“I want it, too,” you agree, “but all those cranes represent buildings already designed by other firms. How do the next few years shape up there for design work? Please tell me about your research.” “Well, the VP and I had a conversation about this. We think the local economy is solid and should hold that way for the immediate future, if that’s what you’re asking. What other research did you have in mind?” he asks. “Well,” you say, “here are the first questions that come to my mind when you say you want to open a new office.” You start rattling off a series of questions, such as: • How much local work could there be for us over the next one to three years? • Should we perhaps win a job there first and then open the office? • How many other architects, engineers, and full-service firms like ours already have offices there? • How do those other firms compare with us on quality and reputation? • Have we been in direct contact with the cities of Phoenix, Mesa, Tempe, and Scottsdale, as well as Maricopa County? • Have we been in contact with any private firms in the area? • Will we take our total current service mix or just a part of it? • What kind of staff will we need to start and where will they come from? Will we transfer people from our other offices or will they be new/local hires? • What are the anticipated start-up costs for office space, salaries, equip- ment and supplies, utilities, and others? By this point, the CEO has loosened his tie, mopped his brow twice, and acquired a “deer-in-the-headlights” look on his face. He says, “Well, we didn’t get quite that far in our discussions. Do we really need to answer all those questions before we make a move?” You look directly into his eyes and ask, “Do you want to still be in business a year from now?” You stare at each other for 30 seconds. “Look, I don’t want to scare you,” you say, “but with office space, a few staff people, and the necessary equipment, utilities, printing, public relations, and other things you need for a new office, we could be investing $500,000 or more just for the first year. It could be six months to a year before we land our first project, and another three to six months until we get the Notice to Proceed. I want to make sure that we’ve considered everything before we make that kind of com- mitment.” “You’re right. Thanks,” he says. “OK, get back to me by the end of the day and tell me what we need to know, how you plan to find the information, and how quickly you think we can move on this.” You type up the questions you just asked the CEO and print copies. You
Expansion plans There has to be a better reason than great weather for golf. By Bernie Siben, CPSM
Marketing research is “the process of systematically gathering, recording, and analyzing data about customers, competitors, and the market… to help create a business plan, launch a new product or ser- vice, fine tune an existing product or service… and expand into new markets” (www.wikipedia.com). That 41-word definition could very well cover every strategic market- ing decision made by any firm operating in the AEC, planning, and environmental arena. I bet most marketers often look up when their firm announces a new strategic initiative, scratch their heads and won- der, “Who made this decision with no marketing research?” Here’s a “hypothetical” situation similar to one I went through with one of my earliest clients. Imagine: You’re an A/E firm marketing manager. Your CEO walks into your office and says, “We’re going to open a Phoenix office. Please get your folks started on an announcement card, a press release, and new letterhead.” You ask, “Really? A new office? Why Phoenix?” He laughs and says, “Phoenix has a really long golf season!” But there has to be more to the decision to open a new branch office than the frequency of great weather for golf, tennis, or skiing. “Yes,” you reply, smiling, “but is there any work for us in the area? Golf is a great marketing tool, but it won’t keep our folks billable if there’s no work.” “Well, every time I go there, I see a bunch of cranes in the skyline,” he says. “I want a share of that activity for us.”
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csengineermag.com
august 2018
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