Learn the Secrets of Successfully Marketing to the World’s Biggest Customer

By  Mark Amtower

If you’re reading this, I’m assuming that you currently sell (or want to sell) to the government, whether via GWAC, GSA Schedule or an open market (micropurchase) approach. (If you do not have any track record in selling to the government, go to GovernmentExpress.com, click on “Resources,” and spend a few days clicking on the links there. This web site is a tremendous free resource for the novice—and even for the experienced contractor, because in this market, the learning doesn’t stop.) Here are a few facts to put the potential of the government market in perspective:

• The U.S. government market (federal, state and local) represents over 25 percent of the GDP. If you add in education and health care, it comprises one-third of the GDP.
• There are over 87,000 governments in the U.S when you include the feds (1), states (50), territories (5), counties, school districts, townships and municipalities, special district governments (like transit authorities) and Native American tribal nations.
• There are over 20 million full-time government employees in the U.S. The Bureau of the Census reports that there are 151 million full-time employed adults in the U.S., which means that more than one in eight employees in this country works for a government or school district. Combined, these activities purchase every imaginable business product and service, as well as some consumer products and services.

In the business-to-government (B2G) arena, we deal in the “T” word—a trillion dollars spent annually— and it grows each year!

So, you want to market to a niche audience in the biggest business arena anywhere. Where do you start?

The first thing you have to understand is that this market, like any other, is driven largely by relationships: who you know, how you know them, and what they think and know of you. Once this process is started, you may have the basis for success.

The second thing you have to know: This is a slow-moving market, and no one makes a big hit quickly. Market share grows very slowly here. The third thing you need to know is that not all traditional B2B marketing methods work well here. Even if they do work, they may need some tweaking to conform to the rules and regulations (such as government ethics standards) that apply.

Here are the marketing methods most widely used to sell to the government—plus my take on the pros and cons of each, based on my 25 years in this market.

Marketing That Works
Developing an integrated marketing campaign to reach a specific government audience is predicated on many things, but mainly two: how they buy, and how they gather information. As my friend Fred Diamond of Diamond Marketing (www.FredDiamond.com) says, marketing that does not support sales is a waste of time. So make certain your marketing plans are aligned with your company’s sales goals.

SPACE ADS are the major traditional method of getting your message out to an audience. As there are many publications that target government audiences (Federal Computer Week, Government Security, Governing, Government Product News and many more), there are many places one can advertise.

There are some problems with space advertising, though. First, it is expensive, especially when you consider that space ads work only when you buy several and run them over time. According to research in the annual federal buying study by Market Connections(www.marketconnectinc.com), space ads are not that effective in the government market.

DIRECT MAIL still works in the government market, but with several caveats. In Washington, DC, the mail is still irradiated due to the anthrax issues a couple years back. This not only delays the mail, but makes packages less than attractive when they finally get through.

Mailing to regional offices has a better chance at being delivered and being effective–if you are targeting the right people with your mailer. Catalogs are still popular with both mailers and recipients, if they are targeted to the right people.

NETWORKING: We know from experience that face-to-face contact works. Selecting the right special interest group (SIG) or association to network within is critical. There are many to choose from, and often these forums have both private-sector and public sector members. The best way to determine which group you should join is to ask your customers which groups they belong to, and find out if contractors can join.

SEMINARS & EVENTS: Another way to get valuable face time is to host your own seminar or briefing. As these happen frequently any major city, there are a couple of ways to get attention and attendees for your event. The first way is to partner with another company, association, SIG or publication to publicize it. Another way is to make it more convenient for attendees by hosting a webinar or teleseminar. While there is no face-to-face during the actual event, you can offer those who attend and need more information a visit from one of your salespeople. There is much less cost associated with a webinar or teleseminar, and attendance should be higher.

EMAIL: Without a doubt, this is the most popular method of reaching audiences in recent years—but does it work? Government officials find email as annoying as everyone else does, and they are more likely to receive more of it–until the spam filters kick in. Government spam filters are set by the agency webmasters and predicated largely on two things: the amount of email coming through from a specific ISP and the time window in which that occurs. For instance, the webmaster may say that any email from a single ISP exceeding 150 emails in a 90- minute window triggers the filter. Spam does not work here. And if you are on any government contracting list, you have surely received emails from those offering the Instant Roadmap to Government Success via an email list of your buyers. Do not, under any circumstances, buy and use this stuff.

Reputation Matters
If you want credibility in the government market, you get it in only three ways: experience (reputation), speaking at key events, and being written about in the industry publications relevant to your audience.

PUBLIC RELATIONS: There is a credibility that comes with being in an article that you can never get from ads. Reporters are perceived to interview only experts, so if you appear in an article, you are obviously an expert. Selecting the right PR firm or getting out there and meeting key editors and reporters yourself is the only way to accomplish this. I have been quoted in several government trade publications, business magazines and other publications, and I can tell you this takes lots of work and lots of trust from editors and reporters. Once these relationships are established (note the “R” word again), however, you will be quoted with some frequency.

SPEAKING AT EVENTS: Speaking at an event often requires being an exhibitor, but not always. You must contact the event at least six months prior to the conference date(s) and ask about speaking opportunities. Have a one-page bio sheet (pdf format is good) prepared with your photo, brief bio and previous speaking engagements you have done.

A good way to break in to speaking is to offer to be a last-minute replacement speaker and/or a last-minute panel replacement speaker. All conferences have last-minute cancellations. Contact the event producer again 60, 30 and 10 days out from the event to remind them you are available as a replacement. Make it as easy as you can for them to select you.

SALES REPRESENTATIVES: Sales reps visiting government offices are important components of any marketing effort, and they must go armed with enough marketing and sales collateral to cover any contingency. Work closely with your reps to understand their needs and develop whatever they need to go bring home those sales.

CONFERENCES & TRADE SHOWS: One of the best ways to increase face time is to exhibit at industry conferences and trade shows. There are too many events all over the country every week for you to be at all of them. So you pare down the list two ways. First, ask your customers which events they attend. These go on the “possible” list.

Second, see if the event producer has a history of doing events in this market. After 9/11, many fly-by-night companies emerged to offer “exclusive” events with “key government decision makers.” My experience is, the more adjectives used in the promotion, the less likely the event is to deliver. Several companies also employ high pressure telesales to get exhibitors and sponsors. Some industry associations, like AFCEA (afcea.org) and ACT/IAC (actgov.org) have long track records producing events. The Federal Business Council (fbcinc.com) produces over 100 events annually and has been doing so since 1976. Select the events you attend and exhibit at carefully.

WEB SITE: The most important item on the list is your company web site. In order to compete successfully in this market, you must have a web site that “speaks government”–that uses the language of the public sector and understands and treats this market as separate from the business world. Government is about delivering service to citizens, accomplishing missions mandated by public law, and keeping our country safe. If your web site does not address these issues, you will never maximize your market share.

If you do all of the above correctly and manage your relationships well, you will start to get the much-desired colleague referrals. These are worth their weight in gold, as they cannot be purchased and they are coming from people that government buyers respect and trust. Now, you are well on your way to achieving success in the biggest market in the world.

Mark Amtower, founder of Amtower & Company, is one of the best-known marketing consultants in the government market. His web site, FederalDirect.com, is one of the most visited pages in the government industry, and his book Government Marketing Best Practices (GovernmentMarketingBestPractices.com) is in its fourth printing. Every month tens of thousands read his enewsletters and books, listen to his radio show “Amtower Off Center” on FederalNewsRadio.com, and attend conferences and events to hear him speak. He consults with a limited number of CEOs each year. He can be reached at Mark@FederalDirect.com.