Marketing from a Civil Engineering Perspective

Marketing from a Civil Engineering Perspective: 

Marketing from a Civil Engineering Perspective Presented By: Tyson Garvey EMGT 500 - Summer 2011 August 7, 2011

What is Civil Engineering?: 

What is Civil Engineering? Consists of the following sub-disciplines: Building Site Engineering Construction Management Structural Engineering Geotechnical Engineering Hydraulics Engineering Water Resources Engineering Environmental Engineering Transportation Engineering Professional Surveyors

How do you market such a diverse group?: 

How do you market such a diverse group? Many company's do not specialize in all sub disciplines Depends on firm size, larger firms include more. Generally do not marke t everything to all clients. It all depends on what client has what project.

Why is marketing important?: 

Why is marketing important? 50% of all engineering employment is in the service industry. Government services Public Services Federal State Large, Medium, & Small Municipalities Private Services Corporate needs Big box stores, hospitals, etc.

What services are we talking about?: 

What services are we talking about? Characteristics of services Most services are often intangible. Performed in real time, in the presences of the customer. Seldom can be inventoried. Must be performed on schedules that fit customer needs. Need to add “value” for the customer for firm to be successful

Quality of service and the satisfied customer: 

Quality of service and the satisfied customer Average service related business loses 10% due to poor service. 96% of unhappy customers never complain. 90% never return, each one tells at least 9 others, and 13% tell 20 or more. Each happy customer tells at least 5 others, some will become customers. Best opportunity is to increase sales and market share through your present customer base. It costs 5 times as much to attract a new customer than maintain existing

Quality of service and the satisfied customer (Continued): 

Quality of service and the satisfied customer (Continued) Nearly perfect correlation between employees’ perception of an organizations HR policies and the customers perception of the quality of service. The best indication of an organization’s long-term financial success is the customer’s perception of relative quality of service.

How do we market these services? (choosing market segment): 

How do we market these services? (choosing market segment) Client and engineer r elationships are a crucial element in marketing a particular direction. Information gathering is a major function of business relationships. Business relationships can tip off what projects are coming down the pipeline. When a client gets a proposal, it should not be the first time they have spoken to you.

How do we market these services? (choosing market segment, continued) : 

How do we market these services? (choosing market segment, continued) Company strengths help guide a the selection of a market segment . High-profile projects can aid a firm to leap into a new segment. Public exposure to a new sector can lead to new clients.

Competitive Edge: 

Competitive Edge Matching an engineer with a client that can sympathize with them. Gives the feeling of friendship. Ensure s that the client feels that the firm is easy to work with. Finding a technical person from the firm that can relate to the client at their level (usually not technical). Making bot h excited about the project. Receives a sense of ownership from the client and engineer.

Market Strategy: 

Market Strategy Goals of a company are to grow Usually put on the shoulders of the project managers that contact the clients (on the front lines). Either want more work from the same client (sometimes diverse). Tries to get more of the same work but with similar clients.

Budgets of Marketing: 

Budgets of Marketing Most small to medium firms Marketing costs are usually associated to a percentage of the prospective fee. Look at person-hour schedules as to not over extend the firm. Large firms Usually have a company marketing budget to keep the firm from over extending itself in too many projects. Usually have more opportunity to take bigger risks.

Budgets of Marketing (Continued): 

Budgets of Marketing (Continued) Firms usually have some method of weighting the risks of potential projects vs. the potential fees. This is decision making process is usually a very controlled aspect usually in a “go/no-go” meeting for project. Costs, benefits, opportunities, etc. are all considered when making this decision.

Measurements of Successful Marketing: 

Measurements of Successful Marketing Intangible Reputation of firm from clients. How well has the engineer-client relationship benefited both p arties? Tangible Proposal win/loss rate, 38% win rate is a typical rate. Performance numbers, sales vs. profit.

Challenges Regarding Marketing: 

Challenges Regarding Marketing Using new technology or innovations.

Blue Ocean Strategy: 

Blue Ocean Strategy Red Ocean – all industries in existence today Known market space Its boundaries are known and accepted. Competitive rules are known Companies try to outperform their rivals to grab a market share. Profits and growth are reduced - cutthroat.

Blue Ocean Strategy (Continued): 

Blue Ocean Strategy (Continued) Blue Ocean - Developing new business in “untapped” or uncontended market space. Demand is created rather than sought after. Ample opportunity for profitable and rapid growth. Company achieves value innovation for the client and company. Difficult to discover Blue Ocean.

New Marketing Tools: 

New Marketing Tools Blogs Twitter Facebook LinkedIn

Utilizing New Marketing Tools: 

Utilizing New Marketing Tools Traditional marketing was strictly word of mouth or print advertising. Now potential clients are looking to these social media sites to see what other people are saying about you before they make decisions.

Utilizing New Marketing Tools (Cont): 

Utilizing New Marketing Tools (Cont) Linking to videos or other social media can start conversations with potential clients. Newer practices include placing links to blogs (of especially active employees) in company websites help disseminate information more rapidly.

Twitter : 

Twitter Newer practices like placing Twitter feeds in company websites help disseminate information more rapidly Many engineers have Twitter feeds and followers http://toponlineengineeringdegree.com/?page_id=111 It certainly does not replace traditional marketing but it allows the company to relay more information to the client.

References: 

References http://www.engineeringdaily.net/the-most-important-challenge-facing-civil-engineering-firms-today/ http://www.newagepublishers.com/samplechapter/001734.pdf http://highroadsolution.com/clients/civil/newsletter1/web_pages/2008/7_civil_june.htm Morse, L. C., & Babcock, D. L. (2010). Managing Engineering and Technology (5th Edition ed.). Upper Saddle River, NJ, US: Prentice Hall. http://en.wikipedia.org/wiki/Crossing_the_Chasm http://en.wikipedia.org/wiki/Blue_Ocean_Strategy http://i-am-not-a-lead.com/the_man_in_the_chair.html