1. EFFECTIVELY MARKETING
TO
GOVERNMENT BUYERS
Cambria Rowe Business College
May 13, 2011

2. TODAY’S OBJECTIVES
♦ Keep you awake.
♦ Tell you where you can get help when you
need it.
♦ Tell you EVERYTHING there is to know
about marketing to government buyers.

3. OUTLINE
♦ Introductions and assumptions.
♦ Marketing defined.
♦ Why sell to the government marketplace?
♦ Prerequisites.
♦ Know yourself.
♦ Who needs you?
♦ How government buyers buy.
♦ Marketing tools.

4. ♦ INTRODUCTIONS
♦ AND
♦ ASSUMPTIONS

5. PTAC OVERVIEW
♦ A nationwide
network of local
offices that
facilitate business
participation in
government
marketplaces.
♦ Funded and
administered by
the Defense
Logistics Agency
(DLA).

6. PTAC MISSION
♦ Maximize fast reliable
delivery of goods and
services to
Federal, state, and
local government
agencies, which helps
to improve the quality
and lessen the cost of
those items.

7. PTACS HELP GOVERNMENTS BY:
♦ Improving the knowledge, availability, and
capability of the nation’s supplier base.
♦ Providing enhanced competition within the
government supply chain.
♦ Strengthening the nation’s industrial
base, which improves our global
competitiveness and helps to protect our
national security.

8. PTACS HELP BUSINESS BY:
♦ Evaluating their capabilities to do
government work.
♦ Assisting with contracting/subcontracting
registrations.
♦ Investigating government markets and
relating relevant opportunities.
♦ Assisting with marketing strategies.
♦ Reviewing bids and proposals.
♦ Interpreting regulations and policies.

9. PTACS HELP BUSINESS BY:
♦ Providing training.
♦ Connecting government customers with
contractors and subcontractors.
♦ Making referrals to other business service
providers.
♦ Providing specifications and standards.
♦ Answering questions.
♦ Etc. etc. etc.

10. WHAT PTACS DON’T DO
♦ Serve as an official representative or agent
of your business.
♦ Prepare bids/proposals for you.
♦ Make your business decisions.
♦ Release information about you without your
approval.
♦ Accept compensation or gifts.

11. WHAT PTACS EXPECT OF CLIENTS
♦ Have a local place of business.
♦ Be a viable government contractor and
work with us to improve your capabilities.
♦ Provide information about your company
and its operations.
♦ Actively pursue procurement opportunities.
♦ Submit quarterly job and contract data and
an annual client satisfaction survey.
♦ E-commerce capability

12. ANNUAL PTAC IMPACTS
♦ Assisting the Federal government in
procuring over $15 billion in goods and
services via 95,000 contracts, a return of
$600 for every $1 spent on PTACs.
♦ Performing 200,000 counseling sessions
with 55,000 clients.
♦ Introducing 22,000 new clients to
government contracting.
♦ Helping to create or retain 320,000 jobs.

13. MORE ABOUT PTACS
♦ JARI PTAC
• www.jari.com/services_procurement.html
♦ PTACs in Pennsylvania
• www.paptacs.org
♦ All PTACs
• www.aptac-us.org
♦ Defense Logistics Agency (DLA)
• www.dla.mil

14. TAKEAWAY
♦ PTACs are sources of expertise that can
assist you with many aspects of doing
business with governments at the
Federal, state, and local level.

15. CLASS ROLE CALL
♦ Your name and company name.
♦ Your title.
♦ What your company does in 5 words or
fewer.
♦ What you are hoping to get out of today’s
class.

16. ASSUMPTIONS FOR TODAY
♦ You are “basic” computer savvy:
• You can open a browser.
• You can load and navigate websites.
• You can use search engines.
• You know what “plug-ins” are, what each is
used for, where to find them, how to install
them, and how to use them.
♦ You are “basic” government contracting
savvy.

17. ♦ MARKETING DEFINED

18. MARKETING 101
♦ Class interview: What is “Marketing?”
♦ Some other thoughts:
• Simple: The process of interesting potential
customers and clients in your products and/or
services.
• Complex: An integrated communications-
based process through which individuals and
communities are informed or persuaded that
existing and newly-identified needs and wants
may be satisfied by the products and services
of others.

19. SUCCESSFUL GOVERNMENT MARKETING .
..
♦ . . . begins with thinking through what kinds
of problems you solve best, and then
focusing on getting that message to the
agencies that most need those problems
solved.

20. TAKEAWAY
♦ With the client as the focus of its
activities, marketing is a business tool used
to create clients and to keep clients by
informing them about how you can meet --
or even better, exceed -- their expectations.

21. ♦ WHY SELL
♦ TO THE
♦ GOVERNMENT MARKETPLACE?

22. A FEW MYTHS
♦ “With all that spending, there’s gotta be
something you can sell. All you need to do
is enroll in CCR, get on the GSA
Schedules, look on FBO, and before you
know it you’ll win an RFP and be rolling in
$$$. #@*& yeah!”
♦ “It’s all rigged for the big guys or those with
inside connections.”
♦ “It’s so complex you’ll never understand it.”
♦ “A special certification will win you all the
business you can handle.”

23. A FEW CONVENIENT TRUTHS
♦ U.S. governments spend about $4 trillion
each year.
♦ They buy EVERYHING!
• Aerospace, ground vehicles, security.
• Information technology.
• Construction.
• Energy.
• Professional services.
• Food, clothing, shelter.

24. OTHER REASONS
♦ Typically want/need to work with small
business.
• Target quotas and set asides.
♦ Spending is relatively consistent compared
to the private sector.
♦ Pays bills on time.
♦ Decision making is transparent.
• Possibly several individuals, but you’ll know
who they are and what they based their
decision on.

25. TAKEAWAY
♦ Government business can be lucrative, and
government buyers are typically good
customers/clients. However, you do need
to know how to do business with them to be
successful.

26. ♦ PREREQUISITES

27. YOUR BIG PICTURE BUSINESS PLAN SEZ:
♦ “Set asides look like low hanging fruit.”
♦ “I want to grow my business into new
market niches.”
♦ “I want to balance my existing commercial
business with some government business.”
♦ “I know I can fill a need that the
government has.”
♦ “This recession is killing me. My cash flow
is drying up. I need more business NOW.”

28. QUESTION YOUR READINESS
♦ Does government business strategically fit
with your business plan?
♦ Working capital: Getting government
business may take years. Can you survive
financially until you get your first government
paycheck?
♦ Track record: One of the most important
considerations for government buyers. How
have you satisfied previous clients with similar
problems?
♦ Capacity: Do you have the resources to take
on government work?

29. PRELIMINARY MINIMUM REGISTRATIONS
♦ Federal Government:
• CCR (DUNS, NAICS, etc.)
• DSBS
• ORCA
♦ Pennsylvania Government:
• PA DGS
• PennDOT
♦ Other States / Regional / Local
♦ Prime Contractors

30. OTHER REGISTRATIONS
♦ Federal Government:
• Agency specific.
• Socio-economic classification:
HUBZone, SDVOB, WBE, MBE/SDB/8(a), Vet,
AbilityOne, Native American, Mentor-Protégé.
• GSA schedules.
♦ Pennsylvania Government:
• Socio-economic classification.
• COSTARS, ITQ.
♦ Other:
• Socio-economic: LGBT.

31. TAKEAWAY
♦ Do an internal assessment and perform the
preliminary activities you need to do before
you market yourself to the government.

32. ♦ KNOW YOURSELF

33. ♦ In other words, what are the features of
your company and the benefits those
features bring to doing business with your
company?

34. WHAT DO YOU DO?
♦ Construction: General contractor, specific
trade, buildings, roads, bonding limitations.
♦ Professional, technical, or labor supply:
Technology
development, training, janitorial, non-
construction trades.
♦ Commodities: Commercially available
items. Can buy with a credit/debit card.
♦ Specification manufacturing: Custom-built
items.

35. WHAT ELSE IS IMPORTANT TO CONSIDER?
♦ Size.
• Only small businesses can compete for
Federal contracts offered between $3K and
$150K.
♦ Socio-economic classifications.
♦ Geographic limitations.
• How far can you provide products / service?
♦ Certifications and accreditations.
♦ Green?

36. WHAT ARE YOUR CORE COMPETENCIES?
♦ The fatal mistake: “We can do everything
and anything, and if we don’t, we’ll get right
on that!”
♦ “Core” is not everything you do, but the
major expertise areas of your firm.
♦ A fundamental, unique ability or main
strength that is not easily imitated and
provides value to clients/customers in a
given field creating a competitive
advantage.

37. EXERCISE 1: CLASSIFY YOUR PRODUCTS
♦ Create a list of your product and service
keywords.
♦ Locate the NAICS codes for your product
and service keywords.
• www.census.gov/eos/www/naics/
♦ Locate the FSC or PSC codes for your
keywords.
• www.drms.dla.mil/asset/fsclist.html
• www.outreachsystems.com/resources/tables/p
scs/

38. SOME ADDITIONAL IDS
♦ NIIN: National Item Identification Number.
• 9 digit. 2 digit country code followed by 7 digit
Federal Catalog System (FCS) code.
♦ NSN: National Stock Number.
• DLA items. 4 digit FSC + 9 digit NIIN.
♦ NIGP Commodity Services Code: National
Institute of Government Purchasing.
• Used by 1,400 state and local government
entities. 3, 5, 7, and 11 digits.

39. WHAT DO GOVERNMENT BUYERS LOOK
FOR?
♦ Class interview: What do you think
government buyers look for in a vendor?
♦ Survey Says:
• Reliability/Stability
• Timeliness
• Relationship/Partnership
• Good Communication/Responsiveness
• Honesty
• Can follow procedures
• Quality

40. DIFFERENTIATION STRATEGY
♦ Government business is just as competitive
as commercial business.
♦ Requires a clear value statement that puts
your business above other potential
contractors.
• Relates to specific problems of a specific
government agency you are targeting, if
possible.
♦ What is it about your
company, services, people, products, etc.
that will allow the purchasing decision

41. ULTIMATELY: THE CAPABILITIES
STATEMENT
♦ A briefing that tells potential government
clients what you can do. It communicates
your best values and the results your
clients should expect from you.
♦ Common elements:
Name, demography, history, problem/soluti
on, expertise, resources, certifications, key
features and benefits of
offerings, successes, differentiators.
♦ Styles: Brochure, booklet, html, pdf . . .
♦ Guidance and examples at www.jari.com.

42. EXERCISE 2: CAPABILITIES STATEMENT
♦ Write a short paragraph (no more than two
or three sentences) describing what your
company “does.”
♦ “Bulletize” your core competencies.
♦ Identify a differentiator and draft one to
three sentences explaining it to a client.
Focus on why this differentiator is a reason
for people to do business with you.
♦ Homework: Revise or create your 1 to 2
page (max) “introductory” capabilities
statement.

43. TAKEAWAY
♦ If you don’t know yourself the way
government buyers want to know you, you
won’t be successful in this market.

44. ♦ WHO NEEDS YOU?

45. A TARGET RICH ENVIRONMENT
♦ Federal government agencies.
♦ Military branches and related.
♦ Military installations.
♦ 50 state governments plus territories.
♦ 3,034 U.S. county governments.
♦ 19,400 municipal governments.
♦ Quasi-government: Public
authorities, airports, hospitals, school
systems.
♦ Prime contractors and high-tier
subcontractors.

46. EXERCISE 3: CLIENT QUICK FIND
♦ Perform a Google search (or use your
preferred search engine) to identify as
many military installations in PA as
possible.
♦ Find the supplier pages and determine if an
installation might be a buyer of your
products and services. (If you can’t find a
link, use the site search if available for
“supplier” or “supplier diversity” or “doing
business with” for starters.)
♦ Extra credit: Look in OH, WV, and MD.

47. TARGETED MARKET RESEARCH APPROACHES
♦ Class interview: What marketing strategy
information can you get from a
procurement history / backcast?
♦ Federal:
• www.fedspending.org
• www.usaspending.gov
• www.fpds.org
• www.ffata.org

48. TARGETED MARKET RESEARCH
APPROACHES
♦ Pennsylvania:
• www.patreasury.org (e-Contracts)
• www.emarketplace.state.pa.us

49. EXERCISE 4: PROCUREMENT HISTORY
♦ Visit at least one of the Federal
procurement history websites and identify
an agency that has previously bought your
products or services.
♦ Visit at least one of the Pennsylvania
procurement history websites and identify
an agency that has previously bought your
products or services.

50. TARGETED MARKET RESEARCH
APPROACHES
♦ Class interview: What marketing strategy
information can you get from a
procurement projection / forecast?
♦ Federal:
• Acquisition Central
(https://www.acquisition.gov/comp/procuremen
t_forecasts/index.html)
♦ Pennsylvania:
• www.emarketplace.state.pa.us

51. EXERCISE 5: PROCUREMENT PROJECTION
♦ Visit at least one of the Federal
procurement projection websites and
identify an agency that has plans to buy
your products or services.
♦ Visit the Pennsylvania procurement
projection website and identify an agency
that has plans to buy your products or
services.

52. TARGETED MARKET RESEARCH
APPROACHES
♦ Class interview: What marketing strategy
information can you get from procurement
activity?
♦ Federal:
• www.fedbizopps.gov
• www.grants.gov
♦ Pennsylvania:
• www.emarketplace.state.pa.us
♦ Subcontracts:
• Prime contractor websites
• SBA SUB-Net

53. EXERCISE 6: PROCUREMENT ACTIVITY
♦ Visit fedbizopps and identify an agency that
has an open solicitation to buy your
products or services.
♦ Visit e-Marketplace and identify an agency
that has an open solicitation to buy your
products or services.

54. SOME OTHER MARKET RESEARCH
SOURCES
♦ News Articles
♦ Business Periodicals/Trade Journals/Specialty
Publications
♦ Government Publications
♦ Networking Clubs
♦ Trade Associations
♦ Annual Reports
♦ Business Guides - Dun and Bradstreet, Moody's and
Standard & Poors
♦ Electronic Databases
♦ Trade Shows
♦ Walking Around Marketing
♦ Commercial Mailing Lists

55. TAKEAWAY
♦ Selectively identify the most promising
government prospects that can use your
products and services. Don’t Shotgun!

56. ♦ HOW GOVERNMENT BUYERS BUY

57. VEHICLES, IN SIMPLEST TERMS
♦ Federal micro-purchases:
• < $3000 threshold, typical for credit card
purchases.
♦ Supply schedules:
• GSA, COSTARS, ITQ.
♦ Solicitations:
• IFB/RFQ (low price), RFP (best value).
♦ Federal reverse auctions:
• www.fedbid.com

58. TIMING CAN BE IMPORTANT
♦ Federal fiscal year begins __________
♦ Pennsylvania fiscal year begins
__________
♦ Four quarters of budget flow:
• Q1: Funding may not be complete.
• Q2: Funding flows begin in earnest.
• Q3: Purchasing accelerates.
• Q4: “Use or lose” buying surge

59. RULES OF THE GAME
♦ Federal:
• Federal Acquisition Regulation (FAR)
• Online: https://www.acquisition.gov/far/
♦ Pennsylvania:
• Department of General Services Procurement
Handbook
• Online:
http://www.portal.state.pa.us/portal/server.pt/co
mmunity/procurement_handbook/14304

60. PEOPLE MATTER MOST: GUIDES
♦ Federal: OSDBU (Office of Small and
Disadvantaged Business Utilization)
• www.osdbu.gov
♦ Pennsylvania:
• Bureau of Minority and Women Business
Opportunities
♦ Large Primes: SBLO (Small Business
Liaison Officer)
• Small business area of website. See
www.jari.com.

61. PEOPLE MATTER MOST: DECISION
MAKERS
♦ Contracting Officer (CO):
• Cares mostly about: Legal, fair, and proper
process. Your readiness to do business.
♦ Program Manager (PM):
• Cares mostly about: How best to perform
agency mission. Value. Past performance.
♦ End User:
• Cares mostly about: Getting the job done with
the best stuff to do it.

62. EXERCISE 7: FIND A GUIDE
♦ Visit the OSDBU website and identify the
small business rep for one of the agencies
you identified previously that buys your
products or services.
♦ Visit a large prime contractor website and
identify one or more small business reps.

63. TAKEAWAY
♦ The government marketplace has
similarities with, and differences from, the
commercial marketplace. It’s important to
understand both. No matter where you
market and sell, relationship development
is the most important aspect of marketing.

64. ♦ MARKETING TOOLS

65. AN ALMOST ENDLESS LIST
♦ Business cards.
♦ Elevator pitch.
♦ Capabilities statement:
• “Introductory” for initial contact.
• “Detailed” for capability briefing.
♦ Websites:
• www.yourcompanyname.com.
• Directories. (CCR, DSBS, PA
Sourcenet, Business)
• Social media.

66. AN ALMOST ENDLESS LIST
♦ Direct mail. Snail and electronic.
♦ White papers and news articles.
♦ Telemarketing.
♦ Conferences and trade shows.
♦ Ads.
♦ Agency outreach and matchmaking events.
♦ Pre-proposal notices.
♦ Lobbyist.

67. TAKEAWAY
♦ Many different avenues exist for connecting
your markets’ wants and needs with your
company’s products and services..

68. ♦ WRAP - UP