Government spending is enormous ($60 billion annually for IT-related goods and services alone) and reassuringly stable. A shocking trend, meanwhile, has emerged: fewer technology firms will sell directly to the government in 2005 than they did in 2004. Do you desire a piece of the pie?
Here are concrete government marketing solutions you can apply, whether you're a subcontractor looking to advertise directly or an established contractor looking to grow your market share.
The top five marketing difficulties
Marketing to the government is not an easy undertaking because it is a sizable, segmented market with several audiences.
1. Target by sub-sub-department is the first challenge.
Saying that you wish to market to the Department of Treasury is insufficient. Under Treasury, there are thousands of offices and hundreds of divisions, according to Neumann. "Treasury is the department that oversees ATF, and ATF has significantly different requirements than the IRS. Therefore, if your sales force is concentrating on ATF, sending an email blast to Treasury won't be of any assistance to them."
2. There are numerous decision-makers
In an ideal scenario, Neumann says, "I can obtain a signature when I sell to a commercial company in one day." You might speak to one person in the government who then has to contact individuals in some other departments, such as procurement and finance.
3. Different issues from those in the private sector
ROI is typically a factor in commercial decisions, however, with government, different audiences have different priorities, such as the PMA, FISMA, or congressional oversight.
Additionally, as evidenced by research recently released by MarketingSherpa's IT Marketing Benchmark Guide, government employees are currently more concerned with receiving high-quality customer service than with paying a premium price for high-tech goods and services.
4. Results are harder to follow
It's more challenging to track your sales when you launch a lead generation campaign for a government contract. While the customer may be in Maryland and the contracting offices will be the ship-to address, the Army purchasing office may be located in Kansas. "You can examine total sales, but if you're examining a single email campaign, it's difficult to demonstrate that that particular effort had an influence."
5. Extended sales cycle
What does all of this mean? Because it's challenging to judge whether marketing to the government is effective when you base your assessment on one approach or activity, Neumann advises against running a test campaign before launching the entire campaign. You can either enter with full force and comprehension of the problems, or you can enter not at all.
Three Government Marketing Solutions to get government contracts despite the obstacles
1. Study
One of the vital government marketing solutions is to look at your current business activities and consider how you may capitalize on them first. Determine how your goods and services complement governmental programs.
If you want to concentrate on the Department of Treasury, for instance, consider whether you should drill down even further within that organization to see if other departments (like ATF) there might also need your services. Ask not just who might need your services, but also who does.
Look for chances by checking to see if any calls for proposals are available. Do you know someone in a particular department? Do you currently hold a position with the Department of Treasury, which will allow you to contact someone at the ATF?
2. Develop and test your message (hint: it's about them, not you).
No, you cannot simply repurpose your commercial-sector marketing materials.
One of the biggest errors, according to a government marketing solutions expert, is when a corporation enters the market and talks endlessly about what they do without ever addressing the particular issues the government is experiencing.
Once your message has been polished, test it as you would in the business world. Focus groups are frequently used to distribute client messaging to an audience, according to Neumann. She verifies messages there for relevancy and plausibility. "We're testing the message to determine if it's the proper message, not just to see if it makes sense."
3. Utilize many media channels
Another error Neumann observes is when a business invests its entire budget in a single strategy. She continues, "We see someone come into the market and conduct an ad campaign and be in every issue of a publication. But because it's harder to reach your target market in the private sector, "putting forth an integrated campaign is more vital than with the private sector." One medium is insufficient.
We are also aware of the distinctive and frequently underappreciated nature of federal business-to-government marketing. But when done right, it can be quite profitable for enterprises. Government Marketing is here to assist your company flourish in this industry because we know the ins and outs of government marketing. Get in touch with us right now to find out more about our business-to-government marketing services, government marketing solutions, and how we can support your company's objectives!
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