesProcurement Opportunities
Presented to:Presented to:Small Business Administration Georgia 8(a) FirmsSmall Business Administration Georgia 8(a) Firms
EC
Arthur L. BrownArthur L. [email protected]@lescot.com
The electronic exchange of business/technical information using Electronic Data Interchange (EDI), Email, Electronic Funds Transfer (EFT) and other similar technologies.
Electronic Commerce Defined (EC)
Business ClimateBusiness ClimateBusiness ClimateBusiness Climate
CHANGE
NowNowNowNow
ForeverForeverForeverForever
Why/Uses for E-Business?
In order to sell goods and services Time-saving business communications To easily share necessary information with other staff
members/businesses
Why/Uses for E-Business? (cont’)
To purchase required goods and services
Create data once and use it many times To reduce costs of traditional
operations
Why/Uses for E-Business?(cont’)
To be electronically linked to the rest of the business community (world-wide)
Economic Forces Driving
Electronic Commerce
Cost of Labor
Telecommunications Costs
Computing Costs
Research Your Market to Find Answers To:
Who are my customers Where are they located What does/will make them by
my product/services What is my optimum selling
price What should my
advertising/promotional message consist of
How do I get to them
Market Research Methods Primary Research
Provide online surveys, questionnaires, online focus groups
Study your traffic logs Example:
http://www.zoomerang.com/login/index.zgi
http://www.surveymonkey.com/
http://info.zoomerang.com/
Start by Defining Your Business Classification North American Industrial Classification (NAICS)
Code - http://www.census.gov/epcd/naics02/ Standard Industrial Classification (SIC) Code -
http://www.census.gov/epcd/naics02/ Federal Supply Classification (FSC) Code
-http://www.softshare.com/tables/pscs/ National Institute of Government Purchasing (NIGP) -
http://www.nigp.org/ Commercial and Governmental Entity (CAGE) Code -
http://www.dlis.dla.mil/cageserv.asp Data Universal Numbering System (DUNS) Number -
http://www.dnb.com/US/
http://www.census.gov/epcd/naics02/
http://www.nigp.org/
http://statepurchasing.doas.georgia.gov/02/doas/osp/home/0,2469,35226973,00.html
www.dnb.com/US
Market Research Methods (cont’) Secondary Research Sources
Company Data Industry Sources/Associations Governmental Agencies Universities/Libraries Search Engines Trade Journals Investment Industry Analysis Internet Analysis
http://www.census.gov/epcd/cbp/view/cbpview.html
http://www.bea.gov/
Procurement Personnel Need to Know (Public Sector)
Small and Disadvantaged Utilization Specialists (SADBUS
Small Business Liaison Officer Users Contracting Officer Competition Advocate
Program Manager http://www.osdbu.gov/Member_List.htm
http://www.dodscrc.org/links.htm
Procurement Personnel Need to Know (Private Sector)
Buyers Purchasing/Procurement Supply Chain Managers Supplier Diversity Program Manager
Who’s the Competition Who are your competitors Where are they located What are their
strengths/weaknesses How does my product/service
compare
Marketing Strategy Development A marketing strategy is a target
market and a related marketing mix A target market is a similar group
(market segment) of customers to whom you wish to appeal
A marketing mix consists of a group of controllable variables (product, place, promotion, price) which are put together to satisfy a target market
Target Market Profile Parameters Demographic
Geographic Cultural and ethnic groups Economic Power Industry Type
Psychographic Values, attitudes, beliefs Lifestyles
Target Market Segment Examples Homeowners with homes valued
at $1million and over Professional athletes Colleges and Universities Families between the ages of 20
and 45 years of age Federal, state and local
governments
Sources to Identify Target Markets/Commercial
Build/Existing Contact Database Access/Purchase Database
Reference USA http://www.referenceusa.com/
Yellow PagesYellowpages.com
Thomas Registerhttp://www.thomasnet.com/
Sources to Identify Target Markets/Government (cont’)
U.S., State and Local GovernmentsFederal
http://www.fedbizopps.gov/ http://www.hq.usace.army.mil/cepr/ASFI.htm https://www.neco.navy.mil/ http://www.mbda.gov/index.cfm?fuseaction=login.main&ret
urnAddress=fuseaction%3Dpx2%2Ephx%5Fmain
State and Local
http://www.statelocalgov.net/index.cfm
Custom computer programmers in Fulton County – NAICS 541511
Banks in Fulton County
Procurement Research Sources Historical Purchases
E-Procurement Database – http://www.fpdsng.com/
Current Purchases Fedbizopps - http://www.fedbizopps.gov/ NECO -
https://www.neco.navy.mil/secure/register/register.cfm
Army Single Face to Industry - https://acquisition.army.mil/asfi/
Projections Agency Procurement Forecasts -
http://hqlnc.doe.gov/support/SmallBusUtil.nsf
www.fpds.gov
Procurement by NAICS 423690 - FY 07
Contracting Department NameCurrent Contract Value
DEPT OF DEFENSE $10,588,770,861
HOMELAND SECURITY, DEPARTMENT OF $2,893,651
HEALTH AND HUMAN SERVICES, DEPARTMENT OF $2,630,290
STATE, DEPARTMENT OF $1,413,033
JUSTICE, DEPARTMENT OF $1,266,694
INTERIOR, DEPARTMENT OF THE $1,004,970
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION $503,781
AGRICULTURE, DEPARTMENT OF $473,161
TRANSPORTATION, DEPARTMENT OF $462,324
VETERANS AFFAIRS, DEPARTMENT OF $394,590
GENERAL SERVICES ADMINISTRATION $332,839
COMMERCE, DEPARTMENT OF $241,832
TREASURY, DEPARTMENT OF THE $217,703
FEDERAL COMMUNICATIONS COMMISSION $157,000
SMITHSONIAN INSTITUTION $85,921
ENERGY, DEPARTMENT OF $71,842
LABOR, DEPARTMENT OF $58,316
EDUCATION, DEPARTMENT OF $29,612
ENVIRONMENTAL PROTECTION AGENCY $26,374
SMALL BUSINESS ADMINISTRATION $24,876
CONSUMER PRODUCT SAFETY COMMISSION $2,107
http://www.fedbizopps.gov/
http://hqlnc.doe.gov/support/SmallBusUtil.nsf
http://ssl.doas.state.ga.us/PRSapp/PR_index.jsp
http://www.sba.gov/GC/cmr/gasubs.html
Contracting Preference Programs Small Business SBA 8(a) Program Small Disadvantaged Business Woman Owned Firms Veteran Owned Veteran Owned Service Disabled GSA Schedule HUBZone Certified
Controllable Variables-4Ps Product Promotion Place Price
Product/Service Strategy What the customer gets to satisfy a
need Most time spent in this area
perfecting Giveaway for site visitors (not
everything) Product/Service often misunderstood
phenomenon
Promotion Strategy (Advertising) Most applicable to e-commerce
of the 4Ps E-Commerce has revolutionized
how products/services are viewed (Ex: email)
Internet Promotion Tactics Internal visitor registrations External website registrations Website Linking Advertising/Publicity
Internal Visitor Registrations Generates contacts for your
“contact” database Used to develop proactive
marketing campaign Request permission to receive
marketing material Specify on your page your
privacy policy
External Website Registrations Search engines extremely valuable
in getting traffic to your website Corporate/Industrial sector primarily
using Electronic Data Interchange as a tool for conducting business electronically
Government and particularly, the Federal Government farther ahead in website registrations than the private/industry sector
Must continue to be proactive in marketing efforts
Web Site Registrations Central Contractor Registration
Dynamic Small Business Search Kudzu.com Thomas Register
www.ccr.gov
Form Associations with Like Organizations Link to other web sites and
request visitors to your site to add a link to their site
Ask your visitors to bookmark your site
Develop an affiliate/associate program
Include your company in other industry/association group lists
Place (Distribution) Strategy Process of getting the product/service
to the customer Traditional distribution model –
manufacturer/provider to wholesaler/distributor to retailer to end user
With internet, target is manufacturer/provider to end user
Can be a major factor in customer satisfaction
Distribution Strategy Realities and Considerations
Christmas 2000 was a major fiasco for some retailers
Supply chain/Fulfillment must be continuously revisited
Must make every effort to be customer “sentric” since limited customer interaction
Customer Requirements Now Include: Forming Alliances Joint Ventures Partnering Teaming
Pricing/Payment Strategy Electronic payments to include EDI,
credit card payment/acceptance In the non-internet environment,
pricing is quite speculative In the internet environment, a more
open process Tends to be a negative for the
business Auctions/Reverse Auctions becoming
a trend
Securing The Payment
Business Concerns Security
Considerations Credit Cards "Electronic
Money"
Internet Marketing Requires Another 4Ps Persistence Perseverance Patience People
“To cost effectively build profitable organizations through a solid foundation of business, marketing and economic development expertise.”
LeScot’s Mission
LeScot Enterprise Services
Marketing Development
Training, Seminar and Other Communication
Services
ECEC
Business Management and Technical Assistance Services
Economic Development
What lies behind us versus what lies before us are only tiny matters compared to what lies within us.
…..Ralph Waldo Emerson