Marketing to State Entities

1. 2011 Procurement Connection Seminar Marketing to State Entities A Five-Point Strategy for Marketing to State Entities

2. Introduction • Marketing is the process of defining your product or service, identifying your customer and selecting the most effective way of offering your product or service as fit for the customer’s needs or desires. • A Five-Point Strategy for Marketing to State Entities • Research • Developing SMART Goals • First impressions: Indirect Contact • First impressions – Direct Contact • Building Partnerships

3. Research Industry Analysis Understanding the industry you are in, the history of that industry, its current challenges and the potential for future growth are critical aspects of the marketing planning process.

4. Research Market Analysis • The more specifically you define your target market, the more effectively you can communicate your value to that market. The following resources provide information about state government procurement processes. Understanding these processes will allow you to tailor your marketing efforts specifically to state purchasing needs. Two available resources are: • Vendor Guide – The Comptroller’s Vendor Guide is available online and offers a wealth of information to help vendors better understand the state of Texas purchasing process. www.window.state.tx.us/procurement/pub/vendor_guide.pdf • HUB Report – Twice a year state entities report their expenditures by specific category. Use the report to determine which entities might be the best matches for your products or services. www.window.state.tx.us/procurement/prog/hub/hub-reporting

8. Note: These are not Class and Item Codes

12. Research Competitive Analysis Competitive analysis is an exploration of the companies in a given industry sector or market niche that are competing for market share with your company’s products or services. One possible analysis might be an in-depth exploration of your top five competitors, or a simple product or service comparison of a larger number of competitors. Accessing the Centralized Master Bidders List (CMBL) to study competitor profiles in your area is a convenient way to acquire information without having to roam multiple websites or databases.

13. Research Internal Analysis Know your company’s capabilities. Consider conducting a SWOT Analysis • An analysis of company Strengths should be market oriented/customer focused to meet customer needs. • Weaknesses refer to any limitations a company faces in developing or implementing a strategy. Weaknesses should also be examined from a customer perspective because customers may perceive weaknesses that a company cannot see. • Opportunities are external chances to make greater sales or profits in a business environment. • Threats are external elements in the business environment that could create difficulties for a business.

14. Research Positioning Statement • Utilize your research to develop a strong Positioning Statement • Describes to your target customer the benefit of purchasing your product/service, and • Illustrates how your company stands out from all the others in your field. • Select several strong selling points to showcase when networking with state entities.

15. Developing SMART Goals • Specific: Specific goals allow you to focus and develop a structure for the successful sale of your product or service. A project outline is an excellent tool. • Measurable: Setting milestones to track your progress will assist you in maintaining focus and providing motivation as you complete them. • Attainable: Goals must be attainable and realistic within the guidelines of the state’s procurement processes. • Relevant: Your goal needs to be relevant to the project! Goals for securing a private sector contract may be completely irrelevant to state procurement processes. • Timely: Your goal needs to have a well-defined endpoint! In addition to keeping your motivated, state procurement is bound by deadlines. A missed deadline means a missed opportunity.

16. First Impressions: Indirect Contact Critical State Databases • The Centralized Master Bidders List (CMBL) is a master database used by State of Texas purchasing entities to develop a contact list for enrolled vendors to receive bids based on the products or services they can provide to the state. • Each state agency shall make a good faith effort to utilize HUBs in contracts for construction, services (including professional and consulting services) and commodities purchases. The Statewide HUB Program provides HUB certification for minority and woman-owned businesses in the State of Texas. Vendors seeking certification as a HUB are required to submit a completed HUB certification application and supporting documentation, affirming under penalty of perjury that their business qualifies as a HUB.

19. 96 vendors found where class code (1) is '620', item code (1) is '79' or 'all', district flag (1) is '14' or 'all' sorted by name. (Inactive vendors listed in italics)

20. 57 vendors found where class code (1) is '620', item code (1) is '79' or 'all', district flag (1) is '14' or 'all' sorted by name. (Inactive vendors listed in italics)

21. First Impressions: Indirect Contact Vendor Profile Ensure your company information is always current: • Email • Business Description • Class and Item Codes

27. First Impressions – Direct Contact HUB Coordinators HUB Coordinators are your individual contacts at state entities. They offer assistance and valuable guidance on their agency’s purchasing requirements and processes. Tips to ensure your first meeting is productive: • Once you determine that their entity purchases your product or service, ask if they have a current contract for that product or service (if so, ask for the contract end date) or whether they purchase as the need arises (spot purchases) • Ask them the best way to introduce your company to their purchasers. • Attend Economic Opportunity Forums Events (EOF) to network and learn more about the state processes.

28. First Impressions – Direct Contact Email tips • Clearly identify your company and your main product or service • Make sure that the content of your e-mail is concise and error-free • Select your contact carefully and limit the frequency of your e-mails

29. This page will provide general description of an HUB Coordinator. Below the first paragraph is a hyperlink titled “HUB Coordinator List”

30. This will provide a list of state agencies and universities

31. Their profile will indicate the contact information for several positions, including Agency Head.

32. If you scroll down you will find the HUB Contacts

33. To download the complete HUB Coordinator list, Choose the hyperlink “Click here for download versions

34. Choose the file hubcords.dat

35. From you browser choose save as.

36. Save the document as an Text File

37. Open an next excel document and open the file you save. Ensure you look in all files.

38. For step 1 of 3 of the Text Import Wizard simply choose next

39. For step 2 of 3, select the comma field under delimiter and then choose finish

40. This will provide a complete database of the HUB Coordinators and other contacts.

41. Building Partnerships • HUB Subcontracting Plan When a state contract’s expected value is $100,000 or more, state entities look for subcontract­ing opportunities. If opportunities are found, bidding vendors must submit a subcontracting plan showing potential use of certified HUBs. • Mentor Protégé Program The State of Texas Mentor Protégé Program is designed to foster relationships between prime contractors and Historically Underutilized Businesses (HUBs). The objective of the Mentor Protégé Program is to provide professional guidance and support to the protégé (HUB) in order to facilitate their growth and development and increase HUB contracts and subcontracts with the State of Texas.