The Amtower B2G Market Report

The Amtower B2G Market Report
Volume 3, #23, June 14, 2004

(Sign up for your free subscription at http://www.FederalDirect.net and if you like this, please pass this along to your colleagues. To unsubscribe, email me at amtower@erols.com). Past issues available at http://www.federaldirect.net/newsletterarchives.html)

In this issue…
1) Amtower Off-Center Observations
2) The Good, the Bad and the Ugly: Focus on Space Advertising
3) Events
4) One Minute Marketing Clinic

AMTOWER OFF-CENTER OBSERVATIONS

Item: A quick comment on the passing of Ronald Reagan. Regardless of your political beliefs, Ronald Reagan made it perfectly clear that a clear, simple message sells. He had a view of and a belief in America that resonated with a big audience. This is not the time to argue whether or not it was a realistic view, but it sold: two terms, both landslides. Marketers should remember this.

Item: The Radio as a Marketing Tool article is now up at FederalDirect.net. My thanks to Anne Armstrong (Federal Computer Week), Lisa Dezzutti (Market Connections), Eva Neumann (ENC Marketing), Steve O’Keeffe (O’Keeffe and Company) and Tom Temin (Post Newsweek Tech Media, and Government Computer News) for participating in this and the subsequent (see below) articles. My thanks also to Jory Stieber and News Talk 630 AM and Patti Cochran of Classical 103.5, WGMS, for their comments.

Item: I am putting some other events in the events section below. Christina Nelson puts on some great events through the Digital Government Institute. Another friend, Deirdre Murray of Sprint, belongs to several groups I like to support but don’t make the time to attend, one of which is Women in Technology (WIT). I was the sole male at the organizational meeting back in 1994. One of the other attenders, obviously puzzled by my attendance, asked me what I was doing there. Those of you who know me understand that my mouth often works before my brain. I responded, “Recipes.” I was interviewed by Washington Business Journal in 1998 about my support for WIT, and came out with another mouth-before-brain quotes. See the story at www.FederalDirect.net/inthenews.html. It is the fourth article listed. There are some events besides my own worth touting, and perhaps we will see more of this at FederalDirect.net.

Item: Representative Tom Davis (Virginia) spoke at Federal Source’s State of the States on June 8. Washington Technology reported that Davis said cooperative purchasing (state and local government usage of the GSA Schedule) was “the wave of the future…All states will eventually embrace it.” That will depend on how you define eventually, Congressman. This looks like a make-em-happy speech written for a very specific audience, with minimal concern for the reality of the situation. Welcome to election year politics. While GSA may applaud these comments, there is not a groundswell of support for cooperative purchasing. While the pricing may be attractive, working with GSA is not. Use of GSA Advantage is not at the top of the list for most non-Federal governments, or for that matter, at the top of Federal buyers lists of things to do. Mr Davis should know this and address it, not ignore it.

Not that I have an opinion.

The Amtower B2G Market Report is published and copyrighted by Amtower & Company. It combines our former newsletters into a single, bi-weekly newsletter for companies targeting the government marketplace. Contact us at Amtower & Company, PO Box 339, Ashton, MD 20861-0339 (301-924-0058). This material is copyrighted and may not be duplicated, reprinted or otherwise replicated without written permission of the publisher. EMAIL subscriptions are free by request: sign up at www.FederalDirect.net.

THE GOOD, THE BAD AND THE UGLY: FOCUS ON SPACE ADVERTISING

The simple truth is few of us like to admit that advertising of any sort influences our buying decisions. The simple reality is that it does. But there are so many messages in so many places that getting a message to stick in the mind of a legitimate prospect is extremely difficult.

I have asked my panel to respond to some basic questions on space advertising.

Tom Temin of PostNewsweek Tech Media responded first, so here are his answers. The rest will be posted in the full article when it is ready, probably Wednesday.

1) Where does space advertising fit for companies with moderate advertising budgets?

Space is the most focused way to go, so even though it may seem expensive, the cost per impression is actually low. Rather then blow their budget on one or two ads, smaller accounts should buy smaller space units but with repetition over a longer period. The key to success is consistency. The worst thing would be to try and make a big splash with an expensive event or a one-time radio or TV bomb. The few times in history this actually worked show what a risky technique it is. The government market demands staying power..

2) What do ads in our market need? By this I mean; glitz vs substance? How much info?

Readers in the B2B market read ads for information on products, specs, and capabilities. All advertising should be eye-catching and tightly written. Humor must be done very carefully and in good taste, so as not to pander to or insult the audience. Scare tactics and overblown claims are killers, too ("If you had our software, you could have...."). Testimonials work, too.

3) Not everyone can spend like Dell, so if a company wants to work with a publication, how does the ad agency or publication work with them to maximize the impact of their budget?

At PostNewsweek, we have a range of options to help them with their marketing goals. Besides straight print space, we have web programs, custom publishing, trade shows and other events such as conferences and short seminars. There is no cookie-cutter approach.

4) How many times have you seen companies pull out of campaigns too soon?

Every time a company pulls out of a campaign, it is too soon.

5) Can you offer some basic advice to companies coming into the government market?

Make sure the home office is sold on government marketing. Have the requisite patience and staying power, together with customized sales compensation plans, to work your way in. Get a GSA Multiple Award Schedule contract. Choose resellers carefully—don’t just look at their volume, but the agencies, contacts, contracts and proficiencies they have that offer you the best chance for sales. Learn how to examine the range of opportunities, then hone in on the ones that give you the best prospects. In other words, rifle shot, don’t scattershot. Get a basic understanding of Federal procurement, but also realize you might have to hire expert advice to help you negotiate the RFP-to-sale stages. Get to know government people—they are, in fact, people.

EVENTS

GOVERNMENT LEADERS AT THE HELM: The Challenges Ahead
Thursday, June 17, 2004, 6:00-7:00 pm Networking & Job Fair; 7:00-8:30 Program
Sheraton Premiere Tysons Corner www.womenintechnology.org

TAKING ENTERPRISE ARCHITECTURE TO THE NEXT LEVEL:
Implementing EA to Effect Organizational Change, July 13-14, 2004
EA Boot Camp July 12, 2004 www.digitalgovernment.com

FEDERAL CHANNELS: Selling and Marketing to the Government
Date: July 19, 2004
Time: 8:00 a.m. to 4:45 p.m.
Location: Fairview Park Marriott, Falls Church, VA

The Federal Marketplace has undergone significant change in the past few years. Federal Channels 2004 will feature sessions on the most recent changes to the federal business environment and the best methods for using those changes to your advantage. This is a really good informational and networking event, with something for people of any skill level, novices and professionals alike. The FBC staff spends lots of time putting together a good program, and they always have great presenters. See full details at http://www.fbcinc.com/federalchannels/default.asp

ONE MINUTE MARKETING CLINIC: FRONTAL ATTACKS

A few weeks back I mentioned we would be revisiting the concept of marketing warfare, particularly various forms of attacking competitors. Two recent examples will display the risks of frontal attacks.
In a full page advertisement April 27, 2004 in the Washington Post Business section, Autodesk displayed a man, apparently naked, behind an unfolded map. The headline: Has ESRI left you stranded? (ESRI is a competitor). The sub-head read: Unlock the power of your spatial data. Autodesk Mapping Solutions. The copy continues to say “ESRI’s approach to GIS will only take you so far.” And apparently leave you stranded!

Autodesk obviously feels its product has the strength to take on ESRI head-on. And it continues to explain why in the rest of the copy – one paragraph.

In another, non-government example, Dunkin Donuts has rolled out its plan to attack Starbuck’s head on with its own line of capuccino and expresso products. The television and space ads are rolling.

Autodesk has a legitimate position, and a good shot at displacing ESRI, based on clearly enunciated technical superiority. I would put this ad in the federal publications.

Dunkin Donuts is doomed to fail for several reasons. First, they are doing nothing to make their stores as appealing inside as Starbuck’s. There is truly a comfortable atmosphere in Starbuck’s that Dunkin lacks. Second, Dunkin is known for good coffee and great donuts. The coffee at Dunkin Donuts is affordable. Less than $1 gets you a good cup of coffee. It may not be a Latte, but the overall after-effect is the same. Dunkin would be better served taking the “Automatic Millionaire” approach (if you have not read Dave Bach’s book, put it on your list). In a 60-second television spot you have a couple drive up to a Starbuck’s in a Porsche, and another couple drive up to a Dunkin in a minivan. Then show them going home: the Porsche couple to a small apartment, the minivan couple to a large suburban home. And Dunkin should be selling Bach’s book in every store, with a Dunkin Donut bookmark (with coupon) at the Latte Factor chapter. This flanking attack, playing to Dunkin’s strength, would be a stronger campaign.

If you haven’t read the book, let me simply say that what some people spend on latte every week can fund a good retirement.

Frontal attacks are good when you have a solid message and an audience willing to believe. Audtodesk is there, Dunkin is off the mark.

**

As always, your comments, questions and suggestions are welcome.

Thanks
Mark Amtower


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