Marketing to The Federal Government

By: Theodore P. Watson, Government Contract Attorney and Consultant

After 911, access to the federal government has become very limited. Contractors now have to create new and innovative ways to market to the agency to sell their services and products. As many successful contractors know, building relationships with the government is one of the critical aspects of marketing to the government.

• There are over 80,000 agencies
• There is no bigger business than selling to government
• Marketing to the government takes time and is definitely not a simple task

There are no short cuts to acquiring government contracts. Many companies incorrectly believe that marketing to the federal government is done in the same manner as in the commercial sector. As a result, they spend thousands of dollars hiring employees with inflated resumes, going to events that don’t get results or simply not spending to the time to develop relationships with the agency decision-maker.

Analysis of Marketing to the Federal Government

Most companies will start the process in federal procurement as a subcontractor. This is especially true with construction contracts. However, given the push for more awards to small businesses, you can be successful with the right approach. For example, teaming arrangements.

As a product vendor, you should simultaneously start to acquire leverage in the commercial market. The government wants to know your performance in the commercial sector in order to weigh its risk when you first come to the federal marketplace.

• Building a reputation in the commercial sector is critical to your performance ratings in federal contracts
• Having your marketing staff keep statistical data on the success of your commercial efforts. This is an important piece when writing responses to solicitations and RFPs.

Know the Landscape of the Federal Market. Many companies quickly jump into the government contracting arena without knowing the ‘turf’. When our marking consultants assist clients with marketing to the federal government, we first gather data on the agency buying habits. This is critical.

• Understanding the government’s buying habits is key to a successful marketing campaign
• There are over 80,000 agencies. Scouting the market narrows your focus
• You must know which agency buys your product or service
• Knowing the market saves money and effort
• You must also know your competitors and who is also selling to the agency
• Market research and target specific agencies
• You should target emerging contractual vehicles ( service disabled, 8a, HUBZone and GSA)

Developing and Proving the Caliber of Your Service or Product is Critical. As a former government contracting official, I’ve seen many businesses present themselves both on paper and by in-person briefings. The results were sometimes damaging to the contractor.

Marketing to the government takes effort, skill and patience. You cannot simply think that procurement personnel are sold by sending them a one-page document that has your company name and address on it.  Nor does a simple brochure that tells them your product or service is the best thing on the earth sell them either.

• You must know the agency’s problem and be able to let them know you can fix it
• Quick delivery and turnaround time is an essential element of selling a product
• The government demands quality and innovative ways to solve problems
• Your reputation is also critical when marketing to the federal government

Marketing to the government is not easy but the return can make it worth your while. As mentioned earlier, there are no get-rich schemes to acquiring government contracts. As federal marketing consultants, our firm focuses on developing solid marketing materials that talk about:

• Solving the agency’s problems
• Quality and reputation
• Cost-effectiveness
• Additional value concerns to the government
• Who you are and what you have done
• Showing that you know Industry and any future developments

Marketing materials that contain anything else will not be taken seriously. The government simply wants to know “what do you bring to the table and how can you solve its problems?”

Using Corporate Ad Agencies Does Not Help

Using a corporate ad agency to market to the federal government does not help. As mentioned before, building relationships with the agency calls for a different skill set that normally required in the commercial market place. Although one or two of the marketing companies may have a track record, the others tend not to grasp the procurement rules and regulations.

GSA Schedules – Good or Bad?

As government contract attorneys and marketing consultants, we often advise our clients to never fall for the old saying “get a GSA schedule and just wait for the phones to ring.” Marketing to the government just doesn’t magically get you millions. About 3-5% of GSA contractors control most of government dollars.

To successfully capture dollars on a GSA schedule you must also:

• Understand whether the government buys your service or product on GSA schedule
• The geography of what agencies and where are your targeted market agencies
• Remember that getting on GSA schedule should only be part of your entire marketing strategy and not the end

Should Branding and name recognition be the forefront when marketing to the government? Shockingly, the answer is a big “NO.” Except for computers, where DELL controls the government market, the government wants to know the bottom line; can you solve their problem AND what do you bring to the table?

• Commercial branding  does not guaranty you government contracts
• You simply should not market to the government in the same fashion as in the commercial sector – this is the biggest and most expensive mistake made by new federal contractors.

Trade Shows

Many small companies cannot afford to attend trade shows. The question is whether they are really effective when marketing to the federal government. A few points should be made:

• Tradeshows eat up big bucks
• Don’t expect miracles to happen at an event
• You must strategically select which trade shows to attend
• When picked carefully, trade shows bring great success for government contract marketing
• Prepare you materials to send a particular message (You can solve an agency problem or to demonstrate the benefit of your product)
• Go to smaller trade shows where decision makers tend to be
• Segment the market and focus and sizing up opportunities

Hiring Your Marketing Team

Many government contractors seek to hire former government personnel in hope of landing big contracts. Yes, it looks good on paper but hiring the wrong person can also be disastrous. Watson & Associates, LLC have former contracting offices and small business personnel on staff. However, our consulting strategy is based on a more focused approach instead of hope and guess work.

• Never believe that the only way to market is to hire a person in Washington, D.C. This guarantees you nothing.
• Learning  the market and learning to build relationships can be done from anywhere in the country
• Watch for spam e-mails professing to get government contracts

Searching for capable teaming partners can be very effective

As government contract and marketing consultants, we often advise our clients to seek out capable teaming partners. It is no big secret that small companies lose out on opportunities that may be too large for one company to handle. Thus, the only capable contractor would be the larger businesses.

In fact, larger businesses are seeking teaming arrangements with select small business such as service disabled veterans and 8a companies.

• Get advice on selecting a teaming partner
• You can now ,market you teaming partner’s capability along with your own

Key Marketing Tips

• Trade Shows (when carefully selected) can bring big dividends
• Following up on contacts from trade shows is the biggest mistake made
• Remember that building relationships is the key to success
• People ( the government is comprised of people) like to buy from people they meet face to face
• Marketing to the government is based on problem solving and desire to serve
• Do not hire commercial marketing companies that guaranty results
• If you are going to retain a government contract consultant, then ensure that they understand the rules and the market
• Government contract marketing must focus on how the government sees your company ; whether you can solve its problems; who you are and what have you done
• Get the right marketing consultants on board
• Know how to demonstrate your product or service; highlight the benefits or value to the government
• Your marketing strategy must be consistent

If you are seeking competent government contract consultants, feel free to contact Watson & Associates, LLC at 720.941.7200

Tags: federal government, marketing

This entry was posted on Monday, May 25th, 2009 at 1:59 pm and is filed under Articles, Blog, Government Services. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.