The Amtower B2G Market Report

The Amtower B2G Market Report
Volume 3, #43, November 8, 2004

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In this issue…
1) Amtower Off-Center Observations
2) The Good, The Bad, and the Ugly: Direct Marketing to the Feds
3) Events Worth Attending

AMTOWER OFF-CENTER OBSERVATIONS

Item: Monday – today, is the last day to register for the B2G Catalog Summit – November 11 in Chicago. See “Events” below. See also my comments in “The Good, the Bad and the Ugly” immediately below.

Item: Apparently several other people saw the Government VAR magazine from CMP. Those who wrote to me were equally confused by the data CMP/Government VAR presented as the “Top 100”. For those that missed it, GTSI made the top ten, and Dell did not. There were several other anomalies in this list, and no reference as to the source. What could be a good magazine is going downhill fast. If they are offering questionable data, why read it?

Item: Several other people wrote in to say similar things about the Input budget conference. Before I endorse things by listing them in this newsletter, I will need to attend something by the producer to make sure they are worthwhile!

Item: That being said, Amtower & Company is pleased to announce that we are a co-sponsor of the ENC Marketing monthly breakfast series. Some of you may recall that several companies got together in 2001-2002 to form the Government Marketing Forum. For a variety of reasons, this stopped, and we have no plans to re-start (and further crowd the market with still more events). Though I have not yet attend Eva Neumann’s events, I know ENC would not produce self-serving crap. So I will be at the breakfast November 9 at the Tower Club – and hope to see you there. See “Events” below for complete details.

I do not endorse anything, especially events, lightly. The reason we (Amtower, Federal Business Council, Market Connections and Digital Government Institute) started the Government Marketing Forum was to fill a legitimate void in the market for real marketing information in bite size chunks, like breakfast. I hope to see many of you at the ENC breakfast.

THE GOOD, THE BAD AND THE UGLY: DIRECT MAIL TO THE FEDS

Below is a recent inquiry from a well-known DC area organization, with the inquirer name and reference removed.

“I work with (insert Amtower acquaintance) of (an organization that offers advice to companies selling to the government) and have a general marketing mail question. He said that you are the expert on mass mailing marketing to the Federal Government. A GSA Schedule Contractor did a mass mailing (3rd rate bulk postage) to approximately 30,000 to prospective customers in multiple agencies in late August. It was a postcard giving basic information on the award of their GSA Schedule Contract. They expected a return of at least 2%. However, they did not get back ANY replies. The contractor was wondering with the Anthrax scares do some or all Govt. agencies have a policy that they do not accept certain types of mail such as bulk mail. They are uncertain whether or not the mail reached its destination.”

I called this person who emailed to address the issues, starting with the fact that I am an expert on many aspects of marketing to the government. Several other items came up, including: 1) this is a new Schedule vendor with limited exposure in the market, 2) there was no other marketing activity outside the post card, 3) list source is suspect (at best), 4) the assumption of a 2% response was based on what?!

Mass mailing to the government silly, as the Federal government is a huge market made out of lots of niches. Third class mail is not an issue. The “volume” issue only impacts military bases and DoD, which limit the number of pieces from a specific mailer. It turns out the contractor was selling a device that attaches to computers for copying and storage. They are not alone in this endeavor. It is a new Schedule holder with not much name recognition in the market. And yet they are expecting a 2% response from a post card mailing, during busy season when everyone is selling!

I asked what list was used. The mailer used data (probably the least expensive) from the Federal Procurement Data Center, which meant they got the mailing address for purchasing activities (reactive, not proactive), and probably without names. The likelihood of the post cards making it out of the mailroom using this as a mail list is not good. FPDC is not a good list source, nor was it designed to be. I know – we used to get this data. FPDC does not identify buyers, it identifies buying activities, and often there are no names on the list.

The anthrax issue still exists in the Washington, DC area, but only in this area. It should not affect post card mailings.

Late August was a good time to mail, but for a first time mailing to the government it was poorly timed, especially if no other supporting marketing activities occurred to support it. If I read the inquiry right, this was also an “annoucement”, not a call to action. I would love to see the mail piece.

A Schedule buys you nothing – it is a license to hunt. Mindshare is built over time, with much effort. Mindshare can translate to marketshare, but it does not occur with a one-time mailing, even during busy season.

The inquiry came from a well-known organization in the government market, from someone with the title “Senior Consultant”. When my book, Government Marketing Best Practices, comes out in late December or early January, this organization should buy copies for the entire staff. At $20 per copy, it will be an education many seem to need.

Not that I have an opinion.

EVENTS WORTH ATTENDING

Beware of the schlock vendors, producing “black hole” events, events that eat your money with no significant return! If you want Government Marketing Best Practices in your city in the spring of 2005, vote at www.FederalDirect.net.

Tuesday, November 9, 2004: Research –Solid Fuel for Powerful Federal Marketing
7:30 AM - Registration
8:00 AM – 9:30 Breakfast and Program
The Tower Club, 8000 Towers Crescent Drive, 17th Floor • Tysons Corner
$55, Includes continental breakfast
What we’ll cover:
Learn to accelerate your federal marketing programs with pinpoint customer insight and up-to-the-minute market knowledge. Join us as our expert panelists Aaron Heffron of Market Connections, Eva Neumann of ENC and Steven Toole of Input) show you:
... • Who provides reliable research
... • What research is available
... • When to collect your own data
You’ll also learn:
... • Where to get free data
... • Why research lowers costs
... • How research drives results

Research is the fuel powering aggressive, well-targeted federal marketing campaigns. To put more competitive octane in your programs, reserve your seat this minute at http://www.encmarketing.com/events/

November 11, THIRD ANNUAL B2G CATALOG SUMMIT, Rosemont Doubletree O’Hare (Chicago).
www.FederalDirect.net. Our speakers include web diva Amy Africa on the latest web innovations, Richard Mackey on GSA, Mark Del Franco of Catalog Age leading a town hall style session with three catalog veterans, and Bill Singleton of Singleton Marketing on profitably mining your data. I will be doing the keynote and the wrap-up session, which will provide catalog “best B2G practices”. For those who use direct mail, especially catalogs, as a primary marketing tool, the third annual B2G Catalog Summit is a “must attend”. It is a one-day event filled with ideas you can take back to the office for immediate use. The event is in a hotel less than 10 minutes from O’Hare, and there will be limited seating (maximum of 75 attenders), so sign up now at www.FederalDirect.net/b2gsummit.html.

2 NSA events coming up in early December, on site at NSA. www.fbcinc.com

INTELCON National Intelligence Conference and Exposition, February 8-10, 2005 Hyatt Regency Crystal City, Alexandria, VA. www.fbcinc.com

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

Thanks
Mark Amtower

The Amtower B2G Market Report is published by Amtower & Company, and is written for companies targeting the government marketplace. The opinions expressed are those of Mark Amtower unless otherwise noted. Contact us at Amtower & Company, PO Box 314, Highland, MD 20777-0314 (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


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