The Rules of AttractionMarketing for New Business<br />Presented to:<br />Missouri Economic Development Council<br />“Fund...
Presentation Topics<br />Introduction to the Missouri Partnership<br />How we market our “product”<br />How we recruit new...
About the Presenter<br />10+ years of state-level economic development experience in Ohio (including projects, policy, and...
Introduction to theMissouri PartnershipAn Overview of the State’sInvestment Promotion and Business Recruitment Group<br />
Introduction to theMissouri Partnership<br />Mission<br />To promote Missouri as a destination for new business investment...
Introduction to theMissouri Partnership<br />Why was it created?<br />What are its key objectives?<br />Who else uses this...
Introduction to theMissouri Partnership<br />Why was it created?<br />Effectiveness of public-private partnership model<br...
Introduction to theMissouri Partnership<br />What are our key objectives?<br />Deliver the “message” about Missouri’s posi...
Introduction to theMissouri Partnership<br />Who else uses this approach?<br />Florida – Enterprise Florida<br />Alabama –...
Marketing forNew Business InvestmentAn Overview of Marketing for Business Recruitment<br />
Defining Economic Development<br />Three principal components of economic development and job creation<br />Retention and ...
Marketing forNew Business Investment<br />Significance of new business recruitment<br />Generates net new job creation and...
Marketing forNew Business Investment<br />Our Marketing Strategy<br />“Air Campaign”<br />Build a positive image of Missou...
Marketing forNew Business Investment<br />“Air Campaign” Tactics<br />Advertising<br />Earned media<br />Digital (web, soc...
Marketing forNew Business Investment<br />Elements of “Air Campaign” Messaging<br />Features new Missouri brand<br />Focus...
Marketing forNew Business Investment<br />“Ground Campaign” Tactics<br />Conference sponsorships<br />Tradeshow exhibition...
Marketing forNew Business Investment<br />Tradeshow Exhibition Efforts (2010)<br />CoreNet Global<br />Biotechnology Indus...
Marketing forNew Business Investment<br />Decision-Maker Outreach Efforts (2010)<br />Consultant outreach events<br />Chic...
Marketing forNew Business Investment<br />Our Marketing Partners<br />Missouri Department of Economic Development<br />Haw...
Long-Term Challenges<br />Product Awareness<br />Raising the visibility of Missouri and its economic development potential...
Marketing toTargeted IndustriesBuilding a Business Case for Missouri in the Wind Energy Sector<br />
Missouri Opportunities<br />
Blades<br />Nacelle<br />Tower<br />Wind turbine in  Northwest Missouri<br />
Wind Energy Components<br />Major components of a wind turbine<br />Nacelle (the motor)<br />100 tons<br />8,000 separate ...
Wind Energy Components<br />Defining characteristics<br />Expensive to transport (weight of products)<br />Difficult to tr...
Missouri Opportunities<br />
Keys to Success<br />Product Awareness<br />Establishing Missouri’s presence at key industry events<br />Delivering the “W...
Working withNew Business InvestmentAn Overview of Business Recruitment Deals<br />
Site Selection in a Nutshell<br />1.	Company identifies need for additional capacity and initiates search for new facility...
What’s Important?<br />Top Factors in Corporate Location Decisions<br />1.	Cost of labor (2nd in ‘08)<br />2. Highway acce...
What’s Important?<br />Top Factors in Corporate Location Decisions<br />6. Availability of skilled labor (6th in ‘08)<br /...
What’s Important?<br />Other Factors in Location Decisions<br />14. Right-to-work state<br />17. Environmental regulations...
Who is Involved?<br />Stakeholders in the process – The “Buy Side”<br />The Client<br />Where do the leads come from?<br /...
Who is Involved?<br />Stakeholders in the process – The “Sell Side”<br />Missouri Partnership<br />Missouri DED<br />Regio...
Role of Missouri Partnership<br />Responding to business recruitment leads<br />Identifying optimal community locations fo...
Role of Missouri Partnership<br />Responding to business recruitment leads<br />Performing targeted, location-specific res...
Role of Missouri Partnership<br />Responding to business recruitment leads<br />Packaging state and local economic incenti...
Staying in the Game<br />Follow-up visits to the community<br />Inspect the proposed site or building<br />Help the client...
Staying in the Game<br />Follow-up visits to the community<br />Meet with local government officials (“dog and pony time”)...
Staying in the Game<br />Follow-up visits to the community<br />Look for additional reasons to narrow the field of competi...
Staying in the Game<br />Follow-up visits to the community<br />Identify other potential concerns about the specific site ...
Staying in the Game<br />Follow-up visits to the community<br />Negotiate and finalize a competitive package of state and ...
Potential Pitfalls in the Process<br />Where Things Can Go Wrong<br />Information failures<br />Quality of information<br ...
The Role of Incentives<br />“Incentives make a good site better.<br />		They don’t make a bad site good.”<br />						- Ano...
The Role of Incentives<br />How important are they?<br />Consistently ranked among Top 10 location factors in Area Develop...
The Role of Incentives<br />Why do they matter?<br />One of the few factors within the control of state and local governme...
The Role of Incentives<br />What do companies want?<br />Cash is king<br />BUT…<br />Most businesses want to maintain a st...
The Role of Incentives<br />How does Missouri fare?<br />Positive reputation for Quality Jobs Act<br />Well-known and well...
The Rules of Attraction<br />1.	Consistently provide quality information in a timely manner<br />2.	Build a personal conne...
Site Selection is Like Courtship<br />RFPs = Personal ads<br />Trinkets from the local chamber = Flowers and chocolates<br...
Questions?<br />
Thank You!<br />Christopher Chung<br />President and CEO<br />The Missouri Partnership<br />+1.314.725.0949 (O)<br />+1.57...
MEDC Fundamentals Of Economic Development - Apr 2010
Upcoming SlideShare
Loading in …5
×

MEDC Fundamentals Of Economic Development - Apr 2010

958 views

Published on

An overview of how Missouri markets itself for new business investment and corporate site selection projects - As presented to the Missouri Economic Development Council\'s &quot;Fundamentals of Economic Development&quot; course series

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
958
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

MEDC Fundamentals Of Economic Development - Apr 2010

  1. 1. The Rules of AttractionMarketing for New Business<br />Presented to:<br />Missouri Economic Development Council<br />“Fundamentals of Economic Development”<br />Presented by:<br />Christopher Chung<br />The Missouri Partnership<br />April 7, 2010<br />
  2. 2. Presentation Topics<br />Introduction to the Missouri Partnership<br />How we market our “product”<br />How we recruit new business investment<br />Questions and answers<br />
  3. 3. About the Presenter<br />10+ years of state-level economic development experience in Ohio (including projects, policy, and people)<br />Service in both Democratic and Republican administrations during time in Ohio<br />Relationship and deal management experience with major site selection clients<br />
  4. 4. Introduction to theMissouri PartnershipAn Overview of the State’sInvestment Promotion and Business Recruitment Group<br />
  5. 5. Introduction to theMissouri Partnership<br />Mission<br />To promote Missouri as a destination for new business investment<br />To recruit new employers and jobs to Missouri<br />Structure<br />Public-private non-profit corporation<br />Governance<br />12-member Board of Directors from statewide<br />Size<br />10 employees – Sales, Marketing, and Admin<br />
  6. 6. Introduction to theMissouri Partnership<br />Why was it created?<br />What are its key objectives?<br />Who else uses this approach?<br />Why is this important?<br />
  7. 7. Introduction to theMissouri Partnership<br />Why was it created?<br />Effectiveness of public-private partnership model<br />Engagement of private-sector resources<br />Needed consistency in marketing efforts<br />Needed continuity in sales relationships<br />
  8. 8. Introduction to theMissouri Partnership<br />What are our key objectives?<br />Deliver the “message” about Missouri’s positive business attributes<br />Raise awareness and visibility of Missouri and its advantages as a place to do business<br />Generate investment leads (i.e. “Get Missouri on the list”)<br />Close investment deals<br />
  9. 9. Introduction to theMissouri Partnership<br />Who else uses this approach?<br />Florida – Enterprise Florida<br />Alabama – Econ. Dev. Partnership of Alabama<br />Utah – Econ. Dev. Corporation of Utah<br />Ohio – Ohio Business Development Coalition<br />
  10. 10. Marketing forNew Business InvestmentAn Overview of Marketing for Business Recruitment<br />
  11. 11. Defining Economic Development<br />Three principal components of economic development and job creation<br />Retention and expansion of existing industry<br />Entrepreneurial development, technology commercialization, and small business growth<br />New business recruitment<br />The Missouri Partnership was formed to address the area of new business recruitment<br />
  12. 12. Marketing forNew Business Investment<br />Significance of new business recruitment<br />Generates net new job creation and capital investment (versus intra-state relocation of existing businesses)<br />Provides new market opportunities for local suppliers of goods and services<br />Attracts new residents and income base<br /><ul><li>Success depends heavily on perception and external marketing efforts, similar to winning new “customers”</li></li></ul><li>Marketing forNew Business Investment<br />Key Stages in the Investment Decision<br />Missouri must win the right to compete<br />Achieved through marketing/relationships<br />Missouri must win the competition<br />Achieved through recruitment effort<br />Missouri must win the repeat competition<br />Achieved through retention/expansion effort<br />
  13. 13. Marketing forNew Business Investment<br />Our Marketing Strategy<br />“Air Campaign”<br />Build a positive image of Missouri for business<br />Shape perception of Missouri business climate<br />“Ground Campaign” <br />Develop and manage relationships with decision-makers and decision-influencers<br />Initiate face-to-face conversation about plans<br />Ultimate goal is to generate qualified investment leads<br />
  14. 14. Marketing forNew Business Investment<br />“Air Campaign” Tactics<br />Advertising<br />Earned media<br />Digital (web, social media, e-news releases, search-engine optimization)<br />Thought-leadership activities<br />
  15. 15. Marketing forNew Business Investment<br />Elements of “Air Campaign” Messaging<br />Features new Missouri brand<br />Focused on relevant industry assets<br />Relies on success stories and corporate testimonials<br />Highlights improvements to business climate and positive acknowledgments/rankings for Missouri<br />
  16. 16. Marketing forNew Business Investment<br />“Ground Campaign” Tactics<br />Conference sponsorships<br />Tradeshow exhibition presences<br />Decision-maker outreach (e.g. site selection consultants)<br />
  17. 17. Marketing forNew Business Investment<br />Tradeshow Exhibition Efforts (2010)<br />CoreNet Global<br />Biotechnology Industry Organization (BIO)<br />Solar Power International<br />WINDPOWER Expo<br />AFCOM Data Center World<br />
  18. 18. Marketing forNew Business Investment<br />Decision-Maker Outreach Efforts (2010)<br />Consultant outreach events<br />Chicago<br />Greenville, SC<br />New York / New Jersey<br />Los Angeles<br />Cleveland<br />International trade commissioners and consular offices<br />
  19. 19. Marketing forNew Business Investment<br />Our Marketing Partners<br />Missouri Department of Economic Development<br />Hawthorn Foundation<br />Local and regional economic development groups<br />Private industry in Missouri (e.g. utility companies, construction firms)<br />
  20. 20. Long-Term Challenges<br />Product Awareness<br />Raising the visibility of Missouri and its economic development potential<br />Shaping a positive perception of Missouri as a place to do business<br />Product Development<br />Targeting growth industries that complement Missouri’s advantages<br />Business climate improvements<br />
  21. 21. Marketing toTargeted IndustriesBuilding a Business Case for Missouri in the Wind Energy Sector<br />
  22. 22. Missouri Opportunities<br />
  23. 23. Blades<br />Nacelle<br />Tower<br />Wind turbine in Northwest Missouri<br />
  24. 24. Wind Energy Components<br />Major components of a wind turbine<br />Nacelle (the motor)<br />100 tons<br />8,000 separate components (e.g. gearboxes, bearings)<br />Tower<br />300 feet in height<br />Fabricated metal construction<br />Blades<br />150 to 200 feet in length<br />Fiberglass or composite (e.g. carbon fiber) construction<br />
  25. 25. Wind Energy Components<br />Defining characteristics<br />Expensive to transport (weight of products)<br />Difficult to transport (dimensions of products)<br />Traditionally manufactured in Europe (esp. Denmark, Spain, and Germany)<br />Will require new base of U.S. suppliers and maintenance workers<br />Forecasted growth in demand (despite current oversupply)<br />
  26. 26. Missouri Opportunities<br />
  27. 27. Keys to Success<br />Product Awareness<br />Establishing Missouri’s presence at key industry events<br />Delivering the “Why Missouri” message<br />Product Development<br />Strong market for wind energy<br />Attractive operating conditions<br />Incentives<br />
  28. 28.
  29. 29.
  30. 30.
  31. 31.
  32. 32.
  33. 33.
  34. 34. Working withNew Business InvestmentAn Overview of Business Recruitment Deals<br />
  35. 35. Site Selection in a Nutshell<br />1. Company identifies need for additional capacity and initiates search for new facility location<br />2. Company contacts state/local development groups<br />3. Development groups submit site location proposals to the company<br />4. Company visits sites and develops short list of favorites<br />5. Company negotiates incentives and selects a final site<br />
  36. 36. What’s Important?<br />Top Factors in Corporate Location Decisions<br />1. Cost of labor (2nd in ‘08)<br />2. Highway accessibility (1st in ‘08)<br />3. Tax exemptions (4th in ’08)<br />4. Energy availability/cost (5th in ’08)<br />5. Corporate tax rate (8th in ‘08)<br />Source: Area Development, March 2010<br />
  37. 37. What’s Important?<br />Top Factors in Corporate Location Decisions<br />6. Availability of skilled labor (6th in ‘08)<br />7. Occupancy/construction costs (3rd in ‘08)<br />8. State and local incentives (8th in ‘08)<br />9. Availability of internet (21st in ‘08)<br />10. Freight costs (not ranked in ’08)<br />Source: Area Development, March 2010<br />
  38. 38. What’s Important?<br />Other Factors in Location Decisions<br />14. Right-to-work state<br />17. Environmental regulations<br />23. Accessibility to major airport<br />25. Railroad service<br />26. Waterway/port accessibility<br />Source: Area Development, March 2010<br />
  39. 39. Who is Involved?<br />Stakeholders in the process – The “Buy Side”<br />The Client<br />Where do the leads come from?<br />Marketing events<br />Tradeshows<br />Relationships / referrals<br />“Cold Calls”<br />Company versus Consultant <br />
  40. 40. Who is Involved?<br />Stakeholders in the process – The “Sell Side”<br />Missouri Partnership<br />Missouri DED<br />Regional economic development groups<br />Local economic development groups<br />Utility companies <br />Private industry in Missouri <br />
  41. 41. Role of Missouri Partnership<br />Responding to business recruitment leads<br />Identifying optimal community locations for the project<br />Proximity to complementary industries and educational assets<br />Geographical advantages, including supplier and market access<br />Site and building availability<br />Business and labor climate suitability<br />Operating cost management<br />
  42. 42. Role of Missouri Partnership<br />Responding to business recruitment leads<br />Performing targeted, location-specific research<br />Area demographics<br />Regional industry makeup<br />Workforce availability and accessibility<br />Ongoing financial concerns, including energy costs and taxes<br />
  43. 43. Role of Missouri Partnership<br />Responding to business recruitment leads<br />Packaging state and local economic incentive programs and detailing their impact on up-front capital expenditures and long-term operating costs<br />Facility financing<br />Infrastructure assistance<br />Workforce training<br />Tax abatements and credits<br />
  44. 44. Staying in the Game<br />Follow-up visits to the community<br />Inspect the proposed site or building<br />Help the client envision the potential<br />Interview local employers about the area workforce (e.g. work ethic, productivity, wage schedule)<br />Respect the confidentiality of the conversation<br />Select the right employers to tell the story<br />
  45. 45. Staying in the Game<br />Follow-up visits to the community<br />Meet with local government officials (“dog and pony time”)<br />Emphasize the pro-business attitude in the community<br />Maximize the tangible benefits to the client<br />Minimize grandstanding <br />
  46. 46. Staying in the Game<br />Follow-up visits to the community<br />Look for additional reasons to narrow the field of competition (site selection as a “process of elimination”)<br />Sell the strong points of the community<br />Transportation accessibility<br />Price (especially if the site/building is publicly owned)<br />Legacy workforce (if there is a recently downsized operation)<br />
  47. 47. Staying in the Game<br />Follow-up visits to the community<br />Identify other potential concerns about the specific site or community<br />Anticipate and mitigate these with adequate preparation<br />Infrastructure development plans and costs<br />Environmental and geotechnical studies<br />“Blind” job recruitment ads<br />Natural disaster statistics<br />
  48. 48. Staying in the Game<br />Follow-up visits to the community<br />Negotiate and finalize a competitive package of state and local incentives<br />Be ready to give a “best and final” offer that is responsible to the community but that also factors in the competitive reality of the deal<br />
  49. 49. Potential Pitfalls in the Process<br />Where Things Can Go Wrong<br />Information failures<br />Quality of information<br />Confidentiality<br />Relationship failures<br />Trust between client and state/local community<br />Trust between regional and local groups<br />Trust between state and local communities<br />
  50. 50. The Role of Incentives<br />“Incentives make a good site better.<br /> They don’t make a bad site good.”<br /> - Anonymous<br />
  51. 51. The Role of Incentives<br />How important are they?<br />Consistently ranked among Top 10 location factors in Area Development annual survey of corporate executives<br />2005: 4th<br />2006: 4th<br />2007: 8th<br />2008: 7th<br />2009: 8th<br />
  52. 52. The Role of Incentives<br />Why do they matter?<br />One of the few factors within the control of state and local governments<br />Can assist with multiple facets of new operation<br />“Develop the site”<br />“Build the building”<br />“Find the workers”<br />“Keep the costs low”<br />
  53. 53. The Role of Incentives<br />What do companies want?<br />Cash is king<br />BUT…<br />Most businesses want to maintain a strong relationship with the community and state<br />Incentives won’t compensate for a flawed business case<br />There are responsible policy options for state and local governments <br />
  54. 54. The Role of Incentives<br />How does Missouri fare?<br />Positive reputation for Quality Jobs Act<br />Well-known and well-used New Jobs Training program<br />Competitive disadvantage against states with “deal-closing” or contingency funds<br />Texas: $290 million<br />Arkansas: $40 million<br />Ohio: $30 million<br />Virginia: $20 million<br />
  55. 55. The Rules of Attraction<br />1. Consistently provide quality information in a timely manner<br />2. Build a personal connection and earn the trust of the client<br />3. Understand the client’s needs and how your community offers the best solution<br />4. Harness the power of peer-to-peer testimony<br />5. Recognize that everyone and everything in your community is being evaluated<br />
  56. 56. Site Selection is Like Courtship<br />RFPs = Personal ads<br />Trinkets from the local chamber = Flowers and chocolates<br />Site tours and employer interviews = Going on dates and meeting the family<br />Just as in courtship, persistence is key.<br />
  57. 57. Questions?<br />
  58. 58. Thank You!<br />Christopher Chung<br />President and CEO<br />The Missouri Partnership<br />+1.314.725.0949 (O)<br />+1.573.808.0089 (M)<br />Chris@MissouriPartnership.com<br />

×